Advertisers and agencies are funneling more money into online video advertising, and they’re taking more money from TV and online display ad budgets to make it happen, according to the latest “2013 Video: State of the Industry” report from Adap.tv and Digiday.
The Q1 2013 report, surveying 759 advertising and digital media professionals, shows 72% of video buyers increased spending for online video ads over the preceding 12 months, spending an average of 53% more on the category. That’s more than double the average 20% spending increase recorded over the previous 12-month period. The spending increases are a sign of momentum with the report saying, "Those for whom online video is a marketing staple are ‘doubling down’ on the medium."
Online video ad buying continues to shift toward, but also improve upon, conventional TV ad buying, with the latest evidence that Adap.tv is now optimizing audience targeting against data from Nielsen and comScore.
As Toby Gabriner, Adap.tv's president, explained to me, the process starts with an algorithm the company has developed to predict a publisher's audience composition. The algorithm is based on numerous data "signals" (e.g. content type, time of day, browsing behavior, 3rd party profiling, etc.) that are continuously updated. The audience profiles are then used to focus on impressions that should index high against Nielsen Online Campaign Ratings (OCR) and comScore Validated Campaign Essentials (VCE).
Adapt.tv and Digiday released their latest "Video: State of the Industry" report yesterday, and among the key findings were that 62% of respondents see online video ads as a complement to TV, up from 56% last year, while just 10% see it as a replacement. In addition, 48% of respondents from brands and agencies said that TV and online video ads are planned together, with another 25% saying they will be planned together within the next 12 months.
Continuing its push to bring more efficiency to the world of online video ad buying, yesterday, Adap.tv introduced "Unified Planner," a media planning solution for agencies and advertisers to optimize campaign performance. The idea is for buyers to have access to multiple data sources, and then easily buy recommended inventory, optimize the ongoing campaign and measure results.
According to Adap.tv, Unified Planner allows buyers to create online video media plans including goals such as recommended sites for targeting desired audiences, expected reach and frequency for the sites, estimated performance, and costs. Inventory is sourced from direct buys and online marketplaces. Once the plan is created, Unified Planner allows changes to be made with visibility into campaign impact. Buying is done through spot, RTB, upfront commitment or direct buys through automated RFPs.
If you're an agency or advertiser trying to run online video ad campaigns these days, you're encountering a fractured, laborious work flow resulting from the numerous ad technology providers you need to deal with. That's the kind of friction that impedes online video getting its fair share of ad spending. To address this problem, Adap.tv is launching its "App Center" this morning, which centralizes the process for buyers to access multiple ad technologies. Adap.tv co-founder Teg Grenager explained App Center and took me through a demo yesterday.