Online video advertising budgets are expected to jump sharply in 2012. Brand advertisers who purchased online video ads this year are projected to spend 47% more next year. These numbers were released in the “Video State of the Industry Survey” by Digiday.
For advertisers that didn’t purchase any video ads so far this year, 84% say they will include digital video in their campaigns in Q4 2011 or 2012.
Advertisers say they are most likely to shift spending away from display and print ads to fund the increased online video spending. While some have feared online video might start replacing TV ad spending, the report claims television ad budgets, especially for cable, are safe for now. A majority of advertisers say online video ads are a direct compliment to TV, not a replacement for TV ads.
The report, which surveyed nearly 600 advertisers, publishers, and video technology providers, says rates for video ads are up an average of 19% over last year.
Some other key findings:
• Brand engagement is the top online video campaign objective
• Sharing video via social networks is an important return-on-investment metric for buyers
• Rich media overlays, pre-rolls, and content integration are the favorite ad formats
• Page-roll, expanding video banners, and post-rolls are the least favorite
• Video ad spending on the iPad is up 18%, the highest among all devices
• Average CPM for Premium content, broadcast content online: $21-$30
• Average CPM for Mid-Tier, professionally produced content: $11-$20
• Average CPM for User Generated Content: $0 – $5
Of course, this survey was conducted in the USA. But Little Orchard’s recent discussions with some friendly ad and media agencies suggests that online video offers greater ROI into 2012 than ever before. And therefore budgets and plans are being written with heavier online video spend added. It is a combination of better technology and increased consumer demand for content that’s driving this spend.
Find out exactly how much ROI your business can achieve with online video – speak to Little Orchard now on 0845 838 7396.
Tags: affordable video, brand advertisers, cost effective video, digital video, online commercial production, online video spend, tv ad spend, video campaigns, video content, video for social media, video marketing campaign, video production Manchester, video production Milton Keynes, video ROI, video seo, web video
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