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BizReport : Advertising : June 10, 2015

Online video ad spend held back by lack of inventory

A survey by Forrester on behalf of video ad platform Teads has found that almost three-quarters of publishers will provide more video inventory in response to market demand.

by Helen Leggatt

In their survey of 529 advertiser decision makers from various brands, agencies and media owners worldwide, Forrester found that growth in online video advertising was being stymied by a lack of premium video inventory.

Forty percent of agencies and 27 of advertisers are concerned that the current lack of premium video inventory will hurt the market further down the line, more so considering 70% of agencies and 77% of advertisers expect their online video budgets to rise in the next 24 months. However, half of agencies surveyed and 46% of advertisers said their video spend had been curtailed due to concerns over viewability and placement in front of the correct audience.

Even media owners are struggling, says Forrester, with 37% saying they don't have enough video inventory. Furthermore, 40% say online video ROI is not as high as they would like due to the high costs of producing video content to host and ad. Nevertheless, almost three-quarters (73%) plan to increase video inventory volume to meet demand.

The solution? To drive growth in online video many are turning to alternative sources of premium video inventory, namely outstream advertising which enables video to be placed in editorial content as an alternative to creating native video content to host an ad.

A copy of 'Solving Digital Video Advertising's Premium Dilemma' can be downloaded here.

Image via Shutterstock

Tags: advertising, inventory, online video

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