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TV and online video buying groups will likely merge in next three years, say two-thirds of agencies

By Angela Haggerty, Reporter

November 4, 2014 | 3 min read

TV and online video buying groups will likely merge over the next three years, according to two-thirds of agency respondents in a Forrester survey.

Online TV

Study: Advertisers and agencies reveal their expectations in coming years

The study, commissioned by Videology, also found that bringing programmatic advertising together with linear TV was judged the least important development in the space in the times ahead, but was deemed important or very important by 62 per cent of people.

The ability to work directly with publishers to customise opportunities was considered most important for the future of video buying at 75 per cent, while the ability to evaluate audiences based on buying behaviour (73 per cent) and ability to buy audiences across screen including linear TV (71 per cent) were third. The ability to buy ads on specific programmes was also deemed important at 69 per cent.

According to the data, advertisers are less likely to consider planning and buying as a space that will become more complex and time consuming over the next three years (48 per cent), while more than half of media companies (54 per cent) and advertisers (57 per cent) expect it will.

Significantly, 73 per cent of agencies believe planning for online video and linear TV will merge over the next three years next to only half of advertisers (51 per cent), and 63 per cent of advertisers said they would relocate linear TV spend to new video options over the next three years. Sixty-seven per cent of agencies agreed that their TV and online video buying groups will like merge in that time period.

More than half of respondents across each strand agreed that video advertising across all platforms will become more programmatic over the next three years, and 60 per cent of media companies believe technology will be a differentiator.

Rhys McLachlan, TV practice head at Videology, said: “Anyone who holds a stake in the fire will acknowledge that advertising landscape is evolving as a result of changing consumer habits across all channels.

“As this research shows, all stakeholders have something to gain from this seismic shift. Now it’s up to the industry to work together to develop the technologies and solutions needed for the entire ecosystem to succeed.”

More than three-quarters of advertisers said they expect consumers will significantly or moderately increase time spent watching smart TVs with an internet connection (68 per cent) and tablets (80 per cent), while agencies ranked highest in expectation of an increase in desktop/laptop viewing over the next three years (67 per cent) compared to advertisers (56 per cent) and agencies (67 per cent).

Video Forrester Linear Tv

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