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Spending on Online Video Ads set to almost double in 2013

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Spending on Online Video Ads set to almost double in 2013

Spending on online video ads increased by 27 percent during 2012 and is poised to almost double to 47 percent in 2013 according to a report by online video advertising firm Adap.tv.

The company surveyed more than 700 firms in the field of media and marketing that included publishing houses, advertisers, and several brands. The company’s survey on online video ad spending indicated that 58 percent of participants intended to get TV ads and online video ads close to each other.

The report by Adap.tv pointed out that 67 percent of the participants felt that TV ads and online video ads actually complemented each other. The company stated that this figure was lower by 8 percent in the past year. Adap.tv mentioned that in the current scenario of cross media marketing, video is purchased in all forms.

The company felt that integration between TV advertising and online video ads was here to stay even if there were variations in the mix. Their research also indicated a drop in funding of broadcast TV ads in favor of online video ads by 27 percent from firms that participated in the study.

The figure in the previous year for a similar study was 34 percent. Their survey found out that 37 percent of participating firms had cut down on their display ad spending, which was 33 percent in the previous year.

Many firms felt that there was a deficiency in communicating between groups that managed online video ads and broadcast TV ads, and each group felt that they were isolated in their organization. 83 percent of participants that observed a deficiency in communication stated that it was the digital group in their organization that made all spending decisions.

The report of Adap.tv seems to indicate that both groups do need to establish better communication between each other even as spending on online video ads in the next year is all set to almost double as compared to the current year.

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