Who’s Buying Online Video Ads? FreeWheel Has the Answers

Online video ads are selling, but who’s buying them?

According to a report by online video monetization company FreeWheel, the answer is different than for other types of online advertising.

FreeWheelAdvertisers2FreeWheel looked at advertisers in its 2014 Q1 Video Monetization Report and found that consumer packaged goods (CPG) is the leading type of online video advertiser with 30 percent of the market. As the chart here shows, that was followed by retail and financial services (tied with 17 percent each), entertainment/media (11 percent), Automotive/energy/manufacturing (10 percent), telecom/computing (8 percent), and leisure travel (2 percent).

What’s interesting is how different this is from the breakdown for digital advertising as a whole. The Interactive Advertising Bureau (IAB) recently reported that the biggest vertical for online ad spending was retail with 20 percent. The CPG category accounted for only 7 percent of all online ads.

As FreeWheel points out, the difference shows that advertisers see online video advertising playing a different role than other types of online ads, such as search and display. Online video ads are seen as more effective for brand building. Other online ads are seen as more useful for lead generation and moving consumers down the marketing funnel.

Download FreeWheel’s 2014 Q1 Video Monetization Report for free (registration required).


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