“Exponential growth for digital video” revealed in annual survey of UK ad agencies

Joseph O'Halloran | 08-11-2012

The second annual BrightRoll UK Video Advertising Report has confirmed that digital video is on a continued path for rapid growth.

Following the conclusion in 2011 that digital video was gaining momentum among UK advertiser, the 2012 survey of 100 decision makers and media buyers found that as consumers watch more video online, with a demonstrable shift towards mobile, UK advertisers are realising the opportunity video provides to reach audiences where they are increasingly engaged. Indeed, comScore data has shown that more than 82% of the UK Web population watch online video and 65% of the UK online video audience is exposed to video ads each month.

Having asked UK respondents to compare the effectiveness of video to other channels the survey found that 87% agree video is equally or more effective than display, while more than half (52%) believe video is equally or more effective than TV. Looking at inventory, 41% of UK advertisers are most inclined to buy video from a broadcaster, while 22% were most likely to buy from an ad network. By contrast, ad networks were key inventory sources in the US and Canada.

More than half of all survey respondents (53%) cited targeting as the most valuable aspect of online video for clients. Demographic targeting (35%) is the preferred technique among UK advertisers, followed by behavioural targeting (25%). Again the results threw up interesting comparisons with the US and Canada, where the majority of respondents prefer behavioural targeting.

Given the huge upsurge in mobile in the UK, especially with smartphones and tablets, just over half (52%) of UK advertisers expect mobile to have the largest overall increase in media spend in 2013. Moreover, as UK budgets shift to mobile and online, advertisers revealed that they were clear about the need for stronger success metrics, with 29% wanting better campaign measurement tools, 22% wanting to see research around the GRP comparison to TV, and 17% want research on proven ROI.

More than nine-tenths of UK advertisers indicated that research around the efficacy of digital video provides value to the client, even though only 30% have conducted research.

Just over two-fifths (44%) of advertisers cited CPV as the most important metric when it came to digital video ad spend. This compared with just 17% a year earlier.

“As the opportunity for digital video continues to grow in the UK, there’s a clear need to increase education about advanced targeting and research,” said Daryl McNutt, SVP marketing and research at BrightRoll.