Video Ad Spending to Increase, But Barriers Remain: Rocket Fuel

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A survey conducted by Rocket Fuel, a company that offers programmatic media buying, finds that 80 percent of brands plan to increase their spending on digital video advertising in the coming year. However, before they move their ad dollars from the TV category to the online category (which 42 percent plan to do), they have a few concerns.

The largest problems for advertisers include building reach (58 percent), prior budget commitments (56 percent), agency coordination (31 percent), and converting video assets to online ads (30 percent). Lesser concerns include brand safety, targeting, privacy concerns, the ability to measure TRPs (target rating points) and GRPs (gross rating points), and questions over the effectiveness of online video.

One good sign for online video sites is that advertisers see TV advertising as less effective than it used to be. Only 17 percent of respondents thought that TV advertising was as effective as it was 10 years ago. Three-quarters of respondents said that consumers are using their TVs to watch new content options that don't carry commercials, while 71 percent believe viewers avoid TV commercials much more than they did 5 years ago.

Rocket Fuel surveyed 149 U.S. digital ad agency professionals in June 2013 to create its study.

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