Advertising in audiovisual formats does not give up. Media buyers continue to increase investment in video advertising, particularly on connected television (CTV). In the digital media space, buyers are spending 36% of total ad spend on video advertising (excluding TV formats). This is revealed in the report The State of Online Video Advertising in Europe, published by PubMatic, a technology company specializing in digital content, in collaboration with IAB Europe.
The data in this report, extracted from research based on a survey of more than 140 online video buyers from 31 European markets, also indicates that the most purchased video advertising is the mobile web. A quarter of media buyers spend more than 61% of their digital budget on this channel.
Likewise, two thirds of digital buyers are investing in CTV, although with a smaller percentage of the total budget.
“Media buyers are excited about the potential of CTV advertising as it offers a cost-effective way to reach audiences who watch much less than traditional TV,” said Hitesh Bhatt, Senior Director of CTV/OTT, EMEA at PubMatic. . “This attracts the big brands, while opening up an opportunity for smaller brands to invest in TV advertising without the huge cost of linear TV,” he stressed.
The study also revealed some of the secrets of how buyers work when deciding their programmatic advertising strategies. For example, when media buyers find the same programmatic video inventory available across multiple selling platforms (SSPs), which is often the case, nearly half of them say performance KPIs are the most important factor for decide what to work with. It is followed by the cost (26%) and data activation (16%).
Accuracy in audience selection
“This focus on KPIs as a deciding factor in selecting an SSP underscores the importance of maximizing audience personalization, a known driver for improved performance. Combining first-party data from brands and publishers with independent discovery solutions helps better predict consumer behavior, thereby maximizing the size and accuracy of customizable audiences on the open web,” says Bhatt.
“Today, A/B testing of different personalization strategies is one of the best ways to determine which partners can deliver the best performance. Early tests show that a portfolio approach offers the best performance », he maintains.
Lack of measurement between screens
On the other hand, this report indicates that the disappearance of third-party cookies has changed the approach of buyers regarding online video advertising in browser environments. However, programmatic advertising remains strong, with two-thirds of respondents allocating the majority of budget to programmatic channels.
The key to driving more revenue in digital video will be solving the lack of cross-screen measurement, cited by 46% as the biggest hurdle. 57% actively seek more measurable formats. Although measurement is a significant challenge, almost a quarter (23%) of digital media buyers are planning digital campaigns as cross-screen, including television in that definition.
Commenting on the study, Marie-Clare Puffett, Director of Marketing and Industry Programs at IAB Europe, commented on the study: “The IAB Europe and PubMatic study on the state of online video advertising provides insight into the direction this ad market is heading in the future. growth in Europe. The results will help advertisers, publishers and the digital advertising industry in general to plan and make the most of the opportunities that lie ahead.”
“This report shows that advertisers view online video as a strong channel for brand building. However, there is also a clear concern around cross-device segmentation that will need to be addressed if the value of online video advertising is to be fully realized. Given the flair for innovation in the digital advertising industry, I am fully confident that these concerns will be overcome and online video will continue to be an important channel for brand building,” she concludes.