Adap.TV: Tech Improvements Leading to Higher Video Ad Spending

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Online video advertising company Adap.tv has released its 2012 fourth quarter state of the industry report, and the news this time is that video ad spending is way up and technology is driving it.

Surveying agencies, brands, and trading desks, Adap.tv finds that online video ad spending rose an average of 27 percent. It expects that number to grow by another 20 percent in 2013. That additional spending is being taking primarily from print and display ad budgets.

Ad buyers are increasingly planning TV and online video campaigns together. Adap.tv found that 67 percent of respondents see online video ads as complementary to TV, and one-fifth more ad buyers plan TV and online video campaigns together than did six months before.

How advertisers buy online video ads is changing, the report found, noting a growth in exchanges of 124 percent and in ad networks of 35 percent. The use of DSPs (demand-side platforms) grew even more dramatically, but from a much smaller starting point.

Despite all that automation, CPM rates remained strong. The report found that 84 percent of respondents said CPMs were up by 12 percent.

"Despite the continued strain over the persistence of media silos within buyers' organization, television and digital video will continue to be planned and bought together, and increasingly measured by the same yardstick," the report notes.

Adap.tv compiled its report by surveying over 700 digital marketing and media professionals representing brands, agencies, trading desks, publishers, ad networks, and DSPs.

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