NEW YORK – Video advertising decision makers are optimistic about what the majority see as the continuing shift of video viewing across devices, despite lingering challenges surrounding measurement, leadership between digital and traditional media teams, and the best use of technology to recognize the advertising benefits.
That was the key finding of Optimism Despite Unresolved Issues About Video Advertising, an independent, commissioned study conducted by Forrester Consulting on behalf of Videology, one of the world's largest video advertising platforms.
The survey included 150 advertisers, media companies and agencies across the U.S. and Canada and was designed to explore the hypothesis that the evolving combination of data, technology and cross-device viewing would lead to holistic, platform-agnostic planning of linear television and digital video advertising.
Breaking out the Canadian findings, the survey found that 66% of Canadian respondents believe that it is "likely" or "very likely" that agencies will plan video and TV advertising campaigns holistically across all video viewing options within the next three years. Who will lead the charge is less clear. The study showed that while those with digital experience appear to have a slight edge, there is still a large segment of respondents that believe the future will be more like linear television and that traditional agencies are best to lead.
"These are challenging times, with clear knowledge gaps in how to operate in a future that all parties agree is coming quickly," reads the study. "Clearly, not all practices from the television era will translate to the new video era, but waiting until new practices are firmly established is not an option."
Other key findings based on Canadian respondents include:
– Reaching new consumers not exposed to TV ads seen as greatest benefit of video.
59% of Canadian respondents cited reaching new consumers as the greatest potential benefit of video advertising, while 50% cited targeting specific consumers. Better message communication and higher audience attention placed 3rd and 4th in the survey at 34% each.
– Industry sees challenges and opportunity in changing viewing habits.
As consumers view more video, 43% of respondents believe meeting brand objectives will become easier, but an almost equal percentage (47%) think planning and buying will become more difficult. Only 19% believe nothing much will change. And to navigate all these changes, 69% believe technology will be the differentiator.
– Consumer engagement with content expected to grow.
59% of Canadian respondents believe interaction with additional content about the program on a second screen will increase moderately or significantly over the next three years, and 47% believe the same about interaction with an advertiser's content.
– Technology must adapt to the operational needs of marketers and media companies; flexibility will be key.
While 57% of Canadian respondents cite the growing importance of buying video ads programmatically, a greater number (62%) are focused on accurate targeting. Similarly, 53% cite the ability to buy ads on specific programs as a key capability. This seeming divergence suggests that the industry will continue to use different techniques to achieve different marketing goals with no one-size-fits-all solution on the horizon.
"As a technology provider serving the advertising sector, it's vital that we understand how all constituencies view the changes in television and video consumption, and most importantly how they feel these changes will impact their business," said Videology chairman and CEO Scott Ferber, in the survey’s news release. "One key finding is that both the demand and supply side of the business feel that the extension of video across screens will be good for their business. This is huge, as hesitancy by either side will dramatically impact the speed of adoption for the entire industry."
