Tech ad spending to reach $4.7 billion by 2017; Turns to Mobile, Social and Video

Despite slow growth, $3.21 billion will go toward digital ad spending in 2013

 Digital advertising spending by the US computing products and consumer electronics industry hit $2.83 billion in 2012, and that figure will rise to $4.66 billion by 2017, according to a new eMarketer report, “The US Computing Products and Consumer Electronics Industry 2013: Digital Ad Spending Forecast and Key Trends.” Though industry revenues are experiencing slower-than-average growth, the industry’s top advertisers are focusing their marketing dollars on big-budget campaigns for their fastest-growing products: tablets, smartphones and other “smart” devices.

eMarketer estimates that marketers in the computing products and consumer electronics industry will invest 57% of their paid digital dollars in direct-response formats this year. Branding-focused efforts will make up the remaining 43%.

Targeted advertising in mobile, video and social formats is growing particularly fast as marketers redouble efforts to one-up competitors and establish themselves as undisputed technological leaders.

During the past several years, paid mobile advertising for tech-related products and services has surged, both in the US and globally. Millennial Media reported that tech industry spending worldwide for 2012 surged 294% year over year in Q3 2012, and the sector was responsible for 3% of total campaigns on the source’s network last year.

In addition, many tech firms have successfully seeded social video ads that have gone viral. Social video marketing firm Unruly Media reported that the tech industry accounted for 17.8% of the online social video ads shared on its platform in Q2 2013, up slightly from 17.0% in Q1 2013.

These efforts have helped digital video earn its place as the rising star among digital display formats. According to several industry experts, some marketers currently spend up to 20% of their digital ad budgets on online and mobile video ads. And as more inventory and more ad targeting capabilities become available, this percentage is likely to grow.

Industry marketers have also been hard at work on social networks, developing their presence as interactive hubs of brand and product information. A November 2012 study by research and strategy firm BrandSpark and Better Homes and Gardens found that electronics manufacturers were among the top 10 company types that US internet users followed on Facebook.

As marketers beef up these owned and earned presences, they are also devoting more budget to paid social network ads to make their carefully developed content more discoverable. “We have paid media on both Twitter and Facebook,” said Liya Sharif, senior director of global marketing at Qualcomm, and her company is using it to support its custom programs and in concert with other multichannel efforts. “It’s becoming important in two areas: for acquisition of fans and followers, and for engagement,” she added.

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Peek of the Week – Christmas edition [updated]

Yes its already that time again… here is our round up of the most viewed, talked about and expensive Christmas commercials starting with The Bear and the Hare, the £7 million John Lewis Christmas TV commercial;

Its arrival heralds the start of the festivities, according to economists, although the rival M&S campaign, unveiled this week, began the annual drive to make us stop budgeting and start indulging. M&S’s poster girl, Rosie Huntington-Whiteley, in lingerie naturally, will be vying against a cartoon bear, the star of the John Lewis campaign. It’s beauty versus the beast.

Taking a different approach is Tesco that goes down the nostalgic route;

Morrison is playing it safe with celebrity endorsement

ASDA doesn’t give up on the price war, even during Christmas;

A very cute and massive unwrap from Cadbury

One of my favourite LEGO;

But Sainsbury probably created the most buzz this year with Christmas in a day. Last year they asked people to send in their personal video and so Christmas in a Day features heart-warming home footage of celebrations. Directed by Oscar-winning Life In A Day director Kevin Macdonald, His award-winning 2011 Youtube film featured 80,000 crowd-sourced clips. The ’Christmas in a Day’ 50-minute film, which took 14 months to make, documents the different experiences of a range of UK families to capture the diversity of celebrations across the country.

Video Ad Spend Up, Display And TV Ad Budgets Suffer [Report]

The amount of money spent on video advertising is on the rise, with 65% of brands surveyed in a new report confirming an increase in budgets compared to this time last year. Marketing agencies are spending up to 83% more on their video advertising campaigns. In the new Q4 State of the Video Industry study from Adapt.tv and Digiday, 9 out of 10 brand and agency side participants confirmed that they planned to increase video ad spending even further in 2014, pulling the extra budget from other areas such as offline advertising and broadcast TV advertising.

State Of The Video Industry Report: Main Points

  • 31% of brands said they would pull campaign funds from broadcast TV advertising to invest video advertising, up from 19% last year
  • 10% of brands confirmed that they would divert funds away from cable advertising, down from 13% last year.
  • 30% of participants confirmed that they would consider moving their marketing budget away from display advertising into video advertising.
  • 26% will decrease their search budgets in favour of paid video ads, a significant increase from the previous 3%
  • 43% of brands are purchasing mobile video today, as are 7 out of 10 agencies
  • 70% of marketing agencies and 65% of brands want clearer measurements so they can compare the effectiveness of online, cable and TV advertising.

Video Ad Spend Up, Display And TV Ad Budgets Suffer [Report]

In 2012, 58% of agencies and brands borrowed from their broadcast budgets to fund at least some video advertising spend. 45% confirmed they had pulled 1-10% of their broadcast dollars for video, 9% drew 11-20% of their available budget, and 4% more than 20%.

Video Ad Spend Up, Display And TV Ad Budgets Suffer [Report]

75% of brands confirmed that they will buy their video ad inventory from an ad network, up from 61% in 2011, but there’s a 10% drop in purchasing directly from a publisher with only 68% confirming that this is to be their preferred choice. For agencies, 85% are just as likely to buy from a publisher as they are from a video ad network.

Both agencies (28%) and brands (34%)are more likely to buy from an exchange, with 21% of brands and 36% of agencies confirm they will purchase from a Demand Side Platform.

You can see the full report from Digiday and Adap.TV here:

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comScore Releases July 2013 U.S. Online Video Rankings

comScore today released data from the comScore Video Metrix service showing that 187 million Americans watched more than 48 billion online content videos in July, while the number of video ad views totaled 19.6 billion.

Top 10 Video Content Properties by Unique Viewers

Google Sites, driven primarily by video viewing at YouTube.com, ranked as the top online video content property in July with 167.9 million unique viewers (up 6 percent since June), followed by Facebook with 61.3 million, AOL, Inc. with 57.9 million, VEVO with 49.6 million and Microsoft Sites with 49.6 million. More than 48 billion video content views occurred during the month, with Google Sites generating the highest number at nearly 17.7 billion, followed by AOL, Inc. with 793 million and Facebook with 741 million. Google Sites had the highest average engagement among the top ten properties.

Top U.S. Online Video Content Properties Ranked by Unique Video Viewers
July 2013
Total U.S. – Home and Work Locations
Content Videos Only (Ad Videos Not Included)
Source: comScore Video Metrix
Property Total Unique Viewers (000) Videos (000)* Minutes per Viewer
Total Internet : Total Audience 187,430 48,466,326 1,353.8
Google Sites 167,894 17,717,106 544.0
Facebook 61,320 741,336 21.6
AOL, Inc. 57,857 792,719 50.1
VEVO 49,635 613,794 42.1
Microsoft Sites 49,610 668,442 34.0
NDN 49,142 560,024 92.3
Yahoo! Sites 42,043 324,436 76.7
Viacom Digital 39,721 446,401 48.1
Amazon Sites 37,990 146,291 26.0
Turner Digital 30,627 254,803 38.5

*A video is defined as any streamed segment of audiovisual content, including both progressive downloads and live streams. For long-form, segmented content, (e.g. television episodes with ad pods in the middle) each segment of the content is counted as a distinct video stream. Video views are inclusive of both user-initiated and auto-played videos that are viewed for longer than 3 seconds.

Top 10 Video Ad Properties by Video Ads Viewed

Americans viewed 19.6 billion video ads in July, with Google Sites ranking #1 with 3.4 billion ad impressions. BrightRoll Platform came in second with 2.1 billion ads, followed by Adap.tv with 2.1 billion, LiveRail.com with 1.8 billion and Specific Media with 1.4 billion. Time spent watching video ads totaled 7.4 billion minutes, with BrightRoll Platform and Adap.tv delivering the highest duration of video ads at 1 billion minutes each. Video ads reached 55 percent of the total U.S. population an average of 114 times during the month. Hulu delivered the highest frequency of video ads to its viewers with an average of 69.

Top U.S. Online Video Ad Properties Ranked by Video Ads* Viewed
July 2013
Total U.S. – Home and Work Locations
Ad Videos Only (Content Videos Not Included)
Source: comScore Video Metrix
Property Video Ads (000) Total Ad Minutes (MM) Frequency (Ads per Viewer) % Reach Total U.S. Population
Total Internet : Total Audience 19,600,333 7,428 114.3 55.4
Google Sites 3,395,788 319 29.8 36.8
BrightRoll Platform**† 2,115,799 1,032 12.8 53.6
ADAP.TV† 2,092,012 1,012 17.0 39.7
LIVERAIL.COM† 1,827,670 618 25.7 23.0
Specific Media** 1,395,294 537 13.4 33.6
TubeMogul Video Ad Platform† 1,280,360 393 14.6 28.4
Hulu 1,161,485 447 69.2 5.4
Tremor Video** 751,397 364 11.5 21.0
NDN 725,758 199 16.1 14.6
Videology† 624,326 230 9.0 22.4

*Video ads include streaming-video advertising only and do not include other types of video monetization, such as overlays, branded players, matching banner ads, etc.
**Indicates video ad network
†Indicates video ad exchange/DSP/SSP 

Top 10 YouTube Partner Channels by Unique Viewers

The July 2013 YouTube partner data revealed that video music channel VEVO maintained the top position in the ranking with 47.6 million viewers. Fullscreen held on to the #2 position with 34.5 million viewers, followed by Maker Studios Inc. with 28.6 million, Warner Music with 27.6 million and ZEFR (formerly MovieClips) with 26.5 million. Among the top 10 YouTube partners, Machinima demonstrated the highest engagement (76 minutes per viewer), followed by Maker Studios Inc. (92 minutes per viewer). VEVO streamed the greatest number of videos (582 million), followed by Maker Studios Inc. (531 million).

Top YouTube Partner Channels* Ranked by Unique Video Viewers
July 2013
Total U.S. – Home and Work Locations
Content Videos Only (Ad Videos Not Included)
Source: comScore Video Metrix
Property Total Unique Viewers (000) Videos (000) Minutes per Viewer
VEVO @ YouTube 47,635 581,895 40.6
Fullscreen @ YouTube 34,465 353,275 32.7
Maker Studios Inc. @ YouTube 28,594 530,738 69.6
Warner Music @ YouTube 27,648 164,463 19.1
ZEFR @ YouTube 26,473 136,972 14.3
The Orchard @ YouTube 22,129 86,843 11.4
Machinima @ YouTube 18,177 417,479 91.8
UMG @ YouTube 16,948 56,890 9.6
BroadbandTV @ YouTube 16,033 136,400 28.1
SonyBMG @ YouTube 13,987 39,669 8.3

Other notable findings from July 2013 include:

  • 86.6 percent of the U.S. Internet audience viewed online video.
  • The duration of the average online content video was 5.2 minutes, while the average online video ad was 0.4 minutes.
  • Video ads accounted for 28.8 percent of all videos viewed and 2.8 percent of all minutes spent viewing video online.

Five Reasons Advertisers Should Adopt Interactive Pre-roll

A recent study, conducted by in-stream advertising specialist AdoTube, measured 9,500 digital brand campaigns and nearly 13.5 billion impressions over a period of three years. In their study, they found that while pre-roll video ads drive the highest completion rate, both the viewers and advertisers have stronger experiences with interactive pre-rolls globally.

Five Reasons Advertisers Should Adopt Interactive Pre roll

Today, pre-rolls have been transformed to offer interactive functionality that enables customized advertising experiences to deliver higher acquisition, conversion and retention rates compared with traditional online advertising.

Here are five reasons why interactive pre-rolls (Polite Pre-Roll, Ad Selectors, and In-Stream Takeovers) are redefining what video can achieve and why advertisers should continue to adopt these units:

1. Interactive and willing viewership

An average of 69.2% of users actively engages with interactive pre-roll by clicking through, watching the whole video or dismissing the units. But the word “dismiss” is not often a beloved term in digital advertising. However, though initially unintuitive, the study discovered that including the dismiss button can actually reduce page abandonment by as much as eight percent.

When the Polite Pre-Roll®, an interactive pre-roll, was introduced in 2009, it revolutionized online advertising by giving viewers the option to continue watching or to dismiss an ad after five seconds. That simple element of control, or enabling users to dismiss the ad, has had profound implications on the way consumers around the world experience and perceive advertising.

Other forms of this creative launched around the same time, such as TrueView. However, AdoTube’s format has proven to be most successful, with 11% dismiss rates, much lower compared to TrueView’s 55% to 85% rates.

Discovering that the “dismiss” option yields higher retention rates is significant. Although the psychology behind this phenomenon is complex, it is easily expressed; the more people feel they can control the experience, the more likely they are to watch it. This is contrary to how most advertisers think; they are afraid to give users the power to opt out of their ad.

If a user chooses to dismiss the interactive pre-roll, they are provided with an opportunity to re-engage with the ad or visit the brand’s website at their own convenience. This is relatively non-intrusive, yet very effective, for allowing interaction when the user is ready, or in the purchase mindset, to view the video.

2. Global support and growth of brands

As technology continues to evolve alongside the growth of global brands, enforcing message continuity from country to country can be a challenging – and costly – undertaking. To meet this need, interactive pre-roll allows for the same assets to be adjusted for different regions and are made easily updateable to tailor to each audience. This provides advertisers with a flexible, resourceful and global-centric campaign that maintains a consistent message despite differing geographies.

Global adoption of interactive pre-roll proves effective in numerous markets. In a recent study conducted by AdoTube, the highest interaction rates were found in Russia at 8.6 percent, followed by 8 percent in Southeast Asia, 6.5 percent in Middle East, and 5.6 percent in India. The more mature markets (i.e. Australia, Canada, UK, & US) also saw stronger performance. More specifically, Canada has shown strong, consistent growth for in-stream video quarter over quarter, and ran twice as many campaigns in Q4 2012 vs Q3 2012.

Also, to note – Q4 proved to be the most active across all global markets for online video, an indicator of continued growth for the sector.

Five Reasons Advertisers Should Adopt Interactive Pre roll

Global adoption of interactive pre-roll proves effective in numerous markets.

3. Delivers more qualified views and clear call-to-actions

Compared to standard pre-roll, interactive pre-roll boasts higher engagement rates, therefore driving its users to be more likely to retain the information or respond to the call-to-action feature. For example, in a recent “Just for Men Autostop” campaign that included both interactive and standard pre-roll, interactive pre-roll exceeded success metrics in comparison to its counterpart. The interactive video delivered 10% higher engagement rates, lifted brand awareness 2X more effectively and achieved 42% higher brand favorability than the standard pre-roll unit. This makes sense, since the user can view, read, and hear the message throughout the ad spot using an interactive unit. In contrast, a standard pre-roll invites the user to be engaged only when the brand message is explicitly delivered – usually in the last 2-5 seconds of a spot.

Five Reasons Advertisers Should Adopt Interactive Pre roll
Furthermore, with interactive pre-roll, the user is self-electing to consume the brand messaging, resulting in a greater probability that they will engage with the call-to-actions – which, in interactive pre-roll, are more aesthetically and seamlessly presented than a standard pre-roll unit. Overall, these features foster positive user experiences, generating a “stickiness” that increases brand recall.

4. Complements programmatic ad buying

With programmatic marketing, advertisers combine data with real-time systems to essentially automate the delivery of targeted ads. The value is not only being able to target consumers with precision, but to do so quickly, in a way that allows the advertisers to adjust a campaign if it isn’t delivering. To complement this demand-side strategy, interactive pre-rolls are also flexible, providing advertisers to quickly change their messages or call-to-actions to meet campaign targets. In contrast, the process to adjust a standard pre-roll, or to re-produce its spot, is simply too slow, inefficient and costly. In this instance, standard pre-roll fails to keep up with the automatic processes of programmatic buying.

This is extremely important in a progressively multi-screened world where brands are trying to maximize their advertising between TV and digital video devices (computers, mobile, and tablets). These mediums should complement each other. In order for that to happen, advertisers need customizable, nimble, and intelligent ads that are engaging across device.

5. Boosts evolution of creative technology and intelligence across screens

It is important to note that interactive pre-rolls have also evolved from giving viewers the option to dismiss ads to a true user-directed experience. Let’s take a look at AdoTube’s Ad Selector, the functionality that allows advertisers to feature multiple videos, giving users the choice of which video to watch and when. This allows an advertising conglomerate to feature several products or promotions of a particular brand, or even multiple brands of the same conglomerate, and see which user is attracted to which ad the most.

After conducting this same experience with numerous control groups, the advertiser is given ample, invaluable insight into the “who, what, where and why” of their consumer base – which audiences were most drawn to their product, specific product preferences, and when and where the message was delivered to capture attention. Advertisers can then leverage this data to drive strategy across all mediums that is most relevant for their audience.

Many companies are taking advantage of new developments in in-stream video, but not all pre-rolls are created equal. Interactive pre-rolls return the control to the consumer, while still providing brands with the data needed to drive intelligent advertising and the flexibility to adapt to multiple screens, global demands and campaign changes. These units are a win-win for the advertiser and the consumer, and will continue driving the evolution of the video industry.

Currently we are working on an exiting new product, the development of 15 and 30 sec, pre and post roll commercials as part of our stock library ReeldealdHD offering. These “Directors Cut” commercials are the easy and affordable solution for SME advertisers. Stay tuned for more exiting news on this soon, in the mean time if you would require a pre- or post roll commercial please get in touch: erwin@reeldealhd.com

Americans Watch Billions Of Video Ads Monthly

Whetting the appetites of marketers, consumers are watching more online video advertising than ever. Breaking all previous records, Americans viewed more than 8.3 billion video ads in March, according to new data from comScore.

Delivering another record month, Hulu recorded more than 1.7 billion video ad views in March, while Google Sites — i.e., YouTube, ranked second with more than 1.2 billion video ads. The BrightRoll video network came in third with 953 million, followed by Adap.tv with 892 million, and Specific Media with more than 775 million.

Time spent watching video ads totaled 3.5 billion minutes, with Hulu delivering the highest duration of video ads at 690 million minutes, according to comScore.

Video ads reached 51% of the total U.S. population, an average of 53 times during the month, while Hulu delivered the highest frequency of video ads to its viewers with an average of 51, followed by ESPN, which delivered an average of 26 ads per viewer.

Overall, 181 million U.S. Internet users watched nearly 37 billion online content videos in March, while video ads topped 8 billion for the first time on record.

Google Sites, driven by YouTube.com, ranked as the top online video content property in March with 146.1 million unique viewers, followed by Yahoo Sites with 60.6 million; VEVO with 51.3 million; Facebook.com with 45.1 million; and Viacom Digital with 44.3 million.

Nearly 37 billion video views occurred during the month, with Google Sites generating the highest number at 15.7 billion, followed by Hulu with 1 billion and Yahoo Sites with 815 million.

ComScore’s March 2012 YouTube partner data revealed that video music channels VEVO — 49.1 million viewers — and Warner Music — 30.3 million viewers — maintained the top two positions.

Gaming channel Machinima ranked third with 22.9 million viewers, followed by Maker Studios with 14.6 million, FullScreen with 12 million and BroadbandTV with 8.5 million.

Among the top 10 YouTube partners, Machinima demonstrated the highest engagement — 69 minutes per viewer — followed by VEVO at 62.5 minutes per viewer. VEVO streamed the most videos — 670 million — followed by Machinima at 379 million.

Also of note during March, 83.5 percent of the U.S. Internet audience viewed online video, while the duration of the average online content video was 6.4 minutes, and the average online video ad was 0.4 minutes.

Video ads accounted for 18.5% of all videos viewed, and 1.5% of all minutes spent viewing video online.

TED has announced the winners of its Ads Worth Spreading initiative

TED has announced the winners of its Ads Worth Spreading initiative at its event in Long Beach, CaliforniaThe ten winners display impressive longer-form idea-based storytelling. TED’s Ads Worth Spreading recognises ingenuity and intelligence in advertising, inspiring people to watch, learn and share.

The winners included Microsoft’s celebration of the wider uses of the Kinect in the Kinect Effect (twofifteenmccann, San Francisco), Chipotle’s animation showcasing its Cultivate Foundation whilst promoting the restaurant chain. Willie Nelson’s cover of Coldplay’s The Scientist that backed the spot was sold on iTunes with proceeds going to the foundation.

Other winners included NTT DoCoMo’s beautifully crafted Xylophone (via Drill Inc and Dentsu Inc, Tokyo), Canal+’s heartwarming The Bear (from BETC Euro RSCG Paris) and the powerful Return of Dictator Ben Ali, from Memac Ogilvy Tunisia for Engagement Citoyen, to encourage a higher turnout in Tunisia’s elections.

The 2011/12 Ads Worth Spreading are:

Canal+: The Bear (BETC Euro RSCG Paris)

Chipotle: Back to the Start (Creative Artists Agency Los Angeles)

Engagement Citoyen: The Return of Dictator Ben Ali (Memac Ogilvy Tunisia)

L’Oreal Paris: Aimee Mullins (R/GA New York)

Mazda: Defy Convention (Agency: Team Cosmos/JWT Germany/Team Mazda Europe)

Microsoft: Kinect Effect
(twofifteenmccann San Francisco)

NTT Docomo: Xylophone (Drill Inc., Dentsu Inc. Tokyo)

Prudential Day One: Linda
(Droga5 New York)

Rethink Breast Cancer: Your Man Reminder (john st. Toronto)

Sharpie: Start with Sharpie
(Draftfcb Chicago)