Advertisers Divert Funds From TV To Online


The use of the internet in advertising has been on a strong rise naturally attributing to the number of viewers a method or platform receives, and it is a trend that more and more advertising companies are picking up on, according to video advertising specialists Adap.tv.

adaptv_advertising_budgets_chartThey claim that ‘big brands’ are beginning to realise the potential of online-led campaigns and are finally adjusting their financial budgets to reflect this, with diversion of funds now being seen occurring from TV advertising towards the online video market.

Collaborating with digital media website Digiday for the report ‘State of the Video Industry’, the AOL-owned company surveyed 900 advertising agencies, providers, networks, and publishers, with all reporting back on the proportions of their budget being allocated to various divisions but with a focus on online ‘video ads’, as most companies came back with the overall message that they are growing spending, with more expected to be spent in the industry next year (at least from the intentions of 91% of those surveyed).

The figures pictured represent the manner in which the allocations have changed since last year, with ‘TV Broadcast’ being amongst the most affected with 31% of its average budgets being redistributed into online video.

The process of advertising online is widely regarded as being much easier due to the more automated set-up of campaigns, whilst the increase in streaming from viewers is a clear justification for this trend, with brands increasing their ‘video advertising budgets’ by a rate of 65% from 2012′s figures.

Adap.tv’s ‘chief marketing officer’ Kara Weber said of the trends: “People aren’t watching reliably in front of their TV screens anymore. It’s shifting how brands are looking to reach consumers.”

Adap.tv’s report as a whole noted: “Looking still more closely at how much broadcast budgets could shift in the coming year, it’s important to note that this year 42 percent of all video advertising buyers said there had been no change in their broadcast spending whatsoever. So, while they say a change is likely in 2014, it may not necessarily come to fruition. Furthermore, the largest group of buyers says the decline was 10 percent or less of their broadcast budgets.

These numbers will continue to fluctuate as buyers examine their efforts in TV, digital and mobile video, and how that translates into a media mix that adapts with the rapidly converging nature of those worlds. In just the past two years, brand patronage of programmatic video channels such as exchanges and DSPs has roughly doubled, as direct to publisher purchases have declined by 15 percent.

“Audience guarantees online were expected to be a game-changer for the ‘TV-ization’ of online video. Yet some 65 percent of brands and 70 percent of agencies say that existing measurement standards do not satisfy their need for audience guarantees.”

The teething problems of the online media industry that companies will have to work around for the time being do not appear to be dampening enthusiasm too much, though, if the current spending levels are anything to go by…

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