My two most recent Online Video Insider pieces focused on the world of media exchanges/RTB (real-time bidding/buying), sometimes called "programmatic buying." The first is a primer detailing what this is, while the second provides an analysis of what this means for T/V (television/video). This will look at the glossary of new language and standards programmatic buying uses to describe and evaluate online video advertising capabilities. If these concepts were applied to traditional, linear TV, what would it tell us? Here are four to begin with:
Advertisers planning on investing millions of dollars in the biggest advertising event of the year may be missing out on one critical metric. Our recent study has found that campaigns that promote content prior to game day generate, on average, nearly 600% more views than those that don't. As of last year, 20 advertisers waited until game day to release assets, missing out on millions of potential views. With this information in mind, as advertisers are planning Super Bowl strategies to stretch budgets as best they can, they need to decide what success means for their Super Bowl programs:
Countless studies have shown growth for mobile video, both in tablets and smartphones. For instance, eMarketer forecasts double-digit growth for video consumption among smartphone users through 2015. And a recent study from Keynote Competitive Research showed that 76% of tablet users watch video on their devices. But while user consumption is seeing rapid growth, it's still unclear what role brands and advertisers will play in mobile video.
In the wake of hurricane Sandy, Pivotal Research Group's senior research analyst Brian Wieser lowered its U.S. ad forecast to a 0.5% decline in the third quarter, a 1.4% decline in the fourth quarter, and zero growth for the full year. When all's said and done, that will translate to a reduction of about $500 million in lost revenue, due to "interruptions in local TV and radio programming and also factoring in decision-making by media buyers in the wake of the storm," writes Rupal Parekh, reporting on Pivotal Research Group's projections. What's the impact, if any, on online video?
A few weeks ago, an industry study found that more people are watching digital video on their connected TVs than on their computers. In some circles this was seen as a major victory for connected TV, and a sign that the format was finally maturing. Truthfully, both of these claims are premature, as they do not align with what the study actually reveals about connected TV users. It will be quite some time before connected TV becomes a dominant form of programming consumption, and a lot has to change for us to get there.