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Ad Agencies' Interest In Digital Video Jumps 45%, Youtube Tops List

Stocks in this article: FB GOOG GOOGL LNKD TWTR


A new survey conducted by STRATA, a leading media buying and selling software firm based in Chicago, found that digital/online video and streaming/online radio received major increases in interest from ad agency clients compared to a year ago. The second quarter survey released this morning found that 45% of ad agencies are more interested in digital/online video for their client campaigns than a year ago, and streaming/online radio saw a 53% increase. Overall, video was the dominant force as 67% of agencies said that it is their clients’ primary focus.

 

STRATA, which processes over $50 billion in advertising orders each year, also found YouTube remains the most dominant site with digital video with 72% of agencies reporting that their clients are interested in using that medium to advertise. Hulu followed YouTube at 36%, however posted a strong 32% jump from 3Q13.

 

An interesting twist, however, is that many agencies still question the ROI of online video ads. The survey found that 47% of agencies said they are fairly confident they are getting good value on digital video ads, while 40% are still unsure.

 

Joy Baer, president of STRATA, said, “While dollars continue to flow to the traditional advertising mediums, our agencies continue to ask for better ways to buy digital video advertising. We are seeing long-form digital video content increasingly mirror the 30-second TV ad experience, further blurring the lines between devices.”

 

Programmatic buying is splitting opinions in the advertising industry. The survey found 39% of agencies are are undecided as to whether they trust programmatic to carry out their media buying. Conversely, an equal amount of agencies believe that programmatic buying is effective in reaching their clients' target audiences. Digital is the most popular form of programmatic buying, with a third of agencies polled stating they use programmatic for that purpose.

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