• 83% of Ad Buyers Expect to Increase Online Video Spending in 2017

    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!)

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