An Inside Look at Demand Side Perceptions of Digital Video Advertising

An Inside Look at Demand-Side Perceptions of Digital Video Advertising, a comprehensive survey examining the views of marketers and agencies, reaffirms that the shift in ad dollar allotment has solidified. The study, released by IAB and conducted by Advertiser Perceptions, shows that 69% of marketers and 55% of agencies plan to increase their Digital Video Advertising (DVA), with a 22% growth predicted in the next 12 months. Those surveyed project they will spend 17% of their total online display advertising budget on DVA in the next 12 months. The results of the study were announced at the IAB Digital Video Marketplace where almost 400 industry executives gathered to address the most pressing issues across the digital video platform.

Some of the 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 migrate 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.
  • The preferred pricing model is CPM.
  • A majority of marketers and a majority of agencies believe they should each be responsible for deciding whether to use DVA and how much budget to allocate to it.