In this week’s Week in Review: Snapchat and Turner announce big partnership, ITV Launches a premium ad service, and conflicting ad spend growth forecasts paint very different pictures of 2017. To receive a weekly summary of industry news and other VAN interviews and videos, sign up to the weekly Video Round-Up.
ITV Launches Premium Ad-Free Service
ITV is to roll out an expansion of The ITV Hub offering a tiered ‘freemium’ service allowing users to pay for enhanced features including not receiving ads. ITV Hub+ subscribers can pay £3.99 per month to access content without ads.
Snapchat and Turner Announce Major Partnership
Snapchat and Turner will partner on ad sales collaboration, original programming from Turner’s TV portfolio, an extension of Turner’s live sports and a Snapchat Discover channel for the digital sports brand Bleacher Report. The move follows the social media giant’s partnerships with Viacom and Buzzfeed earlier on in the year.
Conflicting Adspend Growth Forecasts Paint Very Different Pictures of 2017
Next year’s global adspend growth will slow to its lowest rate in 15 years outside of the 2008/09 recession, according to forecasts by Magna researchers. The forecasts directly contradict those from Group M and Zenith, which predict a global rise of over four per cent next year. Magna’s predictions suggest global ad growth will slow noticeably next year to over three and a half per cent, due to the lack of cyclical advertising events as well as uncertainty surrounding the UK’s Brexit vote, Donald Trump becoming US president, and general elections in Germany and France. However, Group M predictions suggest that 2017 advertising is predicted at $547 billion, with digital’s share to reach 33 per cent.
Mediaset Seeks European Partners for Digital Platform
Despite the ongoing dispute with French group Vivendi, Italian broadcaster Mediaset is pushing ahead with its pan-European digital platform. The project was originally only proposed to Vivendi, but could now include broadcasters in France, Germany, Spain and the UK.
Facebook, Microsoft, Twitter and YouTube Pledge to Tackle Terror Content
Facebook, Microsoft, Twitter and YouTube have pledged to come together to help curb the spread of terrorist content online. The companies committed to the creation of a shared industry database of “hashes”, or unique digital fingerprints, for violent terrorist imagery or terrorist recruitment videos that have been removed from their services. The companies said no personally identifiable information will be shared, and matching content will not be automatically removed. Instagram have followed suit and introduced new tools to help silence hate speech this week.
Native Ads Generate Clicks at Up to a 40 Per Cent Higher Rate Than Other Mobile Ads
User-acquisition campaigns run by YouAppi’s OneRun platform this year show that native ads generate clicks at a 30 percent to 40 percent higher frequency and convert at double the rate compared to other kinds of mobile ads.
Top YouTubers’ Income Rises 23 Per Cent in 2016
PewDiePie topped Forbes’ ranking of the 12 highest-earning YouTube stars in 2016. The analysis shows they collectively earned £55m in the past 12 months, an increase of 23 per cent on last year. The list this year features four new entries, most of whom have capitalised on their enormous online following to earn six-figure book deals and sell merchandise.
VR Market Forecast Downgraded
SuperData has revised its forecast of VR sales for 2016, suggesting under 750k PlayStation VR units will be sold (their previous estimate was 2.6 million) and Google’s Daydream will sell just 261,000 (down from an expected 450,000). Samsung’s ‘Gear’ viewer is still expected to sell – as forecast – around 2.3 million units this year in total, according to Statista.
Brands Offered Chance to Take Over Piccadilly Lights
Coca-Cola and Samsung are amongst the first brands to sign up to take over London’s Piccadilly Lights for the first time, after Ocean digitised the iconic London landmark.
Digital Video Software Revenue to Top $9bn
The video software market is expected to exceed $9 billion (€8.39bn) in revenue by 2021, according to IHS Markit. The atomisation of media distribution and the switch from hardware-based technology solutions to cloud implementations are key drivers for the $3 billion in revenue growth over the next five years.
Brands Axe Ad-serving Rosters by a Third
Two years ago, one in six companies worked with more than nine ad servers, whereas today only per cent are working with at least seven according to a survey by the World Federation of Advertisers and Ebquity. The findings are based on responses from 30 companies in 14 sectors with a total global media spend of more than $30bn.
Media Agencies’ Profit Margin Improves
The top 30 media buying agencies’ profit margins improve, from 12.8 per cent to 13.9 per cent, but are still far lower than a few years ago, according to Kingston Smith’s latest report. They are one of the top performing sectors in terms of growth across the marketing disciplines. There are now only seven independent agencies left in the top 30, as ranked by fee income, contributing just 5.2 per cent of the gross income.
Integral Ad Science Launches Open Source SDK
Integral Ad Science (IAS) will open source its mobile verification software development kit (SDK) for media quality measurement. With this SDK, publishers will be able to measure their mobile inventory without the need to integrate multiple SDKs from various partners.
Xmas TV Ads Have Minimal Impact on Shoppers
Christmas TV adverts may help brands receive a vast amount of YouTube views, but have almost no impact on where the vast majority of consumers do their shopping, according to a survey by MoneySavingExpert.com. Just three per cent of shoppers said the adverts had a “big impact”, or “an impact” on where they shopped, whilst 69 per cent said they had no impact whatsoever.
Vidazoo Launches Product to Help Publishers Grow Video Views on Site.
Vidazoo has released a new product designed to tackle on site video distribution. The Video Discovery Platform will automate video content delivery and personalisation in real time to match ads with suitable articles across publisher libraries.
Ads Fail to Represent UK Populace as a Whole
Less than one in five people featured in UK ads last year were from ethnic minority groups, according to research by Lloyds Banking Group. This makes ads more ethnically diverse than UK society according to the 2011 census. However, ads do less well elsewhere: less than one per cent featured visibly disabled people and fewer than 0.3 per cent featured single parents. Two-thirds of those surveyed said they would feel more favourable about a brand that reflected diversity in its advertising.
TabMo First Mobile DSP to be Certified by Nielsen Digital Ad Ratings
TabMo, the programmatic mobile video advertising company, is the first mobile demand side platform to be certified by Nielsen Digital Ad Ratings. The Nielsen certification will enable TabMo to verify reach to UK advertisers and allows advertisers to track their reach across different demographics.
Partnerships of the Week
SpotX and VICE Launch Partnership for Online Video Advertising
SpotX will be providing all digital platforms of VICE within Europe with the necessary technical infrastructure for the automated sale of their video advertising.
Mars Media Partners with Protected Media to Combat Bot Fraud
Ad exchange Mars Media has taken steps to protect its clients from fraudulent traffic by implementing Protected Media’s cyber fraud solution to combat Botnets.
Hires of the Week
Xaxis Appoints Nicholas Bidon Global CEO
Xaxis has promoted EMEA chief executive Nicolas Bidon to global president, replacing Brian Gleason, who left the role to head Group M’s new [m]Platform.
Magnetic Appoints Time UK CEO Marcus Rich as Chairman
Magnetic, the marketing agency for the magazine sector, has appointed Time Inc’s UK chief executive Marcus Rich to be its new chairman.
Pre-Roll Completion Hits New Heights Amid Growth of Mid Roll
Broadcasters saw the highest completion rates for pre-roll ads, averaging better than 85 per cent for pre-rolls on computers, smartphones and tablets, and 94 per cent on connected TVs, according to Ooyala’s Q3 2016 Global Video Index. Mobile pre-roll ad impressions spiked to nearly 29 per cent in the quarter. Combined with tablet pre-roll ad impression, the two delivered 44 per cent of all broadcaster ad impressions, on par with the share of impressions delivered on desktop and laptop computers. Mid-roll ads are also muscling in, taking share from pre-roll ads. By the time viewers move several minutes into a video, they’re more likely to tolerate an advertisement.
This Week on VAN:
European Broadcasters Calls on EU for More Freedom to Compete with Online Video, read more on VAN
YouTube Reveals this Year’s Leading Christmas Ads, read more on VAN
Ad of the Week: English for Beginners, Allegro
Pretty much the perfect Christmas advert from this Polish auction site, showing the determination needed to make relationships work across borders and languages.