According to research conducted by video advertising network Web TV Enterprise, almost three quarters (72%) of the 160 media buyers surveyed said that they expected their online video ad spending to increase by 25% or more over the next six months.
The report also found that the number of media buyers embracing VOD has grown from 36% in September last year to 53% today, which Web TV Enterprise believes is down to improved audience measurement techniques.
Jamie Estrin, founder and managing director of Web TV Enterprise, said that online has been pushed "higher on the agenda" for buyers because they can now more accurately judge the potential success rates.
"With the elevation of its status, buyers are now demanding more efficient measurement, greater transparency of ad placements and stronger metrics to judge the success of their online video advertising campaigns," said Estrin.
"With wider video ad metrics being created through the use of VAST ad-serving tags, the measurement of audience and ad placements is going to become more advanced. This will enable online video advertising to move to another level of sophistication, transparency and accountability. The online video market in the UK is changing and growing up. 2011 is going to see its most significant growth spurt yet."
Figures compiled by the Broadcasters' Audience Research Board (BARB) currently do not include TV viewed on devices other than TV sets, such as games consoles, computers and mobile phones. However, BARB has been separately monitoring such viewing since 2005 and its data suggests that 1% of TV viewing is via other devices, rising to 2% among 16 to 24-year-olds.
Also in the Web TV Enterprise report, more than three quarters (77%) of media buyers said that their average campaign spend on VOD now exceeds £25,000, with 43% spending in excess of £50,000 and 11% allocating more than £100,000. Incremental reach to TV (53%) and brand awareness (42%) were the primary reasons for advertisers to use VOD.
However, the buyers still reported various barriers to them entering the VOD market, with 28% pointing to the lack of research proving the effectiveness of VOD advertising and 23% saying that the attitude of their clients was an obstacle.
"This report reflects the increasing importance of VOD to our clients," said Simon Reed, associate director at media agency Vizeum.
"Our key focus for VOD is to ensure that our advertisers' campaigns are placed against the highest quality content to reach a specific targeted audience within a brand-safe environment."
Jack Wallington, head of industry programmes at the Internet Advertising Bureau, added: "The IAB expects 2011 to be a boom year for online video advertising and Web TV Enterprise's latest report tracking the market is further evidence of this.
"We know that 2010 was a test year for major brands, and the fact that 11% of brands are now spending over £100,000 on campaigns shows the leaders are moving past testing to add online video as a core line item."