The 30-Second Ad Makes a Comeback, Now 55% of All Video Ad Views

In Q3 2017, the 30-second ad was an endangered species. It made up just 27 percent of all video ad views as marketers attempted to cram their messages and branding into shorter ads that viewers would tolerate. That quarter, 67 percent of video ads were 15-seconds long.

What a difference a year makes. Now, people do most of their video streaming on their living room TV, and that’s a win-win-win for all parties. Viewers get true lean back viewing, publishers get a receptive audience, and marketers get high completion rates and lots of unskippable inventory.

In Q3 2018, 55 percent of all video ad views were 30-seconds long, 41 percent were 15-seconds long, and 2 percent were 6-seconds long.

This data comes from the Q3 2018 Video Advertising Benchmarks report released by cross-platform advertising solutions specialist Extreme Reach. Its data comes from major brand advertising served by Extreme Reach.

“The CTV opportunity is one that advertisers are increasingly leveraging, and the impact that’s having on ad length, while unexpected, makes complete sense,” said Mary Vestewig, senior director of video account management at Extreme Reach. “I expect we’ll see even more exciting changes driven by CTV as consumer adoption grows and technology for targeting and measurement evolve.”

Not that everything is good news for the 30-second ad: The report finds click-through rates for 15-second ads were much higher (although rates for both lengths were lower than last quarter): The CTR for 15-seconds ads is 0.30 percent, while the CTR for 30-second ads is 0.14 percent.

read more here: onlinevideo.net

Strategy Analytics: TV to account for 80% of video ad spend in five years

Even though digital video is the fastest growing digital advertising category, TV will still account for the vast majority of video ad spend in 2023, according to Strategy Analytics.

The research firm predicted that TV will represent 80% of global video ad spend in 2023 while digital video will make up 20% of spend, with a breakdown of roughly US$210 billion and US$51 billion respectively.

This compares to an estimated global TV ad spend of US$195 billion and online ad spend of US$30 billion this year, with the US accounting for nearly 36% of global TV ad spend in 2018.

“With consumers increasingly watching video across platforms, including mobile devices and connected TV screens, audience measurement agencies are evolving their tools, however, cross-device measurement solutions are still geared towards reach-based metrics, and in a fragmented online world, no media can provide reach better than television,” said Michael Goodman, Strategy Analytics’ director of TV and media strategies.

read more here: digitaltveurope.com

Why Digital Native D2C Brands are Turning to TV

We’ve seen an explosion in the number of upstart direct to consumer brands – companies which build their audiences online and sell to their customers directly – over the past few years. When it comes to marketing, many of these disruptors have tended to use social platforms and podcast sponsorship to build direct relationships, and social video to communicate exactly what their product is and how it works.

While these digital natives eat up market share in established industries, it might initially look like bad news for TV advertising. However, the reality is that as these brands mature, many of them start to behave like “traditional” FMCG marketers and turn to TV advertising to help them scale further.

A report earlier this year from the Video Advertising Bureau (VAB) highlighted this growing investment in TV advertising by what they call “direct disruptors”. VAB analysis of Nielsen Ad Intel data found that TV spend by the fifty D2C brands it analysed grew from $322.8 million in 2015 to $1,313.6 million last year.

So what’s driving these brands to TV?

Advanced TV specialist Simulmedia has worked with several of these brands as they’ve branched out into TV, and CEO Dave Morgan says it’s a matter of scale and brand building.

“Everyone would expect that these digital first direct to consumer brands would build their full businesses on digital, but what happens in many cases is they perfect their product and customer segmentations online, but then they find they can’t really scale any further using digital only,” he said. This hasled them to turn to TV.

Julian Hearn, co-founder of meal replacement powder maker Huel, who raised an additional $26 million last week, agreed that TV’s huge reach made it an attractive medium to his company, which just this week launched its first TV campaign. “I’m not a fan of offline advertising,” he said. “It’s extremely hard to track performance and therefore difficult to optimise. However, TV is interesting, it has massive scale, and it’s an engaging medium.”

“Mattress in a box” company Casper meanwhile ran TV ads from the very beginning, again because it provided reach quickly and efficiently. “We decided to start running TV ads from day one as TV is THE mass media that provides a very large reach in a limited amount of time,” said Quentin Luce, who handles Casper’s European TV advertising. “TV is also, surprisingly enough for most advertiser, a very cheap medium when bought efficiently, which allows us to maximise repetition and therefore increase brand recognition.”

As these digital natives move onto TV, Morgan says they are more focussed on bottom of the funnel metrics than traditional TV advertisers. “None of them say I’ve bought my gross rating point so I’ve got my brand, I’m good,” he said. “They want to know exactly who they’ve reached. In every conversation we’ve had with these companies at Simulmedia, they have involved data scientists or people with deep knowledge of data analytics as part of the conversation.”

Luce agreed that while Casper looks to TV advertising for brand building, they also want to see direct results. “While at first our ultimate aim is of course to drive direct sales in order to cover the cost of a TV campaign, the halo effect of any campaign has a long lasting effect and definitely builds the brand,” he said.

The VAB’s data suggests this approach works very well. Its analysis found that emerging D2C brands (brands founded within the last five years) tended to see their revenues take off after launching a TV campaign or increasing investment. It also claimed that TV is very effective at driving greater audience engagement online – it found that as emerging brands increased online spend by an average of 93 percent, they saw 312 percent growth in search queries, 206 percent growth in social actions, and 177 percent growth in online video views.

“We directly see from day one a TV effect on website visits, and sales coming from those direct visit usually happen quite fast afterwards,” said Luce.

Good News for TV?

This all sounds like good news for broadcasters, with new money flowing into linear TV. “I think that it is not unrealistic to expect that between five and ten percent of US TV advertising revenue in three or four years, certainly within five, will be coming from these direct to consumer brands,” said Dave Morgan.

He cautioned, however, that this won’t necessarily increase TV ad spend overall. “The big question is, does the Casper mattress dollar take away the Tempur-Pedic incumbent money, is it a net positive for TV? And as things stand, that’s far from certain,” said Morgan.

It should however alleviate broadcasters concerns that the rise of DTC brands will be bad news for TV advertising. So even if TV’s traditional big FMCG spenders see a decline, it appears there will be new advertisers ready to replace them.

But the industry needs to be set up to accommodate these upstart brands. “Very few of them use traditional ad and media agencies, and very few large TV companies have sales teams dedicated to selling to them,” said Morgan.

read more here: videoadnews.com

YouTube advertisers can now target audiences watching on TV screens

Google launched a new TV screens device type on Oct. 16 that allows advertisers to target YouTube audiences watching video on TVs through Chromecast, set-top boxes like Apple TV, video game consoles and smart TVs, the company announced in a blog post.

YouTube ads on TV drove an average lift of 47% in ad recall and 35% in purchase intent, according to Ipsos Lab Experiments data cited in the blog post.

Advertisers can access TV-focused analytics and special options through the new device-type update to determine a campaign’s success, according to Mashable. Advertisers can also set specific bidding for TV viewers.

As more consumers cut the cord and turn to over-the-top (OTT) and connected TV services, many marketers have struggled to drive engagement on these platforms, which typically blend in digital elements and don’t always support ads. By adding TV screens to its device categories for YouTube, Google is attempting to ease that process while also recognizing that the channel is a huge opportunity for its own business. The Alphabet company claims that people now collectively watch 180 million hours of YouTube content on TV screens every day.

The ability to specifically target YouTube audiences watching on TV also presents a much more affordable option than traditional TV ad buys, as noted by Mashable. TV ad prices have remained high despite ratings declines of 10% to 12%, according to Magna. Not only that, YouTube advertisers can also leverage valuable TV analytics to inform their video strategies across platforms, which has frequently been a struggle.

Marketers are broadly investing more in OTT, which promises better targeted ads, cross-screen planning and buying and addressability. Magna predicts that ad spend on OTT TV will increase 40% to $2 billion this year. The increase is being driven by higher consumer adoption of smart TVs and set-top boxes, and Magna reports that 80% of all U.S. households will be reachable through OTT in 2018.

YouTube’s viewership continues to grow, with the platform is projected to overtake Facebook as the website with the second-most traffic from U.S. users, according to a recent SimilarWeb study. The platform is also popular with younger audiences, groups that marketers continually strive to reach and who are helping to drive the cord-cutting trend.

read more here: www.marketingdive.com

Snapchat introduces new 5 min TV shows

Snapchat has introduced a new format for its original video programming. Snap Originals are TV shows developed exclusively for the app, with new 5-minute episodes released each day.

All the shows will include six-second, non-skippable ads, building an important new revenue source for the company. Snap Originals will feature prominently on the app’s Discover page and will also each have their own Show Portal. Users can swipe up from the show episode and access additional, related content, including interactive, AR experiences with selected scenes, lenses, filters and other entertaining ways to share the show with friends.

Snapchat already offers third-party video content under the format Shows. The company said viewer time spent on Shows has tripled since the start of this year.

Snap also announced that NBCUniversal extended its content production commitments through 2019, and Viacom has committed to creating 10 new Snap Originals. Viacom also committed to syndicating at least 500 episodes of its network’s shows to the Snapchat audience.

read more here: snap.com

THE NEW LIVING ROOM: TAKING ADVANTAGE OF THE BIG SCREEN

Headlines would suggest that TV is dead, or at least is enduring a slow death.

The reality is that TV viewing is very different than what it was three years ago, let alone 10. How we define “TV” is still being debated. Is it the content, device or pipe that presents it to the viewer? But one thing is clear: With the proliferation of devices now powering TV content in the home, the living room dynamic has radically changed.

The new living room is a hybrid environment, home to the best of linear and digital television. While viewers are increasingly choosing to build their own schedules—comprising a blend of live, on demand and DVR—they tend to gravitate toward the best (and usually largest) screen possible.

FreeWheel’s latest Video Monetization Report (Q2 2018) shows that with every quarter, increasing volumes of digital and dynamically delivered video advertising are accessed via set top boxes (STB) and over-the-top (OTT) devices on the big screen. This now accounts for 57 percent of all non-linear impressions.

As a result, the new living room is not only the point where traditional TV viewing and online content converge, but also the center of a multi-viewer experience. With multiple members of each household gathered around a single TV set powered by an increasing number of devices, the potential for ads placed within premium digital video and broadcast content is vast.

The power of TV, in all its incarnations, to drive advertising impact is greater than ever. Yet, so far, it remains underutilized by many advertisers. As TV evolves, knowledge and capabilities across the value chain must evolve, too.

Keeping pace with viewers habits
The advertising industry must adapt and catch up with the viewing habits of the modern consumer. Unfortunately, legacy organizational, technology and measurement challenges have prevented advertising from following the audiences.

With enhanced addressability capabilities coming to the big screen, advertisers should be following eyeballs and working around the technology limitations that exist today to capture reach and precision opportunities in the most compelling advertising environment: premium video.

The FreeWheel Council for Premium Video has released “A Buyer’s Guide to the New Living Room,” which is intended to help those in the advertising planning and buying world fully grasp the opportunities offered by OTT, STB VOD and addressable linear, and how a holistic approach can harness them.

Some of the key takeaways from this guide:

– Become a subject matter expert in the new living room to gain advantage for your clients while these channels are still nascent and growing
– Create a plan using complementary channels to balance reach and precision, leveraging the common and unique attributes of each
– Work through measurement hurdles and leverage the tools and KPIs that are available to access these engaged yet underserved audiences
– Personalize messaging and manage frequency through addressable options with creative diversity on all campaigns delivered to the new living room
– Optimize for scale by adjusting your KPIs for platforms as necessary such as viewability targets in channels that aren’t able to be measured
– Globally, 81 percent of people use their TV set to watch broadcast TV at least once a month, making it the most popular media channel. Combined with streaming video (69 percent of all adults use the technology, but 86 percent of those ages 18-36), which is increasingly being viewed on the big screen, there is no question that the living room remains a core environment to engage with valuable audiences at scale.

read more here: adage.com

Survey: 53% don’t watch any linear TV ads

When promoting sales or products, it’s more important than ever to have an omnichannel strategy that does not rely too heavily on traditional linear TV.

This is according to a survey of 2,000 US consumers and 1,000 UK consumers, conducted by OpenX, the independent ad-tech provider.

More than half (53 per cent) of all consumers no longer watch commercials on live television. One out of four say they spend no time watching live TV at all, including 40 per cent of millennials. More than 70 per cent of millennials say they skip all TV ads.

OpenX advises that habits are shifting significantly this holiday season and brand budgets need to adapt to reach consumers where and when they are now consuming content.

As media consumption habits change, and consumers shift away from TV, mobile usage continues to increase. Some 55 per cent of consumers are on their smartphones for at least three hours a day, and more than a third of millennials and one out of four parents spend 6+ hours on their smartphones daily. Users are not just consuming content on mobile devices but they are also increasingly engaging with brands and conducting larger shares of their overall shopping via their connected mobile devices.

Almost 30 per cent of consumers surveyed say online ads help with finding gift ideas, and most say they have learned about new products through online ads. Whether it’s reaching the 40 per cent of mums playing mobile games daily, the 47 per cent of dads that are shopping on their phone in bed at least once a week, or reaching a millennial on a connected TV, it’s important to not limit the majority of advertising to one channel or screen.

Providing something of value to the consumer is often the key to success, and 77 per cent of consumers, and 84 per cent of millennials would be more likely to watch an online video ad if they could receive a discount off a holiday purchase.

read more here: advanced-television.com

No Sex Please, We’re Apple: iPhone Giant Seeks TV Success

Tim Cook sat down more than a year ago to watch Apple Inc.’s AAPL 0.63% first scripted drama, “Vital Signs,” and was troubled by what he saw. The show, a dark, semi-biographical tale of hip hop artist Dr. Dre, featured characters doing lines of cocaine, an extended orgy in a mansion and drawn guns.

It’s too violent, Mr. Cook told Apple Music executive Jimmy Iovine, said people familiar with Apple’s entertainment plans. Apple can’t show this.

Across Hollywood and inside Apple, the show has become emblematic of the challenges faced by the technology giant as it pushes into entertainment. Apple earmarked $1 billion for Hollywood programming last year. But in the tone CEO Mr. Cook has set for it, whatever Apple produces mustn’t taint a pristine brand image that has helped the company collect 80% of the profits in the global smartphone market.

Apple’s entertainment team must walk a line few in Hollywood would consider. Since Mr. Cook spiked “Vital Signs,” Apple has made clear, say producers and agents, that it wants high-quality shows with stars and broad appeal, but it doesn’t want gratuitous sex, profanity or violence.

The result is an approach out of step with the triumphs of the video-streaming era. Other platforms, such as HBO and Amazon.com Inc., have made their mark in original content with edgier programming that often wins critical acclaim. Netflix Inc., which helped birth the streaming revolution, built its original-content business on “House of Cards,” a drama about an ethically bankrupt politician, and “Orange Is the New Black,” a comedic drama about a women’s prison. Both feature rough language and plenty of sex.

As a consumer-product company, Apple is especially exposed if content strikes a sour note, said Preston Beckman, a former NBC and Fox programming executive. For Netflix, the only risk is that people don’t subscribe, he said. “With Apple, you can say, ‘I’m going to punish them by not buying their phone or computer.’ ”

Apple has twice postponed the launch of its first slate of shows, moving it to March from late this year, agents and producers said. One leading producer with projects at Apple expects the date to be pushed back yet further.

Hollywood routinely humbles big companies that try to join its club. In 2014, Microsoft Corp. closed its Hollywood unit, Xbox Entertainment Studios, before it got off the ground. Coca-Cola Co. , which owned Columbia Pictures in the 1980s, found its success with “Ghostbusters” and “Stand by Me” was outweighed by expensive flops such as “Ishtar.”

Entertainment is “irrational and unpredictable,” said Peter Sealey, a consultant who led marketing for Coke’s Hollywood business. Apple excels at devices and Coke at soft drinks, he said, but “movies and TV are none of that. They’re emotional.”

Mr. Cook told analysts in July that Apple wasn’t ready to detail its Hollywood plans, but he felt “really good about what we will eventually offer.” The company didn’t make executives available for interviews for this article.

Hollywood is central to Apple’s strategy. As growth slows in the number of iPhones sold, Apple is trying to accelerate its services business, which includes the App Store, mobile payments and entertainment, including its music-subscription offering. It wants shows to support a video service on its TV app that could be bundled with subscriptions such as iCloud storage, said the people familiar with Apple’s entertainment plans.

read more here: wsj.com

FreeWheel: “TV advertising has never been stronger”

FreeWheel, a Comcast Company, has released its Q2 2018 Video Monetization Report (VMR), which tracks marketplace trends on premium video consumption and advertising across STB VoD, OTT, Desktop, Smartphone and Tablets.

The report found that in Q2 2018, the majority of premium, digital video ad views (57 per cent) in the US were delivered to the TV screen versus other digital devices, highlighting the increase of OTT and STB VoD advertising and reinforcing the importance of the “new living room” for advertisers. All devices, however, showed year-over-year increases in ad views, with smartphones showing the most growth (76 per cent).

The Q2 VMR highlights the increasing digital capabilities of TV and video — from the perspective of both consumer consumption and advertising capabilities — that are driving new opportunities and increased ROI for marketers. While TV has always provided high-impact reach, the proliferation of new distribution channels combines scale, with data-driven targeting and measurable attribution.

According to FreeWheel’s General Manager, David Clark, this marketing trifecta is what makes premium video uniquely positioned to grow its share of ad dollars, even in the face of competition from other data-rich, digital players.

“TV — which now includes premium video content distributed via an array of digital platforms — has never been stronger as an advertising channel. The ability to build targeted awareness with TV at the top of the funnel, then measure the impact of that exposure across devices, is now a reality,” Clark added. “The final piece of the puzzle is allowing marketers to use technology to plan and buy TV with added efficiency and automation. We’ve made some great strides in this area, and continue to work with our partners to build the next-generation, TV ad platform that meets the unique demands of the TV ecosystem.”

The growing role of automation and data-enablement in the premium video ad market is illustrated by the finding that 14 per cent of total ad views in Q2 were placed programmatically, an increase of 58 per cent year-over-year. The vast majority of these programmatic transactions were conducted via private marketplaces between buyers and sellers.

Technological advances are changing the premium video experience for consumers as well. Ad views within live programming now constitute 33 per cent of the market, despite the technological challenges posed by real-time viewing environments. Furthermore, publishers are focusing more on viewer experience by utilising technology to limit creative repetition, with only 11 per cent of creative repeated once or more within full episode player content.

Additional Q2 2018 VMR Highlights:

– Premium digital video viewing* continues double-digit YOY growth. Video views in Q2 grew by 31 per cent year-over-year, and ad views reflected an increase of 35 per cent.

– Digital viewing is not just for series bingeing. Live viewing is increasingly important for premium digital video, representing 33 per cent of all ad views, with sports content comprising 66 per cent of this total, and news comprising an additional 10 per cent.

– Consumers are going digital, but Multichannel Video Programming Distributor (MVPDs) aren’t going anywhere. Despite a downward trend in traditional subscribers, consumers watched 111 per cent more content YOY on MVPD platforms, by accessing TV Everywhere capabilities or “skinny bundle” services. 39 per cent of all premium video content is now viewed via these syndication channels (versus directly from the publishers’ platforms).

read more here: advanced-television.com

VAB Study: Millennial Viewers Attached To TV Programming. Sure.

In another (desperate) attempt to counter the perception that young people are flocking away from TV, the Video Advertising Bureau released a new study showing that millennials are emotionally connected to TV programming and buy the products that are advertised there.

TV advertising revenue has been largely flat as media buyers watch eyeballs, particularly of young viewers, move to digital platforms and streaming services.

But the VAB found that millennials–those in the 18 to 34 age bracket–say they are connected to TV shows and their characters. And that emotional attachment is important because “someone who is highly attached is three times more likely to engage with the brand,” the report said. “They are less price sensitive, go deeper into the product line and have a higher lifetime value to an advertiser.”

The VAB commissioned Research Now to conduct the Program Engagement Survey fielded online in April 2018 with 1,000 adults surveyed. The respondents skewed slightly younger than the overall population but their TV consumption was line with the population.

The survey found that millennials feel a strong bond with TV programming. They regularly set aside time to watch their favorite programs and prioritize it as their “me time.”

Emotional connection inspires deeper program engagement among millennials, the report said. Young adult viewers are actively engaged beyond the TV airing – they share and post video clips, follow actors on social media, read recaps, and scour the web for behind-the-scenes scoop.

The survey found that the emotional connection viewers have with TV shows results in pop-culture-inspired activities, with 55% of millennial respondents using phrases from shows–like “Make It Work”– in everyday conversations, or 45% following a recipe they saw on TV to make a dish or even 43% dressing up as a TV character on Halloween.

Importantly, engagement motivates purchase.

The survey found that 43% of millennials said they purchase a product they saw on a TV show. That’s higher than the 40% of all adults that said that. Similarly, 43% of millennials said the purchases a product they saw while watching a TV–either in the program or during an ad, compared to 25% of all adults.

Another 43% of millennials said they’ve eaten at a restaurant because it or its chef was featured in a TV show.

The relationship between millennials and ad-supported TV is stronger when it comes to their favorite programs. The survey found 44% of millennials say they watch their favorite shows on broadcast or cable, topping Netflix (25%), Hulu, 12%, Amazon Prime (10%) or other streaming (8%).

Millennials don’t feel the same immediacy or sense of community around original YouTube videos as they do for TV, the survey found.

“Millennials are drawn into TV’s complex storylines, rich character development and well – known talent resulting in an unmatched emotional response,” the report said adding that millennials feel a stronger connection with TV characters and actors than to YouTube.

read more here: tvtechnology.com