Advertisers are spending more on online videos ads than static banners
The total UK digital advertising market is worth £5.5 billion. This has increased by a 13.8% year-on-year rise. Digital advertising is divided into three sections: display ads (video, banner and content) is worth £2 billion, search ads is worth £2.8 billion and classified ads (assuming they are including recruitment and Gumtree/ebay etc?) is worth £692 million. Advertising with traditional publishers has been overtaken by interactive, social advertising.
Video is ‘the fastest-growing ad format’ accounting for 35% of all display advertising spend. Between January and June 2017, £699 million was spent on video ads, which is a 46% increase year-on year.
IAB’s report references YouGov findings that the average time people spend watching short videos has increased from 51 minutes to 2hours 21 minutes per week over the last three years.
Referencing the growth of time people spend watching online videos, John Mew (IAB’s CEO) said ‘it’s little wonder that video is the fastest-growing ad format as advertisers look to tap into the changing way people consume content.’
The most popular format for video is outstream (appearing anywhere on the page, usually in-between paragraphs) and social in-feed. The use of pre- or post-roll video formats, used at the beginning or the end of a video that has been selected to viewed, has declined.
It is not surprising that ad spend on social media sites grew by 42% to £1.05 billion.
The Digital Trading Director at the7stars media agency associates the power of online video ads with the growth of ‘online consumption, improvements in measurement, quality of placements, targeting and creativity’.
Mediatel’s report on IAB’s findings include opinions from: Celine Saturnino (Total Media’s Chief Commercial Officer), Michael Todd (Head of Advertising Industry Relations at Google UK) and Mark Jackson (Managing Director at Mark Collins and Company).
Michael Todd believes that the ‘46% year on year rise in video ad spend is encouraging to see.’
Todd adds, ‘Video is a powerful and personable way for brands to reach consumers who are highly engaged with the content they are watching.’
Jackson and Saturnino both express their view that these findings accurately reflect how consumers engage with content.
IAB diagram and logo