Welcome!

News Feed Item

STRATA Agency Survey: Nearly 90% of Agencies Interested in Social Media and Online Video, but Majority Question the Value

-- Agencies Unable to Determine ROI of New Advertising Channels --

CHICAGO, Feb. 19, 2014 /PRNewswire/ -- A recent survey of advertising agencies found that while social media and streaming/online video 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.

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. 54% 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 Joy Baer, Executive Vice President of STRATA. "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."

Online and streaming video and radio also gained popularity with agencies. 65% of respondents say they are more interested in streaming/online video than they were a year ago, and 60% said that they believe an online video impression is equal to a TV impression. 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. YouTube is the top online video site for clients, with 81% indicating interest, but agencies are expanding the sites they look to for video advertising. 40% indicated an interest in Hulu, followed by Netflix (27%), Instagram Video (19%), and Vine (14%). Only 5% of respondents said they were not interested in online video, down from 15% last quarter.

As online/streaming video grows in popularity, so does skepticism of the value of the new medium. 47% of respondents indicated that they were not sure whether they were getting a good value/ROI on their recent online video purchases, and 12% said they didn't think they were getting a good value.

Regardless of ROI challenges, business is booming for agencies, as 35% indicated that they expect to see in increase in business over the next quarter. Nearly 50% of agencies project that future growth will be better in the first half of 2014, compared to the last half of 2013. This represents the highest level of optimism since inception of the STRATA quarterly survey. Only 7% of respondents indicated that they expect a weak first half of 2013. 43% of agencies plan on hiring staff this year, which is the highest number in three years. Attracting clients is still the biggest challenge for agencies (47%). Concerns over client spending, which agencies have previously cited as a top concern, have dropped dramatically, with only 8% of agencies citing this as their biggest challenge.

ABOUT STRATA
STRATA is the only system provider that connects both media buyers and sellers. The custom solutions supplied by STRATA empower clients to sell and efficiently purchase all media types including cable, broadcast, newspaper, radio, outdoor and digital advertising mediums.  On average, over $50 Billion in advertising dollars flow through STRATA systems per year.

As the system of choice for over 1,000 agencies nationally, STRATA provides media technology that enables organizations to lead rather than react to industry developments.  By transforming the way advertisements are placed and tracked, STRATA adds a new level of transparency to campaigns that is necessary in the ever-evolving media world.

SOURCE STRATA

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"Peak 10 is a hybrid infrastructure provider across the nation. We are in the thick of things when it comes to hybrid IT," explained Michael Fuhrman, Chief Technology Officer at Peak 10, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are still a relatively small software house and we are focusing on certain industries like FinTech, med tech, energy and utilities. We help our customers with their digital transformation," noted Piotr Stawinski, Founder and CEO of EARP Integration, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
Kubernetes is an open source system for automating deployment, scaling, and management of containerized applications. Kubernetes was originally built by Google, leveraging years of experience with managing container workloads, and is now a Cloud Native Compute Foundation (CNCF) project. Kubernetes has been widely adopted by the community, supported on all major public and private cloud providers, and is gaining rapid adoption in enterprises. However, Kubernetes may seem intimidating and complex ...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...