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The Daily Stream

Advertising News for the New Media

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Digital Video Ads Gaining Momentum

April 22, 2011 // By: Stream Companies

Digital video advertising is grabbing an increasingly larger share of the online market. Recent studies estimate that online video advertising will increase by 38.6% in 2011. Although one study estimates that most advertisers will spend less that one-quarter of their online display budget on digital video advertising this year, most will be increasing their digital video ad spend in the next twelve months. 

The impetus for this growth seems to be a desire to advantage of online video advertising for its audience targeting capabilities and higher return on investment (ROI).

When choosing online video ad placements, channels or providers, the most important determinants are audience targeting capabilities, results—also defined as ROI or campaign performance—and audience reach.

Although advertisers are finding success with digital video ads and are keen to make placements based on targeting, reach and ROI, they also see these areas as obstacles to boosting online video advertising budget and expanding programs.

Despite this explosive growth, advertising professionals believe that certain shortcomings are inhibiting faster growth. Areas of concern include:

  • difficulty in measuring ROI for digital video ads
  • lack of standardized metrics
  • difficulty in getting enough reach

Most marketers surveyed indicated that they would increase their use of digital online media, if the metrics were better. 

Without a doubt, the targeting capabilities and ROI of online video advertising has agencies and marketers looking to open their wallets in the coming year. But just how wide their wallets will open—and for which channels and placements—depends on both the industry’s ability to standardize metrics and measurement and the individual provider’s targeting and reach capabilities.

Topics: Advertising (general), advertising metrics, Advertising (topical), Advertising Trends, digital advertising, online video ads, online video advertising, Stream Companies News, Video advertising