More than two-thirds (69%) of marketers and 55 percent of agencies plan to increase their Digital Video Advertising (DVA), with 22 percent growth forecast over the next 12 months, according to a new report by the Interactive Advertising Bureau (IAB).
Those surveyed project they will spend 17% of their total online display advertising budget on DVA in the next 12 months.
Other key findings of the study include:
*Advertisers are finding that their audiences respond better to DVA, with consumers showing a higher engagement rate with online video.
*DVA is more trackable and targetable and DVA production is less expensive, making it more cost efficient.
*Marketers will shift TV ad dollars to digital video based on the belief it will deliver better ROI; agencies and television decision makers will shift ad dollars in an attempt to follow their target audiences.
*Among the different available DVA formats (pre-roll, in-banner, expandable banner, mobile video, rich media overlay and post-roll), agencies primarily use pre-roll while marketers are not committed to any specific format. Most respondents believe the appropriate length is 15 seconds.
“There was strong consensus that demand for digital video advertising was strengthening,” according to Randy Cohen, President of Advertiser Perceptions.
“It was described best by a senior agency buyer who stated that ‘Digital video is becoming an ever-more common way that our target is consuming what was traditionally broadcast content – and our target is spending more time online, and video is another way to reach and engage the target.’”