A joint study from DigitasLBi and the Interactive Advertising Bureau (IAB) shows that brand marketers will invest more in original digital video content in 2015 and beyond, but cost, quality, and measurement are the biggest challenges they face.
Brands are looking to leverage original digital video content to drive consumer engagement, but they are concerned about return on investment (ROI) and the quality and measurement of the ad format, according to a new study released at the DigitasLBi NewFront presentation.
The qualitative study, "Content Revelations," from DigitasLBi and the Interactive Advertising Bureau (IAB) and conducted by media market research firm Advertiser Perceptions, found that two-thirds of marketing and advertising executives interviewed believe that original digital video will become as important as original TV programming in the upcoming three to five years.
"Storytelling is the driven force of the evolution of marketing," said Scott Donaton, chief content officer for DigitasLBi North America, at the agency's NewFront presentation. "The power of story to change the world is what the NewFronts are all about: how original digital video storytelling is transforming the way you connect, the way you move audiences, the way you deliver messages, the way you communicate who we are and what you stand for."
As a result, 64 percent of marketing executives plan to raise their digital video content ad spend this year. And original content will represent 42 percent of the total video spend, up 5 percent from 2014, according to the study.
However, marketers face several challenges when shifting their ad dollars toward original video content. The cost of producing original video content seems to be the biggest obstacle, as 54 percent of marketing and advertising executives cited in the study are concerned about the ROI of this ad format, followed by quality (45 percent) and measurement (41 percent).
"We're thrilled that marketers recognize original video content as a powerful medium for storytelling. Obviously we agree. As with any maturing medium, there are challenges," Donaton tells ClickZ. "'Content Revelations' surfaced three of them: cost, quality, and measurement. While there is not one solve-in-a-box, there are different approaches that can help tackle them. One prominent and viable option is to have separate content marketing dollars, and related, distinct standards of measurement."
The study is based on one-on-one 45-minute interviews with senior-level digital video decision marketers across the automotive, consumer package goods (CPG), financial services, pharmaceutical, and retail sectors. To learn more, you can request the study from DigitasLBi or the IAB.