TV budgets driving growth of video advertising

A The Web TV Enterprise product story

Edited by the Marketingweek Marketplace editorial team Mar 9, 2010

Research from Web TV Enterprise has suggested that media buyers' primary objective is to deliver incremental reach to television.

Findings from the second bi-annual UK Online Video Advertising Market Report show that more than 40 per cent of media buyers now use video advertising campaigns for this purpose, indicating that television budgets are driving growth of the market.

Only 19 per cent of the 135 media buyers surveyed stated that measurement of click-through rates is important to their campaigns - another indication that online video advertising is being driven by brand awareness coming from television budgets.

Web TV Enterprise said the survey revealed that video advertising now appears on more than half of media plans, demonstrating that the growing audience of professionally produced content on the web is starting to have a big impact.

The UK Online Video Advertising Market Report found that the number of campaigns being booked has tripled in the last six months, suggesting confidence among media buyers is growing.

Forty per cent of respondents said they had booked between on 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.

Thirty one per cent had booked more than 10 video advertising campaigns in the last six months.

Despite the number of campaigns growing, average spend on video campaigns remains the same- between GBP10,000 and GBP25,000.

However, 19 per cent of those surveyed claimed their average campaign spend was more than GBP50,000 - up from 12 per cent six months ago.

The research also shows that the majority of media buyers - 63 per cent - intend to allocate up to 50 per cent more of their budget to video advertising in 2010, with 13 per cent allocating more than 50 per cent.

Twenty-two per cent of those questioned say budgets will remain the same.

When asked if anything was holding them back on investing more spend into video advertising, lack of measurement was the most common complaint with 34 per cent agreeing.

This echoes results from Web TV Enterprise's first bi-annual report.

Other results from this survey show that 21 per cent were held back by rates, with nine per cent not sure of audience reach.