Home Digital TV and Video Zenith: Advertisers Will Pay Big Bucks For Premium Video, But Screen Size Matters

Zenith: Advertisers Will Pay Big Bucks For Premium Video, But Screen Size Matters

SHARE:

PayPlayAdvertisers are willing to pay a “substantial premium” on nonmobile video ads, according to a ZenithOptimedia video ad spend forecast issued Monday.

Despite the fact that more consumers watch video on their mobile devices, video ad spend hasn’t grown with quite the same gusto.

“Mobile is the dominant platform for consumption, but it won’t become the dominant advertising platform for another two years,” predicted Jonathan Barnard, head of forecasting for Zenith.

“Even though it’s pretty obvious an audiovisual ad will have more impact on a larger screen, [we’ve found] advertisers are willing to pay a continued premium for advertising on the larger screen.”

While consumers average 19.7 minutes per day viewing videos on smartphones and tablets, compared to the 16 minutes each day on desktop or smart TVs, the majority of video ad dollars are still spent on these “fixed” devices.

Nonmobile video ads, according to Zenith, account for 68% of all online video ads in 2016, which is down from 75% share in 2015. But by 2018, mobile and nonmobile video ad spend will be split closer to 50/50.

One reason for the current disparity is that marketers want to invest in a specific format type (no autoplay, muted, or below-the-fold video, in some cases), audience and ensure they have good screen real estate. 

For instance, when buying Hulu, an advertiser knows they’re getting a slightly older millennial cord-cutter who has more discretionary spend.

Other advertisers want a certain threshold of completion as well as proven effectiveness around brand lift, which a video format like YouTube’s TrueView promises, Barnard said.

But since more of these impressions are happening on mobile, it should help even out the split between mobile and nonmobile video investments.

Digital video still dominant

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

Over-the-top TV may attract marketers in search of a full-screen experience, but Zenith projects digital video all around (including desktop) to continue to accelerate.

In most major markets, Zenith has found that advertisers continue to view their digital video investments as an incremental buy or complement to TV, rather than a replacement.

But in some cases, marketers simply repurpose 30-second TV spots for social platforms like Snapchat or YouTube, which isn’t as effective as tailoring short-form videos for each individual channel.

“[Original] video content requires more advertiser and agency resources, [and] there are innovations in technology to bring down the cost of production,” Barnard said. “You’re seeing automated personalization and the like, which is making it easier for brands to make use of the unique attributes of each platform.”

Must Read

shopping cart

Moloco Invests In Its Competitor Topsort As The Retail Media Stakes Go Up

Topsort can lean into Moloco’s algorithmic personalization, while Moloco benefits from Topsort’s footprint with local retailers in the US and in Latin America.

CDP BlueConic Acquires First-Party Data Collection Startup Jebbit

On Wednesday, customer data platform BlueConic bought Jebbit, which creates quizzes, surveys and other interactive online plugs for collecting data from customers.

Comic: The Showdown (Google vs. DOJ)

The DOJ’s Witness List For The Google Antitrust Trial Is A Who’s Who Of Advertising

The DOJ published the witness list for its upcoming antitrust trial against Google, and it reads like the online advertising industry’s answer to the Social Register.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Why Vodafone Is Giving Out Grades For Its Creative

One way to get a handle on your brand creative is to, well, grade your homework, according to Anne Stilling, Vodafone’s global director of brands and media.

Inside The Fall Of Oracle’s Advertising Business

By now, the industry is well aware that Oracle, once the most prominent advertising data seller in market, will shut down its advertising division. What’s behind the ignominious end of Oracle Advertising?

Forget about asking for permission to collect cookies. Google will have to ask for permission to not collect them.

Criteo: The Privacy Sandbox Is NOT Ready Yet, But Could Be If Google Makes Certain Changes Soon

If Google were to shut off third-party cookies today and implement the current version of the Privacy Sandbox, publishers would see their ad revenue on Chrome tank by around 60% on average.