Australian marketers are committing an increasing share of their budget on video advertising, according to new research released today by IAB Australia and Adap.tv, the technology partner of choice for the world’s largest video advertising buyers and sellers. Nine out of 10 agencies and marketers increased their video ad spend over the past 12 months, with average budget growth nearly hitting 35 percent.
The State of the Video Industry Report also found that more than 60 percent of ad buyers are already buying mobile video ads, and it was the most commonly nominated growth area for advertising in 2014.
The full report can be downloaded at http://www.iabaustralia.com.au/VideoStateOfIndustry
The report was based on a survey of 160 mid- to senior-level Australian publisher, agency and marketing professionals about their involvement and attitudes towards digital video. The findings reinforced the view that video is shaping the future of advertising and mobile devices will become an increasingly important part of the video mix.
Other highlights from this first report include:
58% of buyers plan digital video alongside their TV plan, though buying responsibilities still tend to fall into the digital group within agencies;
52% of the market feels that inventory is scarce, though this opinion is stronger with publisher/ad network representatives than with agency respondents;
Online video spend is coming from a range of channels, not simply a reallocation of TV budgets; and
The most popular inventory sources for online video are direct from a publisher (77%); from an ad network (64%) and from an agency trading desk (56%).
Phil Duffield, Adap.tv’s Managing Director for Asia Pacific, said the report should be a wake-up call for some in the industry. “Brands are demanding a cross-screen campaign approach yet, in many cases, agencies are still in planning silos. This isn’t unique to Australia, but our reports in other parts of the world show we might be a little slower off the mark here.”
Gai Le Roy, Director of Research for IAB Australia, added that one of the key drivers for the industry will be measurement and reporting. “We know that with online video often planned alongside TV campaigns, there is a growing urgency for cross-platform measurement capabilities. As an industry we need to provide benchmarks locally and also to measure ourselves against progress in other parts of the world.”
The report is scheduled to be compiled annually, mirroring similar Adap.tv partner studies in the US and UK.
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Adap.tv, a division of AOL Networks, is transforming the way video advertising is bought and sold. Adap.tv’s video intelligence platform helps many of the world’s largest brands, agencies, publishers and ad networks intelligently, effectively and safely plan, buy and measure billions of video ad trades programmatically every month across web, linear TV and mobile video.
Headquartered in San Mateo, California, Adap.tv has US offices in Chicago, Los Angeles and New York, and international offices in Australia, India and London.
For more information, please visit adap.tv, or follow Adap.tv on Twitter @Adaptv,Facebook at facebook.com/adaptv and LinkedIn at http://www.linkedin.com/company/adap-tv.
About the Interactive Advertising Bureau
The Interactive Advertising Bureau (IAB) Limited is the peak trade association for online advertising in Australia and was incorporated in July 2010. As one of over 40 IAB offices globally, and with a rapidly growing membership, IAB Australia’s principal objective is to increase the share of advertising and marketing dollars that interactive media captures in the marketplace.
IAB Australia’s board includes representatives of AIMIA, Carsales.com, Fairfax Media, Google, Mi9, Network Ten, News Australia, REA Group, SBS, Telstra Advertising Network, TressCox Lawyers and Yahoo!7. It has four objectives:
To develop, coordinate and promote industry standards and guidelines that make interactive advertising a simpler and more attractive medium for agencies, advertisers and marketers
To prove and promote the effectiveness of interactive advertising to advertisers, agencies, marketers, and the press
To be the primary advocate for the interactive marketing and advertising industry
To expand the breadth and depth of IAB membership while increasing direct value to members
For further information about IAB Australia please visit: www.iabaustralia.com.au