SOURCE: FuelX

FuelX

February 09, 2016 09:10 ET

FuelX Expects Significant Increases in Video Prospecting Budgets for 2016

Leading Programmatic Video Prospecting Company Says Advertisers Demand Performance, not Just Brand Awareness

SAN FRANCISCO, CA--(Marketwired - February 09, 2016) -  Advertisers are expected to significantly increase spending on video prospecting in 2016, and FuelX, Inc., the global leader in programmatic video advertising and prospecting solutions, is poised to take advantage of the opportunity.

According to the eMarketer report, "US Digital Display Advertising Trends: Eight Developments to Watch for in 2016," video will drive a large portion of ad spending allocated to digital in 2016 at 14.3%, up from 12.8% in 2015. And desktop will remain the biggest beneficiary of US digital video ad dollars in 2016, garnering 57.5% of an expected $9.59 billion in spending.

"Advertisers used to believe that video was all about branding," said Paxton Song, COO and founder of FuelX. "Then they tested and discovered that video drives performance. Now they're increasing their budgets to get even better results in 2016."

Video is more effective for prospecting than static ads, the company said. Static ads are only effective when the audience already recognizes a brand. Video catches the attention of the viewer and offers an opportunity to tell a story in a way that static cannot.

"Five years ago, all we talked about was static retargeting," said Greg Nelson, Vice President of Sales and Marketing. "Today, all we talk about is streaming video and prospecting. If companies want to reach new digital customers, they have to have a video strategy, and they have to invest in prospecting. Otherwise, they're five years behind."

FuelX streams video into display, pre-roll and mobile ads. Video has expanded beyond the single spot pre-buy on a premium inventory site. Because FuelX offers programmatic video ad inventory, it expands audience reach beyond a single site.

Their system profiles more than 300 million digital users across devices and updates data on over 150 facets of the user's' behavior. That allows FuelX to accurately target in-market customers who have not visited a client's site before. FuelX also uses a proprietary cookieless "fingerprinting" technology to uniquely identify users across networks and across devices.

eMarketer also reported that spending on mobile video advertising in the U.S. grew more than 70% to reach $2.62 billion in 2015, with over one-third of the estimated $7.77 billion spent on digital video ads.

While marketers tested video prospecting in 2015, the company predicts increases in programmatic video budgets -- and performance expectations.

"Video advertising is an emerging solution for customer acquisition, and we liked the opportunity to partner in this medium to help with customer conversions," said Tony Westfall, a FuelX client and CEO of Good Company Wines, Inc.

"We are seeing a big shift in the video advertising landscape," Song said. "Marketers saw how powerful retargeting was. But it took a few years for that budget to shift from the brand marketing teams to the performance teams. The same thing is happening with video. Marketers are demanding the same level of performance from video campaigns as their paid search campaigns. It was inevitable."

About FuelX

FuelX, founded by Paxton and Mary Lou Song, is the global leader in programmatic video advertising and prospecting solutions. FuelX delivers pre-roll and in-banner video ad units served across mobile, desktop, connected TV and Facebook. Its proprietary technology drives performance by identifying in-market consumers to accelerate conversions and exceed campaign objectives. Since its launch in 2012, FuelX has added brands such as HP and Zepp to its portfolio. For more information, visit www.fuelx.com

Contact Information