Marketers and Agencies Plan to Increase Digital Video Advertising

In my earlier post today, I noted that B2B marketers are likely to be cautious with their budget allocations to online display. However, one segment of online display, digital video, is poised for growth in 2011.  A new survey from the Interactive Advertising Bureau (IAB) shows a marked increase in the use of digital video advertising this year.

The IAB survey, which polled marketers and agencies, found that the digital video advertising channel will grow by 22% in 2011. Over half of marketers, (69%) and agencies (55%) will increase their spending in this channel.

When the entire advertising budget is considered, about 17% of the total will be allocated to digital video. In most cases, this funding will be diverted from the TV ad budget. Many in the ad industry believe that digital video delivers a better ROI:

  • Agencies: 53%
  • Marketers: 62%

When shifting funds to digital video, both agencies and marketers consider targeting, results, reach and cost. For now, both agencies and marketers say that a better ‘proof-​of-​performance’ reporting system or improved ROI mechanisms would speed the transition to digital video advertising.

The survey also revealed that agencies and marketers believe that specific formats work best for digital video advertising.  Preferences include pre-​roll ads, the CPM pricing model and an ad length of 15 seconds.

Marketer opinions about and plans for digital video advertising uncovered by the IAB largely echoed the findings of the Small Business Marketing Forecast released by Ad-​ology earlier this year. It seems that businesses of all sizes and their agencies expect to make the digital video channel a top priority for 2011.

[Source: Demand Side Perceptions Digital Video Advertising. IAB​.net March 2011. Web. 14 Apr. 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.