Agencies Speak About Video Advertising Needs
In particular, video advertising buyers were explicit about needs in a few key areas: efficiency, targeting and research.
Efficiency is generally a subjective term, but survey results provided some hard numbers to digest. The most important form of efficiency for advertisers today is price, with 46% of video advertisers buying with this metric in mind. Campaign execution efficiencies, including encoding, trafficking and managing publishers, continues to be important for 28% of respondents. Content and delivery speed are less important, for 12% and 3% respectively.
In many ways, targeting is the "elephant in the room" in video advertising, with 31% of agencies believing targeting is the main factor limiting online video advertising's growth today, and 28% of agencies claiming targeting is the aspect of online video that their clients are most concerned about. Digging a layer deeper, agencies are looking for better targeting technologies for behavioral (38% of respondents) contextual (27%) and demographic (17%) targeting.
I was shocked to learn that 87% of agencies had never done research into the efficacy of video advertising -- yet 56% of respondents would be more inclined to spend money if research existed. However, agency buyers were clear that if they were to do research, they would be most interested in understanding video's impact on offline purchase behavior (39% of respondents), changes in purchase intent or brand lift (36%) and the performance of online video vs. television advertising (25%).
Overall, agencies were quite clear: they want to buy video more efficiently, with better targeting and more measurement into the effectiveness of their spend. Everyone in the video advertising industry should commit resources to solving these problems, as those who do solve them will likely aggregate the majority of ad dollars moving forward.