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You Need More Video, Plain & Simple

Posted on 6.11.2015

The Web world is apparently gaga over video and there is no shortage of statistics that accurately reveal just how much video content end-users are consuming. But are publishers keeping pace in terms of the inventory they are providing?

A new study from Forrester suggests that nearly three quarters (73 percent) of publishers have pledged to offer more video inventory into the market in response to the existing demand. The survey of 500-plus advertiser decision makers revealed that the lack of premium video inventory is holding back growth - and in a big way. That "premium" label, of course, is open to definition. Demand is always higher for premium anything, but to date only the biggest of the big players have maintained any reasonable CPMs (and it is far higher than the more commoditized display ad market).


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There is room for growth in video however. A total of 70 percent of advertiser respondents in the Forrester survey indicated they planned to increase video budgets over the next two years. Forty percent, however, said that the lack of premium inventory will limit their spend increase.

Of course, viewability and fraudulent traffic might also be to blame. The study found that 46 percent of advertisers said lack of verification that ads are being delivered to the right audience has held back their video spend.

In addition, nearly half of publishers that claim to be “digital native” admitted that the lack of video inventory is a major challenge, with 44 percent citing the high production costs of producing original video content to host ads as a barrier to further investment. However, 73 percent pledged they will offer higher volumes of video to meet existing demand.

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