Video Ad Spend to See Double-Digit Growth in 2012

Steve Smith

Thursday, October 27, 2011 For some brands and agencies, video advertising is the branding opportunity online that banners always promised to be. Even as the display market continues to expand, video is the real driver of digital marketing spend. A new survey of agencies, marketers and online decision makers shows that that in the next 12 months these groups expect to spend about 23.8% of their online ad budgets on video. In Casale Media’s study of spending intent, marketers said their video budgets would rise about 25% in the coming year. The big lure of online video is, of course, branding. When asked why they are buying into this format, 80% cited a marketing goal of increasing brand awareness and 71% said to build awareness for new products. Another 60% say that video helps them communicate details about product more effectively. A small minority (31%) are expecting a direct response.

Conventional wisdom has it that video appeals to brands in ways that standard display does not, because it so closely mimics the tried and true models and modes of TV spots. Still, proving out effectiveness remains the chief barrier to buying video. When asked what hinders increased spend on video 40% said that it was too difficult to measure ROI and 38% said there simply wasn’t enough ROI to the medium. Difficulty in targeting (26%) and the dearth of original ads for digital video (24%) were cited, as were general problems in tracking performance.

Casale Media argues that the potential of online video remains enormous, hampered still by difficulties in demonstrating effectiveness and problems in execution.

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