Commentary

TV Relevant; Video Challenging

According to a commissioned study conducted by Forrester Consulting on behalf of Videology to evaluate current buyer and seller attitudes and behaviors toward video and TV advertising, 73% 0f surveyed participants, over the next three years, predict an increase in the consumption of full-length shows online, 77% predict an increase in smartphone video viewing, and 79% predict more time will be spent watching smart TVs with a direct internet connection.

Even with these shifts in video consumption, says the report, the survey shows TV's continued relevance, and an optimistic year-over-year outlook on the growth of the medium. 49% of those surveyed believe that time spent watching traditional TV will increase over the next 3 years, up from just 22% who believed it would increase when surveyed in 2013.

Scott Ferber, Chairman and CEO, Videology, says "… despite tremendous growth in alternative viewing options, TV is not going away… the future of video advertising is… a holistic approach to all screens… lines between TV and video are all but indistinguishable to consumers… “

In response to these trends, the study found that agencies, advertisers, and media companies are increasingly embracing new video options, and the technology needed to power them. Of surveyed participants:

  • 72% expect that video buying will become more programmatic in the next three years
  • 71% think advertisers will shift dollars from linear TV to digital channels in the coming years, up from 65% in 2013
  • 76% believe technology will be a crucial component for success, an increase from 66% in 2013

Highlighting the need for advanced technology offerings, says the report, managing the increasing complexity of television and video advertising were top challenges for both buyers and sellers of both:

  • 69% of surveyed participants cited their top challenges in digital video were managing different technologies and formats for ads on each device
  • 54% understanding cross-platform viewing behavior of audiences
  • 54% measuring campaign performance
  • And, re: linear TV, buyers are most likely to cite challenges with targeting specific customers, managing diverse data sources, identifying appropriate content, and holistically tying together linear and digital video buys

Fraud and viewability remain key concerns for advertisers and agencies.

  • 50% of surveyed participants cited concerns around video ad fraud or bots negatively affecting their ad buying spend
  • 47% cited concerns around video ad viewability negatively affecting their ad buying spend

Concluding, the report cites additional findings: Almost one-third of buyers said that difficulty with measurement would have a negative impact on their video buying in the future. And, 44% of advertisers were more than twice as likely as 21% of agencies to agree that measurement concerns caused them to hold back.

The full survey is available for download at

 

 

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