TV budgets driving growth of online video advertising
A new survey reveals that 41% of UK media buyers use online video advertising to deliver incremental reach to TV, indicating that TV budgets are driving growth.
The Web TV Enterprise UK Online Video Advertising Market Report also found that the number of campaigns being booked has tripled in the last six months, with 40% of respondents saying they had booked between one and five pre-roll campaigns in the past six months. They had previously booked the same number of campaigns over a period of 18 months. Almost a third (31%) had booked more than ten video advertising campaigns in the last six months.
Despite the number of campaigns growing, average spend on video campaigns remains the same; between £10,000 and £25,000. However, almost a fifth (19%) of those surveyed claimed their average campaign spend was more than £50,000, up from 12% six months ago.
The research also shows that the majority of media buyers - 63% - intend to allocate up to 50% more budget to video advertising in 2010, with 13% allocating more than 50%. Just over a fifth (22%) of those questioned say budgets will remain the same.
Robert Black, chairman of the IAB Video Council commented: "It's very exciting to see the growth of the market with the increase in current and projected activity. The IAB Video Council hopes that the launch of VAST (Video Ad Standards Template) in the UK, and other initiatives planned for this year, will help make it easier for all stakeholders to do business and increase growth."
Jamie Estrin, managing director of Web TV Enterprise, said: "While online video is still in its infancy, the market is starting to mature.
"Media buyers are recognising the opportunity of placing TV campaigns in front of highly targeted audiences online and reaching light TV viewers who are now regularly consuming catch-up TV and short-form video on the web."
At the start of January, Enders Analysis forecast a 6.9% increase in online advertising this year, with newspapers, magazines and television all expected to experience downturns.
