What do the numbers say?

Online video has been a hot topic of conversation amongst advertisers over the past few years. Nonetheless, while there has been much discussion, it has been difficult to draw definitive conclusions about the importance of online video as part of a promotional or marketing plan. Few would disagree that online video is a rapidly emerging marketing tool, but metrics and measuring data have been perhaps too ambiguous to draw the appropriate conclusions.

This past year, though, has brought some clarity to the matter. A 2011 study by Brightroll indicates that ad buyers are allocating more and more dollars to online video and, in fact, are even shifting budget dollars from TV to Online Video.

The report highlights the following findings (as excerpted from http://www.brightroll.com)

Online Video Advertising Report:  2011 Findings

- 28% of buyers revealed that they expect to see the greatest increase in ad spending in the online video category for 2011, followed by mobile video (27%) and social media (25%)
- 86% of respondents are shifting at least part of their display dollars over to video, while 64% plan to shift TV dollars to video; budgets are also migrating from search, social media and direct response, though in slightly more modest numbers at 28%, 27% and 26%, respectively
- Nearly two-thirds of respondents indicated that online video is equally as effective, if not more effective, than television advertising
- 41% of media buyers view targeting as online video advertising’s greatest attribute, representing an increase of nine percentage points from 2010
- For the third year in a row, buying directly from online publishers was reported as the dominant means of purchasing inventory (52%), followed by ad networks (31%), broadcasters (10%), portals (6%) and ad exchanges (2%)

Brightroll CEO, Tod Sacerdoti made the following remarks upon the conclusion of the study. “Looking over the results of this year’s survey, it’s clear that online video is fast becoming a fixture in the media buyer’s toolkit. The industry continues to deliver improvements in campaign targeting, reporting and effectiveness . . . Our hope with this survey is that it will contribute to a growing body of research that helps underscore and validate the effectiveness of video’s ability to reach online audiences, while highlighting those areas that need to be addressed in order to continue to propel the category forward.”

So what does this mean for you?

Clearly online video should play an important part of your marketing strategy. Global Village can help. With our award-winning production team and our talented market specialists, we can help you make the most of the advantages of online video. Contact us today to get started!