Video Advertising - Agency Survey June 2006

1. How experienced is your agency in buying online video ad placements?

Extremely experienced - 29.5%
Moderately experienced - 36.2%
Little to no experience - 36.2%

As our survey sought responses from only experienced media buyers of online video advertising, those who responded “Little to no experience” were eliminated from the survey. The following responses, therefore, are from those who claimed to have at least moderate experience in online video advertising.

2. On average what percent of your typical online media plan budget is allocated to online video ad placements?

Less than 1 percent - 9.3%
1 – 10% - 41.9%
10 - 20% - 39.5%
More than 20% - 11.6%

3. How well is your agency versed in the IAB’s Broadband Ad Creative Guidelines?

Very well versed – we can recount about 80% of these guidelines verbatim - 25.6%

Somewhat versed – we know they exist, but we don’t know them inside and out - 65.1%

Not really versed – we didn’t even know they existed or know they existed but don’t pay much attention to them - 9.3%

4. To what extent does your agency adhere to the IAB Broadband Ad Creative Guidelines when buying &/or producing online video ads?

We follow these guidelines 80% of the time or more - 46.5%
We follow these guidelines between 50 – 79% of the time - 30.2%
We follow these guidelines less than 50% of the time - 11.6%
We never follow these guidelines - 11.6%

5. Please rate the following areas of concern when it comes to online video advertising

Very concerned with
How to Keep Consumers Engaged with the Ad - 63%
Creating Unique Content vs. Re-Purposing TV Ads - 50%
Tracking & Measuring Online Video Ads - 50%
Providing Proof of Delivery to Clients - 42%
Frequency Capping - 42%
Optimal Length of Video - 38%
Unrealistic Client Expectations - 33%
Optimizing Video Ad Content - 33%
Production Costs - 29%
Sizing Ads for Multiple Placements - 29%
Consumer Broadband/Connectivity Issues - 29%
Publisher Availability/ Sourcing Placements - 21%
Indexing/Classification of Video Ad Content - 17%
Inventory Availability - 17%

Somewhat concerned with
Publisher Availability/ Sourcing Placements - 54%
Optimizing Video Ad Content - 54%
Sizing Ads for Multiple Placements - 50%
Inventory Availability - 50%
Indexing/Classification of Video Ad Content - 46%
Frequency Capping - 42%
Optimal Length of Video - 42%
Production Costs - 42%
Creating Unique Content vs. Re-Purposing TV Ads - 38%
Tracking & Measuring Online Video Ads - 38%
Providing Proof of Delivery to Clients - 38%
Unrealistic Client Expectations - 38%
How to Keep Consumers Engaged with the Ad - 33%
Consumer Broadband/Connectivity Issues - 17%

Not really concerned with
Consumer Broadband/Connectivity Issues - 54%
Indexing/Classification of Video Ad Content - 38%
Production Costs - 29%
Unrealistic Client Expectations - 29%
Inventory Availability - 29%
Publisher Availability/ Sourcing Placements - 25%
Providing Proof of Delivery to Clients - 21%
Optimal Length of Video - 21%
Sizing Ads for Multiple Placements - 17%
Tracking & Measuring Online Video Ads - 12%
Frequency Capping - 12%
Optimizing Video Ad Content - 12%
Creating Unique Content vs. Re-Purposing TV Ads - 8%
How to Keep Consumers Engaged with the Ad - 4%

Wasn’t aware this is an issue
Creating Unique Content vs. Re-Purposing TV Ads - 4%
Inventory Availability - 4%
Frequency Capping - 4%
Sizing Ads for Multiple Placements - 4%
Production Costs - 0%
Tracking & Measuring Online Video Ads - 0%
Consumer Broadband/Connectivity Issues - 0%
Indexing/Classification of Video Ad Content - 0%
Publisher Availability/ Sourcing Placements - 0%
Providing Proof of Delivery to Clients - 0%
Optimal Length of Video - 0%
Optimizing Video Ad Content - 0%
Unrealistic Client Expectations - 0%
How to Keep Consumers Engaged with the Ad - 0%

6. In what timeframe are you likely to regularly use the following video ad features?

Right now if it were more readily available
Interactive clickable video - 63%
Contextual targeting - 46%
Advertising in consumer generated media - 42%
Changing video ad content on-demand based on consumer response - 38%
Pay-per-click video ad buys (vs. CPM buys) - 33%

Within next 3 months
Contextual targeting - 29%
Pay-per-click video ad buys (vs. CPM buys) - 25%
Interactive clickable video - 17%
Advertising in consumer generated media - 17%
Changing video ad content on-demand based on consumer response - 12%

Within 3-6 months
Pay-per-click video ad buys (vs. CPM buys) - 21%
Interactive clickable video - 17%
Changing video ad content on-demand based on consumer response - 17%
Contextual targeting - 12%
Advertising in consumer generated media - 8%

Within 6 months - 1 year
Changing video ad content on-demand based on consumer response - 25%
Advertising in consumer generated media - 25%
Pay-per-click video ad buys (vs. CPM buys) - 21%
Contextual targeting - 8%
Interactive clickable video - 4%

In more than a year from now
Changing video ad content on-demand based on consumer response - 12%
Advertising in consumer generated media - 8%
Pay-per-click video ad buys (vs. CPM buys) - 4%
Contextual targeting - 4%
Interactive clickable video - 0%

7. To what extent would you like to see more Surrounding Advertising ad packages (clickable banners or text ads next to the video) offered by publishers?

I think there are enough of these packages offered already - 29.2%

I would like to see more of these kinds of packages offered so I could consider them - 50%

I would like to see more of these kinds of packages offered and would likely buy them if they were - 20.8%

8. Top 3 publisher issues when it comes to online video advertising

Video inventory availability
Metrics, tracking, & reporting
Implementation

Many respondents also mentioned having issues w/video sites, e.g. YouTube, Google Video, IGN, MySpace, but since those sites currently do not support advertising and the respondents did not specify their issues or concerns, we invalidated those responses in our survey analysis.

9. Please provide any thoughts, concerns or predictions about the current or future state of online video ads from the ad agency perspective.

“Until CPMs come down, it is still hard to justify video versus a cable buy.”

“Publishers need to accept the demand for 3rd party video ad serving and accountability for this medium before forcing it down advertisers throats, or this will backfire drastically. The market is ripe, but without continued learnings, technology improvements, and agency/publisher drive to create strategically integrated cross platform campaigns, we face serious drop off in the video market due to advertiser lack of understanding.”

Related Links:

Hollis Thomases ClickZ Article “Surveying Agencies About Online Video Advertising”

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