The software provider for converged TV and video advertising released findings from the report on Wednesday featuring interviews with digital media leaders and technology providers. Videology also produced a report on the U.K. market.
Among the topics the North American report addresses: changes in the TV and digital video landscape; the rise of advanced TV advertising; changes in cross-device and mobile advertising strategies; ad fraud; and how to use data effectively.
The seismic changes taking place are only in the early stages, Scott Ferber, Founder and CEO, Videology, noted.
Maria Mandel Dunsche, vice president, head of marketing, at AT&T AdWorks, noted opportunities for programmatic video, stating: “Programmatic video is seeing a rapid increase in spend as the number of users watching digital video grows.” She noted that the availability of high quality video content is a pressing issue, and that mobile video usage is now higher than the current ad spent in mobile video. In addition, Dunsche, pointed out that programmatic TV remains a challenge because “there really is still no end-to-end programmatic solution that offers automation across planning, buying, and trading.”
Andrew Feigenson, Nielsen's managing director, digital, is eyeing continuing growth in programmatic video in 2017. He said the industry has moved toward broader agreement on the types of metrics that are being used as part of a baseline, with two of the most important ones audience composition and viewability.
Joe Kyriakoza, Oracle's VP & general manager, automotive, noted that amid extreme market convergence and consolidation, there are growth opportunities in addressability, targeting, and validation which “make sense for a market that’s previously relied on wide distribution and limited targeting. Addressable households are currently in the tens of millions, hopefully they’ll soon be in the hundreds of millions." Kyriakoza also anticipates more effective media planning tools for cross-platform buying.
However, more challenging, he noted, is finding the “sweet spot between campaign scale and targeting accuracy, which is relevant reach. It’s about making sure you know and understand the audience you want to be speaking to and recognize them at scale.” Kyriakoza said that in the auto sector, “where addressable advertising is available, automotive clients are aggressively testing it. The more progressive ones are going even further, to where it’s a regular part of their planning engagement because it’s smarter, tighter, and it’s driven by data.”
Advanced TV offers the auto sector relevant reach, according to Kyriakoza. “Instead of seeing the same Corolla ad during 'Monday Night Football' week after week, despite the fact that you’ve never owned or likely will own one, a more appropriate vehicle and offer will be tailored to the household.”
Anthony Psacharopoulos, EVP, comScore, cited de-duplication as one of the biggest challenges when it comes to cross-platform measurement. Without appropriate de-duplication methods, for example, “marketers run the risk of delivering excessive frequency.” An example is a consumer being exposed to an ad on mobile, TV and desktop: “That’s not a reach of three and a frequency of one, but the other way around — a reach of one, and a frequency of three. This has a major impact on a campaign if you’re working out your GRPs, or your target rating points.”