77% of National US Brands Buy TV Advertising, But No Video

Kantar MediaWhile the US online video advertising market continues to enjoy strong growth, new data released by Kantar Media illustrates how many national US advertisers have yet to move spend into video — a total of 77% of brands are buying TV but have yet to start spending on video. Kantar analysed the buying habits of more than 4,100 brands advertising through TV and video and found that 23% used online video, 12% advertised on both online video and national TV, and 11% advertised on online video exclusively.

Kantar Media have just launched a new online video ad tracking service that monitors actual occurrences and creative for video ads appearing on more than 90 of the top online video sites. The company’s Online Video Measurement service captures pre-roll, mid-roll and post-roll video ads playing within videos shown on ‘over 90 leading video websites’.

In Kantar Media’s pilot analysis, they found that of the verticals that used both national TV advertising and online video advertising during October 2012, restaurants and automotive were the most likely to use both channels, at 43% and 30% of brands advertising respectively, while Internet communications and content companies as well as resort and travel companies were the most likely to use online video advertising exclusively, at 39% and 28% respectively.

“Consumer interest in online video is surging, but to date companies have had little insight into how this important channel is being used for marketing and advertising campaigns,” says George Carens, President of Kantar Media Intelligence North America. “Our new service enables detailed tracking of information for the ads playing within online videos, providing a glimpse for the first time into the dynamics that are making online video one of the fastest growing digital advertising segments. This will be an invaluable tool for marketers who want to monitor competitive activities in this area and for media sellers to assess which industries and brands are leading users of the platform.”

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  • David G.

    So is the glass half full (i.e. is this an opportunity) or half empty (TV is holding its own)?

    • Vincent Flood

      I’d say a bit of both, but some of the research actually suggests that a lot of the spend on digital is coming at print’s expense, rather than from TV budgets as people tend to assume.

      Have to say I thought more would be dipping their toes in video, although the data is just for October so it seems likely many would have experimented in the past but simply didn’t during that particular month.

      It’s going to be fascinating to see which way premium CPMs go in 2013 (lots of syndication/production deals going on to increase supply, but lots of new demand too), and the effect this will or won’t have on TV.

      The 11% spending on online video alone is also an interesting figure though – one in ten spending only video is still very impressive for such a young industry.