Lack of Premium Inventory Inhibits Video Ad Spend [Study]

While digital video is becoming an effective channel to engage with consumers, many brands, agencies and publishers are seeking alternatives due to limited premium video inventory, according to a report from research company Forrester.

The report, Solving Digital Video Advertising’s Premium Dilemma, was conducted by Forrester on behalf of video ad platform Teads. It shows that 40 percent of agencies and 27 percent of advertisers are worried that lack of premium video inventory will hurt the video market in the future, even though 70 percent of agencies and 77 percent of advertisers surveyed expect video budgets to jump in the next two years.

The same holds true for sell-side participants as well. Many media companies are struggling with limited video inventory, along with costs and focus, says the report. More than 40 percent of publishers say that video’s return on investment (ROI) is not as high as they would like due to high costs of producing video content to host an ad, while 37 percent admit that they don’t have enough video inventory.

In addition, two fifths of the media companies surveyed think that video is too small a part of their overall revenues to dedicate sales or traffic manager resources to the ad format.

In order to drive digital video growth, many buy-side and sell-side participants are seeking additional sources of premium video inventory. One of the alternatives is outstream advertising that places a video in the heart of editorial content instead of creating native video content to host an ad.

A large number of agencies (77 percent), advertisers (70 percent) and publishers (69 percent) believe that outstream ads will become increasingly important, according to the report. And among media companies that have offered outstream video, more than 60 percent say the ad unit has enabled them to offer premium video inventory as well as programmatically sell that inventory.

The report is based on a survey of 529 decision-makers across agencies, brands and media companies in Argentina, France, Germany, Italy, Mexico, Spain, the U.K. and the U.S. For more insights, you can request the full report from Teads or Forrester.

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