Video Ad Network Category
Posted on Dec 10, 2013 by YuMe
The popularity of pay TV is starting to slip, something Wayne Friedman called "cord cutting" or "cord thinning" on MediaPost. Seventeen percent of pay TV customers, which is about 90 percent of U.S. TV-watching homes, either trimmed down on their services or cut them out completely in the third quarter of 2013, according to Digitalsmiths. This is up from 13.4 percent in the first quarter and 14 percent in the second quarter. Organizations may want to take notice and start investing in online video ads.
Research from the company also found that 34 percent of these households said the may consider changing their pay TV company in the near future. About 7 percent are planning on shifting away from their cable, satellite and telco company and 3 percent want to cut their service altogether. Another 2 percent are looking to switch to a third-party app or service.
Other numbers from this report show:
While we are likely a long way from the death of pay TV, advertisers should take these numbers as a signal that there are now more eyes than ever on mobile and online platforms. Simply putting ads on TV may be a good way to fall behind the competition these days.
Online ad revenue continues its ascent
Sherrill Mane, senior vice president of research, analytics and measurement at the IAB, said a big reason for this was the excitement consumers now have for mobile, and marketers are starting to realize where the crowds are migrating. Mobile ad revenue for the first half the year was a 145 percent increase from the same time last year and totaled $3 billion.
This is the fifth year in a row of online ad revenue growing. The advent of social media, video and mobile devices has made it much easier for advertisers to start moving online and for consumers to use these platforms. In fact, online video ad revenue was $1.3 billion for the first half of the year, a 24 percent increase from 2012. Mane said video captures the imagination of big brands and customers alike.
Adding to the lust for online video ads are numbers from another IAB study, this one in conjunction with Nielsen, which found that 58 percent of the U.S. population is now streaming. This is a 38 percent increase from five years ago, providing a huge opportunity for businesses everywhere that want to reach niche markets, as they seem to resonate more with all users.
"Online video ads score higher impact than TV ads on Nielsen measured metrics," the IAB report said. "Metrics are general recall, brand recall, message recall and ad likability."
As far as message recall is concerned, 40 percent of those who watch an online video ad remember the message compared with 20 percent of those who watch TV ads. The writing is on the wall: Online ads are here to stay and will likely work better than standard TV ads.
Posted on Nov 5, 2013 by Kristie Sein
This post was originally published on Portada on October 25, 2013; written by Jorg Nowak, Head of Latin America and US Hispanics at YuMe.
More Hispanics live in the US than Canadians live in Canada – avoiding that reality it is not even an option anymore if you want to maximize the growth of your business. As this market continues to grow, Hispanics purchasing power will continue to influence and impact the economy – their purchasing power growing by 50% from $1 trillion in 2010 to $1.5 trillion by 2015 (Nielsen, State of the Hispanic Report, 2012).
With one medium in particular, digital video, marketers are already seeing the benefits of targeting general audiences. However, with the current growth of Hispanic consumer’s digital video consumption and purchasing power, it is even more vital to engage with this channel.
As we move into 2014, let me offer four recommendations around Hispanic media buys and online video.
Keys to Successful Online Video Hispanic Media Buying in 2014:
1. Hispanics are rapidly consuming content on mobile; plan for all screens
US Hispanics are leading the market as early adopters of emerging technologies. 60% of Latino households own at least one Internet-enabled cell phone and spend 68% more time watching digital videos than non-Hispanic Whites. Be sure to take advantage of this opportunity to capture Hispanic’s attention on mobile devices in addition to your traditional online buys. (Nielsen, State of the Hispanic Report, 2012).
2. Hispanic content is rare, so make the most of it
As marketers, we face a dilemma – online video for the Hispanic consumer is premium and often scarce. In order to capitalize on this medium, we suggest custom ad units with more interactivity and engagement.
3. Think outside of pre-roll video
There is much more to experience than just pre-roll video, and many consumers are taking notice. Consumers are actively engaging with custom ads via social elements or ‘learn more’ functions, like never before. Why not capitalize on the opportunity to grab a consumer in an interactive and compelling way?
4. Broaden your sights and your network
In the past, ad networks have often gotten a bad rap. That is rapidly changing, especially in the Hispanic space where publishers struggle with unique user numbers that don’t provide the reach and frequency that advertisers desire. Ad networks solve this dilemma with unparalleled reach and the added bonus of allowing interaction with the user vs. exposure only.
I’ll leave you with this:
If you choose to forgot any or all of these 4 points, keep in mind, you may be missing out on a huge opportunity: There are currently 55.5 million (plus 9 million undocumented) Hispanics in the US, 17.4% of the total US population . . . up from 50 million in 2010.(U.S. Census and Geoscape AMDS report 2013). At the same time, online video spend is growing aggressively, outpacing the rest of the market (more than doubling since 2012). (AccuStream Research)
These numbers can no longer be ignored, especially for those looking to win in an increasingly competitive marketplace.
Jorg Nowak is Head of Latin America and US Hispanics at YuMe, Inc, a provider of digital video brand advertising solutions. Nowak was previously Senior Vice President & General Manager at Univision Interactive Media.
Posted on Oct 25, 2013 by YuMe
Advertising on mobile devices is already well on its way to a budget increase within the walls of many organizations, but the success of targeted marketing will further this spending, according to a recent report from Juniper Research. The company expects smartphone and tablet advertising and marketing to grow from $13.1 billion this year to $39.3 billion in 2018 with an annual growth rate of 24.6 percent for this period. The success of social media points to the larger trend of targeted marketing, especially as more of these websites start to ad their own video services.
The rise of "real-time bidding" platforms also spells a rise for online video, Juniper said, as it will now be much easier for ads to be sold by publishers as marketing experts start investing more in well-targeted real-time impressions. The report said although advertising on mobile devices is growing, there is currently low spending relative to how engaging this medium can be. Report author Sian Rowlands said this will likely grow as the consumer interaction with marketers and devices starts to expand and grow.
"We are witnessing a change in consumer perceptions of mobile advertising as advertisers begin to use opt-in or reward style advertising: by harnessing big data and location information, mobile ads are being better targeted to users," he wrote.
One area that will see a large amount of growth, according to Juniper, is in-app advertising. This will be a key driver as more people spend money and time in that market of the mobile world. India stands to see the greatest expansion, as Juniper's report said mobile ad spending will grow four-times over between 2013 and 2018.
Video on mobile likely to continue large expansion
"Nothing illustrates the internet as an entertainment platform better than the fact that over one in five minutes online is accounted for by entertainment, and that advertisers spent almost 1,300 percent more on mobile video than a year ago," Tim Elkington, director of research & strategy at the IAB, said.
Brands need to recognize the role of mobile video ads and how successful they could be for any campaign.
Posted on Oct 23, 2013 by YuMe
While it is always important to make sure customers are not being overloaded with online video ads and other pieces of information, the recent Automotive Consumer Marketing Survey from FordDirect found that communication, a strong online presence and face-to-face meetings are all important when selling to millennials. Those who were born between 1980 and 2000 are savvy shoppers and know they can vie for the attention for companies, so those who know how to best tailor their approach will likely see the most success.
"Consumers are bombarded with multiple pieces of communication throughout their day, and how dealers communicate to those consumers is important to cutting through the noise," said Stacey Coopes, chief executive officer for FordDirect. "The results of this research indicate just how crucial it is for dealers to tailor their communication outreach to grab their customers' attention."
Coopes said a strong, multichannel approach that will include both new and traditional communication channels are essential. This means mobile video ads and making sure the customer feels wanted in person are both essential tools for making sales.
Numbers from the report found 84 percent of shoppers preferred email as their main method of communication, but millennials especially did at 91 percent. The majority of shoppers were just as likely to click on an organic link as they were a paid video.
Don't misread millennial customers
There is a perception that digital doesn't do as good of a job returning the investment as traditional marketing, according to what one chief revenue officer told Fuller, but she said it may be more of a feeling of being overwhelmed by the older age group of marketers.
"Many advertisers are almost paralyzed by all the digital website choices they have for campaigns, so they stick with what they know and have trusted for decades — traditional media brands," Andrea Miller, CEO and founder of YourTango.
Organizations should be more willing to experiment with social media, online video ads and other modern options in an effort to appeal to the millennial crowd.
Posted on Oct 6, 2013 by YuMe
While the number of commercials on TV are still far greater than that of online video ads, industry professional Kevin Van Lenten wrote on ADOTAS that the amount of advertising money being spent on Internet videos is growing. It could soon get to the point where online videos are matching prime-time commercials, especially as the breadth and quality of content online increases over time.
A recent report from the Interactive Advertising Bureau found that 75 percent of 5,000 surveyed ad executives are planning to shift money they have been spending on TV ads to online video ads.
"This year's Digital Content NewFronts not only shined a spotlight on the depth and breadth of original online programming available in the marketplace - but also provided a pivotal turning point in the minds of many media buyers, who now grasp digital videos' power and reach," said Randall Rothenberg, president and CEO of the IAB.
An estimate by eMarketer found that U.S. advertisers will spend $66.4 billion on TV ads this year and $4.1 billion on Internet ads. Video ads will see a 40 percent increase, which Van Lenten said does not bode well for the TV ad market, as it is only expected to grow to $75 billion by 2017.
Syndication may be a way to go for online videos
"The rise of video advertising and video syndication is good for brands and for content providers as it creates engagement, and that means greater monetization," he said. "In the future, content producers will be more selective about the type of videos they make and the partners they choose to distribute them with over time. As the quality of the content that is created continues to improve, selling it at a premium price will become more important and distribution will be key."
While this trend grows larger, it is likely that products will want a greater share of the money generated from online content. Video ads will start to bring in even more revenue in syndication, Van Lenten said, as it will allow more consumers to view a greater amount of streaming media for less money. As TV starts to lose more of its market, it's clear that Internet video ads are going to pick up some of the legacy format's steam.
Some time may still be needed for full carry-over
A recent report by comScore showed that if nothing else right now, online video ads are definitely reaching a big chunk of the U.S. audience. The company said 187 million Americans watched more than 48 billion online content videos in July alone, with online video ads total just under 20 billion viewers. This means 88.6 percent of the U.S. internet audience viewed a video online, showing the vast potential this format has.
Video ads accounted for 28.8 percent of all videos viewed and 2.8 percent of all minutes online looking at this format. The duration of the average online video ad was just under one-half of a minute. Time spent watching these ads equaled about 7.4 billion minutes.
The general public has shown that they are not averse to watching online video ads. It is simply a matter of time before they become more dominant.
Posted on Sep 24, 2013 by YuMe
As digital technology plays an increasingly important role in consumers' everyday lives, brands are striving to penetrate the multiple platforms people engage with constantly. As such, every year, they're looking to invest a greater amount in online video advertising, social media marketing, search ads and mobile strategies.
According to a recent forecast from Carat, a global media communications agency, total ad spend around the world is expected to increase 3 percent in 2013 and 4.5 percent in 2014. The company's predictions suggest digital spending will outpace investments in all other media types, as it is expected to grow 15.6 percent in 2013. In addition, digital is expected to increase more than 10 percent higher than other media spending as more emerging markets embrace the Internet advertising.
Among regions expected to see the highest growth rates, Eastern Europe takes the lead, with a 5.9 and 7.4 percent increase predicted for 2013 and 2014, respectively. A major portion of this rise can be attributed to Russia, which is expected to see ad spending go up 11 percent both years.
In Asia Pacific, where advertising spend will grow 5.7 and 5.2 percent in 2013 and 2014, China has the strongest ad spending increase forecast. The country will see rises of 6.9 and 7.9 percent.
"We can expect more moderate rates of growth in China in line with slowing of the GDP growth, but the market continues to be the major player in driving growth in Asia Pacific," Nick Waters, CEO for Aegis Media Asia Pacific, said in a statement, according to ClickZ. "South East Asian markets continue to show significant and rapid growth".
The source noted global digital media spending will increase an impressive 18.3 percent. Specifically, display investments will rise 14 percent, fueled in great part by Internet video advertising.
Posted on Sep 22, 2013 by YuMe
Advertising is the primary channel through which brands connect with their target audiences. Establishing a company as a reputable provider of high-quality goods or services is a key goal of advertising, and brands consistently strive to boost their credibility through product promotion. According to a study by Nielsen, companies' efforts are paying off; consumers across the world are reportedly more trusting than they were in recent years.
The "Trust in Advertising" report surveyed more than 29,000 consumers in 58 countries around the globe. Eighty-four percent of participants stated word-of-mouth recommendations are the most trustworthy sources of information about brands. With 69 percent of consumers stating branded websites are credible, these platforms were found to be the third most trusted sources. Between 2007 and 2013, ads on televisions saw a 6 percentage point boost, bringing the rate of consumers deeming them a valid influence to 62 percent. Additionally, while online video advertising trustworthiness wasn't measured in 2007, about half of consumers polled in 2013 said Internet video ads are credible.
Randall Beard, the global head of advertiser solutions at Nielsen, said the amount of trust consumers place in owned brand advertising is good news for consumer-product makers and -service providers.
"This form of advertising is trusted by nearly 70 percent of consumers globally, which emphasizes the notion that marketers maintain the ability to control the messages about their brands in a way that consumers consider credible," Beard said. "This perceived credibility is a key component in advertising effectiveness."
He added that while television remains the main priority for many brands, consumers' reliance on digital channels for information about goods and services sheds light on the importance of carrying out multichannel marketing initiatives that incorporate Internet video advertising, social media marketing and other strategies.
Posted on Sep 19, 2013 by YuMe
Total U.S. advertising spending increased 3.5 percent during the second quarter of 2013 compared to the same time last year, reaching $35.8 billion, according to new findings from Kantar Media, a research provider. Additionally, total ad spending rose 2 percent during the first six months of 2013 to $68.9 billion. As the amount of money brands fuel into their advertising strategy increases every year, the channels they invest in grow more sophisticated. Internet video advertising is one of the platforms gaining traction among marketers.
Kantar Media noted that ad spending during the second quarter of 2013 achieved an impressive growth rate.
"Ad spend has now increased for six consecutive quarters and in reaching 3.5 percent growth for Q2, had its best performance in a non-Olympic period since the end of 2010," said Jon Swallen, chief research officer at Kantar Media North America.
Swallen stated the rise in spending can be attributed to two factors. For one, Q2 2012 spending was down as brands reserved their ad budgets for the Summer Olympics. Additionally, the NBA playoff games gave Q2 2013 a major ad spending push, especially in TV.
When it comes to ad types, Kantar Media found outdoor advertising saw the highest growth rate in both Q2 2013 and the first half of 2013, reaching 7.4 and 6 percent, respectively. While an increasing number of consumers streaming content online has boosted investments in video ads online, the research found TV commercial spending increased a respectable 6.4 percent in Q2 from the same period in 2012.
Spending on overall online display advertising increased 4.1 percent between Q2 2012 and Q2 2013. It also increased an impressive 6 percent during the first half of 2013 from the same six-month period the year before.
Posted on Sep 17, 2013 by YuMe
Internet video ads get viewed on desktop and laptop computer screens every month, an increasing number of people are watching these ads on their television sets. As smart TVs, set-top boxes and game consoles used for media entertainment become more popular, streaming content on the big screen is a major pastime for a growing number of U.S. consumers.
According to a new report from Nielsen, video on-demand, or VOD, is becoming a mainstream way consumers watch their favorite television shows and movies. Instead of having to tune in to television programming, people are increasingly watching shows whenever is most convenient or desirable for them. And device makers and content providers have taken note.
Nielsen stated roughly 60 percent of U.S. households watch VOD from a set-top box, up from 37 percent in 2008. The research provider noted that while such platforms once didn't offer the right content mix, networks have focused more on providing newer content in recent years to the point that episodes from current seasons are available to VOD users.
When it comes to what people watch on demand, more than half – or 52 percent – of viewers ages 18 to 34 opt for feature films. Twenty-nine percent choose drama series.
In addition to the Generation Y cohort, Nielsen noted consumers in the next oldest age groups – 35- to 49-year-olds and those 50 and older also represent significant rates of VOD viewing.
While VOD is often available through cable plans, consumers' use of it shows how much people value the ability to watch content whenever they choose. In addition to on-demand shows and movies, streaming media on the Internet and other similar ways of accessing content are increasing in popularity. Because accessing programming and films often involves the Internet, online video ads can reach an increasingly important audience.
Posted on Sep 11, 2013 by YuMe
According to a recent report from market research provider GfK, more than half of the total U.S. population watches streaming video online on a weekly basis. Consumers are increasingly turning to the Internet for long- and short-form content entertainment, and as more channels emerge to satisfy their demand for online video, brands are realizing the importance of incorporating Internet video advertising into their multichannel branding and marketing strategies.
GfK based its findings off a survey of 1,065 people between the ages 13 and 54 in June. Fifty-one percent reported watching television shows or movies using a streaming service at lease once per week. The research provider stated the number of people TV and movie watchers who view content online weekly increased from 37 percent in 2010 to 48 percent in 2012.
GfK attributed the growing role streaming content online plays in consumers' access to video to mobile technology and the emergence of connected TVs.
"The synergies between consumers and their connected devices are radically transforming video entertainment," said David Tice, senior vice president of media and entertainment at GfK.
Device and network improvements have made watching video on smartphones easier, and the impressive adoption rate of tablets has placed these devices in the hands of more video-hungry consumers. These developments have made mobile video advertising more important for brands and content publishers.
Meanwhile, smart TVs, set-top boxes and game consoles are enabling TV programming and movies streaming online to be viewed on the big screen in households across the country.
GfK noted that while streaming content is becoming more common across age groups, Generation Y consumers are most likely to watch movies online week, as 62 percent of respondents ages 13 to 33 reported doing so. Forty-six percent of Generation X participants – those 34 to 47 – and 30 of baby boomers 48 to 54 said the same.