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Programmatic Revenue Sees 119% Growth in Q2; 79% of Consumers Prefer Video Advertising

ExchangeWire Research’s weekly roundup brings you up-to-date research findings from around the world, with additional insight provided by Rebecca Muir, ExchangeWire, head of research and analysis. In this week’s edition: Programmatic revenue up 119% in Q2; 79% of consumers prefer video advertising; and 3.25 hours, average daily time spent on mobile.

Premium inventory moving to private marketplaces

In Europe, eCPMs increased by 25%, according to Ooyala’s ‘Global Video Index Q2 2015’. Programmatic revenue increased 119% quarter-on-quarter. The growth is notable as European premium content providers shift their programmatic trading strategies from open to private marketplaces, or direct transactions.

ID-based transactions grew at 79% in Q1 2015, with growth at double the rate in Q2 at 176%. Premium content providers are seeing increased value in quality inventory, with increased direct programmatic trading providing a significant increase in revenue.

Dilem Güler, digital director of Expressen, commented: "Trading our inventory in private programmatic settings proves to be incredibly impactful to our business as the demand and willingness to purchase our premium inventory is high from our advertisers."

Video preferred advertising medium for consumers

Globally, nearly four-fifths (79%) of consumers prefer to see advertising via video, according to new research by Brightcove. Around a quarter (24%) of consumers said that video was their most trusted source of advertising, with 44% claiming it was more appealing to them, and 28% said it was more engaging than other forms of advertising.

Over a third (35%) stated that high-quality advertising is memorable, leading to 39% of consumers researching the brand further. Better quality streaming (32%) and faster launch times (31%) were cited as the main issues for video advertising. Steve Rotter CEO Brightcove commented: "More and more, brands are starting to view video as an opportunity for engagement that sits at the heart of the marketing strategy – not just as an add-on. By delivering a high quality, relevant and engaging video experience to end users, marketers can benefit from increased loyalty, higher brand engagement, more content sharing and higher referral rates."

Millennials at the forefront of mobile internet usage

Globally, millennials are spending an average of 3.25 hours a day online via their smartphone, accounting for 43% of their online time, according to GlobalWebIndex’s ‘Q3 2015 GWI Device Summary’. Consumers in LATAM spend the largest amount of time online on mobile (3.5 hours) followed by those in the Middle East and Africa (3.37 hours).

Globally, desktop/laptops are still the most commonly owned devices (88%), followed closely by smartphones (79%). Nearly half (47%) of consumers own a tablet, with 35% owning a smartphone. Just 5% of consumers in Europe and the US own a smartwatch, with this market being driven by consumers in China (20%).

One-in-four internet users have used a VPN/Proxy server, with better access to entertainment cited as the main motivation, with 25% of internet users employing ad-blocking software.

Majority of brands see website traffic correlation with TV advertising

In the US, 82% of brands saw a direct correlation between their TV advertising and website traffic, according to findings for the Video Advertising Bureau (VAB). On average brands had increased their TV ad spend by 22%, leading to a 24% increase in website visitors.

Of the brands that had seen website visits decreasing, the majority (70%) had decreased their TV spending, by an average of 10%, leading to a 9% reduction in website visitors.