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Will mostly U.S. based Online Video and Advertising Technology providers really be able to deliver the goods when it comes to the Latin American Online Video Market? What are the main challenges ahead? In order to find out more about the evolution of Online Video in LatAm, we asked major experts what online video formats they see growing the most in 2015. Below, their answers.

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Jorg Nowak, Head of Latin America, YuMe

“Video Advertising has arrived in Latin America and is certainly nothing new. At YuMe, our IAB and MMA Award winning ad units such as “Ngage” and others transform the traditional 30 second TV Spot/Pre-roll into an experience that engages the audience and create the brand recognition advertisers are asking for”.

The enormous opportunities presented by the Latin American and U.S. Hispanic online video landscape will be examined in-depth by major experts of the brand marketing, agency, media and measurement world at Portada’s Latin Online Video Forum on June 3 in Miami (part of #Portadalat.) Check out the evolving agenda and register!

Chris Stanley, CEO, Alcance Media

38859b2“Overall, I expect video to continue its strong growth as more advertisers see the benefits. As for the formats, pre-roll will be number one, but as more offerings become available in mobile pre-roll this should see strong growth as well”.

Mike Downs ‎VP, Hispanic & LatAm at TubeMogul

“Pre-Roll is the format growing most consistently, with the majority of that growth driven by mobile devices, and we believe that both will continue to develop in 2015. We work with advertisers looking for innovative solutions to deliver brand messages and will continue to do what’s best for them”.

Eric Tourtel, SVP and General Manager Latin American, Teads

iWl5-mjI_400x400“Pre-roll within a quality environment will not grow, quite simply because there are not any more inventories available (producing video content is expensive hence why there is not too much availability and it tends to be sold out immediately). Pre-roll within user-generated content may grow if advertisers prefer price over quality. Hope for users and advertisers mid-rolls and post rolls will not grow either since that would have a negative impact on the way people perceive brands (no one likes to be forced to see an ad while consuming video content).
I am convinced, thanks in part to our conversations with many brands and agencies, that Outstream formats will grow, and that inRead will soon be a commoditized format. Finally, 2015 will be the year of mobile! According to eMarketer, Latin America is the second fastest growing region for mobile phone internet user growth, ranked 2nd worldwide behind Central & Eastern Europe. eMarketer predicts Latin America will have 322 Million Mobile Phone internet users by 2018, a jump of 194M from 2014 (a 65%+ increase in 4 years alone).

In Mexico 94.7% of the mobile traffic goes through Wi-Fi

Research firm eMarketer expects  a very high growth rate of  mobile internet ad spending in Latin America, growing to US$2.24 billion  by 2018 from US$334 million  in 2014. One very important point to consider is that since the quality of mobile broadband’s is extremely low, people tend to use Wi-Fi on their devices all the time, to the direct detriment of the broadband quality available on mobile devices. For example, in Mexico 94.7% of the mobile traffic goes through Wi-Fi, which means we can deliver a lot of video on mobile. In our view the major growth in mobile formats will come from inRead and mobile-friendly formats”.

There will be a rapid increse in mobile internet ad spending, growing to US$2.24B by 2018 from US$334M during 2014

Manny Montilla Sales Director at Adap.tv

Manny_0165(1)“Although I think mobile video will grow tremendously in 2015, I think the more compelling growth to keep tabs on will be centered around publishers concentrating their efforts in generating more medium and large player inventory. The saturation of small player inventory and the increasing negative user experiences associated with them are making advertisers more and more prone to targeting away from small pre-roll inventory sources and concentrating their spends toward larger sized pre-roll sources”.

The opinions are manifold. As 2015 moves on, we should have a clear perspective on the format that best meets advertisers’ needs as well as users’ habits.

CHECK OUT:
10 things you need to know about the Latin American Online Video Advertising Market

Will Online Video Take Money Out of the Huge LatAm TV budgets?

The enormous opportunities presented by the Latin American and U.S. Hispanic online video landscape will be examined in-depth by major experts of the brand marketing, agency, media and measurement world at Portada’s Latin Online Video Forum on June 3 in Miami (part of #Portadalat.) Check out the evolving agenda and register!

What: AOL has begun selling TV ads to media buyers, using Adap.tv’s technology.
Why it matters: However, the company won’t say which national cable or broadcast networks run the ads.

aol y adaptvIn a move to capture the online video market, AOL has begun selling TV ads to media buyers, using Adap.tv’s technology.However,the company won’t say which national cable or broadcast networks have run the ads.

Adap.tv has spent the past six months applying the TV buying offering into its existing platform, applying more data sets, and striking inventory partnerships. Adap.tv new programmatic TV offering will use partners’ Nielsen and Rentrak panel-based audience measurements and set-top-box viewing data and consumer purchase behavior data,respectively.

Adap.tv’ s TV ad inventory has a reach of 90 million US households across nearly 100 cable networks.

The company declined to specify about where the ads are going to run, except that it’s “an inventory mix from MVPDs, and cable and network TV programmers.

For now, the ad inventory can only be reserved through the system, meaning the actual creative must be sent to programming companies to be inserted into the broadcast. According to AOL, The process still brings advantages for buyers looking to boost their media plans by adding data to it.

Bob-Lord-2x3“We’re on this mission of helping brand advertisers and agencies automate a lot of the mundane processes they have within the media buying processes,” said Bob Lord, CEO of AOL Networks(photo).According to Mr. Lord, television was in Adap.tv‘s sight since joining AOL in summer 2013 and will now be a main selling point, bringing efficiency to the television buying process.

Magna Global, the investment arm of IPG Mediabrands, was the first to buy linear television through the platform. Yet, Magna says they plan to do more of this kind of media buying. “This is the start of a vision for where we think the marketplace needs to go,” said Todd Gordon EVP Investment at Magna Global. By 2016, Magna Global hopes to put 50% of its spend through automated channels.Magna Global, connected its AMP data platform to Adap.tv, which Mr. Gordon said is helping the company buy television spots more effectively.

What: One month after its acquisition of Adap.tv, AOL has topped Google as the property with the most video ads watched.
Why is it important: In a move that exceeded the purchase of Huffington Post, Tim Armstrong is betting on video as the departure point of the Web’s ever-growing ad market.

Last month, AOL announced it had completed its acquisition of Adap.tv, thus consolidating its leadership position in digital video, said AOL’s Chairman and CEO Tim Armstrong. “AOL is well positioned to capitalize on two clear trends in the video space – the movement of advertising dollars from linear to online video and the shift from manual transactions to programmatic media buying”, Armstrong said.

According to ComScore’s Web video rankings for September, AOL topped Google as the property with the most video ads watched last month –3.7 billion views to reach 50% of U.S. online video viewers, compared to the YouTube parent’s 3.2 billion and 36% population span. This numbers prove that Adap.tv’s US $405 million (in cash and stock) agreed price is actually paying off. In August, AOL served 525 million video ads, and Adap.tv served 2.45 billion. Last month, those numbers bumped up to 597 million and 3.125 million, respectively.

However, as AdAge reports, AOL wouldn’t have one-upped Google were it not for Adap.tv, which remains a standalone entity within the company’s ad tech division AOL Networks. The ad tech firm accounted for 3.13 billion, or 84%, of the video ads attributed to AOL, which should result in an sizeable boost to the portal’s video ad revenues.

Says CNet that this news come one month after AOL overtook Facebook in the ComScore ranking of Web properties’ unique video views. Google is still the leader in that category by far, but AOL’s climb reflects Armstrong’s focus on video as the home of the fastest-growing ad market on the Web.

Sources: CNetAllThingsD, AdAge.

What: There’s an opportunity for online video to drive Hispanic media, as, on average, Hispanics watch more online videos compared to the U.S. consumer. Cisco forecasts that by 2016 two-thirds of mobile traffic will be video viewing, and approximately 70% of advertising spending targeting Hispanics is spent in television.
Why it matters: There’s such high growth potential in online video – they’re the highest CPM in digital advertising – and Facebook seeks between US $1-2.4 million a day for its in-feed video ad feature. For online video to become a revenue driver for Hispanic media, the content should not be recycled and repurposed – rather, the content needs to be creative in its own way.

The strong growth of online video usage and advertising has interesting implications for the Hispanic market. On average, each U.S. Hispanic person watched 1,176.2 minutes (over 19 hours) of online video in March of this year, according to ComScore data. As importantly, Hispanics watch more online videos per viewer than the average U.S. consumer (270 per month vs. 243 for the U.S. consumer). Mobile communications, so pervasive among Hispanics, are also being driven by video consumption. In fact, Cisco forecasts that by 2016 two-thirds of mobile traffic will be video viewing. Online video offers digital extensions of Hispanic radio, print media and pure play digital properties a chance to level the playing field in the traditionally broadcast advertising oriented Hispanic market. Approximately 70% of advertising expenditures targeting Hispanics goes into TV.

Online Video Advertising Offers Non TV Media a Chance in the Broadcast TV Oriented Hispanic Ad Market.

Online Video CPMs (cost per thousand viewers) are the highest in digital advertising, usually three to four times as high as display advertising CPM’s. This explains why Facebook is seeking between US $1 million and US $2.4 million a day for its new in-feed video ad feature. Because of the high growth prospects of online video advertising, a whole new ecosystem of video advertising placement firms, which also provide comprehensive audience data insights and RTB (Real-Time Bidding) and video content producers, has emerged. It includes companies such as Vevo, Hulu, Google’s YouTube, Machinima, Videology, TubeMogul and Adap.tv.

For online video really to become a revenue driver for Hispanic media properties it is crucial that it does not just become a way to repurpose broadcast content. The key is to invest in creative that is native to the digital medium. “As clients are not investing in creative, but just repurposing video, I believe there is a lost opportunity to make better ads, to connect better with the audience and tell better stories as we are not limited to smaller spots,” says Xavier Mantilla, Partner and Client Manager at UM in Miami.

We Need to Invest in This and Not Just Repurpose Videos.

According to Mantilla, while online video may be a media buy, at heart, it is a creative piece. If media agencies got more together with creative agencies, these would be much more successful. He adds that, “when we look at video campaigns that have had higher click-through rates we realize that the creative played a very big role, as well as where it was running, so this fusion of art and science needs to grow. The next big opportunity is to generate localized video advertising to speak to an audience from its natural point of view.” The local nature of newspapers and radio can make them a particularly good fit for a new wave of localized online video ads. But as Mantilla concludes, “We need to invest in this and not just repurpose videos.”

 

aolAOL has acquired video ad exchange Adap.tv for $405 million dollars in cash and stock.

Adap.tv´s revenue growth has surpassed 100% in each of the last three years, and last year it supported approximately 26,000 campaigns across 9,500 websites. The company offers (on the buy side) dynamic bidding and ad targeting, including RTB; and (on the sell side) yield management services to video publishers.

This is AOL’s biggest deal since Tim Armstrong became CEO in 2009.

Two trends are prevalent in the video space right now — the movement from linear television to online video and the shift from manual transactions to programmatic media buying,

This latest deal is about building out a set of ad technologies to better compete with Google and to offer marketers and agencies the ability to buy online video ads on a real-time basis. “Two trends are prevalent in the video space right now — the movement from linear television to online video and the shift from manual transactions to programmatic media buying,” Tim Armstrong, CEO of AOL, said in a statement.

Adap.tv is one of a handful of mature companies, alongside YuMe, Tremor Media, TubeMogu and Videology that are seizing the online video advertising  opportunity.

After the deal closes, the combined businesses will double AOL’s existing video ad revenue according to Amstrong.

Join us at PORTADA Mexico!

aolAOL has acquired video ad exchange Adap.tv for $405 million dollars in cash and stock.

Adap.tv´s revenue growth has surpassed 100% in each of the last three years, and last year it supported approximately 26,000 campaigns across 9,500 websites. The company offers (on the buy side) dynamic bidding and ad targeting, including RTB; and (on the sell side) yield management services to video publishers.

This is AOL’s biggest deal since Tim Armstrong became CEO in 2009.

Two trends are prevalent in the video space right now — the movement from linear television to online video and the shift from manual transactions to programmatic media buying.

This latest deal is about building out a set of ad technologies to better compete with Google and to offer marketers and agencies the ability to buy online video ads on a real-time basis. “Two trends are prevalent in the video space right now — the movement from linear television to online video and the shift from manual transactions to programmatic media buying,” Tim Armstrong, CEO of AOL, said in a statement.

Adap.tv is one of a handful of mature companies, alongside YuMe, Tremor Media, TubeMogu and Videology that are seizing the online video advertising  opportunity.

After the deal closes, the combined businesses will double AOL’s existing video ad revenue according to Amstrong.

Join us at PORTADA Mexico!