Following customers as they wander off from their television sets, big brand advertisers are starting to divert TV ad budgets to onlinevideo–or at least they intend to. That’s one of the most interesting findings in video ad exchange Adap.TV’s semiannual “State of the Video Industry” report conducted with the digital media site Digiday. Of course, it would be fair to assume that Adap.TV, which was acquired by AOL in August for $405 million and recently helpedAOL AOL +5.37% unseat Google GOOG +2.42% as the biggest seller of video ads online, would be seeing trends like this perhaps more than a disinterested party. But it polled some 900 ad agencies, advertisers, ad networks, and publishers, so it’s worth paying attention to.
Not surprisingly, the study found that video ads are exploding, thanks in part to automated technologies to make the buying process faster and easier as well as a jump in the amount of live and on-demand content coming to all screens. as a jump in the amount of live and on-demand content coming to all screens. This year, brands upped their video ad budgets by 65% from 2012. Some 86% of brands and 91% of agencies expect to spend more on them next year.
FRAMINGHAM - Apple’s OS X Mountain Lion is off to a solid start in its first 48 hours and now powers more than 3% of all Macs, an online advertising network said today. Chitika, which regularly mines its ad impression data for trends in operating system and browser usage, reported Friday that two days after its introduction, OS X Mountain Lion accounted for 3.2% of all versions of Apple’s operating system. OS X 10.6, aka Snow Leopard, retained the top spot in Chitika’s ranking with a 45.5% share, while Lion, or version 10.7, accounted for 35%. In an email touting its findings, Chitika characterized Mountain Lion’s 3.2% as “rather impressive,” and predicted that the new OS would “do much better” than its 2011 predecessor, Lion.
Retargeting is a form of online advertising in which a user that has been to your website can be displayed ads from your media campaign on publishers and ad networks across the Internet. This form of advertising is very effective, since you are only showing ads to users that have been to your site (i.e. showing an interest in your product or service), instead of relying on demographic or other types of targeting to find users. Retargeting can communicate with the user after they have left your site and be the extra interaction that drives the user to come back and purchase, at times slashing cost per conversion in half, and increasing conversion rates by 600%.1
U.S. online advertising brought in $8.4 billion over the first three months of the year, the best first quarter the industry has recorded to date. According to a joint report from the Interactive Advertising Bureau (IAB) and Pricewaterhouse Coopers (PwC), online advertising grew by $1.1 billion, or about 15%, in the first quarter of 2012 compared to the first quarter of 2012. That’s strong growth, but less than the 24% jump in revenue between Q1 2010 and Q1 2011. Separate studies suggest that mobile, social and video are driving the growth.
Earlier this week, Digiday highlighted a post from ComScore’s Kirby Winfield listing his top myths of online advertising. It inspired us to ask other industry leaders for their top myths. Judging from the replies, it’s time to stop calling banners and clicks worthless, start questioning how new “native advertising” is, and acting like digital is going to take over from traditional media. Please add your own myths in the comments.
Ian Schafer, CEO, Deep Focus @ischafer
Online advertising is filled with more myths than Thor’s Kindle. But the one that’s captured my fancy recently is the myth of the Newfront. The TV upfronts are meant to create a competitive marketplace for brands to synchronously reach large audiences with scarce, premium inventory. Online video is delivered asynchronously, with no track record of being able to produce “hits.” Most video ad dollars are spent placing ads around content which is neither scarce nor “premium.” The online video market has grown because of its ability to remove friction from the buying process. The industry is not mature enough for friction to result in premium pricing. Close, but not yet. We’ll need bigger distribution for that. I buy the concept of the Newfront as a content showcase. But not a competitive marketplace. For now, when there are “premium dollars” spent on online video, they will flow into real innovation where quality content (creators), reach (networks), and deep engagement (platforms) combine. That will scarcely happen, but when it does, it will have the potential to change the way advertisers look at their TV and online buys.
Many marketers have moved past a direct-response-centric model for online display advertising, recognizing that despite low clickthrough rates, banner ads also have a branding effect. And research suggests that adding rich media or video to those banner ads can improve both types of response—increasing the likelihood users will click the ads as well as boosting the lingering brand awareness that results from viewing.
Last week at the 4A’s “Transformation LA 2012” conference, I moderated a panel on “Agency Trading Desks and Demand-Side Platforms.” To me, the online ad trading desk world is a confusing, algorithm-chocked sector where math geeks buy and sell digital display ads in computer-automated virtual “trading pits” not unlike the trading of pork bellies — so I was a bit apprehensive going into the session. I didn’t come out of Wall Street, and never really worked around automated ad trading systems much.
According to a recent comScore release of results from its U.S.-based vCE Charter Study involving online advertising campaigns from 12 premium national advertisers, a large portion of ad impressions are not delivered according to plan, and that the quality of ad delivery can vary greatly based on a variety of factors, including site, placement, creative and targeting strategy.
Marketers, agencies to spend more display ad budget on social networks than with publishers this year
Many marketers are still learning to use social media to achieve online marketing objectives, but findings from advertising industry research firm Advertiser Perceptions shows they are gaining confidence when it comes to display ad buying on social networks.
More than half (59%) of US marketers and agencies planned to increase their social media display ad spending on sites like Facebook in the next 12 months. In comparison, less than a third (31%) planned to boost display ad spending on ad networks and exchanges, and just 29% expected to do so on publisher sites.
Numerous research reports show the explosive growth of mobile devices to access the Internet. What is also coming on strong is video on the web. IDC’s Karsten Weide provides numbers and guidance on video and mobile advertising…