Budget increases on online video, mobile video outpace all other online categories, says study

Online video advertising services provider BrightRoll today released its third annual Online Video Advertising Report. The report includes new data that shows planned spending on online video is growing faster than all other online categories, with dollars being re-allocated in large part from TV and display ad budgets.


Online video advertising services provider BrightRoll today released its third annual Online Video Advertising Report. The report includes new data that shows planned spending on online video is growing faster than all other online categories, with dollars being re-allocated in large part from TV and display ad budgets.

Mobile video plays a large part of video advertising as well, ranking a close second in the study. According to the study: “Ad units offering interactivity and the ability to reach consumers on the go are of the utmost importance to advertisers. One example of this would be mobile ad units. A recent study from the Yankee Group found that Americans now spend an average of one hour and eighteen minutes per day on their mobile phones, and so the interest in mobile video makes sense. Online and mobile video’s combination of sight, sound and motion allows brands to reach a sophisticated and highly desirable demographic and is likely to show strong growth throughout 2011.”

Findings from the 2009 and 2010 surveys highlighted online video as a rapidly emerging category, though respondents expressed concerns over the lack of well-defined success metrics and a shortage of accepted industry standards. Previous participants were also interested in better understanding online video’s ROI and more effectively leveraging the medium’s targeting capabilities.

This year’s survey found that the category is still seeing rapid growth and has now become a staple in the online ad buy. The roll out of mobile video inventory, increased adoption of industry standards and introduction of sophisticated targeting tools have all contributed to this growth.

Additional key findings from the report include:

• 28% of buyers revealed that they expect to see the greatest increase in ad spending in the online video category for 2011, followed by mobile video (27%) and social media (25%)
• 86% of respondents are shifting at least part of their display dollars over to video, while 64% plan to shift TV dollars to video; budgets are also migrating from search, social media and direct response, though in slightly more modest numbers at 28%, 27% and 26%, respectively
• Nearly two-thirds of respondents indicated that online video is equally as effective, if not more effective, than television advertising
• 41% of media buyers view targeting as online video advertising’s greatest attribute, representing an increase of nine percentage points from 2010
• For the third year in a row, buying directly from online publishers was reported as the dominant means of purchasing inventory (52%), followed by ad networks (31%), broadcasters (10%), portals (6%) and ad exchanges (2%)
• 96% of respondents indicated that research into the efficacy of online video helps drive value for advertisers, though just 35% are conducting research of their own

“Looking over the results of this year’s survey, it’s clear that online video is fast becoming a fixture in the media buyer’s toolkit. The industry continues to deliver improvements in campaign targeting, reporting and effectiveness,” said BrightRoll CEO Tod Sacerdoti. “Our hope with this survey is that it will contribute to a growing body of research that helps underscore and validate the effectiveness of video’s ability to reach online audiences, while highlighting those areas that need to be addressed in order to continue to propel the category forward.”

The 2011 Online Video Advertising Report is part of a larger company-wide initiative to further industry research, and comes on the heels of BrightRoll’s recent $1M pledge towards advancing research initiatives in the space. To download a full copy of the report, click here.

About BrightRoll
With more than 70 million monthly unique viewers, BrightRoll is the world’s largest and most trusted video ad network and the leading provider of online video advertising services. The BrightRoll Network has access to billions of video impressions per month enabling advertisers to execute smart online video campaigns across a massive pool of web and mobile video inventory. BrightRoll’s proprietary buying technology, combined with its full site disclosure, detailed performance reports and flexible targeting provide brands and agencies with the reach, frequency and scalability needed to achieve their campaign goals. BrightRoll is a privately held, venture-backed company headquartered in San Francisco, California. For more information visit http://www.brightroll.com or read more on BrightRoll’s blog.