A new Business Insider report is showing that Video on mobile is exploding.
They estimate over the next 5 years video ads will grow +30% yoy estimating revenues of 13 Billion usd in 2020 (3.5 Billion 2015).
It will therefore be the fastest growing digital segment.
79% of marketers polled by Reuters, have already said that they plan to invest more in video. IAB reports massive increases in video viewing to 63 million a month too.
Social Media (YouTube, Snapchat, Twitter, Facebook particularly) have been key in getting videos out to an audience and these will grow. Video is ideal for Social. Native Ads too, featuring video with traditional publishers will also push things along.
So you need Video to get onboard.
Streamabout.com
Online newspapers seem to grow and grow, yet paywalls seem to fail and this is all spelling out a really difficult future for traditional daily newspapers.
This week's 'Economist' outlines the points very clearly (as they always do).
Axel Springer bought BusinessInsider in September for 442 million usd and NBC invested 200m usd in BuzzFeed, in what's perceived as an attempt by traditional publishers to bring more online inventory into traditional media ownership.
Largely because their traditional Ad revenues continue to fall.
Between 2005 and 2014, traditional print Ad spending in US newspaper dailies has dropped -60%. As it dropped, staff and newsrooms were cut. A bleak future response then, delivering a self-fulfilling prophecy. Ad revenue falls, staff are made redundant, product suffers, ad revenue falls.
Indeed, there may come a day when print advertising per se, drops to Zero and indeed, online Ad prices are falling too, as media options (where to place them) increases widely. Increased supply drives prices down and with Social Media options (Facebook, Twitter) developing a pace, they'll suck in more and more Ad dollars from newspapers.
Getting readers to pay for news has not been a success either - marked recently by the UK 'Sun' dropping their subscriber paywall. Metered or Limited paywalls have worked for some (notably The UK FT) but with so much free content, it's not going to work well. And certainly, will not compensate for the losses in Ad revenue in any real way.
Boosting online Newspaper Ad revenue is one way, but Newspaper online Ad revenue is only up +11% since 2007 - not enough. Not nearly.
Although while Advertisers do look for more 'native content' (sponsored content) and online video, Newspapers just do not have the skills to produce video to an acceptable standard either - nor, in some ways, should they.
Sponsored content will also have a poor knock-on affect to readers who will realise that what they're reading as "news" is in fact Advertising - and they won't like it. It's breaking brand trust.
The real super threat is Programmatic buying, now becoming standard, where an advertiser buys the reader and not the Title and so that's a real threat to publishers. They should not embrace it but difficult to see how not to either. Turkeys and Christmas.
So Media buying by Title, is coming to an end. Ad Blocking proliferation is another threat too (and notably, video is not ad blocked).
One way suggest The Economist, is for publishers to branch out into areas such as Music, Sport, Health or Religion and they note, The Boston Globe developing a health site called 'Stat' this very month. Gardening and Wine Clubs too, possibly ideal for the Sunday reader (as in The Telegraph typically), may bring in some money.
It signifies a shift away too from 'Breaking News' which of course, given the print deadlines, traditional newspapers can no longer do. They still can of course, give insights into stories that have already broken, or special investigations. But it's limited.
There's no joy in saying it, but the traditional daily Newspaper days are numbered. They're facing an onslaught through online programmatic media buying; through ad blocking; through increased digital media supply bringing lower prices; by paywalls not delivering because of free news; through lower ad revenues; and a possibility of breaking reader trust with Native Stories.
Difficult to see a way out of this.
But it is clear that Newspapermen have to consider that their biggest asset is online and not what's being printed. If they stopped printing the Newspaper and focused on their online property, they'd save a lot. And that's considered heresy.
Video Ads are growing faster than any other medium according to a new report from the reliable BusinessInsider. It is exploding.
Not only that, they're replacing TV and have the highest click-thru than any other digital format.
As TV declines by circa -3%, Video Ads are growing +100% year-on-year and will reach 5 Billion usd by 2016 (from 2.8 Billion in 2013).
That's much faster than any other form of digital display as the medium attracts more advertisers. Programmatic buying, RTB is also driving their usage and viewability as well as new video platforms.
This is simply part of a story of an ongoing trend that sees Video online becoming the new advertising driver. They're becoming easier to find (YouTube is the second biggest Search engine after Google), easier to share and more engaging than a traditional 30 seconds of TV commercials.
They're also much lower cost delivering a full mediaplan significantly (-70%) less than a TV expenditure and delivering higher audiences with full analytics regarding reach/frequency.
They do more, for less.
You'll get the report here
http://www.businessinsider.com/digital-video-advertising-performance-and-growth-trends-2014-8?nr_email_referer=1&utm_source=Triggermail&utm_medium=email&utm_content=emailshare
But you'll get video ads from Streamabout.
Important piece in BusinessInsider (again!) about what they call, 'Millennial Males'. In effect, that younger, highly lucrative, Males aged 18-24.
They're a crucial demographic because they've high levels of discretionary spend. Which they use on beer, nights out, clothing, drinks, save a bit, perhaps start their first mortgage.....
But according to Nielsen, their TV viewing has slumped, more than any other demographic.
And because of that, Advertisers are switching to digital to reach them by increasing their marketing spends online (from TV) by up to +30%.
Consequently the reach to this demographic, increased by +11% when they did.
So if you try to reach them on TV, as the report says, "you're spending too much on TV" because that's where they're not, more and more.
But I would go further.
Whatever about the numbers in the decline of TV, the level of engagement and potential for click-through action, only exists online. You can talk to them far better through a digital online video than a 30 second TV commercial anyway.
Perhaps I'm bound to say that but I can say that the effectiveness of simply using a TV commercial cut-down is practically....nil.
New BusinessInsider Reports that Digital Video Advertising is growing faster than all other online formats, except mobile.
They predict it will grow at 19% per year compound through to 2016. Traditional online display is growing at circa 3%.
Online video revenue is currently circa 3 billion and that will double to 6 Billion by 2016 and video ads have the highest click-thru of any digital format at circa 2%. So they're more effective because simply, if you watch a 2 minute video, you're more likely to be engaged and want to follow-up.
It generally supports all the other reports and opinions that the Internet is all about video. Viewers like them, publishers like them, advertisers like them and they have the real potential for sharing.
In fact, not having digital video as part of a campaign, is becoming a conspicuous gap. It's almost becoming standard.
They're easy to get done, inexpensive and engaging. Some will make you laugh, some will make you cry but it's an opportunity for storytelling that's missed on a 30 second TV commercial. In fact, it's the freedom of space that every Ad Agency creative has always wanted.
But one thing is for sure....if you haven't got an online video, you've no chance of it being seen.
The very reliable BusinessInsider has published an interesting report into digital video.
It might come as no surprise (hopefully) that digital video is skyrocketing.
Online video ads are the fastest growing medium outpacing TV. They exploded in 2013 and trust me, continue to do so in 2014.
Over 35 Billion video ads were viewed in the US in December alone. Largely because they give clients an opportunity to give longer narrative (because they're longer!) and more engaging content through storytelling, which 30 seconds on TV restricts you from doing.
They also of course, come with the benefits of all things digital such as low cost media placement and tracking.
BusinessInsider estimates that digital video will take $5 billion in ad revenue by 2016 ($2.8 billion in 2013), growth of +100% year on year (yoy) and the highest click through (just under 2%) of any other digital format. Of course, if you're prepared to watch a 2 or 3 minute video online, you're likely to be more prepared to click through because you've been engaged.
One thing you can't do, is click a TV Commercial....
The growth in domestic use of streaming devices, better Internet connectivity and indeed, more savvy PC users almost assures the growth. As more go online, the Opportunity-to-see (OTS) video, increases.
Viewability of course is the issue too - if your video is no good, then it won't be watched.....but that applies to all other Ad formats too.
Advertisers need to start increasing their investment in what is generally, low cost digital video. Low cost from a Production perspective and low cost Media. The days of 50k and 100k and more on TV Commercial Production are over with Digital Video costing 1k-5k generally.
And just as good. In fact, a whole lot better.
As BusinessInsider say too, much more watched.
Very, very, interesting article from BusinessInsider entitled 'The Death of TV. TV is dying and here are the stats that prove it'. It follows from research by 'Citi Research' and this is a landmark, elaborate, piece of work.
You'll get the whole story here http://www.businessinsider.com/cord-cutters-and-the-death-of-tv-2013-11
US Pay TV (cable) is having its worst year ever.
This links with another blog I wrote on November 8th (which follows in my posts), where Nielsen reports that tablets and mobile will be more advertising important than TV in 2016. It also follows which all of us in the business already know.....TV is dying on its feet (Streamabout is active in online video so we understand the TV market).
Audience ratings "have collapsed" and with all the major TV providers losing subscribers (about 5 million subscribers cancelling). The number of cable subscribers will drop below 40 million for the first time ever. It's something a lot of us knew, but didn't have the data to support it.
Time Warner Cable lost 306,000 cable subs and 24,000 Internet users.
The CEO of a cable company, Charter Comms, expressed surprise that a staggering "1.3m of his 5.5m customers (a quarter) didn't want TV", they wanted broadband only packages - meaning they're switching online alright, but not to watch TV.
Even ratings for major sporting events are in decline. Like Baseball...
Like Basketball..
So this is a real example of the shift to Internet where consumers are watching video and not, TV. They're watching shows and movies notably on mobile and probably as part of a broadband/Wifi 'deal' from a Telco. Or from the proliferation of free Wifi at a variety of stores or indeed, from city hotspots. But they're not watching traditional TV programmes, as they air live.
The other fundamental, is that more and more households, now have less "TV's" as we know them but rather, connected boxes like Apple TV or even via their Xbox or an internet set-top box. They want fast Internet access speeds with online content. Nielsen, the doyenne of TV research, are even reporting this decline.
So if people have less "TV's", they'll watch less TV as it's aired. They now have a global choice of frankly, better content.
Mobile video is on the other hand, booming, with about 40% of all YouTube videos being watched on mobile. Staggering. And again, as you'll know, YouTube video is not TV programming in the main.
Tablets too, are being viewed more during the key TV primetime, so each device has its moment across the day. But if tablets are being used during primetime, advertising effectiveness is diluting.
Of course too, as I've blogged about so many times, Advertising money is not following this shift. Yet.
Old habits die hard - the US TV Ad revenue is 64 Billion Dollars whilst mobile is a mere 3.4 Billion. It certainly raises questions about TV Agency buyers who are supposed to buy on the basis of data, rather than cosy "back margin" volume deals.
Most US Advertising money goes on traditional TV by a mile. Yet TV prices are increasing reports Morgan Stanley....as indeed, bizarrely, are cable subscriptions!! Questions should be asked.
The former Time Warner boss, Glenn Britt, nailed it I think, when he said that "the cable business had spent too many years complacently dismissing the competition" and that is such a well worn lesson.
They have also been actively producing spurious data in vain attempts to try to keep convincing clients that TV is ploughing ahead, when it's not.
It happened in the music business, it happened in the retail video rental business, it happened in the bookseller business and now it's in the TV business. For me, this is the crux of the matter leading to this downfall.
Rather than dismissing online, they should be embracing it.
Slowly, but surely, the game is up.
