With the NewFronts kicking off next week, there’s more evidence that ad buyers are looking to shift spending to online video. AOL has released research indicating that 83% of ad buyers surveyed are planning to increase their video spending in 2017, making it their number one choice. Social was second with 81%, followed by display (79%), search (77%), OTT/Connected TV (72%) and native/content marketing (72%).
The research included 300 ad buyers and publishers, plus 1,600 consumers age 13-54 from 7 different countries, including the U.S. who watch video at least once per month.
Online video was also the top choice for advertisers shifting away from broadcast/TV, with 72% looking to move to online video and 71% moving to mobile video. No surprise, pre-roll is the top format, with 85% of advertisers (and publishers) planning to buy pre-rolls in 2017.
However, 52% of advertisers and 60% of publishers see “new formats” as top opportunities for revenue in 2017. 360-degree video was the most-cited new format (by 62% of respondents), followed by live video (39%). Meanwhile 70% of advertisers believe “there is a place for virtual reality” with 55% saying they’re already buying VR and intend to do so over the next 12 months.
Still, challenges remain. For advertisers, the top 3 cited were network traffic/audience (23%), quality of inventory (23%) and quality of consumer experience (21%). For publishers the top 3 cited were too many platforms to adapt to (45%), load times (38%) and cost of producing premium video (35%).
Programmatic also showed strong adoption, with 100% of advertisers using it for online video, allocating 45% of their video ad buying to programmatic. 82% of buyers expect to increase their programmatic spending this year. 90% of publishers expect increased programmatic revenue this year.
Meanwhile, 92% of consumer respondents reported watching video online every day, with 88% saying they watch more video than they did a year ago. 67% of consumers said they watch video on their smartphone every day and 70% watch on their desktop/laptop every day. Live video is also extremely popular, with 68% watching live more than once per week and 74% watching on smartphones. Breaking news was cited most often (62%), followed by music events (59% and sporting events (54%).
Consumers remained ambivalent about ads however, with 83% saying they enjoy the ability to skip ads before videos. They also expect video ads to be minimally intrusive, with 64% saying they expect a sub 15-second pre-roll for videos that are 1 minute or less and more than half expecting a 30-second ad for 10+ minute videos.
(Note: if you want to fully explore online video’s opportunities, join us at the 7th annual VideoNuze Online Video Ad Summit on Wednesday, June 14th in NYC. Save $100 on tickets now and win a 55-inch 4K Roku TV!)