Alex Lyhovez is a Senior Business Development Manager for video, RTB, and myDSP at Matomy.
A few years ago, YouTube’s Robert Kyncl predicted that by 2020, 90% of all internet traffic will be video and it seems that his prediction is on its way to becoming a reality. For the past two years, advertising has been shifting heavily towards video, and 2017 should see an even greater surge in popularity for the engaging format. As 2016, comes to an end, it’s time to think about building your 2017-18 video strategy – and here’s the latest trends to keep in mind.
Branding and performance usually live in two different spheres, though recently I’ve seen a gradual shift towards more scalable business models in video, such as CPV/CPCV (cost per completed view) and CPE (cost per engagement). The main challenge will be finding the relevant ad server that supports such activity, as well as the ability to scale.
In the meantime, there are several companies that are trying to find their way in this relatively new environment, and it will be interesting to follow up with this trend. That being said, such a change will still require a significant shift in mind and current business practices for many branding advertisers, but eventually it will be much more effective for them in the long run.
Outstream video is a stand-alone ad unit that can run without the limitations of standard ad placements. It is designed to be 100% viewable, only deploying and playing when the unit is onscreen and the user is moving between pages.
Despite costing more than standard video placements, it guarantees very high viewabilty. Naturally, we should see an interesting mix between the usual CPM business model and the CPV model.
Most content-recommendation platforms are currently in a competition to see who will offer the best native video ad solution. As we know, the CTR (click-through rate) and user engagement from recommended content are significantly higher compared to standard banner units. Still, there are quite a few hurdles to overcome, especially related to which ad server will support this ad format, as well as the actual uploading of creatives for native campaigns, before advertisers can use it properly.
With the Pokémon Go sensation, location targeting is hotter than ever. Add behavioral targeting into the mix, and you’ll get, not only the right ad at the right time, but also in the right place.
Ad spend in general is expected to grow dramatically within the next couple of years, and programmatic is expected to be the major buying solution for all ad units.
Let’s look at a couple figures: paid media spending rose by 6.9% in 2016, marking the highest growth rate in more than eight years. The US Presidential Election and Rio Sumer Olympics only contributed to this, generating incremental ad expenditures far beyond expectations. For the first time, digital will overtake TV ad spending by the end of the year. And eMarketer estimates US digital media ad spending will reach $72.1 billion in 2016, compared to $71.3 billion for TV.
Header bidding is an advanced programmatic buying method in which publishers offer their inventory to multiple ad exchanges simultaneously before making calls to their ad servers. The idea behind header bidding is to let multiple demand sources bid on the same inventory at the same time, enabling publishers to increase their yield and revenue more than the standard waterfall method. Most big publishers will soon, if they aren’t already, use this method to manage their inventory.
Anti-Fraud Solutions & Viewability
Viewabilty and anti-fraud detection are on many advertisers’ minds, together with verification tools such as Moat, DoubleVerify and others. Because more than 90% of internet’s inventory is expected to be video, many video partners agree that the industry is moving in this direction.
And the rest…
Here are a few important topics I didn’t mention yet, but they deserve some attention:
Smart TV and OTT Video, and how these platforms will change the way we consume content.
Ad Blocking & Video – what will be the future of video advertising as more and more users install ad blocking tools.
And, of course, it will be very interesting to learn more about: new video ad formats, big data (DMP) and behavioral targeting, and the user/publisher side (latency, engagement, cross-screen video formats and more).
Clearly, it’s an exciting time for the martech industry and we’re about to see a lot of new improvements and trends moving forward with video advertising.
Want a customized video strategy for 2017? Work with the video team at Matomy to create the perfect video advertising strategy for your business.
A version of this post originally appeared on LinkedIn. View it here.