Advertisers to keep increasing online spend despite the majority thinking they’ve over-invested

Online ad spend, particularly on video, is on the rise despite the industry’s concern over the media supply chain.

Advertisers to keep increasing

Two-thirds of advertisers are committed to increasing online ad spend, despite the fact there are growing concerns around viewability, fraud and basic metrics.

The research from the World Federation of Advertisers (WFA) and Ebiquity, a marketing analytics specialist, is based on responses from more than 50 global advertisers with an annual advertising spend of more than $80bn.

It found the majority of the world’s largest advertisers are planning to increase investment in online advertising in 2017 and 2018, with half planning to up spend by up to 20% year-on-year. Some advertisers are committed to increasing online ad spend by as much as 40%.

Online video will benefit the most from the increase in spend, with 89% of advertisers intending to invest more in it this year.

Performance-focused advertisers were most likely to boost spend, with 48% predicting increases compared to just 18% for brand advertisers.

Though 75% of advertisers are willing to accept the challenges associated with online advertising, many are still wary following the likes of P&G’s Marc Pritchard calling on the industry to join the company’s efforts to “clean up the media supply chain”. And 72% of those polled said they believe advertisers have over-invested in the channel.

READ MORE: Ritson: P&G’s Marc Pritchard has made the biggest marketing speech for 20 years

Viewability is listed as 90% of marketers’ top concerns associated with online advertising investment, while 76% of advertisers said they are concerned about the lack of transparency in the ecosystem.

“Although the general online advertising investment trend remains on an upward trajectory, this research shows that some advertisers are exercising increased caution regarding their online investment,” says Matt Green, global lead, media and digital marketing at the WFA.

“Until recently, advertisers were comparatively reserved about their frustrations with the lack of robust measurement of effectiveness and the absence of independent verification. They’ve now lost their reticence and are demanding more openness and evidence.”

62% or respondents reported that they are ‘dissatisfied’ with the overall level of measurement standards in online advertising and only 45% see the value it adds

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