Television is facing a transformational moment in history, as viewers have more choices than ever before. Though still a fundamental pillar of marketing and a nearly $80 billion business, television has been dramatically changed by the rise of viewing devices and streaming options, and advertising buyers and sellers alike are struggling to keep up.
Based on our own data, as well as third-party data, we present three key findings:
FreeWheel has released its Q2 '15 Video Monetization Report, finding once again that long-form and live viewing drove the biggest increases in video ad views. Live viewing increased 146% vs. Q2 ’14 with long-form up 26% vs. Q2 ’14. Short-form again lagged, up just 16% year-over-year. Overall, ad views increased by 32% and video views increased by 25%, both vs. Q2 ’14.
For broadcast and cable TV networks plus pay-TV operators (which FreeWheel calls “programmers”), 66% of their ad views in Q2 ’15 came from the combination of long-form (35%) and live (31%). As always, the biggest share of live viewing was sports at 78% (though that was down from 82% in Q1 ’15), distantly followed by news at 15%. For long-form, scripted drama had the highest share (42%), followed by reality (26%) and comedy (17%).
Video supply-side ad platform Altitude Digital has reduced the level of bot/non-human traffic (NHT) to under 1% of its video ad inventory. The milestone is the result of a 6-month initiative to improve quality, using fraud filtering and reporting technology in partnership with Integral Ad Science. The objective was to proactively filter bot/NHT inventory before it is seen by advertisers.
Topics: Altitude Digital
Vdopia’s “Chocolate” programmatic mobile video marketplace, which launched last October, has experienced a 172% increase in ad spend from Q1 ’15 to Q2 ’15. Vdopia said that Chocolate served 12 billion mobile video ad auctions per month in Q2, a 110% increase vs. Q1. Chocolate had a 97% increase from Q1 to Q2 in mobile web ad auctions and a 195% increase in mobile in-app ad auctions.
I'm pleased to present the 286th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
The past couple of weeks have brought into stark relief the tectonic changes happening in the video and TV industries. Linear ratings are way down, audiences are fragmenting to on-demand sources, pay-TV subscriber losses are up and advertisers are shifting their spending.
In this week’s podcast, Colin and zero in specifically on the huge shifts occurring in TV and video advertising. Advertisers’ priorities and buying processes are fundamentally moving toward more flexible, data-driven approaches. I explain why programmatic video/TV and mobile video ads are surging, looking at recent results from TubeMogul and SpotXchange as key evidence (see here and here for more). We also get into why advertising-supported VOD could have a bright future.
Listen in to learn more!
Click here to listen to the podcast (21 minutes, 57 seconds)
Watch an ad longer and all kinds of effectiveness measures should increase. That’s a pretty bankable assumption. But in a world where viewers are going to great lengths to avoid ads, just getting them seen and paid attention to have become huge challenges. For example, earlier this week a report from Adobe and PageFair estimated that publishers are now foregoing $22 billion per year due to increased use of ad blocking software.
All of this has triggered a range of new video ad approaches to deliver improved monetization. One of them is “outstream” video ads, where the video ad plays outside of the video stream, instead running in a text article, newsfeed or slideshow, as opposed to instream (i.e. pre-roll, mid-roll or post-roll). I’ve been a fan of outstream ads for a while as I think they unlock lots of new premium inventory for publishers while balancing the viewer experience.
I’m excited to announce our next VideoNuze conference: SHIFT // 2015 Programmatic Video & TV Advertising Summit, which will be on Tuesday, December 1st in NYC at the Time-Life Conference Center.
SHIFT // 2015 is an immersive new one-day conference which will bring together senior industry leaders and influencers who have a stake in the success of programmatic video & TV advertising. SHIFT // 2015 is the first conference laser-focused on programmatic video & TV advertising, which eMarketer forecasts will account for almost $4 billion, or approximately 40%, of online video ad spending in 2016, up from just $190 million in 2013.
As VideoNuze readers know, I’ve written extensively about how video viewers are fragmenting across countless devices, services and platforms, which has in turn created unprecedented challenges for advertisers and content providers. As David Cohen, UniversalMcCann’s Chief Investment Officer said in his keynote interview with me at this past’s June’s Video Ad Summit, re-aggregating target audiences and delivering the right video ads - efficiently and at scale - have become the media industry’s top priority (last week’s market meltdown in media stocks underscored its urgency).
This is why programmatic video & TV advertising has such huge potential - offering the ability to shift (hence the conference name!) to an automated, data-driven and flexible approach. Programmatic enables ad buyers to target and reach their audiences wherever they watch video, and content publishers to recognize the full value of their inventory.
Despite this potential, it is still early days for programmatic video and even earlier days for programmatic and cross-screen TV. For many industry executives, programmatic’s complex ecosystem and “alphabet soup” of participants is difficult to understand. Questions about viewability, channel conflicts, pricing integrity, measurement, attribution, etc. swirl. As a result, there’s still caution around programmatic video & TV.
By comprehensively addressing these and other key topics, I’m confident SHIFT / 2015 will create new value for market participants. The SHIFT // 2015 program will focus on the most critical aspects of programmatic video & TV advertising, with experienced industry executives delivering actionable insights and data that help attendees to be smarter and more productive back at the office. SHIFT // 2015 will pick up on important themes raised on our programmatic sessions at the Ad Summit, which drew 450+ attendees and featured 55 speakers.
I’ve spent a lot of time over the past couple of months talking to industry colleagues about the opportunity for SHIFT // 2015 and have been hugely gratified by the response. I’m very aware of the proliferation of conferences and believe SHIFT // 2015 is differentiated by its deep-dive focus on programmatic video & TV.
I’ve set the bar high for SHIFT // 2015 to be a must-attend day for executives at publishers, distributors, agencies, advertisers, trading desks, networks/exchanges, technology providers/platforms, research and investment firms, journalists and anyone else seeking to learn more about programmatic video & TV and accelerate its success.
SHIFT // 2015 is an important new initiative for VideoNuze which will build off momentum from our many prior Video Ad Summits and VideoSchmoozes. Early bird discounted tickets are now available as are discounted charter sponsorships (contact me to learn more). I’m excited to share a lot more about SHIFT // 2015 in the coming months and I welcome your input. I hope you’ll join us on December 1st!
Demand-side video ad platform TubeMogul reported a very strong Q2 yesterday, with $105 million of total advertising spend on its platform, up 72% vs. Q2 ’14 and revenue of $45.4 million, up 58% vs. Q2 ’14. TubeMogul once again upped its full-year guidance, for total ad spending (to $395-$401 million) and revenue (to $164-$170 million).
While desktop pre-roll video ads still account for the dominant share of TubeMogul’s business, the company reported an upside surprise of between 5-10% of spending coming from programmatic TV (“PTV”), a useful indicator of how TV advertisers are beginning embrace programmatic. Mobile accounted for between 10-15% of spending in Q2 and the company’s new display offering accounted for under 5%.
Supply-side video ad platform SpotXchange released new data this morning highlighting huge growth in mobile video advertising and private marketplaces by premium publishers.
SpotXchange said it experienced 800% growth in mobile video ad spending in the first half of 2015 vs. the first half of 2014 as mobile accounted for 19% of total spending on its platform vs. just 4% a year ago. There’s almost certainly more rapid growth ahead, as recent data from Ooyala revealed that 42% of all video views in Q1 were on mobile, with 50% expected later this year. eMarketer is forecasting mobile video will account for $2.62 billion or 34% of the $7.8 billion expected to be spent on online video ads this year.
Tremor Video released data gleaned from 40 billion ad calls in its premium video marketplace, finding, among other things, that 7 out of 10 advertisers are now buying multi-screen campaigns. That’s a bit higher than the 58% Videology reported for Q1 ’15 back in May based on its data.
Both data points illustrate how aggressively advertisers are embracing both online video and mobile video advertising. Mobile in particular now accounts for 50% or more views on many popular sites, including YouTube, making a mobile component mandatory.
Viacom announced that it has added 3 new executives to its Viacom Vantage data-driven ad product, which was itself announced in late April. Joining Viacom are Bryson Gordon as SVP of Data Strategy, Gabe Bevilacqua as VP of Product Management and Kodi Foster as VP of Data Strategy. Together they’ll oversee development of new data products to micro-target viewers which are overseen by Kern Schireson, EVP of Data Strategy and Consumer Intelligence for Viacom Media Networks.
A new partnership announced by video ad buying platform AudienceScience and programmatic video supply-side provider SpotXchange aims to accelerate video advertising on the mobile web and in mobile apps. The companies have completed an OpenRTB integration enabling advertisers using AudienceScience’s Helios system to access mobile video inventory that publishers manage using SpotXchange.
Connected TVs are soaring in popularity due to plummeting prices of smart TVs and the proliferation of inexpensive devices like Roku, Apple TV, Chromecast and others. As more homes adopt connected TV devices and long-form online viewership shifts to them, there’s a huge opportunity for advertising.
This was the topic of discussion for the Video Ad Summit session, “Connected TVs and Advertising: A Match Made in the Living Room,” which included Tal Chalozin (CTO and Co-Founder, Innovid), Ashish Chordia (CEO and Founder, Alphonso), Josh Mallalieu (VP, Partner, Portfolio Management, Universal McCann) and Scott Rosenberg (VP, Advertising, Roku) with Colin Dixon (Chief Analyst and Founder, nScreenMedia) moderating.
The session touched on what types of video ad units are working best on connected TVs, how advertisers are using data to target audiences on connected TVs, why mobile is benefiting connected TVs, how the ad experience on connected TVs is becoming richer and much more.
Programmatic is one of the most important trends in the online video advertising industry, with eMarketer forecasting that in 2016 nearly $4 billion of online video advertising will be transacted programmatically. At last month’s Video Ad Summit, one of our sessions focused on programmatic video advertising from the advertiser/buy side and another from the content provider/sell side.
The advertiser/buy side session included Larry Allen (SVP, Business Development, Xaxis), Jim Caruso (VP, Product Strategy, Varick Media Management), Neeraj Kochhar (Managing Director, Buy-Side Platforms, Tremor Video), Troels Smit (Head of Demand Sales, LiveRail), with Gain Dunaway (Senior Editor, AdMonsters) moderating.
The content provider/sell side session included Doug Fleming (Director of Programmatic, Hulu), Manny Puentes (Chief Technology Officer, Altitude Digital), Sorosh Tavakoli (SVP, AdTech, Ooyala), Tim Trevathan (SVP, Publisher Solutions, Defy Media), with Ashley Swartz (CEO and Founder, Furious Corp.) moderating.
The session videos are included below. Taken together they provide a wealth of insights about where programmatic video advertising is today, the key opportunities and challenges for advertisers and content providers, what’s ahead, plus lots more.
Controversy and confusion - two words that describe native video advertising. It may be one of the industry’s latest emerging ad formats, but brands, advertisers, media executives and even the Federal Trade Commission have been in advertising purgatory over it - questioning whether native video is a real form of advertising or a publisher trick to make consumers believe an ad is actually editorial content. Couple this with the debate over the high price tag, and the looming question remains: “Is native video advertising worth investing in?”
The answer is yes, and this article will explore why.
Google highlighted YouTube’s audience and revenue growth in last week’s Q2 ’15 earnings call, with viewing time up 60%, the number of advertisers up 40% and the average spending of the top 100 advertisers up over 60%, all vs. a year ago. While Google has never broken out detailed YouTube performance, these selected data point to strong momentum at the video site.
At the 2015 Video Ad Summit, our session, “How to Capitalize on YouTube’s Vast Landscape With Winning Video Ad Campaigns” helped explain why YouTube is succeeding. The session included Michelle Bandler (Director of Brand Activation, Google), Al Cadena (Senior Account Director, Beeby Clark+Meyler), Hermann Hassenstein (Global Head of Marketing Planning, PUMA) and Art Zeidman (EVP, Chief Revenue Officer, Pixability), with Mike Shields (Senior Editor, The Wall Street Journal) moderating.
The session explored, among other things, how ad buyers think about YouTube and the key challenges the site faces in persuading traditional TV ad buyers to pursue YouTube. These include measurement, sales lift, business processes, incomplete experimentation, etc.
The group also discussed how advertisers work with YouTube influencers on branded entertainment, the rising importance of mobile, the impact of Facebook, how ads are optimized for YouTube and social media, plus much more.
At the 2015 Video Ad Summit, we reprised a session from 2014, focused on NewFronts, Upfronts and the Ongoing Battle for Video Ad Budgets, including Jackie Kulesza, EVP, Group Director, Digital Acceleration, Starcom and Adam Shlachter, Chief Investment Officer, Digitas Lbi, with Tim Hanlon from The Verrtere Group moderating.
The session included a deep dive into why the Upfronts are still important to advertisers even as online video advertising spending has soared. Still, Jackie and Adam agreed that advertisers are seeking more flexibility than ever to buy in real-time and optimize their campaigns, which has put huge pressure on the Upfront process.
The session also touched on the important role of data, why price is still a critical issue, how measurement challenges are still holding back true cross-platform audience buying, how advertisers are adapting and much more.
Mobile ad platform Opera Mediaworks has launched Opera House, a creative studio, to help brands and agencies create compelling mobile video ads based on best practices and data. Opera House includes 60+ professionals around the world who will work with brands and agencies to help optimize mobile video campaigns for mobile’s unique features such as the camera, gyroscope, vibration and GPS.
Beyond creative and technical development assistance, Opera will also test the campaigns at increasing scale and across multiple devices to ensure successful launch. Specific ad unit executions could include native video, short-form video and selfie ads.
We’ve all heard the adage: if content is King, then distribution is King Kong. For years, distribution and content have been the King and King Kong of advertising: the synergistic, dynamic duo that owned the consumer relationship. But, with Verizon’s purchase of AOL and other recent industry moves, King and King Kong are joining forces with new and powerful allies.
It used to be that creators of content, such as television networks, owned the consumer relationship. Back in the day, brands looked chiefly to the television advertising upfront presentations for the demographic info they desired to drive brand awareness. Consumer focus groups filled in the rest of puzzle.
At the Video Ad Summit, Frank Amorese, Media Director, Heineken USA and Dan Kern, SVP/Managing Director, MediaVest shared their insights on how online video and programmatic are changing their marketing mix. Keith Eadie, CMO of TubeMogul moderated.
Heineken is shifting marketing spending to digital channels, especially for its brands that target 21-29 year-olds since they’re watching less TV. Dan and Frank discuss how they’re using data to drive their spending in video based on both reach and business outcomes.
They measure cost of video on the basis of CPM, viewability, quality of targeting and other factors. Frank also discusses how they’re measuring both sales lift and attribution. Frank and Dan also describe how they’re implementing programmatic, including vendor selection, plus lots more.