Advertisers are warming up to online video as a means to reach targeted audiences: 56% of ad agency executives and media buyers say online video advertising is more effective or much more effective than other forms of advertising, and 83% say they are getting more value for their online video spend this year than they were last year, according to a survey from BrightRoll.

That perception is likely to drive growth in the category: 94% of ad execs and media buyers say they plan to increase spending on online video, compared with the 87% who said so a year earlier.

Below, other findings from the second annual Online Video Advertising Report, which surveyed nearly 100 advertising agency executives and media buyers on their spending patterns and sentiments toward online video advertising.

Price, Access to Quality Inventory

Lower rates, better targeting, more access to quality inventory, and the emergence of performance-based metrics, such as cost per engagement (CPE) and cost per video view (CPV) have all contributed to the perceptions of increased value, according to BrightRoll.

Price, however, continues to be a prohibitive factor, along with others: 32% of execs and media buyers say lower costs would encourage more spending on online video advertising, followed by 24% who cite a lack of more defined industry standards and 20% who cite a lack of clearer ROI.

Regarding current CPM (cost per thousand impressions) pricing structures, quality of inventory is most important to buyers (61%), followed by specialized targeting (14%) and click-through rate (11%).

Targeting Takes Hold

Targeting is viewed online video's most valuable asset (32%), followed by ad unit format (21%), reach (19%), price relative to TV (10%), and ability to reuse creative (10%).

As ad networks improve their ability to provide the inventory, reach, impressions, and data needed to consistently access niche audiences, behaviorally targeted video ads will provide another way for brands to connect with their customers, according to BrightRoll.