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The online video advertising ecosystem has gained both prominence and complexity, but that might be because buyers have found that the ads really work. A March 2013 survey of US advertising agency executives conducted by online video ad platform BrightRoll found that the vast majority of respondents (75%) said online video ads were equally or more effective than traditional TV. Nine out of 10 also thought online video ads had equal or greater impact than display ads.
Ad execs may be responding to US consumers’ seemingly endless demand for online video. Video monetization firm FreeWheel reported that in Q4 2012, total video views among US internet users climbed 23% year over year.
The popularity of digital video viewing is helping drive the expansion of the online video ad market. eMarketer estimates that video ad spending in the US will grow 41.4% this year, to reach $4.1 billion. BrightRoll found that the greatest percentage of advertising professionals—one-quarter—expected online video ads to see the highest growth rate of any ad category, with mobile video a close second.
The growing complexity of the online video ad market means that advertisers now have a variety of ways to measure return on investment. But which method is best? This year, 36% of ad executives indicated that their clients placed the highest value on gross rating points (GRP) or target rating points (TRP) to measure the size of their audience. Still, another 30% said clients valued the percent of impressions that reached their target audience, while 24% named the percent of unique viewers in target.
Ad buyers are faced with an increasingly complicated equation when it comes to online video ads, and they need to consider which sites to purchase ads on, what format the ads will take and how to measure their effectiveness.
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