- Wednesday, Mar. 26, 2008
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- EMERYVILLE, CA
Trials and Tribulations of Online Video, a research study released by Exponential last week, examined buyer perceptions of online video advertising. The study, based on responses from 100 agency media planners and buyers, may be the first to address the actual buyers of video advertising even though they represent a valuable group of decision makers. They are certainly valuable to Exponential, a media services company that includes Tribal Fusion, an ad network that sells video ads to the planners and buyers it surveyed.
"We surveyed 50 agency buyers or planners who have bought online video ads and 50 who haven't bought it," said Alistair Goodman, Exponential's VP of strategic marketing. "Those who haven't bought are thinking of the user experience and those who have are talking about different issues, like how difficult it is to get a smoothly delivered campaign. Once you bought, you're realizing it's more difficult to get a campaign to work."
High prices for video inventory isn't really the barrier many believe it to be. "Buyers are more concerned with whether their ad is going to run with high quality content," Goodman said. "What kind of branding opportunities and what kind of reporting will I see are bigger concerns than price."
Buyers utilize three metrics, unique viewers, clicks and length of time spent viewing and are satisfied with these metrics, he said.
Pre-roll is still the dominant format the buyers use. "It's easiest for them, it gets quick early adoption and they come from the offline world with video assets," he said. Seventy-eight percent of media planners buy pre-rolls, with smaller numbers buying in-unit, opt-in, in-text and post-roll.
Most of the buyers buy inventory from portals. "They've been viewed as a safe buy. They migrate from portals to mid size niche sites but since video is new and large brands buy it, they're looking for a safe environment," Goodman said. Sixty-one percent buy inventory from major online portals, 50 percent buy Google, 39 percent buy from online TV networks and 11 percent buy from ad networks.
The research is being presented to agency media buyers "to help educate the media community to the complexities of video buying in order to make it easier for buyers and planners to be successful," Goodman said.