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Online Video Ad Spending Rose 27% in 2012

  |  November 14, 2012   |  Comments

A new research report from online video advertising company Adap.tv has found that online video ad spending has rose 27 percent in 2012.

A new research report from online video advertising company Adap.tv has found that online video ad spending has rose 27 percent in 2012. Adap.tv projects that online video ad spending will continue to grow by another 20 percent in 2013.

Adap.tv says the increase in online video ad spending came with a push to bring broadcast TV and online video advertising planning together. According to the firm's study, 58 percent of those surveyed said that they plan to bring online video and TV ad planning closer together.

The company's report shows that surveyed participants see online video advertising and TV advertising as complementary to each other at a 67 percent rate. Adap.tv says the mark represents an 8 percent increase from last year.

"Buying video, in all its forms, is just part of the workflow for today's cross-media marketers," Adap.tv said in its report.

"As the industry develops better, unified measurement tools, the mix of TV to online video, or online video to digital display may vary over time, but the integration of all these elements is here to stay."

According to the study, broadcast TV advertising budgets to fund online video ads have seen a reduction. The research found that 27 percent of firms surveyed said their broadcast budget was reduced to fund online ad spending. Adap.tv says the mark is a reduction from last year when 34 percent of participants said broadcast ad budgets were reduced for online video ads.

While broadcast TV budgets saw an increase, display ad budgets dropped to account for online video ad spending funds. According to the report, display ad spending was reduced by 37 percent of those surveyed. The mark represents a jump from the 33 percent mark set last year.

While the convergence of online and broadcast video ads was growing, many of those surveyed still felt the two sides lacked proper communication. According to the report, many organizations said that the digital and TV video groups within their organization felt siloed.

More than half of those surveyed reported that digital and TV video planning was too siloed in their organization. In fact, the report found that 83 percent of those who felt siloed said their company's digital group remains in charge of all digital video spending decisions.

Adap.tv surveyed over 700 digital marketing and media professionals for this year's report. Surveyed participants were reported to be advertisers, publishers, and brands.



James is a freelance writer and editor. In addition to ClickZ, his work has appeared in publications like V3, The Commonwealth Club, CachedTech.com, and Shonen Jump magazine. He studied Journalism at Weber State University.

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