Online video to rise 37% as digital takes spend from TV and print

By AdNews | 22 October 2014

Online video spend is set to rise 37% in the coming year, and one fifth of inventory is being bought programmatically, according to the second annual State of the Video Industry Report, released today by the IAB and Adap.tv.

The report, which surveyed more than 130 media professionals on the buy and sell side of digital advertising, found that most of the spend is to come from free-to-air TV and print budgets.

Mobile video shows the strongest growth from last year with more than 80% of buyers now purchasing mobile video inventory. Avertisers are also found to be using “increasingly sophisticated methods” to deliver efficient outcomes.

The scarcity of inventory is an issue that continues to concern buyers, but CEO of IAB Australia, Alice Manners, describes is as "a nice problem to have".

The study found that the shortage of inventory is most pronounced in long form content, with 88% of buyers indicating it was an issue.

“Publishers tell us inventory levels have risen 42% in the last year, while fill rates have also increased. That shows the insatiable appetite for video content,” Manners said.

“We can expect inventory levels to continue to increase over the next few years, with particularly strong demand for long-form inventory and Australian content.”

Sellers indicated that over one-fifth of their inventory is being purchased programmatically and more than 60% are making their premium inventory available through these environments.

More than half (52%) of publishers believe programmatic can assist with better merchandising of their inventory, but the figure is not as high as previous estimates.

Other highlights were that nearly two thirds of publishers have seen their CPMs increase by 25% or more in the last 12 months; 84% of buyers still purchase direct from publishers, 66% through demand-side platforms and 38% through private marketplaces.

Adap.tv Australia MD Mitch Waters, said the report highlights the increasing importance of data to drive purchase decisions, with 86% of agencies using data to target or verify audiences across their video buying decisions.

“Programmatic trading is enabling buyers to develop an increasingly sophisticated and accountable approach to their buying, while giving publishers immediate intelligence on the sort of content that is in-demand and providing the highest yield,” Waters said.

For more in the IAB and Adap.tv see below:

Adap.tv hires sales boss

Nielsen beats GfK to retain IAB digital audience measurement contract

Google pushes hard with YouTube venture

Google GroupM ad deal to help shore up 'scarce' premium video inventory

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