Online video soars


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Online video is attracting more investment from the world's largest advertisers, according to a survey by the World Federation of Advertisers.

Based on responses from 29 multinationals across 12 different categories, spend on the channel is expected to increase by 41% in 2012.

While traditional TV continues to attract the bulk of media investment from the world's biggest advertisers, online video is emerging as the most popular alternative.

Where brands are spending on non-linear TV, online video is attracting more 43% of that budget. Branded content at 19% and online TV such as streaming services at 15% were the next biggest recipients.

Marketers believe that online video provides a cost effective (62%), incremental reach (77%) and engagement-driving (69%) solution. Branded content is being backed in for its ability to drive engagement (69%) as well as driving traffic (42%).

Online video has benefited in part because it is seen to have less barriers to entry. By contrast, marketers remain concerned about the higher production costs and potential lack of accountability of branded content.

Online TV is regarded as the most difficult to development, with 42% of respondents feeling it is too early to invest and highlighting the lack of cross-platform compatibility.

Within online video, the most popular option is pre-roll adverts, which take more than a quarter of investment. However, few brands are investing in mobile video. Twenty per cent of respondents to our survey are spending nothing in this area and more than half are spending less than 2% of their online video budget in this way.

All three (and other non-linear TV channels) continue to represent a minority of marketer spend with traditional TV taking 64% of media spend. Most respondents are spending just 5% on non-linear TV with none spending more than 30% on these new advertising channels.

Respondents in Middle East, Latin America and Africa were found least likely to be developing experience in these areas with Europe, Asia Pacific and North America leading the way.

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