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Digital video advertising trends – Forecast and predictions for 2015


Liri Katz
Digital video advertising trends –...

In the dynamic world of online advertising, one year is enough time for plenty of changes to take place. 2014 brought the field of digital video advertising to new heights in terms of spend and audience reach. A huge leap was also taken into automated programmatic buying, and it continued the increasingly popular consolidation trend, with Facebook buying LiveRail, for example, and Yahoo announcing their acquisition of BrightRoll.

The year 2015 is expected to continue further in that direction as far as digital video advertising is concerned, and according to experts in the field, this is the year in which its potential will be fully realized. The emphasis seems to be on programmatic advertising and mobile video.

In a nutshell, this is what 2015 should have in store for the world of digital video advertising:

1) Programmatic advertising to reign supreme:

As mentioned, both advertisers and publishers have been busy in 2014, and the groundwork for a fully automated video ad future has been laid. The numbers can speak for themselves: $700 million worth of video inventory transactions were made with programmatic platforms in the U.S. only, according to eMarketer. By the time 2015 is over, buyers and sellers are expected to transact more than $2 billion worth of video ads on such programmatic platforms – more than three times 2014’s spending.

Programmatic transactions are already taking place as we speak, and 2015 is expected to be a game-changer in terms of technology. Publishers, who already realized that programmatic advertising greatly improves efficiency and boosts profits, will now begin to utilize more technological solutions for making sure they get the best out of it. This means that we can expect a gradual shift to more and more automated processes, with marketers adopting private marketplaces and programmatic direct platforms.

By doing so, they become more efficient and have better control over whom their premium inventory is sold to, and in what manner. RTB-based video ad exchanges are also expected to play a significant role, as advertisers wish to consolidate their video ad buys across publishers through single programmatic platforms.

2) Standardization of programmatic performance guarantees:

Due to the developments in programmatic advertising, advertisers will expect publishers and ad tech platforms to guarantee and provide various performance metrics. These include indicators like completion and CTR, as well as audience, inventory quality, and viewability, among other targeting metrics. The passing year of 2014 introduced us with a rise in awareness to fraudulent ad activity, so advertisers will probably be interested in metrics for identifying non-human traffic.

Providing such “guarantees” means that many ad tech platforms and publishers will be required to upgrade their data analytics and measurement capabilities. As a result of these developments, the video ad industry will make ads that are directly tied to actual ROI. The concept is rather simple: When advertisers feel comfortable and trust their investments are going to high-performing, viewable, and non-fraudulent inventory, their finger is lighter on the trigger and they are likely to spend more. We can therefore expect to see advertisers focusing more on performance, rather than price.

3) Boost in mobile video spending:

In the past few years, the mobile trend has become stronger than ever, and consumers worldwide have gradually moved their media attention to smartphones and tablets. This greatly affects the entire world of online advertising, and digital video advertising in specific. It therefore makes a lot of sense that advertisers will want to ride the wave too, and place their video ads on such platforms. However, in spite of the mobile shift made by consumers, 2014 ended with more supply than demand in mobile video.

Many advertisers remained unsure of the format’s measurable impact. This can be related to several reasons, but mostly to lack of standard practices and procedures for how to effectively target, measure, and frequency cap mobile video ads across devices. This resulted not only in the previously mentioned confusion on the advertisers’ end, but also in mobile video CPMs remaining lower than desktop video in 2014. However, in 2015, this is all going to change: At last, advanced tools for sophisticated mobile targeting and measurement will be available, and advertisers will have the same targeting and measurement options they currently have on desktop devices. We should expect to see publishers offering mobile video inventory that is even more similar in nature to desktop, and knows how to integrate with it more efficiently.

Among the developments in this area, we will see some significant progress on device ID mapping, for example, which will enable cross-screen targeting and measurement. In addition, we will see more precise geo-targeting capabilities emerging. These advances will help generate more premium inventory, causing an increase in average mobile video CPMs. According to assessments by Business Insider, mobile video ads will grow almost five-times faster than desktop in the next few years. By the end of 2015, advertisers will most likely spend more on mobile video ads than desktop.

The future of video advertising is already here, and we will be happy to provide you with the tools and knowhow for staying on top of it.

MMG’s Video division operates in more than 100 countries and serves over 10 billion impressions monthly, through thousands of publishers and advertisers. Our proprietary ad-server and RTB platform, combined with cutting edge technologies developed in-house, allow us to work on both demand and supply sides with maximum efficiency.

By allowing you to fully take advantage and benefit from our years of collective experience in the digital video advertising field, we can guide you along your journey and make sure it goes as smooth as possible. We can ensure that each and every campaign is fully optimized, reaching all the the right people, and providing you with the best ROI.

If you want to get that head start on your 2015 video campaigns, contact us today and stay ahead of the game.
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