Video advertisers continue to buy in TV-like fashion

Videology – one of the world’s largest video advertising platforms – today released its 1st quarter 2014 findings on the video advertising market in the United States, which shows the vast majority of advertisers are buying their online video ads the same way they do on TV – in a reserved fashion.

“While many of the headlines have focused on the use of real time bidding, reserved buying at a fixed CPM remains the mainstay of TV-centric advertisers buying video in a programmatic fashion,” says Scott Ferber, Chairman and CEO of Videology. “As television and video continue to converge, the same advertisers who rely on the guaranteed, time sensitive delivery offered by television are looking for those same guarantees in video. Reserved, automated buying has always been a mainstay of our offering.  Clearly, it resonates with advertisers using the platform, as 9 out of every 10 campaigns are purchased in this way.”

According to the analysis, which is based on 2.4 billion impressions delivered via Videology’s platform from January through March 2014, 91% of advertisers bought video ads based on a guaranteed CPM—a 6% increase quarter-over-quarter.

This is the first time that this type of data was made public, as Videology recently enhanced its quarterly US Video Market At-A-Glance report to include metrics around buy type, audience verification and advanced measurement to better tell the full story in today’s converging landscape. These additions reflect the increased focus in the industry around brand-focused and TV-like digital buying.

Additional highlights from the report include:

• Marketers are measuring success beyond click-through and completion rate, looking at metrics from impact to brand perception, and customer action to actual off-line sales. Of those campaigns using these advanced metrics, 57% looked at brand impact; 26% action impact; 13% sales impact; and 4% measured cross-screen effectiveness.
• In the first quarter Videology found that 35% of campaigns utilized some type of third party audience verification, such as Nielsen’s Online Campaign Ratings or ComScore’s validated Campaign Essentials (vCE).
• Advertisers are taking a screen-agnostic approach to video advertising; in Q1, 22% of all campaigns included a mobile or connected TV component, and 6% of all campaigns ran across mobile, connected TV and computer.
• In a sign of the increasing use of targeting capabilities now available, the share of ads using “advanced” targeting in the U.S. jumped from 30% to 70% year-over-year.
• The popularity of :15 second ads has risen each of the last four quarters and finally surpassed :30 second ads as the most popular format on Videology’s platform, comprising 50% of impressions in the first quarter.
• CPG ads accounted for the most impressions on the platform in Q1 (28%), followed by Financial Services (21%) and Restaurant advertisers (12%).
• Total video impressions on Videology’s platform grew 33% year-over-year.


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