Limited Premium Inventory Hinders Video Ads Spending

8
Jul

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According to Forrester, buy-side advertisers and sell-side media companies are looking for alternatives because the lack of premium inventory is holding back video ads growth.

Supposedly, advertisers, publishers and brands are looking to digital video as an effective method to reach consumers. Forrester’s report, Solving Digital Video Advertising’s Premium Dilemma, shows that they are now looking for other ways due to limited premium inventory.

In the data, 77% of advertisers and 70% of agencies expect the video ad budget to increase in two years. However, 40% of agencies and 27% of advertisers worry that the limited premium inventory will affect the market in the future.

Sell-side participants have the same feedback as many of these companies struggle with a low video inventory including costs and focus. An estimated 40% of publishers say that their return on investment for video is not ideally high due to expensive video production for hosting the ads. The 37% reportedly do not have adequate video inventory.

The survey revealed that two fifths of the media companies find video to be a small part of their total revenues. It is too little to put traffic manager resources or sales to the ad format.

A driving force of digital video growth is for sell-side and buy-side participants to look for more premium video inventory sources. One method considered is the outstream advertising where video is placed at the core of the editorial content rather than the usual native video content that hosts an ad.

Additionally, the report shows that 77% of agencies, 70% of advertisers and 69% of publishers think that outstream advertising is going to increase significantly. Based on over 60% of the media companies applying outstream video in their content, the ad unit allowed them to offer premium inventory and programmatically sell them.

These figures are taken from 529 decision-makers of agencies, media companies and brands across France, Argentina, Italy, Germany, Mexico, UK, Spain and most especially the U.S.