While spending on in-stream video advertising has more than tripled since 2013, many verticals are lagging in using the medium, according to Sizmek's Video Index 2015.
The report, which analysed video ads from the first half of 2013, 2014, and 2015, found the Consumer Packaged Goods (CPG), Entertainment and Auto verticals leveraged video ads the most (22.22%, 19.65%, and 10.29% of all video ads served, respectively).
At the other end of the spectrum, government/utilities accounted for 3.54%, telecom 3.77% and retail 3.89%. Health/beauty and apparel showed room for improvement at 6.25% and 5.72% respectively.
According to Sizmek research director, Andy Kahl, marketers need to look beyond repurposed television spots.
“Video has become an exceptionally important medium for brands today, and marketers have more choices than ever, from the more passive in-stream to engaging rich-media ads with video," he said.
"This study shows that although there has been swift adoption of the medium, most marketers are still learning how to effectively execute a digital advertising strategy that comprises multiple types of video."
The report shows a spike in spending on in-stream video advertising, which has more than tripled since 2013, and increased by nearly 12 times since 2012. The share of ads delivered via in-stream video increased to nearly 10% of all online ads in the first half of 2015, up from 7% in 2014.
In the APAC region, 61.52% of video ads are fully played, compared to the highest rate of 73.62% in Latin America. Globally, the rate of 25%, 50%, and 75% completion has remained static since 2014, showing the medium's cut-through.
Mobile advertising recorded the highest growth from 2013 to 2105, jumping from 7.27% to 11.61 %. On a broader level, advertising that included video was included in nearly 15% of all digital ads in the first half of 2015, an increase from just under 9% during the same period in 2013.
Sizmek's data is collected from ads served via the Sizmek MDX Platform, which represents marketing activity for more than 3,400 agencies, 17,000 brand advertisers, and 22,000 global web publishers in more than 70 countries.
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