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BrightRoll Study Reveals Agencies Perceived Greater ROI From Online Video Advertising in 2009

BrightRoll, the leading branded video advertising network, today released the results of its second annual Online Video Advertising Report, which explores spending patterns and sentiments towards the online video ad sector. While last year’s report indicated that online video was still a nascent medium, this year’s findings reveal that advertisers are becoming increasingly reliant on online video as a proven means to reach targeted audiences at scale.

BrightRoll, which, according to Quantcast, is the largest video ad network in the U.S. and reaches 54.6 million viewers per month, conducted the study as part of its mission to uncover and share insights that will help move the online video industry forward. The report was based on data from a survey of executives and media buyers at leading advertising agencies across the country and found that online video has continued to grow in terms of effectiveness and value. This perceived increase in value from online video buys will continue to drive growth in this category, as evidenced by the fact that in the 2009 study 87% of respondents planned to devote more of their budget to online video, whereas in 2010, 94% of respondents plan to increase their spending in this area.

Since last year’s study, agencies are becoming increasingly comfortable navigating the online video space and negotiating better deals, resulting in the perception by 83% of respondents that they are receiving greater value for their spend this year than they were last year. Lower rates, better targeting, more access to quality inventory and the emergence of performance-based metrics like cost per engagement (CPE) and cost per video view (CPV) all contributed to the perception of increased value.

Key findings from the report include:

  • 56% of respondents stated that they view online video advertising as either “more effective” or “much more effective” than other forms of advertising.
  • Targeting was identified as online video’s most valuable asset by 32% of respondents, followed by ad unit format (21%), reach (19%), price relative to TV (10%) and ability to reuse creative (10%).
  • 45% of respondents said they would most like to base online ad spend on cost per video view (CPV) while 34% said cost per engagement (CPE) and 16% said cost per impression (CPI).
  • In 2009, advertisers, on average, bought 42% of their online video through ad networks, 43% of their video directly through publishers and only 15% through portals.
  • In 2010, the majority of advertisers plan to spend their creative budget on interactive pre-roll (54%) as opposed to branded entertainment (20%), consumer content or webisodes (15%) or other forms of creative content (11%).

“Online video underwent a cycle of massive innovation in 2009, and has matured into a highly effective platform for advertisers to connect with their target audiences online,” said BrightRoll CEO Tod Sacerdoti. “My hope is that this study will form the basis of a continued effort to educate the industry about online video’s capabilities, as well as the areas that need attention in order for it to continue to move forward. The BrightRoll team looks forward to contributing to the category’s continued success and evolution.”


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