Wednesday, October 26, 2011

Study: Digital video advertising to grow 25% in 1 year

A survey of advertisers and agencies shows that digital video advertising is expected to increase 25 percent over the next 12 months in the United States, Casale Media Research announced today.

This means that in the next 12 months, digital video advertising will make up about 23.8 percent of total online ad budgets, according to the study, “Digital Video Advertising: Removing Barriers Equals Greater Opportunities.”

Video is the fastest growing spending category for online media, and although this study shows just how fast that is, it is not without barriers, the study stated. Planning, creative and execution of video ad campaigns would likely be booked more often if they were “more simple and painless.” Survey respondents said that planning (38 percent), creative (40 percent) and execution (35 percent), continue to pose problems.

The most common reasons marketers don’t use digital video ads is because they are too difficult to measure ROI (40 percent) and there is “not enough ROI to justify increasing spend (38 percent), the survey found.

However, despite these drawbacks, 80 percent of the survey respondents said they use video ads to increase awareness of traditional and new brands, products and services.

Image: Coldplay American Express video ad on YouTube

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