COLOGNE, Germany — As online video moves past its early growth stages, advertisers and media agencies believe it can play a key role in boosting overall advertising revenue and CPMs for their businesses, according to a Forrester study, commissioned by Videology. Video has the potential to drive the effectiveness of ads thanks in part to more data-driven ad processes, the report said. More detailed targeting and higher engagement with video content are the key factors that help drive this segment of the media business, says Richard Joyce, Senior Analyst with Forrester Research, in an interview with Beet.TV about the report.
However, the study revealed some differences between the goals of advertising agencies and media companies. Brands and agencies say they want reach and audience attention, while media companies want interactivity and to be able to time the ads to day parts. Forrester said media companies and agencies may move closer on this issue as online video and linear TV planning becomes more aligned within an agency. Expect some growing pains, but common ground exists though and both media companies and agencies expressed interest in wanting the same tools in a video technology platform — they want to analyze viewing behavior, target individuals and measure campaigns.
Other key highlights from the report include:
-About 70% of respondents at advertisers, agencies and media companies believe that consumers will shift more of their viewing of full-length TV shows to streaming in the next three years.
-Likewise, more than 70% of respondents in all three groups believe time spent viewing TV on connected TVs, smartphones and tablets will significantly increase in the next three years.
-As that viewing shifts, new ad opportunities arise, and respondents in each group say they are most keen on targeted advertising as the biggest benefit of that change.
-They also expect consumers will spend much more time interacting with additional content about a program.
For more insight into this report, as well as details from Joyce about the perceptions of private marketplaces, please check out this video interview. The report was released today at DMEXCO where is was presented by Joyce.