While digital ad spend continues to increase year over year, a few lingering questions still remain – how are we going to view and manage the dollars that are being shifted over from television budget to digital video? Will television teams buy digital video? What does the future of digital video look like?
If video killed the radio star, then it’s doing the exact opposite to digital. Many would agree that IP-based video is making a positive impact on digital media. Anecdotally, I’m hearing that video ad inventory on high quality content channels continue to be in heavy demand. CPMs are steady and healthy, and rate cards are remaining firm, almost to the point of being unreasonable. Viewership and impressions continue to grow and advertisers know it.
Widespread adoption of viewable impressions as a measurement standard for advertisers and publishers is set to take root, according to AdWeek. A recent eMarketer article reported that U.S. consumers spent more time in apps than on the web.
There’s no shock in finding out that consumers are watching large amounts of video online, nine hours per week in fact, according to Tremor Media.
What may come as a larger surprise is that consumers are watching 12 hours per week on their Connected TV devices—more than any other device – and that 38% of consumers visited a website mentioned in an ad they saw on their Connected TV.
Connected TV: Strategy Analytics is reporting that the global Connected FPTV (flat-panel TV) market will grow at a healthy rate of 45% annually during 2012 to reach 91 million units. And while only 40% of all FPTVs sold in 2012 are projected to be internet-enabled, this figure is set to rise to nearly 80% of all FPTV unit sales in 2016.
It’s not about traditional and digital channels anymore. Instead, it’s simply more screens. Now more than ever, it’s important to align all of these screens. According to a recent eMarketer article, nearly half of brand advertisers and agencies feel that online video is most appropriately aligned with TV, while 40% believe online video should be more aligned with display advertising.
