Adap.tvMore agencies are now planning TV and video advertising together, according to a US-focused ‘State of the Online Video Industry Report‘ published by Adap.tv. The number of US agencies planning TV and video together jumped from 48 percent in Q1 of this year, to 58 percent in Q4. However, more than half of agencies and trading desks admit that TV and digital video planning remains too siloed within their organisations.

While media has converged, the appears the advertising world has been slow to catch up with the convergence of media. Up until recently, video has been categorised by many as ‘digital’, and has sometimes even been regarded as an extension of display advertising. The main reasons for this is that the expertise, technology and publisher relationships required to organise and traffic a video campaign are similar to those used for display advertising. Now it finally seems like video is being thought of more in terms of how it’s likely to be regarded by consumers (i.e. as a ‘TV-like’ experience) and in terms of what it is actually delivering for brands.

But in spite of the progress that has been made, more than than half of agencies and trading desks admit that TV and digital video planning remains too siloed within their organisations, with digital departments often still in charge of all digital video ad buying. Interestingly, a surprisingly high number of Adap.tv’s publisher respondents – 43 percent – say they’ve dealt directly with TV buyers.

Programmatic Buying on the Rise

The report also says the use of exchanges and DSPs for video ad campaigns has tripled since tripled from last year to this year (that’s not to say budgets necessarily tripled, but that three times more people were using DSPs/exchanges to buy). Adap.tv say agency trading desks are now being used by nearly 19 percent of brand advertisers, while the growth in programmatic buying methods has been at the expense of publisher-direct and “upfront” buying.

The last year, particularly the last six months, has seen a 20 percent increase in publishers running private marketplaces, coupled with a 17 percent drop in those planning to construct such marketplaces within the next year, which Adap.tv says means that this time next year, the number of leading digital publishers in the US running a private marketplace could approach 50 percent.

If Video is Growing, Who’s Losing Out?

But where are the budgets for online video coming from?  Display and broadcast TV rank highly, but are two of the more obvious sources — but wedged in between those two is an advertising channel that rarely even gets a mention in the digital world — print advertising:

Budget Sources for the Growth of Online VIdeo Advertising

Finally, respondents were asked to make predictions for what they thought would happen in 2013. The answers ranged from:

• Validated views will drive higher inventory value
• Addressable advertising on TV
• More fluid planning between TV and digital
• Interactive multi-channel viewing
• Proving effectiveness against TV
• Greater collaboration between broadcast and digital teams
• Increase in mobile platforms
• Integration of digital into the main TV ecosystem
• Standardization of verified viewability
• Apple-to-apples measurement of TV and online
• Customized web-based channels
• Acceptance from brand clients
• More RTB transactions
• Rise in trading desks
• Growth in YouTube channels

Anyone interested in reading the full report will find it on Adap.tv’s blog.


Subscribe to Weekly VAN Newsletter

Related Stories:

Share →