Lack of programmatic expertise is holding the Australian market back
Australian media agencies believe a lack of expertise in programmatic is holding the market back, according to research by AOL.
AOL’s State of Video Industry Report reveals Australia media buyers concerns about programmatic
AOL’s State of Video Industry Report found 61% of media professionals view the absence of programmatic expertise as an obstacle in selling video inventory.
Australia is the only market where the skills shortage is the leading concern for programmatic, with the market concerns significantly higher than the global average of 30%.
The report found media agencies were also concerned about brand safety (55%), the potential risks of losing a direct buyer relationship (45%), and a lack of existing process and systems (45%) for programmatic inventory.
The concerns come as media agencies prepare to increase investment in programmatic, with 4% planning to boost spending by more than 100% - twice as much as the global average.
However, publishers are maintaining a more cautious outlook, with just 1% expecting programmatic spend to increase by more than 100%, compared with 5% globally.
AOL’s research also revealed agencies are planning to increase investment in video formats, with 79% claiming new video formats would improve customer experience.
More than half (65%) are already buying or planning to buy virtual reality digital video, however, just 44% of advertisers expect to increase spend in mobile video advertising by at least 25% over the next 12 months.
The AOL study found 65% of Australians watch video daily with 59% revealing they watch more video now than they did a year ago. The majority of consumers (65%) prefer to watch content online or via a connected TV with 57% viewing videos that are longer than 20 minutes.
Short form video remains the most popular format with 72% watching videos that are one minute long, while 74% watch videos between 1-5 minutes in length.
Alex Khan, managing director of AOL Asia & ANZ said, “The proliferation of devices, and new ways of consuming content, is fundamentally changing audience’s expectations of that content. It’s now far too easy to flip between platforms, and attention spans are increasingly limited, as we see with the relatively high demand for super-short video experiences.
“Advertisers and media agencies are looking at a wide range of different opportunities to reach out and engage with this more dynamic audience. Programmatic and mobile are major opportunities, as finding audiences through digital media and social media becomes important. But, equally, that drive towards providing quality content will lead publishers and advertisers to look at emerging media.
“VR, AR, and other experience-based media is expected to become a booming opportunity over the next year, as the technology starts to mature and audiences continue to look for dynamic, exciting experiences,” said Khan.
AOL released its State of Video Industry Report for Southeast Asia last week, which revealed 83% of consumers in the region watch online video every day.