About two-thirds of marketers say they’ll increase their budgets for
online video advertising in 2012, and some of them will be snagging that
money from the TV ad budget.
That’s the finding of a study conducted by Break Media,
released today. Of course, the big caveat is Break has a huge stake in
the online video ad economy since Break Media Network is a large video
ad network reaching more than 120 million visitors each month, and also
owns Break.com, the popular humor video
site. Even so, the study’s findings dovetail with those from marketers
and research firms also expecting another robust year for online video
ads in 2012.
Specifically, about 32% of advertisers who plan to up their online
video ad spend in 2012 will take money from TV budgets, 54% from
non-video display budgets, and 38% from organic budget growth, Break
found in its survey of more than 300 decision makers at ad agencies and
marketers. More than 90% of advertisers plan to use video ad networks in
the year ahead and expect to allocate 20% to 41% of total video dollars
through ad networks.
Interestingly, marketers may shift away from the cost-per-thousand
model that has been the bedrock of TV and video advertising in favor of a
cost-per-view model. Break said that model has doubled in use in the
past year. The growth in the cost-per-view model likely comes from the
increasing use of video ad networks, since that pricing model is most
commonly offered by ad networks. Pre-roll is still the most preferred ad
format, while mobile will be second, overtaking in-banner in 2012.
The expectations for 2012 stem in part from how video performed this
year. Many advertisers plowed more money than originally planned into
video this year. About 57% said they spent what they planned, 14% spent
less and 29% spent more than they expected to in online video.
But online video will face obstacles in 2012, including difficulty
measuring ROI and a lack of standard metrics. The ROI issue has been
cited in many studies this year as a major hurdle, including most recently by Casale Media.- MediaPost
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