Thursday, January 12, 2012

Factors Affecting Online Video Ad Growth in US – eMarketer Findings

Online video advertising is one of the competent features of internet advertising. eMarketer, a company involved in publishing data, analysis and insights on digital marketing, finds that online publishers expected favorable online video ad growth in the United States. As per the online video ad network Brightroll, publishers are more focused on digital video advertising. About 62% of the survey respondents estimate that it contributes maximum revenues in 2012.

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From the survey, certain factors which affect the growth of online video ad growth were found. Some of them include:

  • Standardization
  • Technical implementation
  • Interruptive nature of the video
  • Cost
  • Integration with third parties

About 42% of the respondents believed that lack of standardization is the main barrier for the growth of online video ads. This is very much true when considering the vast number of networks, video players and providers in the online space. Interruptive nature of online video advertisement disrupts the interest of the user and is another considerable factor which has an impact on the video ad growth. This was supported by about 39% of the respondents of the study.

About 31% and 26% of the respondents expressed challenges of technical implementation and integration with third parties as the barriers of its growth. 20% of them considered each lack of advertisers and metrics inhibiting its progress.

Another important factor to be considered is the cost. While the Brightroll findings for the first quarter of 2011 revealed cost as the most prohibitive factor of online video ad growth, about only 17% of the survey respondents found it as a deterrent. As per the findings of the first quarter of 2011, high price of video (33%), limited reach of online video (22.3%), lack of targeting capabilities (15.2%), ad format limitations (9.8%), poor inventory quality (9.8%) and others (9.8%) constituted the factors limiting the development of online video ad growth. However, online publishers are found to be optimistic about the growth of this advertising sector by next year.

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