• by Tobi Elkin  @tobielkin, August 30, 2016

Teads, an outstream video provider and video advertising marketplace on Tuesday, released the findings of a study that shows 66% of all brand professionals surveyed and more than 77% of those who are investing more in digital media next year believe that outstream video will grow over the next two years.

The study, “Outstream: The New Wave of Advertising,”  was conducted among more than 250 brand professionals.

Among the key findings:

• Outstream awareness increased over the last year: Over two-thirds of brand professionals who are aware of outstream video learned about the technology in the last year or less.

• Outstream is a growing part of the media mix: Brands investing more in digital are 42% more likely to agree that outstream video will become a more important part of their media mix than instream. And 37% of brand professionals agree that spending on outstream will outpace instream.

• Outstream is more aligned with brands’ campaign goals: Brand professionals cited outstream as being more aligned with their campaign goals related to brand awareness, driving online purchases, targeting key consumers, and brand favorability.

• Outstream and mobile are a good match: The study revealed that 60% of brand professionals at companies increasing their digital budgets in 2017 agree that outstream is better optimized for mobile than instream video ads.

• Brands want creative optimization for mobile: The study found that 66% of brand professionals said vertical or square formats optimized for mobile would help drive more investment .

Outstream formats, such as Teads’ inRead, which inserts video ads into the core of editorial content, offer brands access to premium video inventory at a scale that did not exist before. More than 60% of brand professionals at companies investing more in digital media, cited the opportunity to buy outstream video in premium mobile content would drive more investment in mobile.

According to the study, nearly 70% of professionals at large brands with an annual revenue of over $10 million say they will invest more in digital media in 2017. Within digital, awareness of outstream advertising formats is growing. Teads’ study found that 74% of brand professionals at brands planning to spend more on digital next year, have heard of outstream advertising.

The study indicates that increasing digital dollars don't necessarily mean a reduction in spending on other media. For example, 50% of brands planning to increase their digital budget anticipate that their overall media advertising spend will increase. This compares to 31% planning to reduce their print budgets, and 25% planning to obtain additional dollars from TV.

“It's clear from the study that digital is driving overall media budget increases, which is great to see, and helps us gain clarity into how brands will prioritize spend in the coming years,” Rebecca Mahony, CMO, Teads, told Real-Time Daily via email. “These results demonstrate that outstream video advertising is the reason behind the rapid adoption of online video from both publishers and brands. In particular, outstream's impact within mobile is one of the most exciting areas, as brands indicated they would increase investment in mobile overall if given the opportunity to buy outstream video in premium mobile content,” Mahony said.

Teads’ study also points to a diversification in the video advertising industry with a move beyond traditional pre-roll formats and a shift away from TV, to engage audiences with video through premium editorial content vs. a forced advertising experience. Forbes, The Washington Post, Mashable, Bonnier Corp., and Slate are using outstream video to engage with their readers in a non-intrusive way. Microsoft, IBM, Samsung, Nestle, and UBS are also using outstream video.

In addition, Taboola recently acquired outstream video provider ConvertMedia, AppNexus recently launched an open video marketplace for outstream, and AOL said it would offer outstream formats in March.