Ad­ver­tis­ers to in­vest $30bn in on­line video de­spite on­go­ing risks

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Ac­cord­ing to the Global Ad Trends re­port com­piled by WARC, ad­ver­tis­ers are ex­pected to spend a com­bined $30bn on on­line video ad­ver­tis­ing this year, most of which will be paid to so­cial me­dia plat­forms de­spite the con­tin­u­ing risks of neg­a­tive ad­ja­cency and ad fraud. The rise of mo­bile usage is driv­ing video con­sump­tion (par­tic­u­larly on mo­bileop­ti­mised so­cial plat­forms), which in turn is driv­ing up ad­ver­tiser in­vest­ment in video.

On­line to ac­count for 17.5% of global video spend this year, at $30bn - most will go to so­cial plat­forms

On­line video ad­ver­tis­ing ex­pen­di­ture - in­clu­sive of pre/mid/post roll, so­cial and broad­caster VOD - is ex­pected to rise 27.5% to reach $29.8bn this year. This com­pares to an an­tic­i­pated rise of 1.1% for lin­ear TV, which equates to $140.2bn - on a par with the level recorded in 2010. Con­se­quently, on­line video is set to ac­count for 17.5% of the to­tal $170bn spent on video ad­ver­tis­ing world­wide this year, up from a share of just 1.3% in 2010.

Rates vary be­tween mar­kets. On­line’s share in the US, the largest video mar­ket by far, is ex­pected to rise to 19.3% this year, at $15.3bn. China’s on­line share is pro­jected to rise to 24.7% ($6.5bn) this year, while in the UK on­line video is ex­pected to ac­count for 38.2% ($2.6bn) of all video ad­spend.

Most of this money is go­ing to so­cial plat­forms such as Youtube and Face­book.

On­line video is set to ac­count for al­most half of daily in­ter­net con­sump­tion, with mo­bile driv­ing growth

On­line video con­sump­tion - the ma­jor­ity of which is via mo­bile de­vices - is ris­ing steadily world­wide. Pro­jec­tions show con­sump­tion will rise to 84.1 min­utes per day in 2020, up 26.6% from a pro­jected 66.5 min­utes this year. Of this, 62.3% of the time will be spent watch­ing via mo­bile de­vices (com­pared to 60.7% cur­rently).

Com­par­ing these fig­ures to wider me­dia con­sump­tion data shows that on­line video’s share of daily con­sump­tion is ris­ing across the board. It is ex­pected to reach al­most half (46.7%) of all in­ter­net usage and 17.1% of to­tal daily me­dia con­sump­tion by 2020.

One in ten video ads poses a risk to brands, and video is a prime tar­get for fraud

Data for the se­cond half of 2017 show that at least one in ten on­line video ads poses a risk of neg­a­tive ad­ja­cency to brands.

For mo­bile, the con­tent types that pose the most fre­quent brand risk are vi­o­lence, and of­fen­sive lan­guage & con­tro­ver­sial news re­gard­less of whether the ad is bought pro­gram­mat­i­cally or pub­lisher di­rect.

Fraud also poses a risk to on­line video ad­ver­tis­ing, es­pe­cially if the ad is not op­ti­mised against such ac­tiv­ity. A re­cent study by Guardian US and Google found that as much as 78% of video spend is sus­cep­ti­ble to fraud if the pub­lisher does not em­ploy the ads.txt script within their web­site.

Sum­ming up, James Mcdon­ald, Data Edi­tor, WARC, says: “The vast and con­tin­u­ing in­crease in video con­sump­tion via mo­bile de­vices has di­rected ad dol­lars to so­cial plat­forms, de­spite the well doc­u­mented and per­sis­tent risks around neg­a­tive ad­ja­cency and ad fraud.

“Face­book hopes to re­gain the ini­tia­tive with its Watch plat­form, which is be­ing po­si­tioned as a safe brand en­vi­ron­ment of­fer­ing ad­vanced au­di­ence seg­men­ta­tion.”

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