Over Two-Thirds Of Advertisers Will Spend More On Video Ads In 2012

Over Two-Thirds Of Advertisers Will Spend More On Video Ads In 2012

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Break Media and Advertiser Perceptions Inc. got together and published a new report on how advertisers plan on spending for video ads in 2012 as well as their expectations and actual spends for 2011. The report also looks at formats and practices that are trending as well as placement plans for 2012.

The Nitty Gritty of Methodology

Study findings are derived from an online survey completed by 320 persons working for advertising agencies and the companies that hire them (i.e. marketers) in the United States and Canada. Respondents were solicited from the Advertiser Perceptions Inc. proprietary database of media decision makers and offered a cash incentive for survey completion. All respondents are involved in the decision-making process for choosing what types of online media will be included in advertising campaigns. They work for companies spending a minimum of $1 million annually on online advertising. Survey results have a margin of error = ± 7%.

Seven percent is a pretty wide margin of error. With 320 respondents and say 99% confidence level it would mean 6,000 to 10,000 companies in their database to draw these numbers. Of course, it’s a proprietary database so we can’t be sure. Still, 7% is a big margin of error if you ask me, the biggest I’ve seen in a study I wrote about this year I think.

Spend Growth For Video Ads

The study shows that over two-thirds (68%) will increase the amount of their digital budget for video ads next year taking money from non-video display budgets (45%), overall budget growth (38%) and TV budgets (32%). Other formats that would see dips due to online video ad budget growth for 2012 include print/outdoor (25%), non-advertising (16%), search (5%) and social media (4%).

Video, which consisted of just over a quarter (27%) of the online display budgets last year (according to last year’s study), will jump to almost a third (32%) for 2012. This is most likely because almost three in ten respondents (29%) found that they spent more on video ads than they had planned for. Meanwhile, almost six in ten (57%) said they spent what they had planned and 14% spent less.

Video Ad Network Awareness Booms

I write a lot about video advertising, so I know most of the big players in the game, well, at least their names. Last year respondents spent a measly 20% of their budgets with video ad networks. That number has more than doubled, to 41%, which either highlights a major boost in confidence with the video ad networks, or a serious flaw in their reporting and methodology here.

The growth of respondents who use video ad networks went from 65% to 73% and next year it’s reported that nearly all (92%) of advertisers will use a video ad network and increase spend there, that’s 19% higher than last year and 27% from 2010. I wonder if they took into account the growth of their proprietary database versus the number of respondents. I suppose it might also be due to the fact that 80% of video ads are done through the video ad networks.

Overall, things look good for the video ad networks if this data is to believed, but I still have to point everyone to the fact that they have a large margin of error and apparently random sampling, two factors which could be skewing all of this.

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