A dramatic change is predicted for how advertisers approach online video, according to the latest quarterly survey of advertising agencies by STRATA, a provider of media buying and selling software.
The survey reveals a 40 percent increase in focus on digital video among agencies from the first quarter of 2012 to the third quarter. Helping to drive growth is the expansion of video multiple platforms integration capabilities increase.
"We're approaching a seismic shift in the way advertisers approach online video,” said Joy Baer, executive VP/COO of STRATA. “With the recent introduction of Google Adwords for video, advertisers can measure the effectiveness of their video content, which they were previously unable to do."
Online video can stretch the budgets of marketers because it can be effortlessly repurposed.
“One 30-second spot may run just once on TV, but can then be replayed endlessly to targeted segments on YouTube and Facebook for no additional cost," Baer said.
STRATA’s research revealed the ad industry’s focus on the Internet and digital media continues to increase with 84 percent of the agencies surveyed saying that the focus of their customers on Internet/digital has increased since last year, the 16th consecutive quarter of growing interest in the category. Online video, Pinterest and Google+ are being used more regularly by marketers in their advertising campaigns.
The survey also found merging traditional and digital is “a huge challenge” for 39 percent of agencies — second only to determining return on investment, which is a challenge to 49 percent of agencies.
Additionally, 26 percent of respondents expect to spend more on digital than traditional in the next one to three years, an increase of 29 percent from the third quarter of 2011.