Advertisers are also more confident in the ROI of online video ad purchases as almost half (49%) are fairly confident in its value, while another 10% are "very" confident. Just over a third of agencies are still unsure if they are getting a good ROI on online video ads. Targeting has also improved as more than half (56%) of agencies say their online video ads reach their intended targets most of the time.
Streaming video and audio both continue to garner more agency interest. Video sites like Hulu and YouTube are also seeing major demand as 71% of agencies are more interested in advertising on those platforms than they were a year ago, while only 3% say they are not as interested as they were last year, the lowest amount ever in the STRATA Survey. On the audio side, over half (53%) of agencies are more interested in streaming radio like Pandora and iHeartRadio than they were last year, a 15% increase over 1Q15.
"Digital publishers keep on getting better at providing more advertising opportunities to ad buyers. Within digital, the fastest growth we're seeing is in social media. In particular, it's interesting to chart Instagram's growth in agency interest. It's no surprise that the social media ad space is getting more competitive as advertisers are given more options," said J.D. Miller, director at STRATA. "However, along with social's rise, video – both local and streaming – continues to dominate. Overall, agencies are getting a better handle on their media mix and are creating exciting campaigns with these various tools."
Comparing all advertising mediums, TV is the top choice for agencies as 48% say they are more focused on spot TV/cable than any other medium, a 16% increase from a year ago. Spot TV saw a 19% increase in agency focus from a year ago, while cable TV saw a 24% increase.
The advertising economy looks strong as 49% more agencies project an increase in business in the second quarter over the same period last year, and 46% project their growth in the first half of the year to be better than the last half of 2015. Forty-two percent plan to hire staff this year, while attracting new clients remains the top challenge for agencies (30%), followed by media mix (25%) and client spend (18%).
The solutions that STRATA provides empowers clients to buy and sell all media types including cable, broadcast, newspaper, radio, outdoor and digital advertising mediums. On average, over $50 Billion in advertising dollars flow through STRATA systems per year. As the system of choice for over 1,000 agencies in the United States, STRATA provides media technology that enables organizations to lead rather than react to industry developments. By transforming the way advertisements are placed and tracked, STRATA adds a new level of transparency to campaigns that is necessary in the ever-evolving media world. STRATA is a Comcast Platform Services company. For more information, visit www.gotostrata.com.
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