73% of publishers vow to provide more video inventory to meet advertiser demand, says Forrester study

Almost three quarters (73 per cent) of publishers have pledged to inject more video inventory into the market in response to market demand, according to a Forrester study.

The study, conducted on behalf of Teads, surveyed 529 advertiser decision makers from brands, agencies and media owners globally, and revealed that the lack of premium video inventory in the market is holding back growth in online video advertising.

Demand has always outstripped supply when it comes to premium video, with the broadcasters having traditionally dominated the video-on-demand space and maintained video far higher CPMs than the more commoditised display ad market, in the process.

However, video is a major area of growth both on the side of the advertisers, as well as other media owners such as Facebook and pureplay media companies which are pumping more premium-quality inventory into the market. A total 70 per cent of advertiser respondents in the survey said they plan to increase video budgets over the next two years. However, 40 per cent said that the lack of premium video inventory will stifle spend increase.

Issues such as viewability and fraudulent traffic have been hot topics over the last year, as advertiser spend has increasingly tipped into programmatic trading. The report highlighted that half of all agency respondents and 46 per cent of advertisers said lack of verification that ads are being delivered to the right audience has held back their video spend.

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

Most respondents agreed that Outstream – the video ad format which plats outside the traditional video stream, rather than the more traditional pre or post-rolls, will become a more common part of the mix in future. Over three quarters (77 per cent) of advertisers predicted this would be the case, along with 70 per cent of agencies and over 60 per cent of publishers.

Forrester surveyed 108 agencies, 285 advertisers and 103 publishers across the UK, US, Argentina, France, Germany, Italy, Mexico and Spain.

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