There are major changes happening in the world of digital video marketing, see industry statistics that show how video ad spend is changing -- and why.
2. Digital Placements Are
Replacing Traditional TV Spots
*eMarketer, “Daily Time Spent with Select Connect TV Devices Among US Consumers, by Age,” Aug 2016
**Ad Perceptions: Yahoo Advertiser Study Jan 2017
***eMarketer, “US Digital Video Ad Spending, 2017-2021,” Jan 2017
Signs Things Are Changing
• Disney is creating its own streaming
service to compete with Netflix by 2019
• Traditional TV viewership has been
declining for years as connected
devices gain share of attention*
• 56% of Advertisers say they are moving
TV ad budgets to digital in 2017**
• 71% of advertisers consider digital
video placements more effective than
TV spots**
• Digital video ad spend is projected to
grow 24% in 2017
3. Why is This Happening?
Pros for the Consumer:
Digital
• On-Demand Convenience
for the Consumer
• Personalized Content
Libraries/Recommendatio
ns
• Cross-Device Viewability
Pros for Advertisers: Digital
• Granular Audience
Targeting
• Programmatic Placements
• Deeper Tracking/Analytics
Pros for the Consumer:
Traditional TV
• Audiences older than 35
are habitually inclined to
enjoy broadcast format
Pros for Advertisers: Traditional TV
• Existing entrenched legacy relationships
between advertisers and broadcast
partners
• GRP (Gross Ratings Points) tracking
model is more familiar to many
marketers/advertisers, and is not really
applicable for digital placements
VS
4. Why is This Happening?
Bottom line: Traditional TV does not
offer competitive value to
consumers or advertisers when
compared to digital options
5. Programmatic Video is King
*eMarketer, “US Digital Video Ad Spending, 2017-2021,” Jan 2017
**Boston Consulting Group
¾ of all video ad dollars are spent on
programmatic placements*
US programmatic video spend is
projected to grow more than 143%
through 2018*
Brands using programmatic
targeting to personalize the
audience experience see revenue
increases of 6-10% vs. traditional
placements** Programmatic
67%
Traditional
33%
VIDEO AD SPEND, 2017
6. Mobile Impressions Have
Caught Up with Desktop
*Business Insider: “5 Video Advertising Trends That Will Change Your Business”
**ZenithOptimedia
• In 2016, mobile saw a quarter-over-quarter
increase in share of video starts.*
• In Q4 2016, mobile phone mid-roll impressions
stole 18 percent of the market from PC mid-roll
impressions, tying PCs for # of impressions*
• Consumers spend more time viewing video on
mobile devices every day, compared to desktops,
tablets, or connected televisions**
• Brands using programmatic targeting to
personalize the audience experience see revenue
increases of 6-10% vs. traditional placements**
Image credit: Ooyala Global Media Index, Q4 2016
“As longer-form content increasingly is
being watched on smartphones, mid-roll
ad impressions are also migrating there,
particularly for publisher platforms.”*