U.S. Advertisers Realize Video is Most Effective Marketing Tool – You Should Too!

Web video advertising will increase in 2012 with U.S. advertisers allocating 35 percent of their budget toward video advertising. Last week, Break Media and the Advertisers Perceptions research firm released the second annual Digital Video Advertising Trends media study in collaboration.

The study, which was an online survey of 320 respondents from various ad agencies, focused on planned spending for video ads by U.S. advertising agencies vs. what was actually spent in 2011, as well as how video ads would be implemented in 2012. It was found that nearly 3 in 10 (29%) of U.S. advertisers spent more on online video ads than they had projected in 2011, while a little over half (57%) spent what they had projected.

Moving forward to 2012, advertisers are increasing their online display budgets, shifting funds from non-video display and television budgets. U.S. advertisers project that video ads will take away up to 32 percent of television budgets in the coming year. Markets showing a high increase in budgeting include women’s apparel, IT and B2B, among others.

The study confirms the buzz about online video advertising- it is here to stay. According to the study, video advertising networks (VANs) are becoming more widely used among advertisers, with 73% now using networks and 90% of advertisers planning to use them in the coming year.

Popularity in advertising formats was also studied and it was found that the pre-roll advertisement format continues to be favored by U.S. advertisers due to its successful ROI. Mobile formatting will increase, however from 39 percent in 2011 to 55 percent in 2012. This is a smart decision for advertisers, who understand that mobile video is on the rise.

Web video, whether it is promotional, educational, informational, or, like this study, an advertisement, significantly increases conversion rates for products, services, etc. If you are not using web video to market your business or service, you are missing out.

Fairfax Video Studio can help you create professional quality web video to increase your conversion rates. Call us today at 1-877-477-STUDIO, or fill out a contact form online to get started.