Mark this an another way the online video ad word is starting to look like the TV ad world: In Q1 2017, 40 percent of paid ad impressions on direct sold premium video were part of demo-guaranteed campaigns. That data comes from the latest Video Monetization Report form online video monetization company FreeWheel.
Despite the buzz around programmatic, the overwhelming majority of online premium video ads are direct sold. The rise in demo-guaranteed online campaigns is due to the convergence of TV and digital. While agencies used to have different departments managing campaigns on each platform, those groups have started to merge and buy cross-platform campaigns.
When TV buyers purchase online, they want the same guarantee they’re getting their desired audience. People can argue about whether or not demographic buying is outmoded, but it still provides the foundation for evaluating campaign success. The 40 percent figure comes from an examination of campaigns using FreeWheel’s Audience & Measurement suite. FreeWheel expects that number to rise:
“While this practice has always been present in digital video, we expect it to grow as more campaigns are sold as ‘converged,’ meaning that they have a single budget across linear TV and digital platforms, and as audience targeting and measurement capabilities improve across fast-growing platforms such as OTT and STB VOD,” the report says.
Because of this convergence, expect the ad mix on TV and digital to look more and more the same. Consumer packaged goods make up 19 percent of direct sold premium digital ad views, with financial and business services next at 15 percent, followed by auto at 12 percent.
FreeWheel’s report notes that online video starts grew by 12 percent in Q1 2017, while video ad views grew by 15 percent. Live news was a big growth area, as was set-top box living room viewing.
For more results, download FreeWheel’s Q1 2017 Video Monetization Report for free (registration required).