IAB Canada and Brightroll recently put out their video advertising report for October and it seems that things are heating up for our [America] northern neighbors. It makes sense since Canadians top the world in online video consumption (20.2 hours per viewer per month) and roughly 22.3 million Canadians (90% of Internet users there) are watching video monthly. That's about 279 videos per viewer for roughly 6.2 billion videos a month.
Canadian Online Video Advertising On The Rise
While the viewership on the granite shield has been growing, it doesn't seem like the online video advertising has been at the same rate. According to the IAB Canada 2010 Internet Revenue report, just 2% of all online ad revenue was from video and that was just $37 million (Canadian dollars I'm guessing).
There's about to be a boom in it though according to what advertisers told Brightroll and the IAB. Almost 50% believe that video (online and mobile) are going to be the major categories of growth.
The combination of mobile and online video could be the major growth category in Canada for advertising in the next year if you believe that pie chart. If you throw in social media the you're pushing almost 70%. Television is definitely taking a hit it seems as is direct response and display.
A lot of the expected growth could come because online video is viewed extremely favorably in regards to effectiveness in comparison to those other categories. In fact, against all categories it is seen to be as effective or more effective than them by 50% or more respondents.
What's Freezing Things Up?
As opposed to their American counterparts who believed that lack of proper standard and metrics is holding back online video advertising, Canadians believe the price of video is the major limiting factor with over 50% of respondents citing it as the major limitation. Perhaps they need to read more ReelSEO and find all these great tips that we publish on how to make cost effective videos and then look into the ad exchanges we often talk about to find the proper places to put those ads to stretch their ad dollars.
The other 45% consisted of:
- Limited reach of video - 12% (seems they're out of touch since it reaches 90% of the CA Internet audience)
- Lack of Targeting - 11% (that could be a lack of research really since it is highly targetable, oh and that targeting can be optimized, even automatically with things like Otto at SpotX).
- Poor Inventory quality - 9%
- Ad Format limitations - 7% (this has to be an old mindset as there are at least a dozen formats out there now. Perhaps they think just pre/mid/post-roll?)
- Other 5%
Another major factor to help boost growth of the industry is better campaign measurement tools and easier comparison of online video to TV GRPs.
What this study seems to show me is that the advertisers aren't being made properly aware of the plethora of options that are available in regards to online video advertising. It also seems that they're not aware of how well video ads can be targeted and how it is possible to track the whole process from video viewing to brick-and-mortar purchasing impact. Perhaps, because it's Canada, some of that isn't fully available due to different privacy laws and regulation or perhaps it just boils down to the ad networks needing to better get their messages out and get their features and capabilities out in front of the advertisers.