Many advertisers are serving the wrong type of ad for the platform and that’s hurting their results, says Adobe. According to The State of Digital Video, a recently released Adobe Digital Insights report, mobile-formatted ads on mobile devices get a 60 percent completion rate, while desktop-formatted ads on mobile devices get only a 47 percent completion rate.
Consumers move away from a poor experience, says Campbell Foster, director of product marketing for Adobe Primetime.
The report is limited to TV Everywhere viewing in North America, and uses a sample of over 4 billion TVE authentications. TV Everywhere refers to authenticated online viewing by cable or satellite subscribers. This report is the Adobe’s first to include ad data from brand advertising company TubeMogul, which it acquired in Q1 2017.
The demand for TV Everywhere ads has caused their price to outpace inflation by 6.5x, rising by 13 percent in two years. But that could reverse in the near future:
“Historically, digital video was a free add or just a throw-in for a linear TV buy, so a large broadcaster like Univision would do a deal with a big advertiser, they would guarantee a certain audience size, and to get the deal done they would throw in the digital inventory for free,” Foster says. “That’s no longer the case. They’re starting to value their digital inventory in ways that they never did before. As more and more OTT and TV Everywhere ad inventory becomes available, the scarcity issue could go away, and as the supply increases you’re going to naturally see prices come down.”
TV Everywhere viewing is at an all-time high, with 20.5 percent of North American cable subscribers watching TVE content at least monthly in Q4 2016. That’s up from 17.4 percent the year before. While most TVE viewing is still done on mobile devices, the percentage for mobile is declining while the percent for TV connected devices is on the rise. In North America, 46 percent of TVE starts are on mobile, 32 percent on TVs, and 22 percent through web browsers.
Marketers looking for TVE viewers should look to the living room. Adobe found that the growth of TV connected devices (which includes connected TVs) contributed to a decline in TVE video starts on mobile devices or computers across all genres. The only place where mobile video starts grew was for news content.
The rise in living room TVE viewing has much to do with measurement changes, Foster says. Nielsen recently began including TVE viewing in its C3 and C7 ratings, giving broadcasters a new incentive to build and promote apps. Foster notes that he’s seen broadcasters using their house ad inventory to push their apps.
For more, download Adobe’s State of Digital Video for free (no registration required).