Agencies’ Interest in Online Video Grows

March 5, 2014

This article is included in these additional categories:

Agency Business | Digital | Radio | Return on Investment | Social Media | TV Advertising | Video

STRATA-Agency-Interest-in-Online-Video-Mar2014Some 95% of agency respondents to a Q4 2013 survey indicate that they’re interested in using streaming/online video in their clients’ campaigns, up from 85% during Q3. The survey, conducted by STRATA, also found 65% of agencies reporting greater interest in the medium than a year earlier, and 6 in 10 believing that an online video impression is equal to a TV impression. YouTube is easily the top video choice for agencies, with 81% expressing interest. But other sites are also garnering some attention. Of those, Hulu is tops, with 40% of respondents reporting an interest in using the site for client campaigns, followed by Netflix (27%), Instagram Video (19%) and Vine (14%).

No discussion of anything digital is complete without the ROI bugaboo rearing its head (well, perhaps that’s an exaggeration), so here are the numbers: 47% are unsure if they’re getting a good value/return on their recent online video purchases, and 12% said they don’t think they’re getting a good value. Even so, it seems that agencies are following consumers’ own interests in the medium.

Meanwhile, the question of social’s ROI continues to pop up: while 87% of agencies surveyed were interested in using social for client campaigns, some 54% said they would buy more social ad spots if the value was more obvious.

As for the most popular social channel? Drumroll… Facebook, with about 8 in 10 saying they’d use it in their clients’ campaigns. YouTube (57%) and Twitter (48%) are also popular, but Pinterest and LinkedIn appear to be moving up the ranks. The 35% saying they would use Pinterest was up from 22% a year earlier; the 33% considering using LinkedIn was a 56% year-over-year increase.

Other Findings:

  • The most common Facebook ad types clients indicated they were likely to buy were Standard External Website Ads (33%), Promoted Posts (31%) and Page Post Ads (31%).
  • About 6 in 10 respondents said they were more interested in online/streaming radio than the year before. By contrast, interest in traditional radio is down 67% since 2010 (arbitrary date alert!).
  • Close to half of agencies expected growth to be better in the first half of 2014 than in the last half of 2013, which STRATA says is the highest level of optimism it has seen since it began running the quarterly survey.
  • The biggest challenge for agencies is attracting clients (47%), followed by media mix. Concerns over client spending have dropped tremendously – just 8% find this to be their biggest challenge.
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