Marketers are reprioritizing video advertising budgets, shifting their spend from traditional to digital video, according to a recent report from Aol.
The report was based on data from an annual survey of nearly 300 brands, agencies, and publishers.
Nine in ten ad buyers say they are are shifting spend from linear TV to digital channels, with 10% of television budgets being reallocated on average.
Some 88% of marketers who are moving TV dollars toward digital channels say they are shifting that ad spend to some form of video, such as desktop, mobile, or over-the-top (OTT).
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Below, additional key findings from the report.
Digital Video Ad Types
Buyers, agencies, and brands are all most optimistic about the growth of mobile video advertising, with more than 60% of respondents in all three groups expecting budget increases.
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Buyers say the biggest challenges with mobile video advertising are attribution/measurement (55% cite as an issue) and cross-device targeting (50%).
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Programmatic Ad Buying
Some 27% of brands surveyed say they have already implemented in-house programmatic ad buying; 42% plan to do so in the next year.
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About the research: The report was based on data from an annual survey of nearly 300 brands, agencies, and publishers.
COMMENTARY: If you have an opportunity to review the latest survey published by Mixpo, you may find it as interesting as I did. According to its survey, more advertisers plan to run video ads or promotional content on Facebook than YouTube this year.
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The survey includes “125 agencies, brands, and publishers” and aims to show how advertisers are driving the trend to reach consumers on social channels. In 2014, 77.8% of respondents ran a video ad campaign on YouTube compared to only 63% on Facebook. And yes, those two platforms were the overwhelming winners when it came to this question. On the heels of all of the recent Facebook buzz, it’s no wonder the numbers jumped to show that 87% plan to run an ad on Facebook, compared to 81.5% on YouTube in 2015. There was also a big jump in agencies planning to use Twitter, Instagram, and Snapchat:
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Most Important Metric: Fan Engagement
Not surprisingly fan engagement was the winner when it comes to most important metrics for video ads on social. Shares, conversions, time spent watching and views were the next most important categories (in that order) but the respondents showed that social marketing is more than just getting exposure, it’s about creating buzz and building relationships with fans.
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Whether these agencies actually run ads or are merely planning to do it has yet to be seen, but the fact of the matter is that it’s about more than YouTube now when you talk about video marketing. Despite a slight bump in unique visitors to YouTube in March and a continuing decline for Facebook that has been happening since last August, the agencies in this survey see Facebook as the more important destination for ads.
YouTube and Video Advertising: A Shift coming?
Perhaps I use Facebook differently, but I find that I rarely see or interact with a video ad on Facebook whereas on YouTube, I feel inundated with them on a daily basis. Maybe that is why YouTube e-mailed partners about a major shift happening in their format, possibly as soon as this year?
The widespread use of programs that block advertising content has left YouTube searching for alternate ways to not only make money, but solve the problem of ads that annoy viewers. The video giant plans to offer an ad-free subscription service to its most valued partners in a new model for the site expected to cost around $10 per month and would remove ads on channels who have opted in to the deal:
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From users I’ve talked to, that price could be a bit steep for a service they have come to think of as a “free service”. Conversely, an ad-free viewing experience would be a win for viewers and creators. Viewers because they would be able to see more of the content they love without being interrupted with ads and for creators because video views would likely increase for the site based on this change.
Depending on the number of viewers who opted in to this deal and the way payouts were calculated with YouTube, it’s even possible that creators could earn more revenue than they did previously if this new venture is a success. On the heels of the Mixpo survey, it seems as if YouTube is the destination for viewers and creators but Facebook’s personal data may be giving it the edge with advertisers in 2015.
You can download the report here in return for a few details.
Courtesy of an article dated November 4, 2015 appearing in MarketingProfs and an article dated April 17, 2015 appearing in Reelseo
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