Videology— a leading software provider for converged TV and video advertising – today announced the findings of an independent, commissioned study conducted by Forrester Consulting on behalf of Videology entitled, “TV And Digital Video Evolve As Complementary Allies.”
The study was designed to evaluate current buyer and seller attitudes and behaviors toward video and TV advertising. Survey participants included 100 decision-makers from US advertisers, agencies, and media companies, including both traditional and online-only video content producers. The study follows a similar survey commissioned in 2013, and uncovers several interesting trends.
The results, which were revealed at Videology’s Upfront/NewFront kick-off event ‘Full Frontal Video, Full On’ in New York City this morning, show that both media buyers and sellers are embracing change, yet still struggling to solve the challenges posed by shifting viewing habits.
Of surveyed participants, over the next three years:
73% predict an increase in the consumption of full-length shows online
77% predict an increase in smartphone video viewing
79% predict more time will be spent watching smart TVs with a direct internet connection
Even with these shifts in video consumption, the survey revealed TV’s continued relevance, and an optimistic year-over-year outlook on the growth of the medium. In fact, 49% of those surveyed believe that time spent watching traditional TV will increase over the next 3 years, up from just 22% who believed it would increase when surveyed in 2013.
“Despite tremendous growth in alternative viewing options, TV is not going away,” said Scott Ferber, Chairman and CEO, Videology. “The future of video advertising is not about a one-way shift to digital video, it’s a holistic approach to all screens. The lines between TV and video are all but indistinguishable to consumers, and the most successful advertising will take that same approach.”
In response to these trends, Forrester Consulting found agencies, advertisers, and media companies are increasingly embracing new video options, and the technology needed to power them.
Of surveyed participants:
72% expect that video buying will become more programmatic in the next three years
71% think advertisers will shift dollars from linear TV to digital channels in the coming years, up from 65% in 2013
76% believe technology will be a crucial component for success, an increase from 66% in 2013
Highlighting the need for advanced technology offerings, managing the increasing complexity of television and video advertising were top challenges for both buyers and sellers of both.
Surveyed participants cited their top challenges in digital video were managing different technologies and formats for ads on each device (69%), understanding cross-platform viewing behavior of audiences (54%) and measuring campaign performance (54%).
When it comes to linear TV, buyers are most likely to cite challenges with targeting specific customers, managing diverse data sources, identifying appropriate content, and holistically tying together linear and digital video buys.
Fraud and viewability also remain key concerns for advertisers and agencies. Of surveyed participants:
50% cited concerns around video ad fraud or bots negatively affecting their ad buying spend
47% cited concerns around video ad viewability negatively affecting their ad buying spend
“These concerns and challenges are directly in line with what we’ve heard from the industry and we’ve designed our technology to help solve them,” added Ferber. “Our platform allows users to plan and activate data across devices in a measureable way that produces superior results.”
“Videology was one of the first video platforms to receive MRC accreditation for viewability and recently released a product that allows users to transact on viewable impressions as verified by all major third-party providers. In terms of fraud prevention, our early partnership with White Ops provides our users with the most robust bot detection and prevention solution in the market,” added Ferber.
Other key findings: Almost one-third of buyers said that difficulty with measurement would have a negative impact on their video buying in the future. Advertisers (44%) were more than twice as likely as agencies (21%) to agree that measurement concerns caused them to hold back.
The full survey is available for download at http://pardot.videologygroup.com/forrester2016.
Videology (videologygroup.com) is a leading software provider for converged TV and video advertising. By simplifying big data, we empower marketers and media companies to make smarter advertising decisions to fully harness the value of their audience across screens. Our math and science-based technology enables our customers to manage, measure and optimize digital video and TV advertising to achieve the best results in the converging media landscape.
Videology, Inc., is a privately-held, venture-backed company, whose investors include Catalyst Investors, Comcast Ventures, NEA, Pinnacle Ventures, and Valhalla Partners. Videology is headquartered in New York, NY, with key offices in Baltimore, Austin, Toronto, London, Paris, Madrid, Singapore, Sydney, Tokyo and sales teams across North America.