Part Four: 2012 video ad predictions “checkpoint”

Here is the last of our four-part “checkpoint” series.

Prediction #4 – An increase in demand for audience targeting capabilities – either 1st or 3rd

There was a time when reach was the most important factor for video buyers, however in our recent State of the Video Industry report, it was out-ranked 7%  by targeting capabilities. As our industry has matured, so have the tools for buying video making agencies more savvy and efficient about their campaigns – note that price came in a close second to targeting.

So it wasn’t terribly surprising when we asked clients if targeting capabilities, either first or third-party, were significantly impacting their business this year – 56% of agencies and 70% of ad networks said yes. But it did make us wonder why only less than half of our publisher clients (45%) were feeling the same shift. Regardless, with the demand-side trending towards first and third-party audience targeting, it will inevitably make an impact on nearly all publisher business.

So publishers prepare and ask yourselves these 3 critical questions:

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Video publishers have needs too, ya know

So much talk is focused on marketers – what do brands want, what do agencies need, how do we make advertisers happy, active and always moving forward?  The truth is the same things that matter to marketers also matter to publishers.

The media sales marketplace (also commonly known as business development) can be just as competitive as the agency sales marketplace.  Publishers are inundated with the same options: data partners, display networks, yield optimizers, content syndicators, ad-servers, reach extension partners, exchanges, rich-media providers…. It does not end!  I was at a recent conference and the publisher-centric crowd laughed out loud and in unison when the VP of Operations for a large news company on a panel said, “If I hear ‘it’s just a piece of javascript’ one more time!”  The video ad landscape viewed through the lens of a publisher resembles more of a Coachella festival than an opportunity – with the gates open wide for more and more newcomers and all the attendees bumping into each other and, to an outsider, all looking pretty much the same!

Here are four of the most common “buy-side” needs, seen through the eyes of publishers:

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The evolution of PC to mobile video

In a recent MediaPost article, Cisco projected that approximately 1.2 million video minutes will travel the Internet every second by 2016 and it underscored something important – that increasingly these minutes will come from handheld devices. In 2011 there were 600 million tablets and smartphones sold globally. This far outpaces the nearly 400 million PCs that were sold in the same year. When you combine it with Internet usage data that shows mobile internet web traffic having grown 10x since 2008, it’s clear that consumers prefer the portability of smart phones and tablets over PCs.
So what’s driving it?

Campaign optimization – what’s the real impact?

There seems to be an upside in using a combination of programmatic tools and optimization intelligence. In this analysis (January – March 2012), we ran a comparison between two groups of campaigns which were identical in every way, except for the optimization features enabled. On average, optimized campaigns delivered 30% higher completion rates and 21% lower cost per competed view (CPCV) than non-optimized campaigns. The difference between performance in the two groups was significant and attributable to the technology and optimization techniques performed by campaign managers. In other words, they successfully achieved their goal of more efficiently reaching their audience.



Part Three: 2012 video ad predictions “checkpoint”

Prediction #3 – Trading desks will raise their clout in 2012

There are two things we know for sure about trading desks. They buy programmatically and they use lots of data to do it. Their knack for automation and precision targeting has made them an efficient  mode of transacting for advertisers. According to the recent 1H 2012 State of the Video Industry report, 27% of advertisers now look to trading desks to fill their inventory needs. So when we asked our customers who was being impacted by the rise of trading desks, publishers (32%) and service providers (33%) told us they are feeling it the most. With programmatic buying increasingly becoming the “modus operandi” for buyers, this data tells us that sellers, as well as ad tech providers, are quickly working to figure out the best methods to meet this demand. As the traditional mode of brokering media between buyers and sellers changes to more programmatic transacting, publishers need a strategy and the operational tools that will support programmatic selling.

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Part Two: 2012 video ad predictions “checkpoint”

Prediction #2 – There will be significant growth in connected TVs

Coming off the heels of CES this year, we saw a tremendous shift in focus from 3D TV to connected TV. All of the media hype appears to be living up to the expectations. According to the recent State of the Video Industry report, growth in video ad spend on connected TVs shot up 20% from 2011, with another 38% of advertisers adding this device to their media plans within the next 12 months. When we surveyed our clients to find out whether or not it was impacting their business is 2012, it wasn’t surprising that 40% of ad networks are feeling the demand for connected TV ads from their agency customers. More interesting though is the impact it’s having on publishers.

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Part One: 2012 video ad predictions “checkpoint”

We are now half way into 2012 and some really big predictions were made at the beginning of the year about the growth of video ad spending, most notably  eMarketer’s forecast that $3.09 billion will be traded this year (up 43.1% from 2011). Such an impressive number made us curious about which predictions were actually making an impact on the industry. So we surveyed* advertisers, publishers and technology partners on our Platform to find out. Here’s part one of four of our 2012 predictions “checkpoint.”

Prediction #1 – There will be an increase in demand for TV-like metrics such as GRPs and TRPs

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