Tag Archives: advertising

YouTube’s Is In the Living Room and Advertisers Want in

There’s a great migration happening among the citizens of YouTube, and it’s not in the direction one might assume.

Although most digital content producers, including YouTube, are fixated on mobile phones and producing short-form shows for audiences on the go, YouTube viewers are increasingly firing up the TV set.
“Our fastest-growing area is the big screen, the TV,” said Sarah Ali, head of living room products.
In 2016, viewership on TV screens grew 90% compared to 2015, according to YouTube. And in 2017, viewership on TV screens is set to rise another 90%, the company said. It would not release the number of people viewing on TV screens.

With televisions now internet-connected, app-enabled and smart-speaker assisted, it’s easier to stream over-the-top — also referred to as OTT or streaming-video — to the larger screen, which is likely why an increasing number of YouTube’s 1.5 billion viewers are channel surving like the “old” days of TV.

YouTube is undergoing a transition that touches on more than where people view. The brand safety revolt this year prompted the company to hold creators, some with big followings, to higher standards. The full impact of that is yet to even play out. The move to the living room, however, could ultimately prove helpful by giving more prominence to professional content and de-emphasizing reliance on the “creator class.”

To be sure, YouTube is not the only beneficiary of this migration. Companies like Roku are attracting more consumers. Apple TV and non-traditional players like Facebook and Twitter are building TV apps to offer their brand of internet videos on demand.

Here’s a broader view of the landscape. 50% more advertisers.

The living room is recognized as a more lucrative territory to hook consumers. A YouTube viewer spends 30% more time watching NBC’s content when it’s on TV versus mobile or a laptop, said Mark Marshall, exec VP-entertainment advertising sales group at NBCUniversal. YouTube, in general, is a growing platform for NBC, with a 30% increase in minutes watched across all screens, Marshall said. But NBC’s YouTube clips on TV are growing faster—minutes watched were up 65% year-over-year.

That’s still fewer minutes than mobile and laptop, but changing viewer habits are clearly presenting new opportunities for digital advertisers to place commercials that resemble the ad breaks of TV’s heyday. “In the upfront this year, we will have 50% more advertisers buying YouTube than last year,” Marshall said.

Advertisers have been chastened—even a bit shell-shocked—by the mobile revolution, and the digital domination of Facebook and Google. Mobile, for instance, still accounts for 60% of all YouTube viewing, according to Marshall.

Mobile has grown so unforgiving to brands that Facebook and Google developed six-second video spots, so advertisers get used to snappy messaging.

The OTT market is offering an alternative to that mobile mindset, and media players like Hulu are luring brands with 15-second and 30-second commercial interruptions. YouTube is phasing out the 30-second spot, but advertisers still get 15 seconds, which shows advertisers just how much time they can expect to get in front of consumers, which is not much.

Roku, with 23.1% of the U.S. connected-TV device market, is the leader in OTT boxes, which are hubs for apps like YouTube, Hulu, Amazon Prime and traditional broadcasters trying to reach an audience that no longer buys cable packages. Google Chromecast and Amazon Fire TV sticks are No.2 and No. 3 among streaming devices, according to eMarketer, and 170 million people in the U.S. plug into connected TVs.

Over-the-top boxes and connected TVs account for 32% of ads that run alongside what’s considered premium digital content—shows and movies with respectable production values, according to Freewheel, a video ad-tech platform. Four years ago, connected TV devices accounted for only 2% of such ads, it said,
“We’ve been very public about how much audience has shifted back to the large screen,” said Scott Rosenberg, Roku’s svp of advertising. “In this new world, there are thousands of apps and channels, and getting consumers to tune into your show, it becomes an interesting and a hard problem.”

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All You Need To Know About In-App Advertising

Smartphones and other connected devices are not only totally ubiquitous, but they are now easily the most used accessory (even more than watches and jewelry) for both men and women. And while there is enough talk about gadget detox, let’s face it – these devices have changed our lives forever and become our office and our assistant at the same time – besides, of course, being our entertainment device, our wallet, our fitness coach among others. And yes, they are the primary communications device that we now use.

In this smart phone era, businesses have built a fortune – trying to solve our problems, make our lives easier, entertaining us and making us smarter – all by creating these wonderful apps. The business models vary for all these developers and publishers – ranging from pure brand engagements based apps, paid apps (one time and subscription), in-app purchases and ad-supported apps. With hundreds of millions of Indians getting into the connected world via these app ecosystems on their affordable android smart phones, the advertising based model (i.e. based on in-application advertising) represents the largest opportunity in the Indian market for the next few years at least. Whether its messaging, ticketing, entertainment and gaming or shopping, in-application advertising is being integrated with these applications as consumers spend more and more of their time on their favorite accessory. All stats and data points put the In-app advertising market at well over 80% of total mobile advertising ad-spend and it’s the only thing that brands, advertisers and agencies are chasing today.

Traditionally mobile game apps have used in-app advertising very effectively. Providing basic features for free (read ad-supported) and then allowing users the option of in-app purchases for premium content has worked well in the aforementioned spaces. Free usage allows a large adoption, gets users hooked on products and the usual value exchange is the data (information) that the user passes to the publisher – basis which such user is targeted for relevant ads. Google (via Youtube & other products) & Facebook (and more recently Instagram) have built huge revenue models on this business model.

VOD Players eyeing a slice of the pie

1. The 4 pre-requisites to a successful in-app advertising model are

2. Large number of users (daily and monthly)

3. User data & info – that enables targeting

4. Very high engagement and time spent

And as a top-up – Exclusive IP or unique engagement model that allows brands to connect with the user base in a deeper way

The sceptics will say that the market is dominated by the top 2 global internet giants as of now and they have the benefit of the enormous data / information they have at their behest. That is true. But something changed a few months ago – with the launch of JIO and the changes that played out post that – India jumped from being 150th in broadband penetration (in early 2016) to no 1 mobile data user in the world!!! As per Industry reports, the monthly mobile data consumption on Jio’s network was 1 billion GB which is 1.5X of China or the same as US. And in the next two years it is expected to double to become 1.5X China and US put together as per some estimates and reports. And then there are the other telcos too, who will control the balance market.

The number one beneficiary (from this explosion) is going to be the Online Video business – which is expected to account for 50-60% share of this online data usage. And we are not even talking about fixed line high speed broadband in your houses, which will power your set top boxes, wifi routers and smart TVs. That’s another top up on this already humongous opportunity. And that is the reason why you see the explosion of the number of online video destinations in the last 12 months.

Now, the above will lead to growth in all kinds of video monetization – subscription, transaction, but most of all it will be advertising. And when it comes to Video – and engaging video that allows users to consume large volumes of content on their devices – the key is great content. And that is where the party is just beginning for content creators and premium IP owners.

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£5.27 Billion Invested in U.K. TV Advertising in 2016

Television ad revenue in the U.K. totaled £5.27 billion ($6.6 billion) in 2016, with online businesses now the biggest spenders on TV, according to full-year revenue figures provided to Thinkbox by the British commercial broadcasters.

According to Nielsen, among the biggest spending online businesses on TV were Amazon (£34.3 million, up 39 percent), Comparethemarket.com owner BGL Group (£38.8 million, down 4 percent) and Moneysupermarket (£25.9 million, up 6 percent).

Together, new or returning advertisers accounted for 1.6 percent of total TV ad revenue in 2016, according to Nielsen. WARC estimates for the Advertising Association indicate that the total U.K. advertising market grew to £21.1 billion in 2016 (up 4.4 percent), with TV advertising representing 25.3 percent of it. The AA/WARC forecast that in 2017 the U.K. ad market will reach £21.8 billion (up 3.2 percent), with TV forecast to increase by 1.6 percent.

Despite some recent inflation in TV advertising prices—due in part to increased advertiser demand and some decline in TV set viewing—in 2016 TV advertising was 28 percent cheaper in real terms than ten years ago.

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