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What: In Q1 2017, the number of programmatic advertisers dropped substantially, falling 12% year-over-year, according to MediaRadar latest results of its “2016 Consumer Advertising Report”.
Why it matters: After years of growth, the decline in programmatic buyers is likely attributed to concerns around brand safety – especially given recent problems for companies like YouTube. The number of print ad pages decreased 8% year-over-year to 107,698 pages, while native ad buyers stood the biggest growth in buyers for any ad format.

MediaRadar, a intelligence platform for ad sales teams, has just announced the results of its “2016 Consumer Advertising Report,” examining ad spend, ad formats, top advertisers, and more for both print and digital channels in 2016, as well as Q1 2017.

Programmatic buyers down 12%

According to MediaRadar data, 45,008 advertisers purchased ads programmatically in Q1 2016. In Q1 2017, however, the number of programmatic advertisers dropped substantially, falling 12% year-over-year. On the quarter, more than 5,000 fewer advertisers (39,415) bought programmatically.

“After years of growth, the decline in programmatic buyers is likely attributed to concerns around brand safety – especially given recent problems for companies like YouTube. This form of advertising is continuing to evolve as brands seek more control over where their ads are running. We expect to see programmatic rise as more brands move to programmatic direct models,” said Todd Krizelman, CEO & Co-Founder of MediaRadar.

The number of native ad buyers rose 74% from Q1 2016 to Q1 2017, representing the biggest growth in buyers for any ad format

Print ad spend declined 6%

The number of print ad pages in Q1 2016 was 117,551. Compared to Q1 2017, the number of print ad pages has decreased 8% year-over-year to 107,698 pages. Similarly, estimated print ad spend has declined 6% from Q1 2016 to Q1 2017.

“There has been a noticeable drop in ad pages and spend from the start of 2016 to now,” said Krizelman. “That being said, there are still a considerable amount of pages being bought. Niche and enthusiast titles are on the rise, with some regional titles flourishing.”

Native Advertising

Media Radar found the number of high-CPM ad formats increasing, especially in mobile and native.  The number of native ad buyers rose 74% from Q1 2016 to Q1 2017, representing the biggest growth in buyers for any ad format. In addition, demand for native has nearly tripled since January 2015, which logged fewer than 1,000 buyers (981). In January 2017, there were almost 3,000 (2,882).

The top 10 categories in 2016 for native advertising were media and entertaining, professional services, financial and real estate, technology, wholesale, home, travel, apparel and accessories, food, and toiletries and cosmetics.

The top five native advertisers by ad placements in 2016 were Secco Squared, Answers Corp., NextAdvisor, Potential Investments, and JPMorgan Chase.

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What: Advertisers will spend more than 10 billion in digital video in 1, representing an 85% increase from 2 years ago, based on“Digital Content NewFronts: Video Ad Spend Study,” a study conducted by Advertiser Perceptions on behalf of the Interactive Advertising Bureau (IAB).
Why it matters: 68% of those marketers and agency executives believe that original digital video will become as important as original TV programming in the next 3 to 5 years.

Advertisers and media buyers have made an impressive 114 % increase in investments in original digital video programming over the past two years, according to the third annual “Digital Content NewFronts: Video Ad Spend Study” conducted by Advertiser Perceptions on behalf of the Interactive Advertising Bureau (IAB).

Reinforcing the critical role the Digital Content NewFronts has played in media buying decisions, eight out of 10 respondents said that their attendance at the 2015 NewFronts resulted in increased spending on original digital video content in the 12 months that followed, and/or motivated them to increase original digital video budgets overall.

Buyers who primarily focus on TV were more likely to commit those extra dollars at the NewFronts (64% vs. 42%), while digital-focused buyers were more likely to spend them throughout the year (49% vs. 41%).

Buyers who primarily focus on TV were more likely to commit those extra dollars at the NewFronts, while digital-focused buyers were more likely to spend them throughout the year.

Nearly three-quarters (71%) of those surveyed also said that they plan to attend the 2016 NewFronts, expecting to spend more than a third of their overall digital video budgets for the year at the annual marketplace.

The study further revealed that more than two-thirds of marketers and agency executives (68%) believe that original digital video will become as important as original TV programming in the next 3 to 5 years. In order to close the gap between digital video and TV programming, both groups want to buy digital video that reaches target audiences in high-quality programming and delivers more concrete ROI metrics.

68% of marketers and agency executives believe that original digital video will become as important as original TV programming in the next 3 to 5 years

While the majority of buyers surveyed plans to spend more overall on all digital video (63%) and mobile video (62%), original digital video content has grown in importance, now accounting for 44% of a typical digital video budget, up from 38% two years ago.

Native advertising has also established a foothold in dollars spent on original digital video, accounting for one-third (32%) of that investment.

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Ongoing Strong Growth for Digital Video

  • Advertisers are spending on average more than US$10 million annually on Digital Video, representing an 85% increase from 2 years ago, based on a survey of 360 advertisers and marketing professionals.
  • Video represents an increasing share of Digital/Mobile Ad Spending, with growth driven by a substantial increase in Mobile Video allocations.
  • Robust spend optimism (plans to invest more in next 12 months) for both Digital and Mobile Video; while most are expecting to maintain current TV spend levels.
  • Cross-Platform spending (TV + Online Video) seeing continued growth in 2016 – driven by TV-Primary Buyers, 82% of whom plan to increase crossplatform spending.
  • Cross-Platform spending (TV + Online Video) seeing continued growth in 2016 – driven by TV-Primary Buyers, 82% of whom plan to increase crossplatform spending.
  • Original Digital Video Content Spending & Trends – Robust growth: Ad spending on original digital programming has more than doubled since 2014. Nearly one-third of ODV dollars are going to Native advertising opportunities.

In addition, Yahoo partnered with Nielsen & Hunter Qualitative to collect insights related to different variables within the pre-roll and native video ad formats. The study suggests the greatest growth in digital video consumption is coming on mobile devices, while traditional TV viewing time has declined slightly.

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The study further suggests cross-platform digital video ads are more effective for brands than PC or mobile-only video campaigns.

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Yahoo’s video creative best practices:

  • Larger logos deliver higher brand metrics than smaller logos, and even more so for Millennials.
  • CTA’s should be included in video ads, as they generate increases in lower-funnel metrics such as Purchase Intent and Brand Recommendation.
  • The brand should be introduced at any point in the video ad. Key brand metrics are not impacted whether the brand is introduced in the beginning, middle, or end of the video.
  • Different ad tones should be employed to drive Millennials down the purchase funnel.
  • Video ads must be optimized for screen alignment.Horizontal is more effective at increasing familiarity and purchase intent when compared to the relatively newer vertical portrait ads.
  • 15/:30 ads in pre-roll formats as they drive higher aided recall, affinity, purchase intent, and recommendation than : 05.
  • :15 native video ads drive greater recall and purchase intent than longer video units.
  • When it comes to native, auto-start ads drive a slight increase in brand affinity and outperforms userinitiated ads in recall and fixation.

“Marketers and agencies are telling us they clearly see great value in original digital video programming,” said Anna Bager, Senior Vice President and General Manager, Mobile and Video, IAB. “This study demonstrates that the NewFronts has the ability to move ad dollars. Considering this year’s presenter line-up of top-tier, innovative media companies, and content creators, we expect that the event will inspire spend during the marketplace’s two-week period and beyond.”

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