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TV, display ad budgets raided for online video
Budgets previously reserved for television and display advertising are being diverted to online video, according to a global study by new AOL global branded content business Be On.
While television is still considered a major driver of awareness, over three quarters (78%) of the more than 770 brand and media experts and creative agencies participating in the Be On research said online video offers greater engagement and scale opportunities.
Among the respondents, 73% said online video spend had increased over the past twelve months, with the additional spend coming from television and display advertising budgets.
"The results of our study show that branded content has become an important part of global advertising strategies," said René Rechtman, SVP AOL Networks International. "We know that content drives engagement and conversation online and, more than ever, we are seeing that brands want to tell their story through content."
Almost three quarters (73%) cited better audience targeting as a lure to online video marketing, while 67% said measurement was the main reason for increasing spend on the medium in the future.
Be On, launched in May this year, is part of the AOL On Network devoted to creating and distributing branded content.
"Marketers are developing deep content strategies with their brands and Be On provides them with the ability to leverage the AOL On Network's distribution with their own content plus integrate into our stories," says Charles Gabriel, vice president of sales for AOL On. "Brand content provides utility and entertainment for consumers and Be On enables that."
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