Suzie Reider: April 2011 Archives

We hear it constantly from all sides, “Consumers are spending more time than ever online, and digital advertising is the wave of the future.” We hear this, and yet, it still seems like businesses face obstacles in bringing their promotion online. With research backing the consumer patterns of time spent online, the question we’re left with is not whether advertisers will move dollars from TV to online, but how quickly?

chart2.pngOn April 4, 2011 I debuted findings of IAB research entitled “An Inside Look at Demand-Side Perceptions of Digital Video Advertising.” The study was conducted by Advertiser Perceptions and explored the gating factors to digital advertising at the IAB Digital Video conference. To find the obstacles, researchers gathered 500 agency and marketer decision-makers representing a variety of verticals and asked them about their perceptions. The full results can be viewed here, but here’s a snapshot of the findings:

  • Types of Digital Video Advertising Used Past 12 Months - Overall, the only type of DVA used by a majority of media purchasing professionals (57%) during the past 12 months is Pre-Roll, however the gap between agency respondents (66%) and marketers (36%) is vast. In-banner has been used by more than four in ten (46%), overall, while expandable banner with video (34%) and rich media overlay (34%) have each been used by just over a third of respondents.

  • Types of Digital Video Advertising Will Use in Next 12 Months - The landscape over the next 12 months will not look all that different from the past 12 months; the only type of DVA that respondents will reportedly be used by the majority of media purchasing professionals (58%) is Pre-Roll. The gap between agency respondents (64%) and marketers (42%) is still wide, but narrowing. In-banner (48%), expandable banner with video (40%), and rich media overlay (35%) will all be more widely used, while mobile video (35%) will see some serious growth.

  • The majority of respondents planned to increase digital advertising spend (on average, by about 22%) - Respondents noted increased reach, ROI, and higher engagement levels as their rationale.

  • The majority are likely to migrate a portion of their TV Ads budget to digital video - Overall, respondents noted track-ability, targeting, and efficient spend with less production costs as their rationale. Marketers skewed towards ROI as the reason for the shift, while agencies will shift TV ad dollars to online in an attempt to follow their target audience.

  • The DVA format of choice was a :15 pre-roll on a CPM basis - When forced to select a single favorite or preferred DVA type, not surprisingly, pre-roll, the most used as well as the most planned to use, is the most preferred (30%) holding a two-to-one advantage across the board with all respondent groups over the number two type, expandable banner with video (14%).

Overall, the research supports optimism for DVA in the industry, and highlighted where progress may be slowing. Agencies and marketers believe that digital video may have better ROI and engagement but both alike want more measurability and better metrics. We’re demanding more from our campaigns, and the future is bright for digital advertising.

Suzie Reider is the Advertising Director of Display at YouTube and Co-Chair of the IAB Digital Video Committee.