Media agencies are much more interested in buying streaming video than they were a year ago, according to a new report.
A fourth-quarter survey conducted by media buying software firm Strata found that three quarters of agencies are more interested in streaming video than a year ago.
The survey found that 40% are fairly confident they are getting a good value out of their streaming media buys despite well-publicized concerns about fraud and viewability concerns.
Buyers said they like streaming video because it hits a campaign’s target audience.
Mobile and digital advertising are also getting more attention from agencies. In the survey, 84% of agencies said they are more interested in digital. Mobile was something 77% of agencies said they were more interested in, up from 65% a year ago.
More agencies are paying for social media, with 38% allocating between 6% and 10% of their budgets for paid social advertising, up 43%.
"The results of the Strata Survey confirm what we've been hearing from advertisers for some time. The ad industry continues to fragment as players like Instagram and streaming options gain market share,” said J.D. Miller, director at Strata. “Even so, more established players continue to dominate, with local TV and Facebook still leading video and social. With this give and take, budgets are fueling demand for alternative channels as agencies have a better handle on working with multiple platforms and devices."
Programmatic buying continued to gain agency. Almost half of agencies plan on using programmatic to conduct 10-20% of their business this year, while 30% will abstain from using programmatic, the lowest percentage ever in the Strata survey.
Digital display is getting the bulk of the programmatic ad spending.
Agencies seem apprehensive to test the programmatic TV space just yet, as only 12% of agencies are allocating 10-20% of their programmatic ad spend to TV, and only 7% trust programmatic to execute local TV orders. The quality of inventory and transparency of inventory are the top concerns about programmatic.