Preferred Media, a media asset management business, surveyed a range of content producers and marketers and reported that complex agency relationships, ‘cheap’ content and new technologies are challenges faced in the video content industry as the medium continues to grow in popularity.
Brands and advertisers were using on average 2.83 different agencies to produce video and moving image content, it reported; digital agencies and traditional creative agencies were used most, with production houses and freelance producers at the bottom of the list.
The most popular platforms for video advertising were social media, video platforms such as Vimeo or YouTube, and the company’s own website: more than 95% of client-side marketers were using them.
Out-of-home video is also growing with 71% of client-side marketers putting the channel among its top three for video content spending.
But even though the use of video is increasing, many traditional production houses are feeling the squeeze in the online content era, amid a proliferation of ‘cheap’ online content which is increasingly produced in-house, and has the result of pushing down prices.
Fifty seven percent of those respondents on the production or post-production side reported client budgets decreasing either ‘somewhat’ or ‘significantly’, and expressed frustration with expectations from marketers that TV quality content can still be delivered on a small online video budget.
Respondents also noted that client budgets seem to be decreasing for traditional production overall, even as the content marketing budget continues to climb – a likely result of the ‘in-house’ content trend.
More than half (57%) of client-side respondents believed that their business would create more content in-house over the next year, with 29% keeping in-house production levels the same. Just 14% anticipated more content being outsourced to independent production houses.
Sourced from Preferred Media; additional content by WARC staff