BRUSSELS: Digital video is increasingly being recognised as an essential brand building format with stakeholders moving towards measuring brand KPIs such as awareness and purchase intent and away from simple clicks, according to new research.
The Attitudes to Digital Video Advertising report from trade organisation IAB Europe, based on a survey of more than 650 advertisers, agencies and publishers from across 31 markets, aimed to shed light on the state of adoption of and the development of digital video and trading methods.
This showed that nearly all stakeholders are now deploying some form of digital video advertising strategy, with over 90% of advertisers, media agencies and publishers claiming to use the channel.
Much of their investment currently goes to desktop: 27% of advertisers, for example, reported that more than two thirds of their digital video ad spend was allocated here, while around half that said the same was true for mobile devices (2% tablet, 12% mobile).
That broad pattern was repeated among agencies and publishers, but the expectation is that spending will rapidly shift towards mobile as advertisers aim to reach their audiences at relevant times throughout the day in a mobile always-on environment.
And since digital video ad formats lend themselves to storytelling, advertisers and agencies are shifting away from ad serving metrics such as the click and towards brand KPIs to evaluate digital video advertising campaigns.
More than three quarters of advertisers (78%) and agencies (85%) aimed to uplift brand awareness, for example, while two thirds of both groups used this KPI as an effectiveness metric to evaluate campaigns; publishers, however, were more likely to still rely on clicks.
The report further observed that cross-screen planning is widely practised, with 82% of advertisers and 88% of agencies claiming to plan digital video campaigns in conjunction with TV advertising – not entirely surprising as TV budgets are frequently being raided to fund investment in digital video advertising.
One factor hampering the more rapid development of the market, however, is that digital video demand currently exceeds supply. Most publishers are investing in digital video, the study noted, but this accounts for only a small proportion of their total digital ad inventory.
Data sourced from IAB Europe; additional content by Warc staff