In fact, slightly more buyers (41%) took money from their display ad budgets than their TV budgets to fund their online video increases. The researchers believe that display budget cannibalization may ramp up more quickly than for TV because buyers are increasingly seeing their campaigns as being more aligned with TV than with display. This year, 54% believe that video should be more aligned with TV than display, and that’s up from 49% last year. By contrast, the proportion who believe video should be more aligned with display fell from 40% to 35%. What’s more, two-thirds of buyers view online video as a direct complement to TV (up from 56% in 2011), compared to only 9% who view it as a replacement for TV (down from 11% in 2011).
- The share of buyers purchasing video advertising remained fairly stable, at 73%, though that was down from 78% in Q1 2012.
- 89% of publishers responding to the survey reported selling online video, up from 76% in 2010.
- 93% of buyers reported buying directly from video content producers, up from 52% last year. 31% participate in TV upfronts, up from 19% in 2012, but down from 44% in 2011.
- 24% of publishers reported running a private video ad marketplace, up from 8% in 2012.
- 47% of agencies and 43% of brand advertisers report currently purchasing premium inventory from private marketplaces.
- 3 in 4 buyers do not believe that online video inventory is scarce.
- 48% of agencies are using 3rd-party validation to guarantee audiences (such as Nielsen OCR or comScore Campaign Essentials). While that’s down from 54% last year, the proportion of advertisers doing so has grown by 11% points, to 52%.
- Although 73% of agencies believe that the introduction of audience guarantees has been a good thing for the digital advertising industry, only 34% of publishers concur.
- 48% of buyers buy mobile video, up from 32% last year.
- 82% of advertisers and 75% of agencies see mobile video as a viable complement to TV broadcast and online video.
- Advertisers and agencies see the biggest barriers to greater spending on mobile video to be the lack of reporting and measurement (39% and 40%, respectively) and the lack of scale of premium inventory (32% and 27%, respectively).
About the Data: The data is derived from a survey of more than 750 professionals from across the digital media industry. Given Digiday’s base of digital media and marketing pros, participants in the twice annual online video state of the industry survey are much more likely to be digital rather than traditional television advertising and media execs. In terms of make-up, the majority of participants work for either an agency or trading desk (50%), followed by video producers (23%), brands (12%) and buy-side intermediaries (ad networks, exchanges and demand-side platforms – 15%).