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MSN research predicts massive upswing in online advertising

Common sense would have it that, with just about everything moving online, the role of online video advertising too will only get bigger.

Common sense would have it that, with just about everything moving online, the role of online video advertising too will only get bigger. MSN decided to find out and conducted some modestly sized local industry research, with results indicating that the majority (87 percent) of local agencies are expecting to see bigger online video advertising budgets over the next 12 months.

In fact 56 percent are predicting the upswing to shift dollars from other advertising formats, though one in four (26 percent) are unsure.

The survey, completed by 62 agency people, found that the appeal of online video is in its is scope for interactivity and engagement, accessibility (for consumers and advertisers), measurability, cost effectiveness, opportunity to leverage TVCs, and increasing competitiveness vis-àvis traditional television.

Commenting on the findings, MSN business manager Liz Fraser says online video is well regarded for delivering results.

“The research shows that the decision to use online video advertising is largely a function of results, inasmuch as more than one-in-two (55 percent) believe ‘results’ are the most important consideration factor,” she says. Targeting (25 percent) comes next, followed by cost (20 percent) and reach (16 percent).

In fact cost plays a pretty big role in the decision making process with three-in-five (61 percent) considering it either most or somewhat important. On this basis it is just as important as targeting, says MSN.

So, there’s a big interest in online advertising, but what really needs to be done to enthusiastically convert agency players? Two in seven respondents (28 percent) would spend more if ROI were better. Meanwhile better proof of performance (33 percent) and cost per engagement modelling (39 percent) are also likely to attract more expenditure.

“Online video advertising is in its nascency, and the onus is on online media property owners to offer performance metrics applied to other forms of online advertising. It’s starting to happen, and I’d expect video’s natural advantages, particularly scope for engagement and interactivity, to capture bigger budgets, when all the hard numbers are available,” says Fraser.

Experienced users make these observations: the vast majority (95 percent) have used online video over the past 12 months. Most popular was pre-roll/ post roll (87 percent), followed by in-banner (74 percent), expandable banner (57 percent), and rich media overlay (46 percent). There is scant experience of mobile video advertising (3 percent), though over the next 12 months we should see an upswing (31 percent expect to use mobile video advertising).

According to the findings Ad Exchanges are very up and coming , with 31 percent saying that over the next 12 months they or their agency are likely to use an Ad Exchange to book online advertising. However, a similar number (30 percent) say they won’t, and even more (39 percent) don’t know.