Ahead of the Curve: As Digital Video Ad Revenue Surpasses TV Ad Revenue, TV Buyers Must Embrace the Convergence Evolution

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Posted on Oct 9, 2017 by Victoria Steinberg, Head of Global Partnerships & Strategy, Emerging Markets, YuMe

The convergence of video ads across screens was inevitable. TV ads have ruled the advertising ecosystem since the 1940s. While they may have shown signs of slower growth over the last few years due to the rise of digital, the brand impact of TV ads certainly hasn’t diminished.

Because of its massive reach and impactful and interactive campaign opportunities, it has become commonplace to buy digital as well as TV today. That said, it’s sometimes viewed as a duplication layer for brands who believe that TV is still the best source to reach their target audience. YuMe saw the need to help TV buyers not only understand the brand impact of a converged TV and digital media strategy, but also provide the necessary tools to ensure media buys could be made for both channels efficiently and effectively. Our vision for TV and digital convergence is why we’ve formed partnerships with leading TV buying platforms Mediaocean and Strata.

We learned from ad agencies that the toughest barriers to buying digital were two-fold; first, understanding how it truly affected TV duplication and second, the idea that media buying within TV teams made it almost impossible to execute video buys for both TV and digital screens in a unified, side-by-side workflow. To remove these friction points for buyers, YuMe partnered with Mediaocean and Strata, which allowed TV teams to view digital video ads under the same lens.

Incorporating YuMe’s digital video ad solutions within the buying tools can help buyers of TV advertising by enabling them to increase overall value of their brand campaigns for their clients, making it easier and more efficient to view video ads as a singular marketing objective in the media plan. In addition, they can now:

  • Place video media equally across TV and digital
  • De-dup the potential reach of TV and digital advertising
  • Frequency cap the number of weekly spots
  • Assess Gross Rating Points (GRPs) throughout the flight
  • Monitor delivery and make-goods
  • Buy and pay for digital under the same terms

Buyers can now find YuMe (YM) call-letters in all 210 Designated Market Areas (DMAs) within the Mediaocean and Strata portals. YuMe’s DMA-specific inventory and local broadcast TV station avails can now be viewed side-by-side and can be analyzed within the same campaign parameters in the media plans. Make-goods are equally just as simple to rectify; GRP’s can be shifted or reallocated per client discretion. YuMe Account Executives are available to help ensure campaign criteria and delivery is achieved.

One of the greatest advantages for TV buyers is the ability to access all TV-like viewing screens from a single interface. With YuMe, brands can reach their audience across online, mobile and connected TV’s, taking advantage of the household audience in its entirety and alongside TV broadcasters. eMarketer projects that by 2020, there will be 97.7 million US connected TV households, up from 88.7 million in 2016. It’s an exciting time in our industry, as TV buyers now have a tremendous opportunity to help brands deepen their audience engagement, and in turn, gain insights into the effectiveness of their video campaigns, all in one place.

For more information about Mediaocean and Strata opportunities, please email TVSpot@yume.com.

Forward-Looking Statements

This posting contains forward-looking statements, including those in management quotations.  In some cases, you can identify forward-looking statements by the words “may,” “will,” “expect,” “intend,” “plan,” “objective,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue” and “ongoing,” or the negative of these terms, or other comparable terminology intended to identify statements about the future.  All statements other than statements of historical fact are statements that could be forward-looking statements, including, but not limited to, statements about the convergence of digital video and TV advertising; market trends; and quotations from management.  These forward-looking statements are subject to risks and uncertainties, assumptions and other factors that could cause actual results and the timing of events to differ materially from future results that are expressed or implied in the forward-looking statements.  These risks are discussed under “Risk Factors” in YuMe’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 that has been filed with the U.S. Securities and Exchange Commission (the “SEC”), and in our future filings and reports with the SEC.  The forward-looking statements in this post are based on information available to YuMe as of the date hereof, and we assume no obligation to update any forward-looking statements.