Mobile drives video ad growth, but 48 per cent of publishers worry about mobile consumption trends

mixpo

Mixpo, the online video advertising company, recently published a new report that discusses the top trends in online video and digital advertising right now. Based on the answers of 250 US ad professionals, The State of the Digital Advertising for Publishers report finds that video’s dominance is being driven by mobile, growing 47% the year-over.

Among those who have run video campaigns on social media, Facebook ranked top for paid posts. Over 30% of advertisers have also used YouTube.

Social video advertising

 

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Source: mixpo.com

Another key area of influence is programmatic advertising. 59% of publishers said they currently leveraged programmatic to drive audience extensions, compared to just 17% not yet using programmatic technology.

Similar to video, mobile is driving the increase in programmatic ad spend and is set to reach $15bn in the US in 2016.

Among those publishers interviewed, Mixpo found that 50% of their digital traffic is now mobile. Publishers have become aware of the consumer shift to smaller screens and made major improvements to their mobile platforms. However, the channel still has room to perform even better. Whilst users spend 25% of their time on mobile, it grabs a mere 12% of ad budgets. There’s a $21bn opportunity for ad revenue to catch up with media consumption.

Mixpo says that there are a range of challenges ahead for publishers to tap into that opportunity and indeed, 48% of publishers themselves are ‘extremely’ worried about the increase in mobile consumption.

Publishers worry about mobile consumption trends

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Source: mixpo.com

Both, video and location-targeted ads were cited as top opportunities within mobile advertising.

Mixpo says:

Publishers must adopt mobile-first ad formats. Consumers may be arriving at a new destination (mobile) and from a new source (Facebook), but quality content is still the great differentiator. By pairing premium content with impactful mobile ad opportunities, publishers can play the supply/demand curve to their favor. In time, as mobile targeting improves, audience tracking will combine with better mobile ads to allow publishers to follow the same formula for success that they have always relied upon: quality content + premium ad placements + a valuable audience = revenue.

When it comes to metrics and ad analytics, publishers stick to the basics with reach and frequency generally seen as the most important across branded campaigns and engagement rates higher for direct-response campaigns.

Publishers should focus on educating their sales teams on digital performance measures and set standards for metric definitions.

Important metrics

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Source: mixpo.com

On the issue of ad blocking, 46% of publishers found it to be a major threat.

The report summarises:

Those who will win in 2016 and beyond will be those who produce premium content to demonstrate the quality of their audience, brand and inventory. It will be those who turn threats into opportunities by leveraging social and mobile to grow audience. It will be those who create operational clarity by consolidating vendor relationships to reduce duplication and streamline workflow. Importantly, it will be those who both develop ad product catalogs that scale with market demand and invest in educating their teams to increase their human and product value to advertisers at every point of a campaign, from pre-sales concepts to post-campaign performance translation.