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Advertising agencies believe in video ads

Staff writer ▼ | June 17, 2015
A survey of advertising agencies found that 44% of agencies are confident they are getting a good value for their recent online video ad purchases, marking a 43% increase from the previous quarter.
Video ads
Advertising   A 43% increase from the previous quarter
Meanwhile, the number of agencies still unsure about online video ROI declined by 25% within the same time period. The first quarter survey was conducted by STRATA, the leader in media buying and selling software with over $50 billion in ad transactions passing through its systems each year.

Reflecting agency confidence in video advertising ROI, 65% of agencies say they are more interested in streaming video sites like Hulu and YouTube than a year earlier, which is also a 12% increase from the prior quarter. Eighty-two percent report it is very important or important to access online video sites such as YuMe, Videology, or Tremor.

According to the survey, agencies are also finding several benefits to programmatic buying.

The biggest benefit to programmatic recorded in the survey is the improved ability to reach a targeted audience (46% of agencies), followed by improved automation/efficiency (40%). In contrast, their biggest fear with programmatic is the lack of transparency into inventory sources (49%).

Agencies also are seeing steady growth in the ad economy. Forty-five percent of agencies see their business increasing in the first quarter compared to the same time last year.

Another 53% project their growth in the first half of 2015 to be better than the second half of 2014.

Overall, 81% of agencies see their clients' budgets staying the same or growing. The biggest concern for agencies is client attraction (25%), which replaced media mix (22%) as the top concern for the first time since 2Q14. Agencies are also hiring as 44% say they plan on adding staff this year.