• Survey: Almost 90% of Brands Plan to Increase Video Ad Spending in 2014

    Adap.tv and Digiday have released their Q4 2013 state of the video industry survey results, which found strong interest in online and mobile video advertising. In particular, 86% of brands anticipate increasing their online video ad spending in 2014, by an average of 65% vs. what they spent in 2012. In addition, 91% of agencies see an increase averaging 28% vs. 2012 spending.

    However, there's disagreement on how these online video ad spending increases will be funded. 42% of  agency and brand executives believe that budgets currently used for out-of-home advertising will be tapped, followed by Search (26%) and broadcast TV (21%). But when brands alone are broken out, 33% said "no other category" (implication is video spending is incremental), with broadcast TV in second (cited by 31%), display (30%) and print (19%). In a sign that plans to poach broadcast TV dollars may be over-estimated, 42% of buyers said there hasn't been any change in their spending on that media.

    One clear trend is the continued embrace of programmatic, with agencies and brands reporting a doubling of programmatic involvement over the past 2 years. But programmatic is still relatively early stage: while almost half of agencies and brands say they can find premium ad inventory in programmatic environments, only a 1/3 of publishers say they currently make their most valuable video inventory available programmatically.

    Mobile video advertising has also gained momentum, with 70% of agencies saying they're buying mobile video ads, and 43% of brands saying they do so. Both levels are up considerably since 2010. 60% of agencies and brands say they will use programmatic for their cross-screen ad spending in 2014.

    Lastly, no surprise, measurement continues to be a challenge. Two-thirds of agencies and brands don't think today's measurement standards are good enough for their audience guarantees. This is primarily due to lack of support for cross-screen measurement and lack of confidence in consistency and confidence in measurement methodologies and providers.

    The survey was fielded in September/October and consisted of 900 participants, with 43% from agency/trading desks, 25% from video publishers, 19% from advertisers and 14% from ad networks, DSPs and SSPs. It is available for free download here.

     

Related Reports

(click on any image to download report)