Spending on digital advertising hit a record-high last year, according to data from the Interactive Advertising Bureau. Not surprisingly, marketers continued to invest heavily in video, both on mobile and desktop. According to the same IAB report, however, about one third of all dollars spent in digital went to buying impressions, rather than performance.
The value proposition of performance-based advertising isn’t a new story. In fact, performance-based models are what differentiate digital from other mediums. But even as marketers are increasingly asked to deliver business outcomes that impact the bottom line, impressions remain the currency for the majority of video advertisers. Why? More importantly, what can marketers gain by treating digital video as a performance-driven medium?