Annual report shows revenue growth, higher fill rates and stronger yields
The second annual State of the Video Industry Report, released today by IAB Australia and Adap.tv, a division of AOL Platforms, has provided further evidence that the medium is growing quickly, with publishers reporting increased revenue, higher fill rates and stronger yields, whilst advertisers are using increasingly sophisticated methods to deliver efficient outcomes.
The report surveyed more than 130 media professionals on both the buy and sell side of digital advertising. It is compiled annually, mirroring similar Adap.tv partner studies in the US and UK, with a sample of over 800 marketing professionals globally.
The Australian report shows that, on top of an already strong market that grew 78 percent last financial year, buyers intend to increase their spend by 37 percent in the coming year. Most of the expenditure has been deflected from other channels, particularly free-to-air TV and print.
The scarcity of inventory is an issue that continues to concern buyers, something which Alice Manners, CEO of IAB Australia, describes as a nice problem to have: “Publishers tell us inventory levels have risen 42 percent in the last year, whilst fill rates have also increased. That shows the insatiable appetite for video content. We can expect inventory levels will continue to increase over the next few years, with particularly strong demand for long-form inventory and Australian content”.
Mitch Waters, Adap.tv’s managing director in Australia, says the report also highlights the increasing importance of data to drive purchase decisions, with 86 percent of agencies using data to target or verify audiences across their video buying decisions: “Programmatic trading is enabling buyers to develop an increasingly sophisticated and accountable approach to their buying, whilst giving publishers immediate intelligence on the sort of content that is in-demand and providing the highest yield”.
Other highlights from this year’s report include:
- 84 percent of buyers still purchase direct from publishers, 66 percent through demand-side platforms and 38 percent through private marketplaces.
- Scarcity of inventory is most pronounced in long form content, with 88 percent of buyers indicating it was an issue.
- Nearly two thirds of publishers have seen their CPMs increase by 25 percent or more in the last 12 months.
- Sellers indicate that over one-fifth of their inventory is being purchased programmatically and over 60 percent are making their premium inventory available through these environments.
- 52 percent of publishers believe programmatic can assist with better merchandising of their inventory.
- Mobile video shows the strongest growth from last year with over 80 percent of buyers now purchasing mobile video inventory.
The full report can be downloaded at http://www.aolplatforms.com/AU_SOI2014_Report
Adap.tv, a division of AOL Platforms, is transforming the way video advertising is bought and sold. Adap.tv's video intelligence platform, Pathway, helps many of the world's largest brands, agencies, publishers and ad networks intelligently, effectively and safely plan, buy and measure billions of video ad trades programmatically every month across web, linear TV and mobile video.
Headquartered in San Mateo, California, Adap.tv has US offices in Chicago, Los Angeles and New York, and international offices in Australia, India, Japan, Singapore and the UK.
For more information, please visit adap.tv, or follow Adap.tv on Twitter @Adaptv, Facebook at facebook.com/adaptv and LinkedIn at linkedin.com/company/adap-tv
About the Interactive Advertising Bureau
The Interactive Advertising Bureau (IAB) Limited is the peak trade association for online advertising in Australia and was incorporated in July 2010. As one of over 40 IAB offices globally, and with a rapidly growing membership, IAB Australia’s principal objective is to increase the share of advertising and marketing dollars that interactive media captures in the marketplace.
IAB Australia’s board includes representatives of AIMIA, Carsales.com, Fairfax Media, Google, Mi9, Network Ten, News Australia, REA Group, SBS, Telstra Advertising Network, TressCox Lawyers and Yahoo!7. It has four objectives:
To develop, coordinate and promote industry standards and guidelines that make interactive advertising a simpler and more attractive medium for agencies, advertisers and marketers
To prove and promote the effectiveness of interactive advertising to advertisers, agencies, marketers, and the press
To be the primary advocate for the interactive marketing and advertising industry
To expand the breadth and depth of IAB membership while increasing direct value to members
For further information about IAB Australia please visit: www.iabaustralia.com.au