Week in Review: YouTube Turns Ten, Facebook Gatecrashes YouTube’s Party, OTT to ‘End Broadcast TV’

In this Week in Review: forget viewability, video ad measurement hacks webcams to move into likeability, ‘mobilegeddon’ arrives and Facebook crashes YouTube’s party. For a weekly summary of industry news and other VAN interviews and videos, sign up to the weekly Video Round-Up.

YouTube Turns 10

Happy birthday YouTube! Yesterday it was ten years since the first YouTube video, ‘Me at the Zoo’ was posted.

Facebook Opens Branded Video Program on YouTube’s Anniversary
Facebook has crashed YouTube’s 10th anniversary, with a branded-video program called Anthology. The program will have publishers and digital video producers including Vice, Vox Media, Tastemade and Funny or Die creating videos for advertisers, in collaboration with Creative Shop, Facebook’s in-house agency. Anthology’s business model is similar to a typical branded content deal, but advertisers will be required to run videos created through the program as ads on Facebook.

Pressure Mounting on Buy-Side CEOs: Turn’s Bill Demas Steps Down

Turn CEO Bill Demas has parted company with the DSP. Turn raised $80 million in a round led by asset management company BlackRock in January last year at a valuation of around $650 million. However, the company still isn’t profitable in spite of having some success in selling into agencies and marketers, a source told AdExchanger. A separate ad tech industry source told Business Insider: “Turn looks to be in trouble. They raised too much cash, have no window for an exit, and they have zero-visibility in this space. They have late stage funding from some pretty aggressive private equity firms who are running out of patience. This is the start of an ad-tech shake-out. There are very few suitors and no IPO opportunities in sight. And worst of all, most of them are not profitable after years and years of building out this model.”

OTT to ‘End Broadcast TV as we Know It’

The emergence of the likes of Netflix and Amazon Prime Instant Video signals “the end of broadcast TV as we know it”, according to media analyst Juniper Research. Continued growth in Western European and North American markets and the emergence of OTT players in the Far East and Asia Pacific will result in a surge of subscribers worldwide. Cost cutting of equipment and a surge of interest in 4K will also drive demand says the report.

Fewer Ads Mean Streaming TV Tops Traditional Viewing
Half of connected TV owners are more likely to stream content than to watch traditional TV because there are fewer commercials claims a study from The Interactive Advertising Bureau. The study also says that 40 percent of those surveyed consider TV commercials on connected TV platforms to be less intrusive than standard TV ads.

Facebook: ‘Video is Winning Auctions If It’s Higher Priced’
Advertisers are gravitating more toward Facebook for video uploads with many willing to bid higher on the format reports The Drum. The network now serves up more than four billion videos to users daily, a sharp rise on the 3 billion daily views it reported in January. However, the company declined to say how much of the video spike came from ads versus user-uploaded content.

Political Parties Failing at Digital Campaigning
Political parties are struggling to move beyond traditional methods and effectively embrace digital marketing. Traditional channels are cluttered with messaging from all parties whilst digital channels include key touchpoints that could sway undecided voters, says a report by Starcom MediaVest Group. The report found that unsure voters are also more likely to use social media and mobile to work out who to vote for. Despite overexposure on TV, people felt that news on TV and articles in newspapers were the key channels for influencing their vote.

Global 4K Display Market to Reach $52 Billion in 2020
Strong promotion of 4K display resolutions from TV makers, display manufacturers and distribution channels has successfully increased consumer awareness and boosted 4K LCD TV penetration in 2014, according to a new report from IHS Inc. Once a feature mainly found in next-gen TVs, 4K resolution displays are now being adopted in smartphones, PC monitors, OLED displays and notebook PCs. IHS forecasts that the 4K display market will be reach $52 billion in 2020.

Yahoo Launches New Video Ad Formats for Advertisers and Developers

Yahoo has announced two new ad formats: ‘native video ads’ and ‘install ads’ in the run up to its NewFronts presentation next week. With ‘native video ads’ branded content can be integrated into Yahoo’s homepage, digital magazines and Yahoo apps. Video app ‘install ads’ will allow marketers and developers to promote their apps across Yahoo and thousands of other apps through Yahoo Gemini.

YouTube App No Longer Available on Older Apple TV, iOS Devices
YouTube has announced changes to its YouTube Data API, causing many older apps to stop functioning. On the second-generation Apple TV or older, the YouTube channel will no longer be accessible, and on the iPhone, iPad, and iPod touch, iOS 7 or later is required for the YouTube app to function.

Social Video Takes off with Meekat & Periscope
Social video has dramatically increased in popularity of social video streaming apps took off in late Q1 according to Adobe’s Q1 Digital Advertising Benchmark Report. Social apps like Periscope and Meerkat came onto the scene in March 2015, with Meerkat averaging the most usage so far

9 in 10 Brits Couldn’t Live Without Broadband
Only one in ten UK broadband users say they could live without access to the Internet, according to 2,000 respondents surveyed by broadband, TV and mobile comparison site Cable.co.uk. Broadband is now seen as essential to run our financial and social lives.

Streaming, Binge-Watching and Multi-Tasking Shape US TV Consumption
Americans now prefer to stream TV content (53 per cent) rather than watch TV content live (45 per cent) according to Deloitte’s latest Digital Democracy Survey. The report also found that viewers aged 14 to 25 year olds watch more content on mobile devices than on actual TVs. So called ‘binge-watching’ of more than three shows in a row and increasing levels of multitasking whilst watching TV- particularly T ads- was also observed.

Is Facebook Trying to Edge Out YouTube? 
Hosting exclusive programming appears to be Facebook’s latest move toward becoming a dominant player in streaming video reports AdWeek. Popsugar, BuzzFeed and ABC’s Jimmy Kimmel Live recently struck a deal with Facebook, while a number of other publishers say they have projects in the works.

Ad Startup FameBit’s Long Tail Of Creators Grows To More Than 9K YouTubers
FameBit aims to help connect the YouTube stars of tomorrow with advertisers, reports Techcrunch. The startup has identified that most multi-channel networks — which help YouTube content creators build a business around their videos — are focused on the top 1 or 2 percent of YouTube creators. It, on the other hand, has built a self-serve marketplace connecting ‘long- and mid-tail creators’ with marketers who want to sponsor their videos.

Guardian Hails Video as ‘Great Unifier’ in Fragmented World of Digital Marketing
The Guardian has hailed video, as a simple, well understood format, as a unifier in the increasingly fragmented and complex digital marketing world. It also calls 2015 the year of online video, with platforms like Facebook and Twitter racing to build out offerings as comprehensive as established giants like YouTube or AOL.

German Court Rules Consumers Have the Right to Use Ad-Blocking Software
AdBlock Plus, a web extension which blocks online adverts, has been judged a lawful tool for consumers to use despite its capability to affect the earning power of websites reliant upon web advertising revenue. The ruling was made by a Hamburg court this week.

Netflix International Growth ‘Dramatic’ But Profits Not Yet Forthcoming
Netflix has seen its international subscriber base ‘dramatically’ grow since debuting outside the States in 2010, according to SNL Kagan. However, Netflix Inc.’s international business has yet to turn a profit.

Sky CEO: Netflix Having Little Impact
Speaking April 21 on Sky’s fiscal call, CEO Jeremy Darroch said that despite Netflix’s reported 3.5 million subscribers in the U.K., Sky continues to compete in subscriber growth and original content. Sky has also re-launched Now TV, a branded streaming media device manufactured by Roku that enables users to purchase access to live sports content channels without a contract.

BBC to Fund World News with Product Placement
The BBC is set to feature product placement on its global news channel for the first time as it seeks new ways to fund its global news operations. BBC World News will feature product placement on programmes such as technology, sport and travel documentaries, but not on its core news and current affairs output.

Channel 4 to Turn Off E4 to Encourage Young People to Vote.
E4 is the number one digital channel for 16-to-34 year old viewers, however, less than half of under-25s voted at the last election. To combat this, Channel 4 will be switching off their favourite TV channel for the day. The broadcaster is readying its audience with a TV campaign, to explain that when polling stations open at 7am on 7 May E4 will be switched off. It forms part of a wider push by Channel 4 to motive young voters to engage in the general election.

Martin Hubert Appointed New nugg.ad CEO
New nugg.ad CEO Martin Hubert takes over the management of the target group specialist on May 1st, 2015. The former CEOs Karim H. Attia and Stephan Noller will remain as advisers for the company.

Sky Reports Record Growth in UK, Germany and Italy
Sky has reported the highest customer growth in 11 years. Sky added 103,000 new retail customers in Germany and Austria – 61 percent more than the same period last year. Sky Italy also reported its best Q3 performance there in three years.

Google ‘Mobilegeddon’ Has Officially Arrived
Nearly two months after its announcement, Google has changed its algorithm to favour mobile-friendly sites. The move has been dubbed ‘Mobilegeddon’ since Google announced its new algorithm back in February. Websites that aren’t mobile-friendly will be demoted in the rankings, which likely means a drop in traffic from a mobile audience. The changes apply to individual pages, not entire websites, notes Google in a blog post confirming the move.

EC Awards Realeyes €3.6m Grant to Measure Ad Likeability
A grant of €3.64m has been awarded to Imperial College London and Realeyes to help develop automated technology to quantify the link between likeability and emotions. Realeyes measures people’s emotions via standard webcams as they watch video content. The facial coding technology can currently measure the seven basic emotions (e.g. happy, surprise, scared etc.) as well as engagement. The grant will develop the ability of standard computer webcams to automatically detect whether a person likes or dislikes what they’re seeing as ‘likeability’ is a complex emotional state, which automated emotion measurement technologies cannot currently measure.

Satellite Dishes Banned in Turkmenistan
The government of Turkmenistan has banned all satellite dishes, and is in the process of ‘demolishing’ existing satellite installations. The intention is to fully block access to international TV and radio signals coming into the country via satellite according to a report in The Times of Central Asia.

New Technology from AdSparx Replaces TV Ads with Targeted Ads Automatically
AdSparx, unveiled new technology at NAB 2015 that automatically detects TV ads in Online TV and replaces them with targeted video ads. This technology will enable Over The Top (OTT) TV companies to monetise TV ad breaks with the industry standard VAST video ads.

Drawbridge Cross-Device Connected Consumer Graph Is 97.3 Percent Accurate
Nielsen has analysed a portion of Drawbridge’s probabilistic ‘Connected Consumer Graph’ against a third-party sample of known user login data. The model was 97.3 percent accurate in indicating a relationship between two or more devices.

This Week on VAN:

Video’s Wild West is Getting Wilder: Most Video Advertising is Now Served in MPUs, read more on VAN

Rightster CEO Patrick Walker on MCNs, YouTube’s New Competition and Millennials, read more on VAN

Two in Five Connected TV Users Say they Spend 50 Percent of their TV Viewing Streaming, read more on VAN

Ad of the Week, ‘Fuelled by Bullsh*t’, Morgan Spurlock & Toyota, Droga 5
Toyota has released its latest ad – ‘Fueled by Bullsh*t’ – which shows how hydrogen can be taken from cow poo to fuel a car. The ad, directed by Morgan Spurlock of ‘Supersize Me’ is an effort to convince sceptics of fuel cell vehicles and promote its hydrogen-powered Mirai that launches this fall.

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