Mobile video is white hot, and here’s yet another data point illustrating it: 67% of U.S. consumers say they watch mobile video daily, which is almost equal to the 70% of U.S. consumers who say they watch video on their desktop or laptops daily. And 62% of consumers say they plan to watch more online videos in the next 6 months, on whichever device is handiest.
The data comes from AOL’s new 2017 State of the Video Industry Global Research Study, which covered 7 different markets.
Yesterday Facebook shed more light on its plans to get users to consume a lot more video, by announcing that it will launch a connected TV app soon for Apple TV, Amazon Fire TV and Samsung Smart TV, with others to follow. In addition to the blog post, Facebook’s VP of Partnerships Dan Rose was interviewed at Code Media and provided more details on Facebook’s overall video strategy (see video below).
The connected TV app will allow users to watch videos shared by friends or Pages that they follow, live videos and recommended videos. Perhaps the most interesting use case is watching videos that you saved while scrolling your news feed.
Of course the whole idea of a connected TV app being relevant to Facebook users is predicated on the company’s aggressive push into video. In yesterday’s interview, Rose talked at length about the role of the new “video tab” in the Facebook UI which acts as a central repository for live and on-demand videos, augmenting what is seen when scrolling the News Feed.
Here’s a great data point highlighting how TV and online video advertising are converging: new data from Videology revealed that in Q4 ’16, 23% of online video ad campaigns utilized TV viewing segments to help target audiences, more than double the 11% rate in Q1 ’16, though slightly down from 27% in Q3 ’16. Once again, the advertiser’s TV schedule was the top TV segment used.
As always, demo (used in 100% of campaigns), geo (85%) and behavioral (54%) were the most used data types for targeting video ads, but the increasing use of TV segments shows how advertisers are looking at video ads more holistically, converging them with TV ads to extend the value and ROI of their overall ad spending.
Supply-side platforms (SSPs) love to tout unique and premium video inventory. The reality is premium video inventory is scarce, and unique premium video inventory is even more rare.
To put it another way, “if you’re a content company and you’re not Facebook, Google, and Snapchat, you’re in the niche ad business,” said Meredith Kopit Levien, EVP and CRO of The New York Times. The good news: Scarcity is a good thing.
I’m pleased to present the 356th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
This week we explore the concept of “TV as an app,” which represents a paradigm shift in how TV is accessed by viewers. Of course the rise of Netflix, Amazon, Hulu and others has paved the way for app-based viewing, but an entire TV lineup being delivered via an app to a connected TV device is still a significant change from conventional set-top box-based viewing.
“TV as an app” got a boost this week with Comcast’s beta release of the Xfinity TV app for Roku. I’ve given it an initial try and provide some observations. In addition, Colin was moderating a panel on video apps this week and shares further insights he heard.
We then shift focus to this Sunday’s Super Bowl, which will once again feature multiple free streaming options as well as localized dynamic ad insertion in the streams, which is a first. I’m keeping an eye on the ads to see if they offer any meaningful viewer engagement.
Listen in to learn more!
Click here to listen to the podcast (23 minutes, 8 seconds)
This Sunday’s Super Bowl will once again be a showcase for great football and for compelling, creative advertising. As always, advertisers will be spending big to be in the game as the rate for a 30-second spot is approximately $5 million. Add in the cost of producing the ad and pre-promoting it, and the Super Bowl is easily the biggest single advertising investment a marketer makes.
While the Super Bowl ads will no doubt entertain and move us, the bigger question is, will they engage us? Will they spur us do something beyond saying “Wow, that was cool!” before we shift our attention to the next ad or back to the game?
Topics: Super Bowl
America’s broadcasting and cable companies have a rich history of creating great content and delivering large audiences that advertisers covet. They also perfected a direct sales supply and demand business model that has, for the most part, survived the digital invasion. But things have changed…
Digital disruption has rippled across the media landscape for over two decades now, and while television has fared better than their print media counterparts, accelerated disruption from Facebook and others is now hitting video publishers harder than ever. Much of the disruption falls into three categories:
Many analysts will be looking past Facebook’s Q4 ’16 earnings, which will be reported later today, for reassuring signs of how the company will continue its blazing revenue growth in 2017 and beyond. Over the past couple years, there has been no other company (except possibly Google and Apple) that has benefited financially more from the shift to mobile lifestyles.
Facebook’s 1.8 billion monthly active users in Q3 ’16 were 93% mobile. And 97% of the company’s $7 billion in Q3 ’16 revenue, which was up 56% vs. Q3 ’15, was advertising-based. Clearly Facebook has become a mobile advertising machine.
But trees don’t grow to the sky; the number of global mobile users is slowing and Facebook’s ability to include more ads in users’ newsfeeds is reaching its limit. As a result, Facebook has messaged that revenue growth will soften. Clearly Facebook needs a next act, and so over the past 6-9 months Facebook executives, including CEO and founder Mark Zuckerberg, have repeatedly signaled that the company intends to be “video-first.”
I’m pleased to present the 355th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
This week we discuss four topics that caught our attention and we wrote about: research from GFK MRI that 30% of U.S. millennials are now “cordless” (here), Netflix’s move into reality TV programming (here); Google enabling YouTube ad targeting based on users’ searches (here) and the new chairman of the FCC, Ajit Pai (here). We dig into all of these topics and discuss their implications.
Listen in to learn more!
Click here to listen to the podcast (24 minutes, 49 seconds)
Extreme Reach has released a new e-Book, “Video Ad Streaming: A Simple Change that Will Set a New Industry Standard,” highlighting the inefficiencies of current cross-screen video ad fulfillment and urging a modern approach with ad creative centrally managed and accessible.
The e-Book identifies the core problem of siloed TV and video workflows, which result in TV ads that are widely used online to be duplicated and re-formatted repeatedly. All of this causes major delays in getting the right ad to the right place at the right time.
Topics: Extreme Reach
Brightcove has published a manifesto highlighting ad-supported online video’s challenging economics and proposing improved viewing experiences, ad optimization and reduced operational complexity as critical solutions. While observing that online video usage has clearly “crossed the chasm” to become a mainstream experience, the manifesto notes that “the extreme concentration of ad dollars among a few mega companies” (citing Morgan Stanley research that 85% of incremental spending goes to Google and Facebook) will ultimately mean fewer content options.
Last Friday, while most of the world was focused on the presidential inauguration, Google announced that YouTube advertisers will now be able to target their ads based on users’ past Google searches, as well as their demographic information. Depending how this is executed, there could have significant upside to YouTube’s advertisers, further incenting them to shift budgets from TV to YouTube.
In a blog post, YouTube’s director, product management Diya Jolly provided the example of a user who is searching for winter coats on Google and is then presented with video ads by a particular retailer on YouTube. No doubt we have all had the experience of searching for a product, only to have ads immediately start appearing in web sites we subsequently visit. The same would now happen, but with video ads on YouTube.
TV advertising is moving the way of online video advertising - with an emphasis on greater data use and audience-based targeting. That’s the conventional wisdom driving huge investments at TV networks. But in a candid panel discussion yesterday at AdExchanger’s Industry Preview, senior TV ad executives raised lots of questions about the extent to which TV will ultimately go the digital route and specifically whether sophisticated data-based targeting will take hold in the TV industry.
The session included Maureen Bosetti, Chief Investment Officer at Initiative, Peter Naylor, SVP, Ad Sales at Hulu, Marianne Gambelli, Chief Investment Officer at Horizon Media and Donna Speciale, President, Turner Ad Sales, with Kelly Liyakasa, Senior Editor at AdExchanger moderating.
Videology has released its “2017 TV & Video Outlook,” a series of interviews with ad industry executives from AT&T AdWorks, Bell Media, CNN International, comScore, GroupM, LiveRamp, MediaCom, Nielsen, OMG, Oracle, WhiteOps and others. The executives provide their insights and analysis on TV/video ad convergence, programmatic, targeting/data, mobile, measurement, fraud and lots more.
Reading through the interviews, it’s clear the proliferation of viewing devices and fragmentation of audiences are critical market drivers (no surprise!). That makes efficiently targeting specific audiences with ads, using data and automation a big opportunity. But many of the executives are pragmatic about where data-driven targeting currently stands and what still needs to be done. Overall the tone is both optimistic and realistic.
The application of data and automation by national TV networks to help sell their ad inventory was the topic of one of our afternoon sessions at the SHIFT // Programmatic Video & TV Ad Summit recently. Greg Anderson (Managing Director, Xaxis Media Group, North America), Brett Hurwitz (Business Lead - TV, AOL), Brian Napolitano (VP, Ad Sales, Ovation), Vin Paolozzi (SVP, Innovation, MAGNA), Chris Raleigh (Chief Commercial Officer, Placemedia) and Dan Punt (Managing Director, FTI Consulting) moderating.
The group dug into how programmatic opens up the value of TV ad inventory to new buyers, how new efficiencies are being created, how all of this is affecting organizations on both the buy and sell sides, and how cross-screen measurement and emerging currencies will evolve, among other topics.
Programmatic video and TV are both taking off, but lots of challenges still remain. What are they, how will they be resolved and over what time frame? These were the key questions addressed in our closing session at the SHIFT // Programmatic Video & TV Ad Summit a few weeks ago. The session included Joanne Chen (Partner, Foundation Capital), Barry Green (Head of Business Development, North America, VertaMedia), Dave Katz (VP/GM, Programmatic Revenue Platforms & Operations, Univision), Rich Sobel (SVP, Programs & Services, Publicis Media) and Joe Grover (CEO, Altitude Digital) moderating.
Conde Nast is in the middle of executing a massive transformation of its business from being a traditional print publisher to becoming a multi-platform storyteller with video having a central role. At our recent SHIFT // Programmatic Video & TV Ad Summit, we were privileged to hear fantastic insights about the company’s video playbook in a 30-minute interview Lisa Valentino, SVP, Network Sales and Partnership of Conde Nast and Chief Revenue Officer of Conde Nast Entertainment did with Matt Gillis, SVP, Publisher Platforms at AOL.
The interview covered an array of topics, with Lisa zeroing in on how Conde has built up its video business by embracing an open distribution model that has been so successful that social is now the primary way that audiences engage with Conde’s brands.
The company has mined its archive of 90K articles for ideas and content that contribute to over 5K videos now being custom created annually for various social and distribution platforms. Lisa shares one great example of an Emma Stone interview video that got 2 million views on Facebook which was then edited and posted elsewhere the next day and got 8 million views.
Lisa talks in highly specific detail about the enormous complexity behind all of this plus the cultural changes that are resulting from new talent the company has attracted. Importantly, she also provides great insights about how the company is monetizing its content, the critical role of programmatic and how it is staffed, plus the challenges of today’s measurement models, among other topics.
Overall it is a fascinating glimpse into how Conde Nast is leveraging video to completely change its business model. Lisa expertly conveys how much of this is ongoing experimentation, with success equally due to innovative strategies and relentless execution.
eMarketer forecasts that by 2018 programmatic video ad spending will be $10.6 billion and programmatic TV ad spending will be $4.4 billion. But how will all this spending impact multiscreen campaigns, and what are the key challenges ahead? These were the primary topics of a session at the recent SHIFT // Programmatic Video & TV Ad Summit which was moderated by Videology’s Chairman and CEO Scott Ferber. Panelists included Ashish Chordia (Founder and CEO, Alphonso), Andrew Feigenson (Managing Director, Digital, Nielsen), Jason Kanefsky (Chief Investment Officer, Havas Media) and Rachel Schlanger (Head of Partnerships, Initiative).
The panelists discussed the issue of knitting together measurement across TV and digital platforms, which is required for multiscreen programmatic to scale up, and how this is being addressed. Other challenges included cutting through some of the confusion around how to select technology partners when many sound similar, reducing the use of acronyms, organizing teams properly to capitalize on multiscreen and improving trust and predictability.
Ad agencies are in the middle of seismic industry changes including keeping up with viewers’ new behaviors, clients’ increased demands and content providers’ evolving business models. All of that is leading to the need for “smarter media buying,” according to Amanda Richman, president of Starcom USA, who was our afternoon keynote guest at the recent SHIFT // Programmatic Video & TV Ad Summit.
In an interview with MediaLink SVP Matt Spiegel, Amanda described how her agency (and its parent company Publicis) is pursuing more holistic discussions in its upfront negotiations with TV networks across TV and digital, how it is using data more extensively to define target audience and how it is refining key performance metrics across screens. Importantly, Amanda discusses how measurement challenges continue to impact the market.
Amanda also digs into the influence both Google and Facebook are having and how content providers are reacting plus how these walled gardens fit into overall media plans. Amanda also talks about opportunities with pay-TV operators, especially locally. She also talks at length about how her agency and others are organizing themselves, including the role of specialists in data and technology.
Overall, it’s a really insightful discussion of both the role of agencies and how media will be bought and sold in a more automated and data-driven era.
Data and automation are at the heart of programmatic’s influence on video and TV advertising. At the recent SHIFT // Programmatic Video & TV Ad Summit, we dug in deeply to data and measurement in a session including Larry Allen (VP, Ad Innovation and Programmatic Solutions, Turner Ad Sales), Joan Fitzgerald (VP, Product Management and Business Development, TiVo), Noah Levine (SVP, Advertising Data & Technology Solutions, Fox Networks Group), George Musi (SVP, Head of Analytics and Insight, Optimedia | Blue 449), with Tim Hanlon (Founder and CEO, The Vertere Group) moderating.
A key theme the panelists explored was the complexity involved with multiple measurement systems and data sets. With traditional TV and Nielsen as a single currency, transacting was relatively simple. But with the panelists explaining how their companies are using data and how this leads to customized buys, advertisers’ ability to synch up objectives and results is getting ever more complicated. How to solve this is clearly going to be an ongoing challenge.