Advertising Spend on TV and Video Will Reach $559B Globally in 2022

Consumer spend and digital video ad revenue from OTT video services such as YouTube, Facebook, iTunes, Google Play, Netflix, Amazon Prime Video, Hulu, DirecTV Now, NOW TV, Maxdome, iflix, and other online video services will double over the forecast period, reaching $123B in 2022.

“OTT TV and video services will be the driving force behind future revenue,” according to Michael Goodman, Director, Television & Media Strategies, “however, traditional TV and video services should not despair too much, as they will continue to account for the majority of consumer and advertising spend for the foreseeable future.”

By 2022, consumer and advertising spend on traditional TV and video products and services globally will be over $435B, an increase of $7B from 2017, and account for nearly 78% of all TV and video revenue.

Additional findings from this report include:

– In 2022, North America will continue to be the largest TV and video market; accounting for 38.7% of global consumer and advertising spend on TV and video.

– IPTV will buck the cord cutting trend in Western Europe. While cable (net loss of €987M), pay satellite (net loss of €187M), and pay DTT (net loss of €125M) will all see revenues decline over the next five years, IPTV will reach €9.9B in 2022, an increase of €1.5B.

– In 2022, the Asia Pacific region will account for 23.4%% of global consumer and advertising spend on TV and video. Unlike North America and Western Europe, where consumer spend on legacy pay TV services are flat or declining, driven largely by China and India, consumer spend on legacy pay TV services will continue to see robust grow.

download the full report here.

Facebook Now Beats YouTube for Video Viewing

It’s time to shift those budgets from YouTube to Facebook, a report suggests. According to a study by Slidely, maker of the Promo video creation platform, 47 percent of viewers say they watch more videos on Facebook now while 41 percent watch more on YouTube (only 8 percent say they watch more on Instagram). It looks like Facebook’s efforts to become the leading video destination are a huge success.

But people don’t simply watch more videos on Facebook now; they also prefer the video ad experience there, as well. While YouTube is known for its easily skipped ads, 71 percent of those surveyed said they find the sponsored videos in their Facebook feed to be relevant or highly relevant to their interests.

“This is fantastic news for marketers because it confirms their paid social budgets are going to good use. Not only are consumers watching sponsored videos, but they’re also finding them relevant (which is, of course, critical to successful marketing),” the report says. “For marketers, this also points to the extreme importance of closely targeting the right users. Consumers have come to expect that sponsored social content be perfectly tailored to their lives and their interests.”

All that video ad viewing is turning into consumer action, as the report finds 70 percent say they sometimes or very often visit the company’s website after watching a video. Also, 60 percent say they sometimes or very often visit the company’s social page after watching a video.

The survey looks at the popular Stories format on Facebook and Instagram, and finds viewing high. While 68 percent say they watch Facebook or Instagram Stories either sometimes or all the time, that number zooms up to 81 percent for those under 34.

view the full report for free online (no registration required).

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‘High Times’ Launches OTT Network

Cannabis-focused media company High Times is introducing an over-the-top video platform, called High Times TV, specifically for cannabis content.

High Times believes the platform will allow its community to host and monetize content around marijuana — akin to a YouTube for cannabis-specific video content.

In April, news circulated that YouTube was “purging” cannabis-focused channels, shutting down channels with hundreds of thousands of subscribers.

(According to YouTube, videos showing “drug abuse, underage drinking and smoking, or bomb making” violate YouTube’s c ommunity guidelines.)

‘High Times’ Launches OTT Network by Sara Guaglione , Yesterday

Cannabis-focused media company High Times is introducing an over-the-top video platform, called High Times TV, specifically for cannabis content.

High Times believes the platform will allow its community to host and monetize content around marijuana — akin to a YouTube for cannabis-specific video content.

In April, news circulated that YouTube was “purging” cannabis-focused channels, shutting down channels with hundreds of thousands of subscribers.

(According to YouTube, videos showing “drug abuse, underage drinking and smoking, or bomb making” violate YouTube’s c ommunity guidelines.)

Some believe the move is to protect YouTube from running ads on “objectionable content,” after the platform received backlash for running ads on videos with violence, hate-speech and disturbing scenes.

But High Times says this is happening on other social platforms, too, like Facebook and Twitter. It claims cannabis content is being demonetized, shut down or de-prioritized on these sites.

People involved in cannabis culture say they feel censored — particularly because marijuana (medical and recreational) is legal in 29 states and Washington, D.C.

“The huge demand for mobile-friendly premium video includes a real hunger for the cannabis-related content that social-media sites are all too often blocking,” stated High Times CEO Adam Levin.

The new platform allows the brand to reach its audience “wherever they may be, on whatever platform they use,” he added. “It’s another way to serve our fans.”

Most of the video on the OTT platform comes from High Times, but the publisher says it is welcoming other brands to contribute content.

High Times TV will be ad-supported. The publisher will sell its own ads for endemic brands, but also wants to catch the eye of brands that are not directly related to cannabis culture but see opportunity in the industry.

“It was important to us to not only help the creators monetize their efforts, but create a brand-safe environment for our industry,” Levin told Publishers Daily.

“In their efforts to clean up their acts, much of the adtech community jumped to blacklisting advertisers as opposed to working with them to find the right opportunities for their brands. We want to cater to those brands, those legitimate enterprises looking for premium ad inventory, in a way that no social or publishing platforms can currently offer,” Levin added.

High Times has partnered with video streaming service Unreel to help develop the OTT platform’s apps. High Times TV is integrated with Unreel’s digital ad networks — including Roku and Google Ad Manager — in an effort to create new monetization opportunities for creators in the space.

(High Times will use Roku and Unreel for advertising, too.)

Influencers already using the platform include CustomGrow420, StrainCentral, Ruffhouse Studios, High Rise TV, Stoner Mom, The Green Market Report and That High Couple with new content from Now This Weed and Doug Benson’s “Getting Doug with High.”

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click here to see High Times TV.

Disney Reveals Fresh Details of Netflix Killer

Disney’s chairman and CEO Bob Iger has revealed fresh details around the media giant’s upcoming streaming service, touted to be a competitor to the likes of Netflix and Amazon Prime. Iger, speaking on a conference call after Disney’s Q3 financial results, spoke of the “tremendous potential” he sees in Disney’s direct-to-consumer services, particularly following the company’s acquisition of 21st Century Fox.

Disney’s earnings themselves were slightly disappointing, with quarterly revenue of $15.2 billion falling short of analysts’ $15.4 billion expectations. Investors on the subsequent earnings call however were much more interested to hear further information about the company’s in-development streaming service, which Iger said is “on track for a late 2019 launch”, and described as the company’s “biggest priority of the 2019 calendar year”.

Iger said he believes the addition of Fox’s portfolio of content will help make Disney’s streaming service “even more compelling for consumers”. The company already had quite a formidable content catalogue before the acquisition, bolstered by the takeover of studios including Pixar, Marvel and Lucasfilm. The Fox purchase will bring brands such as Searchlight, FX, National Geographic and 20th Century Fox Film under Disney’s roof, adding more variety to content that could be available in Disney’s streaming service.

Iger emphasised that integration of Fox properties into Disney’s direct-to-consumer strategy won’t come at the expense of the movie theatre experience. “We’re obviously very excited to leverage the Fox assets to enhance and accelerate our DTC strategy, but I want to be clear that we remain incredibly supportive and enthusiastic about the movie theatre experience,” he said.

In the Q&A section of the call, investors and analysts were hungry for more specific detail about what Disney’s strategy for its streaming service will be, with Iger giving fresh insight into the company’s plans for the service..

When asked about Disney’s decision to split content over multiple streaming platforms, Iger said the company prefers to offer narrower packages of content at a cheaper price, as opposed to a more Netflix-like model which offers a very wide library of films and TV shows. Disney’s acquisition of Fox will grant it a 60 percent stake in Hulu, and the launch of ‘Disneyflix’ alongside the existing ESPN app will mean content is spread across three different services, but Iger believes this reflects consumers’ desire to pick and choose which content they have access to.

“Rather than one, let’s call it, gigantic aggregated play, we’re going to bring to the market what we’ve already brought to market, sports play,” said Iger. “I’ll call it Disney Play, which is more family-oriented. And then, of course, there’s Hulu. And they will basically be designed to attract different tastes and different segment or audience demographics.”

Iger also shed light on how the company plans to handle issues around existing licensing deals for some of its content. As Sanford Bernstein analyst Todd Juenger pointed out, popular film franchises like Star Wars and the Marvel Cinematic Universe are already tied into distribution deals with other streaming services.

Iger confirmed that some content produced by Disney-owned studios won’t be available on Disney’s streaming service, at least initially, with Star Wars: The Force Awakens for example being unavailable due to an existing distribution deal. He said however that in some of these deals, there will be opportunities down the road to put those films on Disney’s service, and that any content produced from 2019 and beyond will be unencumbered by any such deals. “What we have been doing is making sure that since the time that we made the decision to bring the service out, we’ve not done anything that further encumbers any of our product,” he said.

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Viewership on Snapchat’s Original Content Shows Promise

Snap held its Q2 2018 earnings call today and it was a mixed bag of emotions for the company. While it revealed an impressive 44% rise in revenue Y/Y, the company also announced a 3 million drop in DAUs Q/Q, as it attempts to compete with Instagram. One main feature Snapchat has been investing in to give it an advantage in this fight is its Discover Section.

The section houses a slate of Snapchat Original Series and Snapchat Channels belonging to networks and studios like NBC and Elizabeth Murdoch’s Vertical Networks. While Speigel didn’t have much to say about the Discover Section, he did state in his opening remarks that the number of people that watch Publisher Stories and Shows on iOS every day has grown by more than 15 percent this year.

“Additionally, more Snaps from publisher stories and shows were viewed in July than any other month in our history,” added the CEO. Additionally, in Q2 2018, 11 Shows reached a monthly audience of over 10 million users, up from 7 in Q1 2018.

This increase in viewership is a promising sign for the company, which has been itching for a way to attract more advertisers to its platform. Between November 2017 and January 2018, just 397 brands bought video ads on Snapchat Discover channels, according to advertising intelligence platform MediaRadar. It’s a small number when compared to Facebook, which has more than 5 million advertisers; Twitter, which reported having 130,000 advertisers at the end of 2015; and Instagram, which has over half a million advertisers.

Speigel didn’t give much detail about his future plans for the Discover section or how much money the company planned to invest in its original content. Current shows in the section include “The Rundown” and “Face Forward” from E! News, “Stay Tuned” from NBC News, “Sports Center” from ESPN, “Phone Swap” and “Ghost Hunt” from Vertical Networks, which garner a combined 15 million views an episode.

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1 in 2 Youth Say They’ve Shopped Online for Groceries in the Past Year

1 in 3 American adults reports having shopped for groceries online in the past year, according to a survey of 1,000 US adults from Adobe Digital Insights (ADI). The trend towards online grocery shopping is being driven by… surprise: youth. Indeed, half of Millennials (20-36) and almost half (47%) of Gen Z consumers surveyed in June by ADI said they’d shopped for groceries online in the prior year.

These figures largely line up with separate research data. Earlier this year, IRI revealed that 55% of Millennials planned to shop online for groceries this year, as did 41% of adults overall. All told, more than one-quarter (28%) of adults surveyed by IRI reported buying grocery items online.

They may not be shopping with too much regularity, though. Last year Gallup found that 15% of 18-29-year-olds shopped online for groceries on at least a monthly basis, compared to 9% of all adults surveyed.

As ADI notes, “the US online grocery market is still in its very early stages.” That certainly seems to be the case when comparing the US results to an accompanying survey conducted in the UK. That research found that fully 52% of UK adults had shopped online for groceries in the past year.

Moreover, whereas US online grocery shoppers were far more likely to have shopped online for basic necessities (41%) than for most groceries (23%), the opposite was true in the UK, where online grocery shoppers were more than twice as likely to say they bought most groceries (40%) than just basic necessities (17%).

Furthermore, there are signs that the e-commerce experience isn’t as advanced in the US. Just 16% of US consumers reported no difficulties in grocery shopping online, compared to 27% in the UK who didn’t face any difficulties. (Speed and a seamless experience might be the top areas for online grocery retailers to focus on, according to other research.)

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EC must reject anachronistic Dutch market analysis

Broadband cable trade body Cable Europe is urging the European Commission not to accept Dutch regulator ACM’s draft broadband market analysis, which has concluded that multiplay operator VodafoneZiggo holds “joint significant market power (SMP)” together with Dutch incumbent operator KPN.

As a direct consequence, both operators will have to provide wholesale access to third parties. The analysis now rests with the European Commission, which has the power to accept or reject the proposed measures.

“This proposed intervention in the Dutch market is anachronistic and runs contrary to the consumer interest,” stated Matthias Kurth, Executive Chairman of Cable Europe. “My first reaction is one of astonishment. The Dutch market is highly competitive and is often cited as best in class by international observers. It scores high on the Commission Digital Economy and Society Index. Consumers have the choice between two very fast broadband services practically everywhere in the country. The market is extremely dynamic and characterised by innovation, quality of service and affordable prices and there is a commercial wholesale access offer in the market (KPN).”

“Imposing onerous regulation using the concept of joint SMP in a market with these characteristics will set a negative precedent in Europe. Regulatory intervention comes with risks which are often difficult to gauge in advance. The negative consequences of this proposed regulation will outweigh any marginal improvements the regulator is seeking to achieve. I hope the Commission will examine this analysis with great care and conclude that the Dutch market and its citizens already benefit from effective competition,” he added.

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Nielsen: Americans Now Spend Nearly 6 Hours Per Day With Video

Americans’ appetite for video just keeps rising. Measurement specialist Nielsen released its Q1 2018 Total Audience Report today, finding that U.S. adults now consume 5 hours 57 minutes of video per day. That’s an increase of 11 minutes per day just in the last quarter.

Of that 5 hours 57 minutes, 4 hours 46 minutes goes to live and time-shifted TV viewing, up 2 minutes this quarter. The biggest gain is with TV-connected devices (including internet-connected devices, game consoles, and DVDs) which average 46 minutes per day, up from 40 minutes last quarter.

Video on a computer gets 10 minutes, video on a phone (either through an app or browser) gets 10 minutes, and tablets get 5 minutes, all of which are fairly flat.

Looking at Americans’ total media diet, Nielsen finds we spend 11 hours 6 minutes each day connected to some kind of media. This figure includes all internet, phone, and radio use. That’s up from 10 hours 47 minutes in the previous quarter.

Two-thirds of U.S. homes own devices that let them stream video to the television set, and 2.7 percent subscribe to a skinny bundle (vMVPD) while 64 percent subscribe to a subscription service (SVOD). Even cord-cutters and cord-nevers find plenty to watch, as over 80 percent of non-TV homes still watch video.

For more, download the full Nielsen report (registration required).

Video benchmark report shows that viewability rates continue to rise.

Internet connected television continues to be a fertile place to advertise, according to a new report released Wednesday by Extreme Reach.

Extreme Reach’s Video Benchmarks Report is based on billions of video ad impressions served through its platform in the second quarter of 2018 across multiple devices.

With an 111 percent increase in impressions served over second quarter last year, connected TV (CTV) emerged as the top platform for video advertisers for the first time. Thirty-eight percent of all impressions took place on CTV, edging out mobile’s 30 percent, down from 33 percent from Q1 of this year.

The report concludes that much of the increase was driven by cord-cutting consumers who have turned to platforms like Roku, and services like Netflix and Hulu in lieu of cable.

There’s also good news for advertisers who prize video completion rates (VCR) over click-through rates (CTR) as their leading KPI. Average viewability rates (across media type/purchase method/ad length) rose to 67 percent from 62 percent in Q2, and the proportion of impressions that were both viewable and completed was steady at 76 percent.

Not surprisingly, premium video inventory led every category. Premium video is defined by Extreme Reach as media purchased directly from web publishers, rather than through an exchange, network, demand-side platform (DSP) or other third party. Ninety-two percent of premium ads played in full — 16 percent higher than Q2 of last year — while the rate for aggregators slightly decreased. CTV showed a staggering 97 percent completion rate across premium inventory.

Mary Vestewig, senior director, account management at Extreme Reach, told me that “what stands out in our Q2 report is the increasing strength of the metrics we are seeing around CTV/OTT

“Video completion rates have been strong in previous quarters which is the result, I believe, of two factors: Viewers tend to be committed to the content they choose to watch and they don’t have an option to skip the ads,” Vestewig said. “What shifted in Q2 vs Q1 and earlier quarters, is that video impressions served on CTV overtook those served on mobile (smartphones) for the first time.”

The report notes that in-banner video rates have been in decline over the past five quarters and that the trend is expected to continue.

From the report:

The in-banner video rate has been declining over the past two years, likely because it is a format used a lot when demand for video ads outpaces supply. With the growth of video content and the ad inventory that accompanies it, in-banner video should continue to decline. In Q1 2018, the rate for premium sites held steady at 5% and declined slightly for media aggregators.

Desktop is the one device that saw a decline in CTR from Q1 to Q2, with just 23 percent of impressions.

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