New research from EyeWonder Interactive Advertising Services is forecasting that online video advertising is poised for growth across Europe.
The Limelight Networks subsidiary makes the general proposition that video ads are engaging viewers online and enhancing brand interaction. The research finds that instant-play video has proven to be a valuable tool to engage viewers through online video advertising. The company itself claims to have served over 2.5 times more instant-play video ads than user-initiated video in 2010, boasting click-through rates 1.5 times higher than user-initiated video ads.

EyeWonder suggests that to date online video advertising in Europe suffers due to perception that viewing online content is just like viewing television online. It adds that online has to this point been given only a small percentage of budget available and that simple reuse of video intended for television also impacts brands negatively.

Yet, urges Erwin Plomp, President, EyeWonder EMEA, in the report Tipping Point: A European perspective on online video advertising, brands and creative agencies must view content through an online audience's eyes and develop that online content specifically for this interactive environment.

"The market for online video advertising is on the verge of taking off in Europe," according to "A number of factors, such as a shortage of supply of original video advertising content and insufficient website infrastructure to more attractive pricing and evolving measurement standards are forming a highly favourable climate for growth."

The report does caution that video advertising pricing is still high in some markets, but believes that as inventory increases, pricing and pricing models will evolve to measures that include performance-based metrics. Measurement is another concern: EyeWonder argues that even though traditional television metrics have proven acceptable for decades, measurement standards for online advertising are still evolving.

Yet in conclusion the report regards formats as key to engaging the viewer in Europe as well as the US. It expects interactivity to be valuable in developing online video advertising that performs for brand marketers. EyeWonder sees repurposing content as a cost-effective solution to learn how video advertising performs. EyeWonder data shows that for marketers wanting to gain maximum audience impact and engagement, video ads are most effective when they last 30 seconds or fewer.