VIDEO ADVERTISER SURVEY Q2 2013
METHODOLOGY Rocket Fuel conducted a survey of 149 digital ad-agency professionals nationwide during the first two weeks of June 2013. Respondents were asked to identify their role, the type of media they purchase, and the types of brands and clients they work with. They were then asked a series of questions about their plans for and attitudes toward digital video advertising in 2013 and 2014, and the challenges they foresaw to advertising in the space.
KEY FINDINGS Completion of the study revealed the following key findings: • 80% OF ADVERTISERS PLAN TO SPEND MORE ON DIGITAL VIDEO IN 2013 Four out of five advertisers surveyed plan to spend more on digital video in 2013 on behalf of their clients, with the remaining one in five expecting to spend about the same as last year. This percentage was even higher for those advertisers responsible for TV buys, of whom 86% plan to spend more in the upcoming year. • 42% OF ADVERTISERS PLANNING TO MOVE MONEY FROM TV TO DIGITAL 42% of advertisers surveyed plan to move money from TV to digital video in 2013, and more than two thirds (69%) agreed that their brand wanted to do more video advertising online. This was despite most advertisers feeling that their client had a history of successful TV advertising. • ADVERTISERS CONSIDERING PROGRAMMATIC FOR DIGITAL VIDEO Nearly two thirds (61%) of advertisers surveyed reported that they are likely to consider a programmatic video-buying solution for online video for their next campaign.
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OVERALL RESULTS
80%
of advertisers are planning on spending more on digital video in 2013. Four out of five advertisers surveyed plan to spend more on digital video in 2013 on behalf of their clients, with the remaining one in five expecting to spend about the same as last year. This percentage was even higher for those advertisers responsible for TV buys, of whom 86% plan to spend more in the upcoming year.
ADVERTISERS SEE DISPLAY AS USEFUL FOR BRANDING Fewer than a third (30%) of advertisers surveyed felt that TV advertising is “primarily for branding” while online display is “primarily for direct-response” campaigns.
Q. Rate your agreement with the following statements about advertising in traditional and digital media. SHOWN: % AGREEMENT (RATED 4-5 OUT OF 5)
68%
Our brand/client has a long history of using TV commercials successfully
60%
Our brand/client has a distinct advertising strategy for brand campaigns that is separate from DR campaigns
30%
Currently, TV advertising is primarily for branding, while online display is primarily for DR campaigns
ADVERTISERS LOOKING TO MOVE TV MONEY ONLINE IN 2013 42% of advertisers surveyed plan to move money from TV to digital video in 2013, and more than two thirds (69%) agreed that their brand wanted to do more video advertising online.
Q. Rate your agreement with the following statements about advertising in traditional and digital media. SHOWN: % AGREEMENT (RATED 4-5 OUT OF 5)
69%
Our brand/client wants to do more video advertising online
57%
Our brand/client wants to look at TV and online video as part of a single holistic campaign strategy
42%
We are moving from TV to online video in 2013 as part of the planning process
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MORE ADVERTISERS LOOKING TO PROGRAMMATIC FOR ONLINE VIDEO Nearly two thirds (61%) of advertisers surveyed reported that they are likely to consider a programmatic video buying solution for online video for their next campaign. Only 4% of respondents were unfamiliar with programmatic buying overall, and only 4% reported that they would not be considering a programmatic solution for video. Just under a third (30%) were still on the fence.
REACH, PRIOR COMMITMENTS ARE BARRIERS TO MOVING BUDGET ONLINE Despite the interest in moving budget to online video in 2013 among most advertisers, many (60%) agreed that there are still serious barriers to moving more TV money online. Among these respondents, the most commonly agreed-upon barriers to moving budget are building reach in digital video (58%) and prior budget commitments (56%).
Q. Which, if any, of the following do you agree are serious barriers to moving more TV money online for your brand/client in 2013?
58%
Building reach
56%
Prior budget commitments Agency coordination
31%
Converting video assets to online ads
30% 25%
Other (please specify)
23%
Brand safety Targeting Privacy concerns
16% 12%
TV NOT AS EFFECTIVE AS IT USED TO BE Fewer than 1 in 5 (17%) of advertisers surveyed felt that TV advertising is just as effective as it was 10 years ago.
Q. Rate your agreement with the following statements about television advertising.
COMMON “OTHER� RESPONSES
7%
Ability to measure TRPs/GRPs
7%
History/fear of change
5%
Effectiveness concerns
SHOWN: % AGREEMENT (RATED 4-5 OUT OF 5)
75% 71% 17% 12% 12% 10%
Consumers use their TV for many new options that do not carry commercials Consumers avoid TV commercials much more than they did five years ago TV advertising is just as effective as it was 10 years ago Advertising on TV is more effective than advertising with digital video TV advertising is just as cost efficient as it was 10 years ago If my commercial is viewed on TV, it works just as hard as it did 10 years ago
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CROSSTAB: TV BUYERS Looking at the 40% of advertiser respondents who either make media recommendations for or purchase TV ads on behalf of their clients. Of these, 93% also buy or make recommendations for digital video. TV buyers are most likely to be working with CPG brands (42%), followed by Retail (23%), and Dining (22%). Additionally, the study showed the following differences for TV buyers responding to the study: • TV buyers are less likely to agree that “consumers avoid TV commercials much more than they did five years ago” (67%) and are significantly more likely to believe that TV ads are just as effective as they were 10 years ago (27%). However, the majority still do not agree with this statement and none of the TV buyer respondents said they “strongly agreed” with the statement. TV Buyers were generally more enthusaistic about TV than non-TV buying respondents, but still did not have a strong outlook on TV advertising today. • TV Buyers are significantly more likely to have clients interested in looking at TV+Online as part of a single holistic campaign strategy, and are more likely to be moving money from TV to online (55%). Surprisingly, they are less likely to agree that there are serious barriers to moving more TV money online, but most of the GRP/TRP measurement issues were predictably voiced by TV buyers. • Although GRP/TRP measurement for digital video is a barrier for TV buyers, their largest concern by far is building reach, which 4 out of 5 (79%) listed as a significant barrier to moving TV dollars online. This dwarfed all other concerns, as the next highest—prior budget commitments (41%)—was less of an issue for TV buyers than for non-TV buyers. • TV buyers are just as likely as non-TV buyers to consider a programmatic video solution (60% top-2 box score) on their next digital video campaign.
CROSSTAB: CLIENT WANTS ONLINE VIDEO 62% (N=93) of survey respondents agreed that their brand/client wants to do more video advertising online. Of these, 85% are spending more on digital video in 2013. More than half (62%) feel that there are still serious barriers to moving more TV money online. Additionally, note the following points about these respondents: • Respondents in this group are most likely to be working with brands in the CPG (29%), Finance (17%), and Telecomm (17%) categories. • Only 40% of respondents for these brands are also TV buyers. Nearly all buy Online Video (100%), Display (99%), or Mobile (94%). • By industry/product category, the groups that were most likely to want to do more online video advertising are: • Finance (73%) • CPG (64%) • Entertainment (62%) • Retail (58%) • Travel & Lodging (50%)
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ABOUT THE SAMPLE Ad-agency respondents represented a variety of industries and campaign types, though the majority were involved in digital advertising efforts.
AUTHORIZING SPEND The majority of survey respondents (69%) make media recommendations and directly authorize media spend.
28%
Make media recommendations and directly authorize media spend on behalf of clients
69%
Make media recommendations but don’t directly authorize media spend on behalf of clients
Q. Which of the following types of media do you make recommendations for or purchase on behalf of your advertiser clients or brands?
DISPLAY
VIDEO
MOBILE
95%
91%
89%
TV
SOCIAL
SEARCH
40%
71%
43%
?
OTHER
13%
TYPE OF PRODUCT Q. Which of the following types of product or service do you handle digital advertising or marketing for?
32% 21% 16% 16% 14% 14% 13% 13% 12% 10% 9% 8% 8% 8% 8% 8% 6%
CPG Retail Finance Travel & Lodging Business Services Entertainment Automotive Telecomm Dining Consumer Technology Health & Beauty Auto Parts Education Pharma Insurance Media Advocacy
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