Examine the views of marketers and agencies about digital video advertising. This 2011 study shows that a shift in ad dollar allotment is starting to take place as advertisers are beginning to recognize the value.

1. An Inside Look at
Demand Side Perceptions of
Digital Video Advertising
Conducted, Analyzed and Prepared by Advertiser Perceptions
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2. “Digital video is becoming an ever more
common way that our target is consuming
what was traditionally broadcast content --
and our target is spending more time online,
and video is another way to reach and
engage the target.” TV Media Buyer
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3. Deliverables
•Presentation of Findings
•Executive Summary
•Tables
•Data
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4. Today’s Discussion
Digital Video Advertising… What do advertisers think?
Insights and Perceptions
• Outlook
• Shifting Ad Dollars
• Why They Buy
• Selection Criteria
• Obstacles and Accelerators
• Past and Future Use
• Preferences and Purpose
Summary and Conclusion
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5. Influencing the Migration from TV to the Internet
The question isn’t If or When, it’s How Quickly
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6. Methodology and Profile
Method
• All interviews completed online
• Cash Incentives
• Blind Survey
• Timeframe: November 17th – December 6th 500 Respondents in Total Count Percent
Sample: Marketer and Agency contacts from Marketer 148 30%
Advertiser Perceptions Media Decision Maker Agency 352 70%
Database
Higher Level Titles 219 44%
Qualification Lower Level Titles 281 56%
• Digital and/or Television media decision
Television Decision Making 311 62%
making involvement
• Spending $1million or more in next 12 months Digital Decision Making 427 85%
Directional Data is used in this presentation
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7. Methodology and Profile
Continued
Represents Leading U.S. Advertisers by Ad Category
• Alcoholic Beverages
• Apparel (Fashion)
• Automotive
• Consumer Electronics
• Consumer Packaged Goods (Cleaning, Food and Beverages)
• Energy
• Entertainment (Movies, Music, TV and Books)
• Financial (Financial Services, Insurance, and Real Estate)
• Home (Shelter)
• Pharmaceuticals
• Quick Service Restaurants
• Retail
• Technology (Computers, Hardware, Software, Services, Office
Products)
• Telecommunications
• Toiletries and Cosmetics (Beauty)
• Travel (Transportation, Hotels and Resorts)
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8. Advertisers are Optimistic
•Spending
•Share
•Growth
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9. Spending | Next 12 Months
Majority plan to increase digital video advertising; 22% Growth Predicted
“More reach, easier to track ROI.”
55%
Agencies • Agencies are more bullish than
marketers
• TV and digital media decision
makers are aligned
• On average, spending will grow
by 22%
69%
Marketers “Online video advertising is trending
better than television. Consumers
show a higher engagement rate with
online video.” Media Supervisor
Q: Imagine the amount of your total online display (not including search) advertising budget as a whole is a pie, and each of these media types is a share of the pie. In the next 12 months, would you expect the share
spent on each to increase, stay the same or decrease?
Q: What overall increase in digital video advertising do you expect in the next 12 months compared to the past 12 months?
Base: ALL RESPONDENTS
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10. Spending | Next 12 Months
Majority plan to increase digital video advertising
Digital Video
Advertising
Digital Video Share
Influencers
of Ad Budget
17%
Agencies 19%
Marketers 15%
Total Ad Budget
Online Decision Makers 18%
TV Decision Makers 18%
Q: What percentage of your total online display advertising budget will be spent on digital video advertising in the next 12 months?
Base: ALL RESPONDENTS
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11. Shifting Ad Dollars
•Migration
•Reasons Why
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12. Shifting Ad Dollars | Next 12 Months
Majority are likely to migrate a portion of TV ad budget to Digital Video
“Digital video advertising
is more trackable and
targetable. Production is
less expensive. Overall,
Total Ad more efficient
it's a Budget “Digital video advertising
spend.” Media Planner gives me more bang for the
buck!” Brand Manager
Q: Why are you (extremely/somewhat likely)to shift ad dollars from television advertising to digital video advertising in the next 12 months?
Base: Those extremely/somewhat likely to shift ad dollars from television advertising to digital video advertising in the next 12 months.
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13. Shifting Ad Dollars | Next 12 Months
The reasons why they differ slightly by certain key influencers
Digital Video Advertising
Influencers
Marketers = ROI Delivers Better ROI
More marketers will migrate TV ad Agencies 53%
dollars to Digital Video based on the
Marketers 62%
belief that it will deliver better ROI
Online Decision Makers 55%
TV Decision Makers 57%
Digital Video Advertising is
Influencers Where Audience is Moving
Agencies = AUDIENCE
More agencies and television Agencies 47%
decision makers will shift TV ad
Marketers 41%
dollars to Digital Video in an attempt
to follow their target audience Online Decision Makers 44%
TV Decision Makers 50%
Base: ALL RESPONDENTS
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14. Why They Buy
•Decision Making Criteria
•Obstacles
•Migration Accelerators
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15. Digital Video Advertising
Decision drivers in their own words…
“We think we can target our ads more effectively thru digital video
advertising than with TV advertising.” VP Advertising, Consumer Products
“Because consumers are watching more and more television online - so we
are following the eyeballs. Also, the economics work better for our clients
and their budgets - much more affordable.” Senior Media Planner
“The ability for prospect to skip ads on television or to go to the Internet for
their viewing needs. The traffic between online and television simply are no
longer in the same ballpark.” Chief Marketing Officer
VERBATIMS
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16. Digital Video Advertising | Most Important Decision
Making Criteria
Targeting, Results, Reach and Cost Drive Digital Ad Decisions
Percent Rating Decision Making Criteria as being Very Important (4, 5 on a 5-Point Scale)
Q: Thinking about digital video advertising, please tell us how important each of these criteria are in your decisions to spend on your digital video advertising.
Base: All Respondents.
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17. Digital Video Advertising | Obstacles
In their own words…
Mass Reach:
“Client’s perceptions of digital video advertising vs. the mass
reach of TV.” Media Supervisor
Brand Building:
“Strong evidence and case study showing effectiveness for
brand awareness and promotional activities, as well as
alignment with target demographics.” Brand Manager
Measurement:
“Research behind the numbers to show clients the results”
Senior Media Planner
VERBATIMS
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18. Digital Video Advertising | Obstacles
Targeting, Results, Reach and Cost are Hindering Greater Usage of DVA
Percent Selecting Obstacles
Q: Which of the following reasons are hindering your greater use of digital video advertising?
Base: All Respondents.
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19. Digital Video Advertising | Migration Accelerators
In their own words…
“An ROI analysis showing our money will be better spent
with this shift.” Agency Planner
“Better proof-of-performance from digital media distribution.”
Marketing Manager
“Stronger metrics and more cost per engagement based
modeling.” Agency Media Supervisor
“Stronger ROI/metrics to show how video can ultimately
lead to sales.” Senior Brand Manager
VERBATIMS
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20. Digital Video Advertising | Migration Accelerators
Better ROI Measurement and Standardized Metrics
Percent Selecting
Q: Which of the following, IF IMPROVED would lead to your greater use of digital video advertising
Base: All Respondents.
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21. Media Decision Making for Digital Video Advertising…
Primary Involvement:
•Decision Making
•Budgets
•Creative, Tactics, Placement
•Other Marketer Concerns
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22. Who Is Most Responsible In the DVA Decisions. . .
Roles for DVA Decisions are Unresolved | Agencies Believe That They
Should Decide Whether to Use and How Much $ to Allocate | Marketers
Focusing on Creative, Tactics and Placement?
Total Agency Marketer
Whether to Use Digital Video Advertising:
Agency (Net) 47% 55% 28%
Marketer (Net) 41% 33% 60%
How Much Budget to Allocate for DVA :
Agency (Net) 55% 65% 31%
Marketer (Net) 37% 28% 59%
Creative, Tactics, and/or Placement of DVA:
Agency (Net) 62% 71% 41%
Marketer (Net) 26% 17% 47%
Q: To the best of your knowledge, please tell us which role/function is most responsible in the following aspects of decision-making for digital video advertising.
Base: ALL RESPONDENTS
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23. Agreement with Statements About DVA
Agencies and Marketers have Similar Concerns
Agreement Rated 4, 5 on a 5-Point Scale
Total Agency Marketer
If I had more proof and/or certainty that my
ads/campaigns ran, I would spend more on digital video 72% 69% 80%
advertising
I'd rather buy digital video advertising in an "upfront"
41% 39% 46%
versus in real‐time
Not having a digital video upfront limits my digital video
41% 39% 45%
ad spending
Digital video advertising is too difficult to buy 35% 32% 43%
Consumers don't really engage with digital video ads 35% 32% 41%
Please indicate how much you agree or disagree with each of the statements below as they pertain to digital video advertising.
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24. Use of Digital Video Advertising
•Past
•Future
•Purpose
•Preferences
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25. Digital Video Advertising | Preferences
Pre-roll, CPM and 15 Seconds
Q: And which one digital video ad type do you prefer?
Q: Which one type of pricing do you prefer for digital video advertising?
Q: In your personal opinion, what is the appropriate length of a digital video ad?
Base: All Respondents.
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26. Digital Video Advertising | Past Use
Agencies Using Pre-roll | Marketers are Not Committed to Any Format
Percent Selecting
Q: Please select the digital video ad types have you used in the past 12 months.
Base: All Respondents.
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27. Digital Video Advertising | Future Use
It’s growing
Percent Selecting
Q: Which digital video ad types will you use in the next 12 months?
Base: All Respondents.
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28. Digital Video Advertising | Purpose for Use
Product/Brand Awareness, Store/Website Traffic and Product Info.
“More targeted advertising
possible through digital video
advertising.” CMO
“The social media and it's network
has a broader reach to our
branded consumers.”
Marketing Director
“Digital Video advertising works.”
Agency Buyer
VERBATIMS
Q: Why are you (extremely/somewhat likely)to shift ad dollars from television advertising to digital video advertising in the next 12 months?
Base: Those extremely/somewhat likely to shift ad dollars from television advertising to digital video advertising in the next 12 months.
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29. Digital Video Advertising
What Do Advertisers Think?
Good News for DVA Action Items
• Spending will increase Accelerate Migration
• Share of ad budget will increase
• Ad dollars will migrate from TV to Digital • Improve ROI measurement
• Use will increase • Create better standardized metrics
• Demonstrate audience shift to digital
Sell More
Observation
Focus on the decision drivers
Marketers are lagging in nearly • Targeting
• Results
all areas • Reach
• Education and greater exposure to Digital
Video Advertising is warranted Offer products advertisers prefer
• Managing perceptions of ROI from Digital • Create Offerings that Marketers will Commit to
Video Advertising and television’s audience
movement to digital should be a priority
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