Robert Hof – 10/22/2013
Following customers as they wander off from their television sets, big brand advertisers are starting to divert TV ad budgets to online video–or at least they intend to.
That’s one of the most interesting findings in video ad exchange Adap.TV’s semiannual “State of the Video Industry” report conducted with the digital media site Digiday. Of course, it would be fair to assume that Adap.TV, which was acquired by AOL in August for $405 million and recently helped AOL AOL +5.37% unseat Google GOOG +2.42% as the biggest seller of video ads online, would be seeing trends like this perhaps more than a disinterested party. But it polled some 900 ad agencies, advertisers, ad networks, and publishers, so it’s worth paying attention to.
Not surprisingly, the study found that video ads are exploding, thanks in part to automated technologies to make the buying process faster and easier as well as a jump in the amount of live and on-demand content coming to all screens. This year, brands upped their video ad budgets by 65% from 2012. Some 86% of brands and 91% of agencies expect to spend more on them next year.
