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Video Ads are a Big Deal and Big Money, But They Could be Bigger

By STRATA July 07, 2014 | 10:41am

Video ads have become one of the most important advertising tools for agencies, according to STRATA’s most recent quarterly survey, but advertisers are still unsure about their real value. 

The survey revealed that 71% of agencies say video is their clients’ top choice as an advertising medium, a 7% increase from 4Q13. That’s a healthy mass of agencies that rely on online video for their clients’ campaigns. 

Despite the heavy utilization of video ads, almost half (48%) of agencies say they are unsure if they are getting good value on recent online video ad purchases. Only 31% are fairly confident they’re getting a good value. 

The agencies surveyed also indicated there’s so much more room for ad videos to run; 27% say that questions over ROI are prohibiting them from buying more in-stream video. 

In response to the data that our recent survey showed, STRATA president Joy Baer noted, “Ad agencies revealed an interesting dichotomy related to digital video; agencies are displaying high levels of confidence and are increasing their ad spend while they question the accuracy of reported Web traffic numbers and the inflated CPMs they may command.” Baer was referring to a report released by the IAB that found that 36% of Web traffic is fraudulent. 

With a healthy ad economy and more than a quarter of ad agencies saying they’d spend more money if they had a better picture of what they were getting in return, it’s safe to say ad sellers are leaving a lot of cash on the table. 

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