March 11th, 2016 | Read more articles from 2016 or Visit the News Archive
Streaming Audio, Video Gaining Traction With Advertisers
As brands look to cut through the clutter and get more dynamic with digital advertising, advertisers are increasingly opting for video and audio advertising. According to a new survey by software firm Strata, three-quarters of media agencies are more interested in streaming video than a year ago, and more than half are interested in streaming audio.
Marketers believe that these multimedia ads more effectively hit their target audience, with 40% of respondents saying they get good value out of streaming video buys. That uptick in interest could create opportunities for radio stations both to sell these premium ad opportunities and to create the content for clients. The Strata survey indicates overall digital media is commanding significant attention from media buyers, with 84% of agencies that said they are more interested in it than one year ago, Strata reported. Social media marketing is commanding a greater share of overall advertising budgets, with 38% of agencies allotting between 6-10% of their budgets for social media ads, up 43% from last quarter. Facebook was the most popular social media channel, with 93% of agencies saying they use that platform, followed by YouTube (59%) and Instagram (49%). Brands are doubling-down on their Instagram marketing, with Instagram use up 84% in the past year.
And while many ad industry analysts predict 2016 will be a breakout year for programmatic buying, Strata’s survey shows programmatic moving slowly. About half of agencies plan to use programmatic for 10% to 20% of their business this year, Strata says. However, 30% of agencies are not using programmatic, which Strata says is the lowest percentage it has ever reported. Those using programmatic are focusing their efforts on digital buying, with 32% of agencies allocating 10-20% of their programmatic budget on display and only 12% dedicating 10-20% of their programmatic dollars on TV buys. The most common concerns regarding programmatic are transparency of inventory sources (53%) and quality of the inventory (62%).