I'm pleased to present the 293rd edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
In today’s edition, Colin and I dig into my 5 key takeaways from Advertising Week NYC, which I posted a couple days ago. We review them one by one, sharing additional data points and examples that help flesh each one out. Clearly there are many cross-currents in the TV and video advertising business currently, which are creating lots of opportunities and challenges.
Listen in to learn more!
And remember, on Tuesday, December 1st in NYC VideoNuze is hosting SHIFT // 2015 Programmatic Video & TV Advertising Summit, which will help demystify many of issues swirling around programmatic video & TV. Early bird registrants can win a 50-inch Roku TV and save now!
Click here to listen to the podcast (22 minutes, 41 seconds)
Topics: Advertising Week
Teads, which specializes in “outstream” video ads, has partnered with Moat for real-time analytics on viewability for outstream video campaigns powered by Teads. Outstream video ads such as Teads’ “inRead” format can run against text-based content, thereby creating brand-new inventory for premium publishers.
Because inRead ads only play when in view on the screen for a defined amount of time, their viewability is already strong. Teads has advocated for stricter viewability. The Moat partnership gives Teads a custom dashboard to display video ads that have been completed. Teads said that early implementation has shown viewability and attention are nearly double Moat’s viewability benchmarks.
More evidence today that viewers are turning to their mobile devices to watch online video. However, it appears that monetization is lagging.
A new report from JW Player finds that 36% of viewing is done on mobile devices (30% on smartphones and 6% on tablets). Despite this, JW found that just 10% of video ads are delivered in an HTML5 mobile-compatible format. JW believes the key issue is that 60% of ads are delivered using VPAID, which is Flash-only and not supported on iOS devices.
Topics: JW Player
Last week I attended Advertising Week in NYC. For those unfamiliar with Advertising Week, it’s 4 days of wall-to-wall sessions on a broad range of advertising-related topics, featuring some of the biggest names in the industry. The sessions are at various venues in the Times Square area. For the marquee sessions, long lines form well in advance. The logistics for the organizers are pretty bewildering, but everything comes together well and it’s easy to navigate.
I focused on attending as many of the video advertising-related sessions as possible and below I’ve shared 5 of my main takeaways.
Topics: Advertising Week
Ad agency holding company Publicis Groupe has signed on for a year-long commitment to go90, AOL’s new millennial-focused mobile video service. Publicis’ clients will have a 3-month exclusive on ad inventory starting in Q4 ’15. AOL and Publicis did not disclose the size of the commitment, but the WSJ reported it’s worth $50 million and includes 10+ Publicis clients.
Positioning itself as friend, not foe to the TV industry, Facebook is tapping the Target Rating Points metric to measure reach, efficiency and effectiveness of combined TV-Facebook video ad campaigns.
Facebook said advertisers can use TRPs to plan a combined TV-Facebook campaign and buy a share of TRPs with Facebook. Nielsen’s Digital AdRatings will verify Facebook’s in-target TRPs and Nielsen’s Total Ad Ratings will verify the total TRPs.
AppNexus has revealed beta test results of its programmatic video ad buying product, saying that clients using the product found 10x to 100x improvements in audience reach, video engagement/click-through increases of 300% or more and reduction in buying costs of 50%-60%. AppNexus plans to release the video ad buying product to all its customers on September 30th.
Looking to provide TV networks with a new advertising opportunity when viewers watch programs on their mobile and connected TVs, ad technology provider Watchwith has introduced new in-program ads tied to the context of the shows.
Watchwith’s machine-vision technologies identify a program’s details on a frame-by-frame basis creating metadata so that highly relevant, interactive ads can be overlaid at particular moments. The in-program ads, such as promos, tune-ins, e-commerce and polls, can be IAB standard or Watchwith native formats. The in-program inventory can be sold direct by the TV network or automated via programmatic exchanges.
In the hierarchy of important metrics for video publishers, GRPs reign supreme, followed by impressions. From an advertiser perspective, using these two metrics makes it hard to compare performance across these two similar channels. Many large media companies are also grappling with how to reconcile GRPs and impressions, particularly when they try to build cross-channel media plans for their advertiser partners.
The biggest problem with GRPs and impressions is that they encourage spending on volume instead of value. While everyone knows that a brand wants to reach a desired audience with a particular frequency, when translated into GRPs or impressions, there are perverse monetary incentives to ignore those guidelines and go for volume instead.
Digital Video Fracking for the Viewability Age
Since early 2015, digital video media buyers have felt tremendous pressure to deliver “viewable” impressions. Advertisers want to know, “Was my ad seen or did it at least have the opportunity to be seen?” There’s a gold rush of VC-backed tech companies clamoring to be the virtual pick and shovel providers for an industry that is hungry for viewability. With nascent measurement standards in flux and varying technical solutions, the industry is experiencing some turmoil.
Ten industry-leading companies are on board as the initial sponsors of the inaugural SHIFT // 2015 Programmatic Video & TV Advertising Summit on Tuesday, December 1st in NYC.
The group includes Adobe (Title Partner); Altitude Digital, FreeWheel and Videology (Premier Partners); comScore, Levels Beyond, Ooyala, Operative and SpotX (Headline Partners) and Alphonso (Branding Partner). Each of these companies is making important contributions to the programmatic video and TV advertising ecosystem and I’m gratified that they’ve chosen to support SHIFT // 2015. There are additional charter sponsorship opportunities available; please contact me if you’d like to learn more.
In addition to the sponsors, the program for SHIFT // 2015 is coming together well, focusing on the most important topics in programmatic video and TV advertising. As with all VideoNuze events, we’ll have experienced industry executives sharing actionable insights and data which attendees can use in their own roles. I expect to share more details about the program in the next couple of weeks.
Programmatic video and TV are among the most important trends in the video advertising industry, with billions of dollars of spending already shifting. Going forward, eMarketer forecasts at least $4 billion, or nearly 40%, of U.S. online video ad spending will be done programmatically in 2016. And earlier this week, IHS and SpotX forecast that by 2020, 2 billion euros, or over half of all online video ad spending in Europe, will be done programmatically.
But it’s still early days for programmatic video and TV, with a complicated ecosystem and several key challenges. That’s where SHIFT // 2015 comes in - providing a laser-focused day of learning and networking for buy-side, sell-side and technology providers to help accelerate the adoption and success of programmatic video and TV. If your company has a stake in programmatic video and TV, then attending SHIFT // 2015 will be time well spent.
Early bird discounted tickets are now available. I hope you’ll join us on December 1st!
Adobe announced a programmatic ad platform for advertisers and media publishers as part of its Adobe Marketing Cloud. On the publisher side, the programmatic offering, now available in beta, will be part of Adobe Primetime, Adobe’s video management and monetization platform for TV networks and pay-TV operators.
Innovid has released its Q3 2015 State of Interactivity Report, based on a survey of 200+ U.S. media buyers in August, which provides insights about their priorities and preferences. Per the chart below, over 92% of respondents said they’re currently buying pre-roll video ads, slightly ahead of display. Mobile video was fourth with 85% buying it. Further down in the eighth position was Interactive Video (61%) and in tenth position, connected TV (55%).
Teads has reported that revenue from its programmatic outstream video ads grew 300% in January-August 2015 vs. the same 8 month period in 2014. Outstream video ads are inserted in text and other content and play when in view by the user. As such, outstream opens up huge new volumes of ad inventory for publishers who don’t have to create expensive video content tin order to access video ad demand.
Videology and Nielsen released a case study showing a 6x improvement in brand lift for a group of 9 CPG campaigns as compared with Nielsen’s normative scores from thousands of campaigns using the Nielsen Digital Brand Effect platform. Videology integrated the platform into its player in order to measure the 9 campaigns’ brand lift.
Videology believes better targeting, optimization and fraud protection, at scale, drove the improved results. Videology used an integration with White Ops fraud detection to filter bots and other non-human traffic. It also relied on data from 40 different providers for accurate targeting and enhanced optimization.
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)