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smartclip unveils latest research on digital video advertising uptake

Digital video advertising spend continues to grow as marketers adopt the multi-platform approach

 smartclip, the European leader for video advertising, today releases findings from its annual industry research into the uptake of digital video advertising. The research shows that marketers are waking up to the opportunities presented by digital video advertising and adopting a multi-screen approach.

The findings demonstrate how digital video and multiplatform advertising are now playing a substantial role in marketing and advertising portfolios. It also provides an insight into how advertisers are planning their budgets for the year ahead as well as highlighting that greater education is required around the potential of Connected TV.

Digital video advertising spend grows

Almost half (47%) of those surveyed have now embraced digital video advertising in their campaigns and almost two thirds (61%) stated that they would be considering it as an option over the next 12 months. A very large majority (88%) indicated that their digital video advertising spend has either remained the same or increased, with a whopping 89% agree that online video is more, or as effective as linear/banner advertising, up from 66% this time last year.

Whilst digital advertising spend is continuing to grow, it is clear from the findings that further information is needed when it comes to formats available to marketers as when polled, half were familiar with pre- (55%) and post-roll (46%) formats but few recognised companion (13%) and non-linear (16%) formats. Respondents stated that they most associated digital video advertising with entertainment (66%), sport (64%) and social media (40%).

Shirlene Chandrapal, VP Connected TV smartclip comments: “The results demonstrate that the industry has recognised the value of the multi-screen approach however work still remains to be done to educate the market on the untapped potential of Connected TVs. There is a thirst from consumers to get the best content available and Connected TVs are set to be the next living room evolution. With connected TV’s predicted to make up 90% of the TV market in the UK by 2014, the stage is set for widespread adoption over the course of 2012.”

Adopting the multi-platform approach

Tablets and smartphones seem to be the platforms of choice for digital video advertising, with almost two thirds (63%) of marketers stating that they were familiar with these, closely followed by Connected TVs (46%) and gaming consoles (47%). This familiarity seems to be translating into adoption as over 50% of respondents stated that they are or will be advertising on one or more of these platforms over the next 12 months.

The research also establishes marketer’s attitudes towards digital video advertising. Over half (55%) think it should be more interactive, half think it should be more targeted to the end user and a further third say video adverts should be shorter than TV and radio adverts.

Sam Kayum, MD smartclip UK, adds: “These findings clearly demonstrate the growing appetite for online video advertising. Technology is forcing the industry to reassess their business models as audiences migrate away from traditional channels. The next step in this evolution is for businesses who have traditionally embraced advertising innovation to implement a successful connected TV strategy. We expect the industry to move towards these business models to optimise their advertising revenues in the near future.”

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Notes on the research

The research was conducted at AdTech in September 2011 and surveyed 100 marketers on their attitudes towards digital video and multiplatform advertising.

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