CPG Companies To Increase Online Video Ad Spend
  • CAMBRIDGE, MA
  • --

Consumer products companies account for only six percent of the total U.S. interactive spend today, but there will be a compound annual growth rate of 36 percent through 2012, with a 50 percent rise this year, and with online video growing faster than any other platform, according to a Forrester Research IM Spend study, released May 2.
    The "declining effectiveness of television ads, recession-tightened marketing budgets and better ways to execute and measure online ad campaigns against branding goals" are the major reasons for the increased interactive spend.
    The online video spend will jump from $110 million in 2008 to $208 million in 2009 and $834 million by 2012. The main reasons for the increases are the ads "work for branding goals like awareness and customer engagement and they have a low cost of entry." Online video ads can be bought on a cost per impression basis, which is "a model friendly to CP firms since it's similar to offline media buying models, offered by media players with whom most CP firms already have relationships, and can be launched with repurposed existing video assets."

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