AOL Provides First Stats on Branded Video Growth and Challenges

With consumers turning to ad blockers more and more to tune out unwanted distractions, brands and agencies need to find other ways to get their messages across. Branded videos aren’t new, but they’re growing in popularity.

BrandIn its recently released 2015 State of the Video Industry report, AOL provides the first hard numbers of the growth of branded video. After surveying nearly 300 brands, agencies, and publishers, AOL found that 46 percent of brands create branded videos. Those brands will deepen their commitment: Over half say they will increase their budgets for branded videos in the next years by an average of 10 percent.

Where is that money coming from? Of those increasing their branded video spend, 48 percent of agencies and 68 percent of brands say they’re taking from their broadcast and cable TV advertising budgets.

While branded video growth is strong, AOL examined the challenges it faces. For both brands and agencies, the leading obstacles to creating more branded videos are price, the challenge of measuring ROI, and the quality of video produced.

“Because of the marketing objectives uniquely tied to branded video, ROI and audience and campaign measurement were also cited as major obstacles for advertisers to invest in branded video. For example, unlike a standard display ad, there are elements of emotional resonance commonly attributed to branded video, muddling the accuracy of traditional digital analytics like CTR,” the report says.

Publishers, on the other hand, cited cost as the main reason they didn’t create more branded video. Publishers also said limited options for brand involvement was a barrier.

Download the full report, State of the Video Industry 2015, for more, including how marketers are increasingly moving budgets from TV to online video advertising (registration required).


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