Publishers are putting their video ad budgets into Facebook: 50.2 percent have run Facebook ads, while 31.1 percent have run YouTube ads. Twitter, Instagram, LinkedIn, and Google+ come next.
That data comes from “The State of Digital Advertising for Publishers,” a report issued today by online video advertising technology agency Mixpo.
“Due to Facebook’s first-party data, mobile-first ad formats, and advanced targeting and optimization capabilities, brands and publishers are increasingly turning to Facebook over YouTube as the preferred way to reach audiences with video,” says Justin Kistner, vice president of product at Mixpo.
The biggest trend in digital right now is video, say those surveyed. Look for online video advertising to grow to nearly $10 billion this year.
After questioning 263 U.S. advertising pros who work at U.S. media companies, Mixpo found that video pre-roll, interactive video pre-roll, and rich media in-banner video ads are believed to have the strongest return on investment (ROI). Ads viewed as less effective are rich media without video, banner display ads, and social platform ads. Mixpo notes that in-banner video now plays a larger role in ad strategies as publishers try to fill a video supply gap by adding video to ad formats that traditionally haven’t ad video.
Respondents had positive feelings about programmatic advertising, with the majority seeing it as an opportunity, not a threat. The report says 59 percent currently use programmatic to drive audience extension, while 17 percent do not, but plan to do so in 2017. As CPMs rise, programmatic is being use for all inventory, not just remnant inventory.
Viewers increasing turn to mobile devices, but advertising hasn’t yet caught up. Mixpo finds that over half of publishers’ digital traffic comes from mobile devices. Publishers invested in mobile-first platforms and experiences to meet this demand, but monetization remains a challenge. Consumers spend 25 percent of their time on smartphones, the report says, but mobile gets only 12 percent of ad budgets.
For more, download the full report for free (registration required).