Advertisers set to increase investment in online ads

Advertisers set to increase investment in online ads
Published on Wednesday September 26, 2012  Ashante Infantry Business Reporter
Canadians are consuming digital video in ever increasing quantities and advertisers are hot on their heels.
A new study finds advertisers believe digital video to be equally or more effective than traditional television, and more than or as effective as display advertising, thus encouraging them to increase their investment in the platform.
The second annual Canada Video Advertising Report, assembled by BrightRoll and IAB Canada, is the result of polling more than 100 advertising executives at top Canadian agencies in the face of online video viewership rising 58 per cent year over year.
“Canada is actually the global leader in terms of online video consumption with 91 per cent (of the country’s online population) viewing online video; that’s even higher than the U.S. market right now, said Koushalya Subramanian, Research Manager at BrightRoll.
Consequently, and along with the rapid adoption of mobile, Canadian advertisers are re-evaluating their digital media strategies to better engage viewers across the four screens —online, mobile, tablet and connected TV — to the tune of $74 million, a 43 per cent industry increase in spending this year for online video advertising.
Some of that investment is will be by marketers who were slow to get ahead of the trend.
“As online video first started ramping up, there wasn’t a lot of information in terms of how effective it was when you compared two video platforms —TV vs. online,” said Subramanian of the reluctance in some quarters.
But now there’s plenty of feedback (Nielsen, for instance, has reported that online video ads outperform traditional television ads in recall, branding, messaging) to justify the reallocation of budgets.
And some 45 per cent of survey respondents indicated that more than half of their requests for proposals during the last year included a digital video ad component, a 10 per cent increase from 2011.
More than two-thirds (68 per cent) of respondents said digital video is equally or more effective than traditional television. And 82 per cent think digital video is more than or as effective as display advertising.
However, the report indicated a desire for standard metrics and measurement tools that allow agencies to compare digital video to traditional television in order to demonstrate campaign effectiveness, and in turn, drive revenue toward online and mobile video advertising.
In meantime, consumers can expect the continued domination of pre-roll — the brief ads that play before selected content. About 50 per cent of respondents predicted they will use pre-roll on mobile and 56 per cent on tablets in the next year
“The reason that pre-roll has been most successful is because at the point that someone clicks to view content they’re already interested and already engaged and a 15 or 30 second commercial catches them at their most interested and engaged point,” said Subramanian
Media Mayor Inc.
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