Will 2016 be the year of video?
eMarketer recently reported that ad spend on digital display will top ad spend on search for the first time this year. Within digital display, video will take second place to banners and ‘other’ with 14.3 per cent of ad spend invested in its production. Following this Dennis Yurkevich spoke to The Drum Network and answered the question, ‘Is 2016 crunch time for agencies to focus and invest further in digital video?’
Digital video advertising is a great alternative to TV for brands to deliver a more targeted message to their consumers. The key inhibitors of growth in this area of programmatic is the market’s failure to realise that CPM directly affects the quality of inventory on which your message appears. High click through rates and low CPMs are what all planners dream of, however the real holy grail of digital video is completed, targeted human views, not simply “impressions”.
It is important that advertisers are educated to ensure they are spending marketing budgets in a way which allows them to reach their ROI goals. For example, if reach is a consideration, delivering low priced videos into smaller player sizes may be the selected tactic, however if the goal is to ensure each ad impression leaves an impact on a targeted set of users, higher priced in-stream formats should be targeted.
Transparent video pricing models, delivered in premium environments are what will drive marketers to increase spend in this engaging format. Paying a premium for the impressions which deliver real value, will help increase the amount of quality supply and transparency within the marketplace.