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BrightRoll Study Finds Digital Video Gaining Momentum Among UK Advertisers; Campaign Dollars Continue to Follow Audiences Online

October 20, 2011

Inaugural UK Video Advertising Report Sheds Light on Category Spending and Industry Trends for 2011

LONDON — BrightRoll, the leading provider of online video advertising services, today released the results of its inaugural UK agency survey. The survey stems from the annual BrightRoll US agency survey, with the goal of gathering new information from leading UK-based media buyers and advertising agency executives. The 2011 UK Video Advertisers Report analyses the information gathered from the survey about digital video including its effectiveness in reaching consumers and predictions on category spending in the coming year.

According to the comScore August 2011 UK Video Metrix, 6.5 billion videos were viewed in August of this year, up 29 percent in
the last six months. On average, each viewer spent 20.1 hours viewing online videos, also increasing 33 percent in the last six months. The BrightRoll survey results support these figures, with 38 percent of respondents predicting digital video will realize the largest increase in online media spend over the next year. When compared to US survey results, UK advertisers appear notably more confident than US advertisers, where only 28 percent expected to see the largest increase in spending on digital video.

The ability of digital video to reach highly targeted audiences is a key selling point for advertisers, as evidenced by the 37 percent of survey respondents who agree targeting remains one of the medium’s most valuable aspects. However, differences in the UK and US remain: UK agency executives prefer demographic targeting, while US respondents placed a higher value on behavioral targeting. This difference could be attributed to the varying growth stages of online targeting technologies in the US versus the UK. An increased adoption of behavioral targeting practices may be seen in the UK as these technologies continue to develop.

Additional key findings from the report include:

- Respondents indicate that pre-roll is consistently more effective (87 percent), has stronger engagement (83 percent), and performs better (82 percent) than its in-banner counterpart

- Forty-one percent of advertisers feel that online video reach remains the most valuable aspect of the medium, while only 23 percent of advertisers feel the same in the US

- Advertisers are most interested in basing their ad spend on the CPM metric (43 percent), followed by CPE (29 percent) and CPV (18 percent)

- The high price of online video continues to be a prohibitive factor in its growth as indicated by 37 percent of respondents; this was followed by lack of targeting capabilities (20 percent), poor inventory quality (11 percent) and limited reach (10 percent)

“BrightRoll recently expanded its operations into the UK because we can see that it is an especially exciting and rapidly maturing market. The results of our first-ever UK survey emphatically support this belief,” said BrightRoll CEO Tod Sacerdoti. “As with our previous US studies, our goal with this report is to contribute to the growing body of research that helps move the category forward by helping to identify what’s working and what’s not in digital video.”

To download a full copy of the results, please visit: www.brightroll.co.uk/2011UKVideoAdvertisingReport