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Online video budgets on the rise

More marketers are recognising the benefits of using online video as an effective channel for engaging with consumers, as spending in this area is on the rise.

This is according to new research by Digiday and Adap.tv, which revealed 72 percent of video buyers have seen their budgets increase quarter-on-quarter compared with last year.

On average, this rise stood at 53 percent, while in 2012, spending on video marketing solutions was up 20 percent over the previous year, which may indicate interest in this channel is gaining pace.

But in order to make the most of this, it will be vital for businesses to have useful insight into their audience so they can better understand how to target their video marketing more effectively. Being able to analyse the results of campaigns to identify their strengths and weaknesses will also be vital.

Therefore, online video analytics will need to play a key role in businesses' thinking when looking to engage with consumers through this channel. If firms are unable to gain insight into their activities, they will not have the best information on how to improve it.

For example, it was recently stated by Tech World that one company to use this effectively was Netflix. It used online TV analytics to study the viewing preferences of its 33 million members, which it used to help shape its content strategy and move into original programming, confident that it was producing TV its audience would be interested in.

Marketers may also be able to gain insight from such big data analytics when it comes to informing their online video decisions. The Digiday and Adap.tv survey revealed many buyers see online activites as a complement to TV campaigns, so it could be important to understand how these channels will work together.

However, it was also found the importance of online as a standalone service is increasing. Almost four out of ten respondents stated they had shifted a portion of their budget away from TV into online video in the past 12 months. This was up from just 27 percent who said the same when the survey was run last year.