In 2018, Mobile Video Spend Will Dominate Programmatic Media Buys

In 2017, programmatic digital display ad spending reached $32.56 billion and is projected to continue to grow rapidly throughout 2018 and hit $45 billion in spend by 2019. With this rise in programmatic ad spend, there also comes a shift in where advertisers are buying ad space. Another shift in programmatic ad buying is the rapid rise in mobile placements over desktop. The move to mobile is not surprising considering that on average, people in the United States are spending over 5 hours a day on their mobile devices. Media Buyers are set to capitalize on this shift, in 2018, programmatic investment on mobile will reach $30 billion, over 3x the amount spent on desktop. This is in large part due to the popularity of mobile video consumption and mobile-friendly sites such as YouTube, Facebook and Snapchat.

In 2018, Programmatic investment on mobile will reach $30 billion, over 3x the amount spent on desktop -eMarketer

This year, it is projected that mobile video ad spending will surpass non-mobile ad spend. This is due to the rise in popularity of consumers watching video online. It is projected that this year people will spend on average 36 minutes watching video on their phone or tablet compared to 18.5 minutes on non-mobile devices. Around the world, people will watch 25% more video on phone and tablets whereas computer and laptop video consumption is expected to decline. Smart TV streaming continues to rise, but not quickly enough to make up for the mass decline in non-mobile platform viewing. Mobile video ad spending alone is expected to reach $18 billion, a 49% growth. With more consumers watching videos on their phone, media plans are also being adjusted to include larger budgets for mobile video ads and creative.

Mobile Video Ad Boom Driven by Social Platforms

The move towards mobile video consumption is largely due to mobile-friendly apps like Facebook, YouTube and Snapchat. Over 500 million hours of YouTube video are watched everyday. 65% of people who watch the first three seconds of a Facebook video will watch for at least 10 seconds, and 45% will watch for 30 seconds (Facebook, 2016).  These stats clearly explain why Google as well as Facebook have the largest share in mobile advertising. Advertising agencies put aside a portion of their media budget for Facebook ads and although these agencies don’t necessarily plan to use this money for mobile, it is where the audience is going, as most of Facebook’s audience is through mobile. Views for branded video content on Facebook has increased 258% in 2017 making it a great media buy for advertisers. With 10 million videos watched on Snapchat everyday, the company is estimated to experience the fastest mobile ad revenue growth between 2016-2019. As more companies make their websites mobile friendly, the shift to mobile advertising will continue to grow, leaving desktop ads behind.  

By 2019, $45.72 billion will flow via biddable media, more than four out of five US digital display ad dollars. Mobile ad spending will be credited for more than $30 billion of this amount. The era of mobile programmatic advertising is just beginning as advertisers and brands spend more time and budget optimizing their campaigns for mobile.

Read about the other nine trends that we are predicting will be the key to success for programmatic buying teams in 2018 here.

If you haven’t already, there is no time like 2018 to get on the programmatic bandwagon.  If you need to get started Digilant University has all the information you need to get up to speed on native advertising and more than 30 other topics.  Need more information, you can also reach out to us here.

Programmatic Media Buying 101: YouTube Advertising Best Practices

Video has a lot to offer digital marketers and consumers. In 2017, video will account for almost 70% of all internet traffic. With additional advances in connectivity and mobile technology, streaming big video files is no longer prohibitive, enabling users to share a wide array of content.

Buying YouTube Advertising

As a medium for marketing, video requires more time and effort to produce than a Instagram Post, Tweet or Facebook Status Update, but the overall payoff can match or go much beyond the investment. Once efforts to produce content are made, marketers attempt to gain the most from their creative content by leveraging social media to make sure it gains visibility and recognition so they can earn return on their investment (ROI).

Of the top seven social media platforms, YouTube ranks as the 4th highest in usage by consumers, and of those seven, it’s the only platform specializing in video.

Topping the list of online video platforms, YouTube has made it easier for marketers in many ways by offering:

  • An easy to use format for posting and sharing videos on any social media channel
  • A wide reach and plenty of traffic: 1 billion users, who spend millions of hours watching videos daily
  • Global reach in over 70 countries and 76 languages
  • The ability to go anywhere the user goes – over 50% of video play comes from mobile audiences
  • A truly social video channel with options to share, like, comment and subscribe which helps to drive interest-based traffic
  • Search features makes videos the answers to consumers’ questions

And that’s all just a part of setting up a YouTube channel.

Brand Advertising Campaigns

When it comes to using the YouTube platform as a mechanism for brand promotion advertising campaigns, there are two ways to go about paid advertising:

  1. In-display ads: appear in YouTube search results, as related videos, or on websites that belong to the Google Display Network.
    • These display as the results of a search or appear on the right hand side of a video being viewed as related content.
  2. In-stream ads: appear as pre-roll before a video plays.
    • Pre-roll ads may have a “skip ad” or a “Your video will play in 10 seconds” notification to let viewers know the ad’s duration.

Advertising Targeting on YouTube

To target audiences for these ads, advertisers use a variety of targeting options that are also found within programmatic campaigns such as keywords, location, time of day, network, language and device type. While video offers marketers the opportunity to engage and provide value through things like demos, testimonials, and “how to” content – it’s not as easy to produce as a tweet, blog or white paper.
When setting up these campaigns in a programmatic self-service platform, advertisers set their maximum bid price even with no guarantee that the video will be viewed in its entirety.

Best Practices for Video Advertising 

Marketers need to keep in mind that with video, quality matters. Not only do the audio and visual components need to be high quality, but the content should follow as well. If these factors fall short, and your video isn’t useful or engaging, it’s not valuable.

For both advertising and brand channel pages, YouTube provides reporting analytics that help to quickly assess and optimize the posted video and it’s targeting on your programmatic platform. These video metrics give marketers a lot of insight into how much of the video is being viewed or engaged with. This information can be used as a way of gauging intent signals, for example, a video that’s been completed can indicate a qualified marketing lead and is also a re-marketing opportunity.

Best Practices Summary

  • Video is on the rise, and YouTube tops the list of online video platforms.
  • YouTube also ranks among top social platforms and provides real social features such as share, like, comment and subscribe.
  • Marketers can get a big return on investment by creating quality video that engages and provides value for users.
  • Video gives marketers insight into intent signals and the opportunity to drive qualified traffic from YouTube to sign up or purchase pages.
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