Findings from the second bi-annual UK Online Video Advertising Market Report show that more than 40% of media buyers now use video advertising campaigns for this purpose, indicating that TV budgets are driving growth of the market.
Professionally produced online TV content is starting to have an impact with video advertising now appearing on more than half of media plans.
Online video advertising is worth 3% of the UK TV ad market, with 13% of media buyers intending to increase spend on the medium by more than 50%, and a fifth maintaining existing budgets.
However, only 19% of the 135 media buyers surveyed said that measurement of click through rates is '"very important" to their campaigns, indicating that the medium is being driven by brand-awareness campaigns coming from TV budgets.
Jamie Estrin managing director of Web TV Enterprise, said: "While online video is still in its infancy, the market is starting to mature.
"Media buyers are recognising the opportunity of placing TV campaigns in front of highly targeted audiences online, and reaching light TV viewers who are now regularly consuming catch-up TV and short-form video on the web."
The report also found that the number of campaigns being booked has tripled in the last six months, suggesting confidence among media buyers is growing.
Nearly 50% of respondents said they had booked between one and five pre-roll campaigns in the past six months, compared with the same number of campaigns being booked previously over an 18-month period.
Despite the number of campaigns growing, average spend on video campaigns remains the same – between £10,000 and £25,000. However, almost a fifth of those surveyed claimed their average campaign spend was more than £50,000, up 12% from six months ago.
The most common challenge for the medium was cited as lack of measurement, while just over a fifth were held back by rates, and 9% remained unsure of audience reach.
The UK's largest online video platform is Google's YouTube, but it is coming under increased competition from rivals such as SeeSaw and MSN Video.
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