Online video adspend to rise a whopping 27.5% this year

Advertiser expenditure on online video continues to grow rapidly thanks to a boom in mobile consumption and most of that spending is going on social platforms – despite concerns over brand safety and ad fraud – according to a WARC report.

The latest monthly Global Ad Trends report focuses on online video and says that expenditure on the medium – inclusive of pre/mid/post roll, social and broadcaster VoD – is expected to rise 27.5 per cent to reach $29.8 billion this year.

And with linear TV advertising increasing at just 1.1 per cent this year, online video is taking an ever greater share of the total video advertising market – 17.5 per cent in 2018.

The shares vary widely between markets, however. In the UK, online video is expected to account for 38.2 per cent of all video adspend this year; in China the figure is 24.7 per cent while in the US, the largest video market by far, the figure is 19.3 per cent.

With over 60 per cent of daily online video viewing now on mobile devices, most of this money is going to mobile-optimised social platforms such as YouTube and Facebook, the report says.

UK data from the AA/WARC Expenditure Report, for example, shows that of the £1.6 billion spent on online video advertising last year, 81.2 per cent (£1.3 billion) was paid to social platforms (up from a share of 55.4 per cent in 2014).

“The vast and continuing increase in video consumption via mobile devices has directed ad dollars to social platforms, despite the well-documented and persistent risks around negative adjacency and ad fraud,” said James McDonald, Data Editor, WARC.

Data for the second half of 2017 shows that at least one in ten online video ads pose a risk of negative adjacency to brands. And a recent study by Guardian US and Google found that as much as 78 per cent of video spend is susceptible to fraud if the publisher does not employ the ads.txt script within their website.

“Facebook hopes to regain the initiative with its Watch platform, which is being positioned as a safe brand environment offering advanced audience segmentation”, McDonald noted.

As influencers account for more than half of video views on Facebook, advertisers are increasingly turning to them to build brand equity and deliver their messaging aside approved content.

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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.

US TV ad market remains flat

According to Matrix Solutions’ 2018 Midyear Ad Spend Report, an emergence of political advertising spend in primary Democrat and Republican elections leading to the midterm elections, which has seen a 264% growth rate, was largely the driver in the first half of 2018. When excluding political ad spend from the findings, broadcast, digital broadcast and radio witnessed an overall 4.90% contraction compared to last year at the same time.

When excluding political ad spend, local continues to be down at a 3.25% contraction rate, with national at a contraction rate of 0.77%, demonstrating flat growth at a national level without a political factor.

When excluding political ad spend, overall media ad sales in broadcast experienced a contraction rate of 5.86%. Digital broadcast on the other hand is booming—media ad sales grew across nearly every category at an average rate of 13.21% when including political ad spend, and at 13.03% when excluding political.

When looking at ad spend figures from specific industries, the following categories were key areas of growth across broadcast, digital broadcast and radio: Services (6.62% growth); financial services (5.16% growth); and home improvement (0.54% growth).

“According to our data, overall ad spend throughout the year, to date, has remained relatively flat when including the buoyancy that always comes from political campaigns, and without there’s a clear contraction,” said Mark Gorman, CEO at Matrix Solutions. “It’s a trend that’s continued from the findings of our 2017 Ad Spend Report, which means for these traditional platforms, they need to better arm themselves to grab a larger slice of the overall advertising spend pie to remain competitive.”

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Report: Facebook And Google Dominate As Video Ads Grow

A new study commissioned by cloud computing giant Salesforce shows that Google and Facebook continue to dominate the world of digital advertising, and are adapting as more and more marketers and advertisers turn to video.

According to Salesforce’s Digital Advertising 2020 Report, which the company officially unveiled Thursday morning, 65% of companies increased their video advertising budgets over the past year. And 52% of advertisers are choosing to produce their video ads in-house.

While video ad spend increases, Google and Facebook continue to dominate the overall digital ad spend landscape, with Salesforce estimating that over the next year, those two companies (and their subsidiaries Instagram and YouTube) will account for 66% of all digital advertising spend worldwide.

These same companies are also capturing the value of video. While Salesforce estimates that display ads, which it says account for 15% of the market, will decline over the next year to 14% of the market, YouTube, which currently accounts for 15% of the market, will rise to 16% of the market. In other words, as display ads decline in favor of video, Google is positioned to pick up those pieces.

The Salesforce report also found digital advertising and marketing are continuing to converge, with a majority of companies now using the same teams and budgets for both purposes. Brands are also overwhelmingly turning to data management platforms (DMPs) to manage the scale of their data, while figuring out the most effective way to share that data with partners.

And, while companies are still using traditional digital metrics like impressions, most are also beginning to use advanced metrics that allow for more sophisticated and long-term tracking.

Salesforce also predicted that artificial intelligence will become more prominent in advertising, driven in part by voice assistants like Amazon’s Alexa and Google Home. Almost three quarters of advertisers surveyed already advertise through voice assistants, or are planning to some time over the next year.

Two of the world’s biggest advertisers are cutting back on their digital ad spend

Procter & Gamble and Unilever have both aggressively pushed for more transparency in the murky digital media landscape in recent years, even threatening to pull back on digital spending unless the system is cleaned up. And now, it seems like the world’s biggest advertisers are putting their money where their mouths are.

Both P&G and Unilever appear to have pulled back on their digital spending, materially reducing their budgets as well as the number of sites they buy on. According to estimates from MediaRadar, a New York-based advertising intelligence company, P&G’s ad spend dropped 41% year-over-year, while Unilever’s dropped 59%.

While P&G ran ads on 1,459 sites between January and May 2016, that number dropped to 978 sites in the same period in 2017-a decline of 33% in sites featuring P&G ads year-over-year. Unilever, on the other hand, advertised on 606 sites between January and May 2016, which fell to 540 sites in 2017, representing an 11% drop in websites featuring Unilever ads. P&G and Unilever do not break down their digital ad spend publicly.

In terms of spend, P&G ran ads on 712 of the same websites between 2016 and 2017, including Yahoo News, BuzzFeed and Reuters, among others. But it reduced spend on 560 of them, according to MediaRadar, a 79% drop in spending from 2016. Unilever ran ads on 268 of the same sites year-over-year, including NBC News, Health and Time. But it reduced the spend by 57% on 155 of those sites.

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https://www.businessinsider.nl/two-of-the-worlds-biggest-brands-are-cutting-back-on-on-digital-ads-2017-6/?international=true&r=US

Linear TV sees triple-digit increase in ad spend

There has been a 273% increase in spending on linear TV advertising campaigns and an 840% increase in the number of linear TV impressions available to be bought and sold programmatically in the last 12 months, according to Videology.

The advertising platform’s Q4 2016 US TV & Video At-A-Glance report, view-through rate was the highest chosen objective for campaign goals (42%), followed by viewable rate (31%) and click-through rate (24%). Among advertisers that chose viewability as an objective, the MRC standard remained the most frequently used (90%), followed by custom, more stringent, standards (10%).

The report also found that, in the second half of 2016, more than a quarter of advanced TV campaigns used their own first-party data for targeting. These data segments could include past purchase history, website visits, registration data or loyalty data, and offer brands a way to utilize their direct relationship with customers for more relevant advertising.

“Brands and agencies have a huge amount of owned data, created through their direct relationship with consumers,” said Scott Ferber, founder and CEO, Videology. “By layering this first-party customer data into TV campaigns, brands deliver a far more tailored and granular advertising experience, ultimately resulting in greater ROI on their ad spend. This should be, and is becoming, a priority for anyone with access to owned data. I expect we will see this trend grow exponentially in the coming years.”

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