Advertisers are looking to increase spend on premium video sites this year, with ‘view-through rates’ becoming the key measurement for engagement, according to new research. The study, from marketing technology firm Collective, indicates that UK media buyers would pay a premium to place VoD campaigns against good quality content and strong brands rather than hitting ‘long tail’ (niche interest) websites.
43% of 156 media buyers surveyed for the advertising technology company’s latest bi-annual UK Online Video Advertising Market Report said they would pay a higher CPM, indicating the importance still attached to contextual relevance.
A further 32% felt price should be determined by good performance, which is largely being measured by view-through rates – 48% of respondents said this was their main measurement of performance.
The report also shows media buyers are responding to the broadening reach that quality short-form video provides across the web. 55% now place more than half of their campaigns on non-broadcaster platforms. Just 15% of buyers spend more than 75% of their budget on broadcaster platforms – a 16% drop since the last survey in September 2011.
Collective also asked VoD buyers what they thought of RTB (real-time bidding) for online video. 75% responded positively, either expressing an interest in trialling it or indicating that RTB would provide complete control over planning and buying VoD.
“Our latest survey shows a very healthy outlook for the UK VoD market,” said Steve Filler, Managing Director of Collective. “64% of buyers said that they expect to increase their budgets by more than 25% in the next six months and many are prepared to pay a premium to reach fully engaged users on strong web brands with established audiences.”
The survey went on to ask what needs to happen to see VoD spend increase even more significantly over the next year. Two clear opinions were identified – 28% of respondents felt that proof VoD spend delivers incremental reach to TV was most important, while a further 24% were more specific saying that significant growth will only be achieved through a proven buying model that measures VoD against BARB metrics.
Download a copy of the UK Online Video Advertising Market Report. (PDF File)