Online premium publisher Casale Media recently released a new report about the projected spending on digital video advertising over the next 12 months. Casale surveyed over 150 media buyers, managers and planners at leading advertisers and agencies in the United States to develop the metrics and found that there will be a 25% increase in online digital video spending. This same amount equates to 23.8% of the total online advertising budgets.
Why Will Online Digital Video Spending Increase?
According to their research, Casale Media found a few common factors:
- Removal of barriers: A separate study by eMarketer found that 85 percent of advertisers and ad buyers are more likely to book video ads if the planning, creative and execution of video ad campaigns were more simple and painless. More than a third of those surveyed in the Casale Media study found the planning (38 percent), creative (40 percent), and execution (35 percent) phases to be difficult.
- Increasing awareness: Marketers and agencies view digital video advertising as one of the most effective ways to realize brand lift – 80 percent of the survey’s respondents use video ads to increase awareness of traditional and new brands, products and/or services.
- Measuring and realizing a return on investment: The most common responses to why marketers are not using digital video advertising more were because it is too difficult to measure ROI (40 percent) and there is not enough ROI to justify increasing spend (38 percent).
“When it comes to video, many online advertisers still perceive it as the Wild West because it continues to evolve and grow, but without giving publishers and advertisers enough control,” says Joe Casale, CEO of Casale Media. “Our research provides clarity for those involved in online media spending decisions to help identify where the barriers are, how to overcome them and realize the maximum potential of digital video advertising.”
The report is also available for download, http://casalemedia.com/dva-report.