Lack of premium inventory hampering online video advertising growth

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Whilst online video advertising may be on the rise its growth is actually being hampered by a lack of premium inventory, according to a new global report conducted by Forrester on behalf of Teads.

The report, which surveyed more than 500 decision makers across a number of countries earlier this year, found that nearly all those surveyed expected digital video spend to rise in the next two years since video ads represent what the report calls “a dream format” for advertisers to reach customers with rich, engaging messages about their brands and products. The study showed that 31% of agencies expected client spend on digital video advertising to significantly increase and 39% to moderately increase. This compared to 25% of advertisers expecting a significant increase and 52% a moderate rise.  

However the study found that for nearly half (47%) of all publishers that were digital native, a lack of video inventory was the main challenge that they faced. Almost three quarters (73%) of publishers planned to increase the volume of video inventory they were offering in order to meet increased demand. However almost half (44%) said they were being hampered by the cost of producing original video content in order to host ads.

The same views were also shared by agencies and advertisers with a similar number (40%) saying that the lack of premium video inventory will hold them back.

Continued concerns about viewability is also holding back spend on video. Half of agencies and 46% of advertisers said that the lack of verification that ads were delivered to the right audience was holding back spend.

The study also showed that all those surveyed or interviewed said that outstream video advertising, that plays outside of the traditional video stream, will become a more important part of the mix in the future, accounting for 77% of advertisers, 70% of agencies and over 60% of publishers.

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