Online Video Ad Budgets To Increase 50% In Next 12 Months?

Online Video Ad budgets are set to explode according to new research and expand more than 50% over the next 12 months. The research, conducted by Web TV Enterprise, surveyed media buyers (presumably in the UK where the company is). Around 97% booking pre-roll ad campaigns now said they would be continuing at their present levels or increasing their spend.Generally when research of this nature comes from an advertising network I'm skeptical. It always sounds to me like they are attempting to toot their own horn or drum up more business by urging clients to buy more through thinly veiled peer pressure that may or may not exist. So take all the numbers in this study with that thought in your minds. Oh and remember, they only surveyed 101 media buyers to get these numbers. Maybe they have overly optimistic media buyers or maybe they specifically chose that group based on some other statistic.

The research also said that while a quarter of firms surveyed are spending between 25,000 and 50,000 British Pounds a year the majority of online video ad budgets are still below that. These are pre-roll budgets it seems with ads being between 10-20 seconds. Of the 97% that claimed the budgets would increase an astounding 54% said that their budgets were predicted to increase as much as 50% (probably the top end figure in a range like 35-50%) within the next 12 months.

The shift to online video ads is no surprise as it's proving profitable for many companies already including ITV who makes more money streaming X Factor online per hour than it does on TV.

Looking at the demographics of those watching video online they tend to represent a younger crowd with the majority being under 34 so that means obviously it's a good place to market if that's who you're looking to reach. Their limited research also showed that among those 101 media buyers 67% agreed that it was driving brand awareness and 70% stated that pre-roll solus ads are the preferred mode and 82% said they were better than multi spot pre-rolls.

Really, how much advertising do they expect people to sit through? One 10 second spot is enough for me. If it stretches into 20 seconds or multiple ads roll, I will try go to find content elsewhere even if  I do stay to watch that particular video.

Of the 101 media buyers, half are also buying in TV, over one-third booked multiple campaigns (another 39% said 1-5 but we don't know if they had single or multiple there). Almost all said they know what content their ads are showing up with.

If you're interested in reading the entire report you can grab it here.

About the Author -
Christophor Rick is a freelance writer specializing in technology, new media, video games, IPTV, online video advertising and consumer electronics. His past work has included press releases, copy-writing, travel writing and journalism. He also writes novel-length and short fiction as part of Three-Faced Media . View All Posts By -

What do you think? ▼
  • Julian martinez

    Interesting read - as you say, you have to question the source of this information, as there's an obvious conflict of interest. But the only thing that may be inflated is the timeline - 50% growth in 12 months is insane! However, on the flipside, I think all indicators point to exponential growth of online video ads coming soon, I just don't know if within 12 months is TOO soon?

  • http://intensedebate.com/people/ChristophorRick ChristophorRick

    Well if you take into account that the end of calendar and fiscal year for many is approaching, it could be due to that. However the extremely limited range of the survey (media buyers already buying pre-roll ads) really takes a lot of power out of the results how I see it. I don't doubt there will be growth that's a given. But the amazing numbers this survey puts forth are unrealistic to me.