STRATA Survey Finds Ad Agencies Still Unsure Of Online Ad Value
February 20, 2014 at 3:57 AM (PT)
A recent survey of advertising agencies found that while social media and streaming/online video and audio were major areas of focus for advertisers in the fourth quarter of 2013, the majority of agencies are unsure of the value these channels are delivering to clients.
The survey, conducted by STRATA, the leader in media buying and selling software, found that more than 87% of agencies polled were interested in using social media in client campaigns, while 98% said they were either more interested or equally as interested in streaming/online video than they were a year ago. Given all the new channels available to agencies, it's not surprising that media mix was cited as the second largest concern for agencies, and up 20% since last quarter.
While traditional radio continues to experience a drop-off (interest in is down 67% since 2010), interest in online/streaming radio is growing tremendously, with 59% of respondents more interested in the medium than they were a year ago.
FACEBOOK is still the dominant social media channel for advertisers with 81% of respondents indicating they would use FACEBOOK in their clients' campaigns. On FACEBOOK, respondents were most likely to buy Standard External Website Ads (33%), Promoted Posts (31%) and Page Post Ads (31%). Other popular social channels for agencies include YOUTUBE (57%) and TWITTER (48%). Agencies also indicated a big shift in sentiment towards PINTEREST, as 35% said they would use the channel, up from just 22% one year ago. LINKEDIN is also gaining popularity with agencies, as 33% of agencies indicated they would consider using it in clients' campaigns. This represents an increase of 56% since last year.
While interest in social media advertising continues to grow at astronomical rates, the value of social media remains in question for advertisers. Fifty-four percent of respondents said they would buy more social media ad spots if the value was more obvious, and 41% would be more open with a set of changes including an easier process, more obvious effectiveness, lower minimum volumes and less complex targeting.
"In the advertising industry, the buzz often comes before the pay-off," said STRATA EVP JOY BAER. "Everyone wants to buy social media and online video because it's the way the industry is heading, but the real ROI is more complex to define. It's a science that is still being developed."