According to a new white paper from video ad technology company Innovid, brand marketers plan to increase their spending on video advertising in 2018. And Facebook and Google are dominating video advertising -- just as they do the rest of the digital ad ecosystem.
According to the study, which was conducted by Brand Innovators in conjunction with Innovid, 79% of respondents say they plan to increase their video ad spending in 2018.
That being said, a plurality of respondents still say the cost of producing targeted high-quality videos is prohibitive, and many rely on agencies to create those video ads.
The study also showed that Facebook and Google remain advertising juggernauts, with Facebook accounting for 39%, and Google’s YouTube, 27% of digital video ad spend.
OTT platforms, which are still nascent but growing rapidly, account for just 9% of spend.
Innovid has a stake in the game, of course. It provides technology that lets brand create more interactive video advertising, and is trying to bring the cost of producing those types of ads down.
“The results show the lack of widespread understanding of the current state of video, budgetary barriers, and the unmet potential that video advertising has to connect with consumers on a one-to-one basis,” Marc Sternberg, the co-founder of Brand Innovators, said in a statement.
Brands that plan to boost their video spending are looking for new places to reach consumers
and new ways to reach them. While Facebook and YouTube make the buying process easy, ad spend could shift to OTT platforms as they rise in popularity, and improve their ability to use
more interactive ads in a cost-effective manner.
You can read the full white paper here.