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Streaming, online video advertising jumps by 66%

A new survey suggests interest in ad spend against online video and social is increasing, with Facebook as the most popular platform.
August 28, 2015

U.S. ad agencies are warming up to the idea of advertising on streaming and online video, reports Strata, a Chicago-based company that develops software for media buyers.

According to a survey conducted by Strata that polled 85 agencies of various sizes across the U.S., there’s a 66% increase in interest in advertising on streaming and online video during second quarter 2015 over the same period in 2014.

The survey also found that social media spend is gobbling up a larger share of advertising budgets, with 20% of the agencies surveyed willing to allocate between 11% and 25% of their ad budgets to paid social media, an increase of 24% from the previous quarter.

As far as paid social media advertising destinations are concerned, Facebook leads the pack (with 93% of respondents citing it as their preferred platform), with YouTube (57%), Twitter (52%) and LinkedIn (29%) behind it, with 24% of the agencies currently allocating 6% to 10% of their ad budgets to those platforms.

As most social media sites such as Facebook and Snapchat continue to delve into native video, including original content, it prompts an increased opportunity for ad spend. Facebook has been especially noteworthy for its various video initiatives, from hosting the premieres of Patrick Stewart’s Blunt Talk and the LeBron James-produced Survivor’s Remorse to gaining exclusive rights to George Takei’s new documentary series and enabling live-streaming for celebrities.

The survey also took a look at programmatic buying, which spiked for 20% of the agencies, a 49% increase from last quarter and a 244% jump from fiscal 2014.

As a result of these multiple choices, Strata has found that agency planning for media buys has become more complex, with 40% of agencies responding that media mix is their biggest challenge, over client attraction (24%) and client spending (11%), with 22% of agencies expecting their clients to make minor advertising budget cuts.

For programmatic ad buys, the biggest agency concerns include the transparency into inventory sources (54%) and quality of inventory (50%.)

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