YouTube’s US video ad revenues - $1.13 billion in 2014

According to new figures from eMarketer, YouTube’s net video ad revenues—ads exclusively run on the site’s video clips, not including banners, search and other ads on the site, and excluding traffic and content acquisition costs—will grow in step with the video ad market overall, and the site won’t increase its market share significantly in the coming years.



Though its video ads are growing at a rapid rate, YouTube’s potential is currently hindered in part because its video ad placements are not consistent across the board. Advertisers like the volume of users and variety of content on YouTube, and the growth of various channels on YouTube, focused on topics such as beauty tips and gaming, gives advertisers that want to deliver relevant ads to those audiences a very well-targeted reach.

But they’re also increasingly drawn to platforms with exclusively high-quality, well-produced content. Much of the time audiences spend with digital video in general is not useful for advertisers, such as clips that are either too short to include ads or not brand friendly, and both are attributes of many user-generated YouTube videos that get the most views.

eMarketer’s outlook for both AOL and Yahoo is predicated on increases in digital display revenues due to ads placed against premium video content, which includes full-length shows, digital shorts and other professionally produced programming. AOL will see its US display ad revenues grow nearly 20% in 2014, eMarketer estimates, due in no small part to the success of its Adap.tv ad platform. Meanwhile, Yahoo’s US display business is currently in decline—expected to drop 3.6% this year—but aided by its intensified push into premium video content this year, we estimate that Yahoo’s display ad revenue growth will turn positive again in 2015.



Overall, US digital video ad spending continues to increase significantly, up 56.0% this year to reach $5.96 billion, according to eMarketer. Growth will taper off rapidly, however, slowing to 13.9% by 2018, when digital video spending will reach $12.82 billion, according to our forecast. Though video advertisers are following the broader trend of shifting dollars to mobile devices, mobile video ads actually suppress the overall market in part, since many smartphone video ads are short ads accompanying short clips and often cost less than desktop video ads.

Video’s share of digital display ads in the US will gain significant ground, increasing from 21.6% of all digital display advertising last year to 30.1% by 2018. Meanwhile, rich media—which can include video and interactive elements—will also gain share of the digital display market, taking away dollars from banners and other static ad formats.



One key factor holding back the digital video ad market, however, is the fact that more and more digital video content is streamed through subscription services such as Netflix or Amazon Prime Video—neither of which support advertising. In addition, TV will remain by far the leading individual medium for ad spending in the US, totaling $68.54 billion this year—compared with just shy of $6 billion for digital video ads—and TV advertising will increase more than digital video in real dollars in each year throughout our forecast period.-eMarketer

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DoubleVerify Launches First Complete Video Ad Quality Solution

DoubleVerify.com launches Video+ -- the industry's first complete solution that protects advertisers and their inventory suppliers from the rising fraud and abuse in the digital video ad environment. 

With online video advertising expected to double in the next two years, Video+ provides the transparency and safeguards necessary to deliver a fraud-free, brand safe, viewable video ad.

DV Video+ authenticates the quality and impact of each video ad impression across 4 important areas:

• Brand Safety: the quality of the video content that an ad is running in
• Fraud Protection: if the video ad is served to a non-human bot
• Video Viewability: if the video ad is never viewed, partially viewed or seen in its entirety
• Engagement: if the video ad was on auto play or initiated by the user, with sound on or off, or running in an inferior format

DV advanced technology uncovers the most complete set of problems where video ad fraud and abuse can occur, including:

• Video ads that are served to non-human bots
• Video ads integrated within video content that is offensive and objectionable
• Video ads that 'play' automatically in the background even when the user didn't activate them
• Video ads running on a video player too small to be seen by the user
• Video ads that are barely viewed, rendering them completely ineffective
• Video ads that run within a low quality banner or video game, when the advertiser is paying for a premium video placement.

DV Video+ is the latest advancement to the company's broader Impression Quality suite of services that authenticate the quality and effectiveness of each impression in a digital ad campaign. DV Impression Quality solutions maximize performance across five critical dimensions - ad viewability, brand safety, fraud protection, impression delivery and ad prominence - that give brand advertisers and media sellers a comprehensive view of the quality and effectiveness of their digital media campaigns.

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Interest in Video Ads Jumps 45% [study]

Online Video Ad Growth Strong Even as Agencies Question the Value 
A recent survey of media buying agencies found that 45% of those polled are more interested in digital/online video than they were a year ago, while streaming/online radio saw a 53% increase. Overall, video dominates as 67% of agencies said that their clients’ primary focus for campaigns is video advertising (which includes traditional TV, cable, and network, as well as digital video). The second quarter survey of agencies was conducted by STRATA, the leader in media buying and selling software.



YouTube is the most dominant site within digital video, as 72% of agencies said their clients are interested in advertising on that medium, up 5% from last year. HULU followed at 36%, a 32% jump from 3Q13. Despite the strong growth for digital video, agencies still question the value of online video ads. Almost half (47%) said they are fairly confident they are getting a good value for their money in recent digital video ad purchases, while 40% say they are unsure.

Driven by television along with digital advertising, the overall ad economy appears to be strong as 62% of agencies say their business is increasing this quarter compared to the same time last year, representing an all-time high for the STRATA Agency Survey.  Spot TV continues to be the top source for advertisers as 55% say their clients are the most interested in that medium, the largest percentage in 22 quarters of the survey. For spot radio, 13% of agencies responded that that medium is receiving the most interest, up 32% from a year ago.

Long-form digital video content is increasingly mirroring the 30-second TV ad experience, further blurring the lines between devices. This industry needs to make it easier to buy video, regardless of the platform, and provide the right measurement and accountability to help our buyers purchase digital video at scale.

The use of programmatic buying also continues to draw differing opinions from agencies. Thirty-nine percent of agencies are still undecided as to whether they trust programmatic to carry out their media buying, while an equal amount of agencies believe that programmatic buying is effective in reaching their clients’ target audiences. The most popular form of programmatic buying, according to agencies, is digital, with a third of agencies polled stating they use programmatic to purchase their digital ads.

Other key findings: 
• 89% plan on using Facebook in client campaigns, which is the third highest number in the STRATA Agency Survey since 2008. YouTube (53%), Twitter (50%), LinkedIn (36%) and Pinterest (32%) followed.
• Pinterest had the largest year-to-year growth, jumping up 31% over 2Q13.
• 51% project the second half of 2014 to be better than the first half, up 19% from the second quarter of 2013.
• 31% are less interested in Out of Home advertising than a year ago, the largest percentage since 2008.

Take your video marketing to the next level. 
Call Jeff at VMakers at 888-712-8211. 

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Trusted by Disney, Warner Bros, NBC, Paramount, CBS and ABC.
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