Online video advertising spend to grow in 2010

Web TV Enterprise has launched the Online Video Advertising Buyers' Guide, which has suggested that online video advertising spend will grow by 50 per cent in the next year.

The bi-annual report surveyed 101 media buyers booking pre-roll advertising campaigns and found that 97 per cent were planning on either maintaining or increasing video advertising spend.

Around 54 per cent were looking at a 50 per cent budget increase in the coming year; while a further 10 per cent said they would be doubling spend.

Despite online video advertising being a relatively new advertising medium, along with brands' restricted budgets in 2009, Web TV Enterprise's research revealed that a quarter of buyers are spending between GBP25,000 and GBP50,000 on a video advertising campaign.

Of the sample, 44 per cent said they spend between GBP10,000 and GBP25,000.

However, a lack of solid measurement was cited as the main reason for cautious spending on online video advertising - a third of respondents believed this is preventing brands allocating larger budgets.

A further 24 per cent felt that a lack of research was affecting further investment.

Web TV Enterprise's survey also revealed that the primary objective for using video advertising is to drive brand awareness - 67 per cent of buyers agreed, while only three per cent selected direct response.

Almost 70 per cent of buyers questioned stated a preference towards bespoke, premium 'solus' pre-roll adverts; with 82 per cent agreeing that solus spots were more valuable than multiple spot pre-roll alternatives.

Around 97 per cent of buyers say they are confident they know which content their adverts are being run against, with 56 per cent fairly aware and 41 per cent very aware.

In addition, 87 per cent believed that viewers consume long-form content, for example catch-up television, and short-form content differently.

Half of those surveyed are currently buying both television and online video advertising.

Finally, 39 per cent of buyers have booked between one and five campaigns over the past 18 months, with 34 per cent booking more than 10.

General survey feedback also suggests confidence in the online video advertising space is high, despite budget cuts and a lack of client understanding being two of the prominent issues facing the industry at present.

Many agree that online video advertising will have a strong presence in schedules over the next 12 months.

Jamie Estrin, director of Web TV Enterprise, said: 'Media agencies have now bought into online video advertising and structured their planning and buying units accordingly.

'With a range of professionally produced content available on the web and the significant reach online video viewing delivers, the UK market is now ready for online video advertising.

He added: 'We expect the frequency of campaigns to significantly increase, along with ad budgets allocated to online video advertising, and with this will come a deeper understanding of the value online video advertising is delivering to brands.

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