European study shows focus on video advertising

Author Moonshot.news

Published on: 14/04/2022

On average, digital media buyers are investing 36% of total advertising spend in video advertising (excluding TV formats). The most frequently bought video advertising is mobile web with one-quarter of media buyers investing more than 61% of their digital budget in this channel. Two-thirds of digital buyers are investing in connected TV (CTV), albeit at a lower percentage of the total budget.

These are main findings in an IAB and PubMatic survey comprising 140 online video buyers across 31 European markets.

“Media buyers are excited about the potential of CTV advertising as it offers a cost effective way to reach audiences that are viewing far less traditional TV. This is appealing to big brands, while also opening an opportunity for smaller brands to invest in TV advertising without the big price tag attached to linear TV,” said Hitesh Bhatt, Senior Director, EMEA at PubMatic.

• The share of digital video campaigns on CTV is still growing, with the majority of budgets still being invested in mobile web and desktop. 25% “of respondents state that more than 61% of their digital video campaigns are on mobile web compared to just 9% reporting the same for CTV.”
• On average, 56% of ad budgets are invested in digital compared to 28% in linear TV.
• Investment is primarily being directed toward in-stream video advertising, with 65% of respondents spending between 41% and 100% of their budgets on this format type. Meanwhile, outstream has overtaken inbanner advertising in terms of investment.
• 93% of respondents believe that budgets dedicated to digital video advertising will increase over the next 12 months.
• 60% of advertisers view non-linear TV as a means of expanding the reach of broadcast campaigns. 54% cite brand loyalty as a key driver. Meanwhile, a lack of cross-screen measurement is seen as the top barrier to digital video advertising investment, selected by 46% of respondents. This is followed by viewability (38%) and market fragmentation (38%)