A new survey conducted by STRATA, a leading media buying and selling software firm based in Chicago, found that digital/online video and streaming/online radio received major increases in interest from ad agency clients compared to a year ago. The second quarter survey released this morning found that 45% of ad agencies are more interested in digital/online video for their client campaigns than a year ago, and streaming/online radio saw a 53% increase. Overall, video was the dominant force as 67% of agencies said that it is their clients’ primary focus.

 

STRATA, which processes over $50 billion in advertising orders each year, also found YouTube remains the most dominant site with digital video with 72% of agencies reporting that their clients are interested in using that medium to advertise. Hulu followed YouTube at 36%, however posted a strong 32% jump from 3Q13.

 

An interesting twist, however, is that many agencies still question the ROI of online video ads. The survey found that 47% of agencies said they are fairly confident they are getting good value on digital video ads, while 40% are still unsure.

 

Joy Baer, president of STRATA, said, “While dollars continue to flow to the traditional advertising mediums, our agencies continue to ask for better ways to buy digital video advertising. We are seeing long-form digital video content increasingly mirror the 30-second TV ad experience, further blurring the lines between devices.”

 

Programmatic buying is splitting opinions in the advertising industry. The survey found 39% of agencies are are undecided as to whether they trust programmatic to carry out their media buying. Conversely, an equal amount of agencies believe that programmatic buying is effective in reaching their clients’ target audiences. Digital is the most popular form of programmatic buying, with a third of agencies polled stating they use programmatic for that purpose.

 

“We as an industry need to make it easier to buy video, regardless of the platform, and provide the right measurement and accountability to help our buyers purchase digital video at scale,” added Baer.

 

On the social media front, 89% of agencies plan on using Facebook in client campaigns, which is the third highest number in the STRATA Agency Survey since 2008. YouTube (53%), Twitter (50%), LinkedIn (36%) and Pinterest (32%) followed. Pinterest showed strong year-to-year growth, jumping up 31% over 2Q13.

 

Agencies displayed general optimism as 51% project the second half of 2014 to be better than the first half, 19% higher from the second quarter of 2013.

 

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STRATA SURVEY: AD AGENCIES’ INTEREST IN DIGITAL VIDEO JUMPS 45% FROM A YEAR AGO

— Online Video Ad Growth Strong Even as Agencies Question the Value —

CHICAGO, Aug. 26, 2014 /PRNewswire/ — A recent survey of media buying agencies found that 45% of those polled are more interested in digital/online video than they were a year ago, while streaming/online radio saw a 53% increase. Overall, video dominates as 67% of agencies said that their clients’ primary focus for campaigns is video advertising (which includes traditional TV, cable, and network, as well as digital video). The second quarter survey of agencies was conducted by STRATA, the leader in media buying and selling software.

 

Ad agencies interested in advertising on YouTube

YouTube is the most dominant site within digital video, as 72% of agencies said their clients are interested in advertising on that medium, up 5% from last year. HULU followed at 36%, a 32% jump from 3Q13. Despite the strong growth for digital video, agencies still question the value of online video ads. Almost half (47%) said they are fairly confident they are getting a good value for their money in recent digital video ad purchases, while 40% say they are unsure.

Driven by television along with digital advertising, the overall ad economy appears to be strong as 62% of agencies say their business is increasing this quarter compared to the same time last year, representing an all-time high for the STRATA Agency Survey.  Spot TV continues to be the top source for advertisers as 55% say their clients are the most interested in that medium, the largest percentage in 22 quarters of the survey. For spot radio, 13% of agencies responded that that medium is receiving the most interest, up 32% from a year ago.

Better ways to buy digital video advertising

“While dollars continue to flow to the traditional advertising mediums, our agencies continue to ask for better ways to buy digital video advertising,” said Joy Baer, president of STRATA. “We are seeing long-form digital video content increasingly mirror the 30-second TV ad experience, further blurring the lines between devices. We as an industry need to make it easier to buy video, regardless of the platform, and provide the right measurement and accountability to help our buyers purchase digital video at scale.”

The use of programmatic buying also continues draw differing opinions from agencies. Thirty-nine percent of agencies are still undecided as to whether they trust programmatic to carry out their media buying, while an equal amount of agencies believe that programmatic buying is effective in reaching their clients’ target audiences. The most popular form of programmatic buying, according to agencies, is digital, with a third of agencies polled stating they use programmatic to purchase their digital ads.

Digital video advertising: Other key findings

  • 89% plan on using Facebook Inc (NASDAQ:FB) in client campaigns, which is the third highest number in the STRATA Agency Survey since 2008. YouTube (53%), Twitter Inc NYSE:TWTR) (50%), LinkedIn Corp (NYSE:LNKD) (36%) and Pinterest (32%) followed.
  • Pinterest had the largest year-to-year growth, jumping up 31% over 2Q13.
  • 51% project the second half of 2014 to be better than the first half, up 19% from the second quarter of 2013
  • 31% are less interested in Out of Home advertising than a year ago, the largest percentage since 2008.

ABOUT STRATA

STRATA is the only system provider that connects both media buyers and sellers. The custom solutions supplied by STRATA empower clients to sell and efficiently purchase all media types including cable, broadcast, newspaper, radio, outdoor and digital advertising mediums.  On average, over $50 Billion in advertising dollars flow through STRATA systems per year.

As the system of choice for over 1,000 agencies nationally, STRATA provides media technology that enables organizations to lead rather than react to industry developments.  By transforming the way advertisements are placed and tracked, STRATA adds a new level of transparency to campaigns that is necessary in the ever-evolving media world.