attitudes to digital video advertising

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Attitudes to Digital Video AdvertisingNick Reid, TubeMogul

AGENDA

Overview European Digital Advertising market

What is Driving Digital Video Advertising Adoption

Attitudes to Digital Video Advertising

Digital Video Supply and Demand

Cross-Screen: TV and Digital Video

Future of Digital Video Advertising

Key Takeaways

THE EUROPEAN DIGITAL ADVERTISING MARKET

THE VALUE OF DIGITAL ADVERTISING IN 2015

€36.4bn

Source: AdEx Benchmark 2015, IAB Europe and IHS

STRONG GROWTH OF DIGITAL VIDEO AD MARKET

0

0.5

1

1.5

2

2.5

2014 2015

€2.3bn

€1.7bn

+35.8%

Source: AdEx Benchmark 2015, IAB Europe and IHS

Europe: digital video advertising spend 2015 (€bn)

GROWING IMPACT OF PROGRAMMATIC VIDEO

0

100

200

300

400

500

600

2013 2014 2015

Europe: programmatic video advertising 2015 (€bn)

+94.9%

+102.7%

Source: European Programmatic Market Sizing 2015, IAB Europe and IHS

€0.13bn

€0.28bn

€0.54bn

WHAT’S DRIVING DIGITAL VIDEO ADVERTISING ADOPTION

EUROPEAN RESEARCHMETHODOLOGY & PARTICIPANTS

Global remit (80)

Pan-European remit (108)

Local remit (456)

Advertisers 94Agencies 310

Publishers 240

31 markets across Europe

42 participants in Italy

DIGITAL VIDEO ADVERTISING IS MAINSTREAM

What percentage of your company’s / clients' digital advertising investment is invested in digital video advertising? / What percentage of your company’s digital advertising revenue is gained via digital video advertising inventory?

92% of advertisers

90% of agencies

92% of publishers

DESKTOP DIGITAL VIDEO MAINSTREAM, MOBILE CATCHING UP

What percentage of your / your clients' digital video advertising budget / revenue is allocated to each of the following devices?

27% of advertisers say that more than two thirds of their digital video ad spend are allocated to desktop

35% of agencies

37% of publishers

PRE-ROLL DOMINATES DIGITAL VIDEO INVESTMENT AND REVENUES

What percentage of your / your clients' digital video advertising budget / revenue is allocated to each of the following digital video advertising format types?

30% of advertisers say that more than two thirds of their digital video ad budgets are allocated to Pre-Roll (in-stream formats)

45% of agencies

64% of publishers

ATTITUDES TOWARDS DIGITAL VIDEO ADVERTISING

DIGITAL VIDEO USED TO BUILD BRAND AWARENESS

78% of advertisers aim to uplift brand awareness by undertaking digital video advertising compared to just 33% aiming to uplift direct response behaviours

84% of agencies and aim to uplift brand awareness by undertaking digital video advertising compared to just 13% aiming to uplift direct response behaviours

Which of the following advertising metrics do you aim to uplift by undertaking digital video advertising?

MOVING AWAY FROM ADSERVING METRICS

67% of Advertisers/Agencies are using brand awareness to evaluate digital video campaigns

The KPI’s of Video and Brand are changing

Ask yourself…

Which advertising effectiveness metrics do you use / offer clients to evaluate your digital video advertising?

DIGITAL VIDEO SUPPLY AND AVAILABILITY

DIGITAL VIDEO INVENTORY STILL BEING ESTABLISHED

How much of your advertising inventory is digital video (both in-stream,, in-banner and out-stream)?

Nearly a third of publishers state that less than 20% of their advertising inventory is digital video

EVOLUTION OF TRADING DIGITAL VIDEO

34%

of publishers gain more than 80% of their digital video advertising revenues from

direct sales

of publishers gain more than 80% of their digital video advertising revenues from

exchanges and networks

11%

Direct Exchange / network

What percentage of your digital video advertising revenue is gained through direct sales and what percentage is gained through exchanges and networks?

NEWS AND SPORT MOST POPULAR CONTENT FOR DIGITAL VIDEO ADVERTISING

Publisher site content that digital video advertising inventory appears on

77%

67%61%

57% 57% 55%51%

48% 46%40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

News Sport Fashion / style Business Food /

cooking

Celebrity

news

Home /

gardening /

lifestyle

Politics Finance Weather

Which site content does your digital video advertising inventory appear on?

CROSS-SCREEN: TV AND DIGITAL VIDEO

TV AND VIDEO BEING PLANNED IN CONJUNCTION

82% of advertisers

and

88% of agencies plan their digital video advertising

campaigns in conjunction with their

TV advertising campaigns

What percentage of your / your clients' digital video advertising campaigns are planned as a cross-screen campaign in conjunction with TV advertising?

FUTURE OF DIGITAL VIDEO ADVERTISING

INVESTMENT IN DIGITAL VIDEO ADVERTISING IS SET TO INCREASE

How do you see your company's digital video advertising investment/ revenue evolving over the next 12 months?

xKEY TAKE AWAYS

x

Digital video advertising essential component of media plan

Digital video provides key opportunity for brand advertisers, and driving brand metrics

Digital video is being planned in conjunction with TV, as audience segments

In-stream dominates whilst publishers try to push other formats

Inventory pressure remains between Supply and Demand

Programmatic video is grows, the way in which it is planned and bought is shifting

Nick.reid@tubemogul.com

THANK YOU

@iabeurope

/iab-europe

www.iabeurope.eu