Tag Archives: video

50% of Brands see Video as Key Driver of Further Programmatic Investment

The ability to connect with audiences via programmatic video advertising is seen as a key driver of further investment in programmatic advertising by 49 percent of advertisers, compared to 19 percent last year. The data was release today in IAB Europe’s ‘Attitudes to Programmatic Advertising’ report which highlighted several other changing attitudes, showing that advertisers and agencies are becoming more aware of programmatic trading’s benefits beyond targeting efficiency, programmatic stakeholders are increasingly keen to take programmatic in-house, and most players are quickly adopting new metrics to measure their programmatic campaigns.

IAB Europe’s report surveyed over 700 participants from a mix of advertisers, agencies and publishers to gauge their views on programmatic advertising. Targeting efficiencies have always been reported to IAB as the dominant drivers of programmatic investment, and this remains the case this year with 71 percent of advertisers and 78 percent of agencies listing it as such. For publishers, client demand remains the highest motivator for investment, with 71 percent of publishers calling it a key driver. But this year’s results showed increasing awareness of other benefits of programmatic across the board. Brands are much more positive about programmatic video’s potential than last year, positivity that has followed a 155 percent increase in programmatic video investment in 2016. More brands and advertisers than last year listed campaign flexibility and reduced media wastage as key business impacts of programmatic trading, and more publishers than last year cite increased control of inventory and increased media value as key impacts.

While the report listed brand safety as a dominant barrier to investment, it is still not the primary concern despite its prominence in the news. Lack of talent, cost of technology and fee transparency were all listed as barrers by more brands than brand safety was. Meanwhile more agencies are worried about lack of talent, the difficulty of training people adequately, and quality of data than are worried about brand safety.

Whatever barriers do exist though, they’re not preventing high levels of investment as 88 percent of advertisers, 93 percent of agencies and 88 percent of publishers are planning to increase their investment in programmatic advertising over the next twelve months.

As investment increases, companies across the board are increasingly taking their programmatic trading in-house. This is most evident among advertisers where 23 percent now say they handle programmatic operations in-house, compared to 16 percent in 2016. This trend is set to continue too, as 56 percent of publishers and 46 percent of advertisers that don’t already have an in-house strategy state that they are planning to develop one in the next twelve months. The biggest barrier here remains a staffing one; both sectors list hiring people with the rights skill set and training people adequately as the top two challenges of an in-house strategy.

read more here: videoadnews.com

The pivot to reality for digital media

Forget the pivot to video; the pivot to reality is in full swing in digital media.

The culprits are well-known. Google and Facebook have an iron grip on digital ad revenue. Publishers are trying to save themselves by making wholesale shifts in their business models, but they can’t transition fast enough. Last week brought an avalanche of the results: BuzzFeed and Vice reportedly missed revenue goals for the year; Mashable was sold for a fifth of its one-time valuation; and Oath, the Verizon unit containing Yahoo, AOL and HuffPost, laid off more than 500. The list goes on.

There are a number of things going on. At a high level, digital publishing has failed to diversify, having put all its eggs in the advertising basket. Then, the platforms came for advertising. Most digital ad spending today is going to a handful of tech companies, leaving just a few scraps for publishers to fight over. Facebook has hurt in other ways, cutting back the referral traffic it sends publishers, and has only started to help publishers monetize their content there. Publishers that took a distributed approach, thinking the revenue would follow, have found otherwise.

But it’s too simplistic to say this is simply a story of the big, bad platforms. What’s happening now is more of a correction than an upheaval. Just a year ago, Mashable took a round of venture capital at a $250 million valuation. Selling for a fifth of that price a mere 12 months later says more about the expectations venture-funded digital media eagerly embraced when capital was cheap and plentiful.

“It’s a story about runaway valuations for content startups,” said Todd Sawicki, CEO of Zemanta, a programmatic native ad platform. “If a startup had been valued based on more traditional methods and multiples, many of these valuations would never have happened.”

When it came time to build a sustainable business, many of the publishers that were adroit at spinning rosy growth scenarios on paper were less successful. The now-lampooned pivot to video is a case in point. It’s easy to talk about audiences moving to mobile, expertise in “snackable” content and distributed media strategies built around millennials. It’s quite another to execute those strategies profitably.

Take video. Too often, publishers create the video but don’t design their sites with it in mind, cramming pages with other ads that compete for attention and bandwidth, said Brian Rifkin, co-founder of digital video player company JW Player. Then, there are all the things to get right on the sales and ad operations side, such as matching the right video format to the right device and making sure the ad meets the advertisers’ specs for viewability. Success in digital media is about nailing the details, not getting the headlines.

“A lot of it is the grind-it-out execution,” Rifkin said. “We’ve been through a lot of advertising executions, and this one is the most difficult. How many times have you gone to a website and clicked ‘play’ and bailed out? The business is there. Publishers need to create good content, make sure there’s intent to watch, focus on the user experience.”

Many digital media companies with sky-high valuations based on a bad set of assumptions also hungrily eyed TV deals, where the real money supposedly is. This looks increasingly like a Hail Mary strategy. In most cases, the production costs for doing TV shows are pretty equal to licensing costs, and unless you have a syndication deal, the profit is fairly low, said Bernard Gershon, president of GershonMedia, a publishing consulting firm. There are also lots of studios already quite good at making TV programming. The only thing digital media companies would bring unique to the table is strong brands, but even there, much of digital media has outsourced its connection to its audience to platforms.

Rich Antoniello, CEO and founder of Complex Media, looks at the current pivots to video as rushed and reactive. The men’s lifestyle publisher took its time introducing video, starting in 2012 and getting to 65 percent video over five years and emphasizing long-form shows that are better at building a brand than short clips that blur by in people’s newsfeed. “You have to condition your audience and the advertising community,” he said. “You can’t just say, ‘Hey, we’re in video now.’”

read more here: digiday.com

Social Video: Its Hip to be Square

Video creation platform Wochit has published its Q3 social index providing insight from its analysis of over 10,000 Facebook videos, created by more than 200 publishers. These videos were published on 300+ Facebook pages between June 2017 and August 2017. One of the most notable trends found is that increasing the number of videos shared yields disproportionate gains in views and engagement, On average, publishers that increased their video production saw their video views triple.

The report includes comparisons with Q1 and Q2 findings of 2017, illustrating emerging trends in the industry. Some of the big findings of Q3 include:

Publishers already making video create nearly 50 per cent more in Q3

Pages with more video attract more followers
Engagement shifts to Reactions over Likes
Square videos prove massively more engaging than horizontal
Midroll, high engagement lift popularity of longer videos
The 1 per cent continues to get nearly half of all views, over half of all shares
Latin American audiences are by far the most engaged
Publishers Committed to Social Video Doubled Down in Q3
Publishers who created videos in both Q2 and Q3 had an average production increase of 48.5 per cent in Q3.

These publishers also saw significant increases in engagement, averaging a 52.3 per cent lift in views, 65 per cent growth in Likes and a 62.3 per cent rise in the number of Shares.

For publishers who increased production in Q3, Wochit found a disproportionate impact on view counts. These publishers doubled their video production, on average, yielding a 3x more video views.

More Videos Means More Followers

There is a strong connection between the number of videos posted to a publisher’s Facebook page and the number of followers for that page. In fact, eight out of the 10 most followed publisher’s Facebook pages in Q3 published at least five videos a day.

In Q3, publishers posted an average of 40.3 per cent more videos per page than during Q2. At the same time, the average number of followers increased by 33K to 870K (compared to 837K in Q2).

Reactions Rise while “Likes” Slide

In a previous study of viral videos, Wochit observed that 80.9 per cent of those reaching the one-million-view landmark elicit strong emotions. So, it’s not surprising to see that the number of Reactions on videos continue to increase, moving up 66.9 per cent in Q3. The traditional “Like”, however, is decreasing, down 21.2 per cent from Q2. Wochit sees this audience behaviour simply as an indication that the videos on which they are interacting are drawing out deeper feelings than a simple thumbs up reflects.

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UK Video Ad Spend Overtakes Display

Advertisers in the UK are now spending more on video ads than display ads for the first time ever, according to the Internet Advertising Bureau and PricewaterhouseCoopers’ Digital Adspend report. The latest figures put video ad spend at £699 million for the first half of 2016, while display advertising lagged behind at £685 million.

If current growth trends keep up, the narrow lead video has gained over display can be expected to widen quickly. Back in 2014 display spending was more than double that of video, but strong growth in video has seen it quickly make up the difference; the H1 figures for 2017 represent a 46 percent year-on-year spending rise for video, but a less than 2 percent rise for display.

Video’s strong performance can be put down to a couple of factors. Mobile spending generally has risen sharply in recent years, now accounting for 43 percent of all digital advertising compared to 22 percent in 2014, and mobile makes up 70 percent of all video spending. Advertisers have also been buying heavily in new video formats – spend on outstream/social in-feed nearly doubled in the last year making it now the most popular format, overtaking pre-and post-roll ads.

The IAB’s CEO Jon Mew says these spending changes show advertisers adapting to trends in how audiences consume content. “The time people spend watching online video has grown tremendously over the last few years, so it’s little wonder that video is now the fastest-growing ad format as advertisers look to tap into the changing way people consume content,” he said in a press release.

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Monetizing Video Puts More Food on the Table for Publishers

The table is set for publishers to derive new revenue from popular content formats and now it’s time to sit down and eat. What’s for dinner? Video. Why now? What has changed? Three trends are converging that make video content a potent opportunity: One, video content is quickly growing in popularity with consumers; two, consumers are buying more products online than ever before; and three, consumers are ready to buy on whatever platform or site that is accessible to them. This represents an immensely profitable new revenue stream for the video publishers and their affiliate networks, and here are three key ways it can happen.

Set The Table And Incorporate More Video

If publishers want to get ahead, they need to understand what a video is worth and ultimately, use more of it. According to Cisco, 69% of all IP traffic will be video in 2017, growing to 80 percent by 2019. Another study from Aberdeen research says that sites with video garner an average 4.8 percent conversion rate versus 2.9 percent for sites that do not. It’s clear that consumers like the “snackable” content that’s easy to consume, because it’s simply more engaging than static content. Look at BuzzFeed’s Tasty videos that recently hit 1 billion views this year, as an example. Simply giving people a visual walkthrough of how to make a recipe has inspired even the most basic cookers to create a delicious dinner.

Video has become invaluable, and particularly interactive and shoppable videos, because they provide a more immediate and real-world experience for shoppers. Videos have a storytelling aspect to them that make its content more desirable, so when you connect the story that these videos create with sophisticated search tools that are now available- like visual recognition search — products that are featured within videos are easily found, and therefore more easily purchased. This is where artificial intelligence has played a huge role in the video industry, because it’s allowed retailers to become more searchable, and publishers to monetize content that users would prefer to consume. Merging these machine learning capabilities with the browsing experience is bringing a whole new world of opportunity for publishers and retailers, and it’s still only the beginning.

Understand New Buying Habits and Ways To Reach Consumers

Not only are more Americans shopping online today, but they are buying a greater range of products across a wide range of channels. So in order to get the right products in front of the right sets of eyes, publishers and retailers need to understand audiences and work together to deliver a great browsing experience with relevant, interesting, and entertaining videos.

The opportunity is bigger than simply selling pre, mid, and post-roll ads against videos, because they can be monetized in myriad ways across these various platforms from social to onsite. Business Insider is one of the more recent publishers using video to drive commerce by leveraging Facebook video to increase reach and ultimately, sales. These video strategies generate a LOT of data that can help publishers better understand their audience and can be made available as a value-add to retailers. They can also provide incremental revenue for publishers that can offer formats like in-video advertising and in-video purchasing to their advertisers.

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Video to form three-quarters of mobile traffic by 2022

An average of over a million broadband subscribers a day will be added from now until 2022, with video being the driving force of this growth, accounting for 75% of all mobile data traffic by then, says the latest Ericsson Mobility Report.

The report, an analysis of mobile data traffic, is designed to provide in-depth measurements from live networks spread around the globe. Fundamentally the report calculates that by 2022 global mobile data traffic will increase to eight times its current level. This, says Ericsson, is the equivalent of the population of Spain streaming HD video 24 hours per day for a month or a single subscriber streaming HD video continuously for 3.55 million years, or 31 billion hours of continuous HD video streaming.

Mobile video traffic is forecast to grow by around 50% annually through 2022, while social networking is expected to grow by 38% annually over the next six years. However, the latter’s relative share of traffic will decline from 13% in 2016 to around 11% in 2022 as a result of the stronger growth in video. Additionally, the use of embedded video in social media and Web pages continues to grow, fuelled by larger device screens, higher resolution and new platforms supporting live streaming. Ericsson’s study regards embedded video in social media and Web pages as video traffic in the forecast and network measurements.

Examining the different types of devices used to consume mobile video, the report found that the emergence of new applications can shift the relative volumes of different types of traffic, and the proliferation of different sized smart devices will also affect the traffic mix; for example, tablets are associated with a higher share of video traffic than smartphones. Typically, smartphones are used more than tablets for watching short video content, but tablets are used more for watching longer video content.

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Video Is Not Display, So Publishers Should Stop Using Display CPM Strategies

– by Yoav Naveh

The concept of online advertising has long been associated with the standard banner ad – the square unit that consumers breeze past as they scroll down a page.

That’s changing rapidly, though, as video viewership grows and introduces more opportunities for engaging video ads. As a result, video ad spending is predicted to grow by 12% this year while traditional banner spending shrinks, according to JP Morgan.

Publishers have long relied on display as their primary revenue source. As a result, many of the publisher-focused technology solutions have addressed display ad selling. But video isn’t sold or served in the exact same way as display advertising, which means that established tactics aren’t necessarily transferable.

For instance, when publishers try to optimize toward the highest CPM with video, as they do with display, they run the risk of inconsistent fill rates and long load times. Rather than trying to mimic display strategies, publishers need to look for a strategy that leads to the same desired outcome, rather than a direct technological equivalent. In video, that means optimizing toward overall ad revenue rather than CPMs.

Video advertising is far more technologically intense than display. VPAID tags can take 10 seconds or more to fire and actually load an ad, and some ad calls time out, resulting in no actual payment to the publisher. With all this heavy lifting, publishers want to maximize the chances they’ll get paid for every potential video impression. As a result, many are loading up on video ad networks to get the highest CPMs possible.

Unfortunately, this focus on CPM has a downside. Adding more networks means adding more tags, which means even longer load times. To make matters worse, the entity that wins a video ad auction may not always pay for the impression. This may be attributable to technological errors at times, but a delinquent buyer is most likely rooted in video’s archaic arbitrage practice, where even prominent supply-side platforms own seats on demand-side platforms and bid for impressions.

These attempts to buy up inventory and resell it for a higher fee have created a mess of a consumer experience and set up a very dangerous house of cards for publishers. A buyer trying to resell an impression can push the load time toward 20 seconds or more. These excruciatingly long load times lead to user abandonment, which can cause traffic to crater, thereby bringing fewer ad impressions and ultimately resulting in no business at all for the publisher. Maxing out on ad networks in an attempt to optimize for CPMs in this way is not optimizing for revenue, especially if it has the potential to destroy revenue and the online user experience altogether.

What are publishers to do if they want to maximize return in the increasingly competitive video market? Rather than optimize impressions around the highest CPM, publishers need to take the longer view toward revenue, which is part and parcel with understanding fill rates and load time.

The first step is shifting the focus toward revenue per thousand page views, or RPM, rather than the CPMs from auctions. Simple A/B testing should provide a clearer understanding of this metric. Publishers may find a new partner can generate $20,000 RPM, which is great. But if that source is potentially taking $25,000 away from another bidder, then that’s a net loss of $5,000 per thousand page views. Getting the highest CPM for each impression might provide a real-time rush for the publisher, but careful analysis needs to be done to ensure that a quick thrill won’t negatively impact long-term revenue success.

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How to Make Money With OTT

How do you drive online and OTT video content consumers “down the monetization funnel” that will make your content profitable? Sinclair Broadcast Group’s Ben Miller takes viewers step by step through that process, including how to leverage “casual viewer” channels like YouTube and Facebook to convert casual, occasional consumers of your content to dedicated subscribers that will make your brand successful.

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ABI Research Sees Service Providers Switching from Channel to Linear OTT Video over Traditional TV

Service providers are decreasing marketing on their cable, satellite, and IPTV products that offer managed quality of service in favor of new products that use over the top (OTT) technologies to compete with Amazon and Netflix. With OTT competition significantly increasing in mature pay-TV markets, ABI Research forecasts that live linear OTT video services will grow to approximately $7 billion dollars of worldwide revenue by 2021, from a little more than $1 billion in 2016. Continue reading at: http://www.walb.com/story/34297321/abi-research-sees-service-providers-switching-from-channel-to-linear-ott-video-over-traditional-tv