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eMarketer estimates that US digital video ad spending will reach $7.77 billion this year, up 33.8% year over year and representing 13.3% of total digital ad dollars.
As more money flows into the format, advertisers and agencies face hurdles involving the availability and definition of premium inventory as well as a lack of standards related to targeting, measurement, implementation and best practices. At the same time, low return on investment (ROI), high production costs, lagging sales skills and knowledge and limited inventory present obstacles for publishers, according to May 2015 polling by Forrester Consulting, commissioned by Teads.
Out-stream video ads, which play outside of video content—between paragraphs of text, for example—have emerged as one solution to challenges both sides face. When asked about the types of video ads that would be more or much more important to their clients’ overall ad portfolios in the future, fully 77% of agencies worldwide cited out-stream ads, as did 70% of advertisers. For both of these groups, this was the No. 1 response.
Meanwhile, 69% of media and publishing professionals said out-stream video would be more important to their clients; this trailed No. 1 in-stream ads by just 3 points.
Seven in 10 advertisers who had purchased out-stream video ads said they offered more inventory and the ability to buy video programmatically, and a close 69% said it helped determine viewability. Nearly two-thirds also said it allowed for a better—less annoying—user experience.
Those on the sell side saw similar benefits. Fully 67% said increased inventory meant they could sell video ads programmatically, and 66% cited the perk of offering more of that desired premium inventory. Six in 10 agreed that the user experience was better during out-stream video, and a close 59% had also seen better ROI compared with other formats.
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