Online Video: Skyrocketing Mobile Use - Leads Advertisers to Invest $30 Billion

Image credit: Tubular Insights

WARC, the renowned global marketing and intelligence service, has indicated in its latest monthly Global Ad Trends report that: "Advertisers are expected to spend a combined $30 billion on online video advertising this year, most of which will be paid to social media platforms despite the continuing risks of negative adjacency and ad fraud" [1]. The rise of mobile usage is driving the unstoppable global surge in video consumption, and so advertisers' investment in video is rolling at an all time high.

 $30 billion online advertising spend in 2018, accounts for 17.5% of worldwide video spend [1] 

"Online video is set to account for almost half of daily internet consumption, with mobile driving growth" [1] 

The Upward Trajectory

It is anticipated that the ad expenditure for online video (including pre/mid/post roll, broadcaster and social video-on-demand), will go up by a huge 27.5% to achieve $29.8 billion by the end of 2018. Conversely, the predicted increase in linear TV at just 1.1%, is only equal to $140.2 billion – which is virtually the level it had eight years ago. As a result: "online video is set to account for 17.5% of the total $170 billion spent on video advertising worldwide this year, up from a share of just 1.3% in 2010" [1].

2018: Online Shares in the US, UK & China

In the US - the world's biggest video market by a long way, the country's online share is predicted to rise to 19.3% - bringing in $15.3 billion. China's online video share is projected to rise to 24.7% -  netting $6.5 billion. And the UK's online video share is predicted to amount to 38.2% ($2.6 billion) of all ad-spend on video [1].

                                            Photo credit: Dealer Marketing Magazine

The consumption of online video, most of which is made on smart phones and tablets, is steadily increasing around the globe. "Projections show consumption will rise to 84.1 minutes per day in 2020, up 26.6% from a projected 66.5 minutes this year. Of this, 62.3% of the time will be spent watching via mobile devices (compared to 60.7% currently)" [1]. If these statistics are compared to broader media consumption, the figures clearly show that across the board, the online video percentage of daily consumption is most definitely on the up [1]. In fact, buy 2020: "it is expected to reach almost half (46.7%) of all internet usage and 17.1% of total daily media consumption" [1].

Global Media Analysis: Online Video Overview

• 17.1% online video percentage of all daily media consumption by 2020
• 17.5% online share of worldwide video advertising spend in 2018
• 46.7% online share of full video consumption each day by 2020
• 58.0% EMEA marketers intend to use mobile video for their campaigns in 2018
• 84.0% influencers’ share of  views on YouTube in Q1 2018 [1].

A Case in Point: OONA TV's Successful Online Advertising Strategy

OONA FREE TV - which is always providing winning ad options for channel owners and content holders, is currently set to provide AVOD (advertising-based live video & video on-demand), and its premium service to 185 million Indonesians; and is on course with its goal to deliver up to 300 top national and international channels, including: exciting films, top series, live sports, combat, interesting documentaries, educational broadcasts, cooking channels, FashionTV, celebrity news, cartoons, motoring, breaking news and more, to billions of people in other regions including other parts of Asia, Africa, South America, the Middle East, the US and Europe.

                                 Photo credit: Netimperative

OONA is the brainchild of serial entrepreneur and CEO, Christophe Hochart, a leader in digital strategy who focuses on user experience for competitive advantage. To that end, the platform is naturally geared towards programmatic advertising. OONA offers a strong flexible business model to channels and content holders via its OTT monetization methods, and this has become very popular with both large international, and smaller studios and content holders alike.

OONA's Advertising Options include: 

1. A programmatic advertising video (30 seconds), CMP and CPC revenue
2. Programmatic display advertising (30 seconds), CMP and CPC revenue 
3. Programmatic advertising short-video (pre-roll 6 seconds)
4. Pay per view micro-transactions

The bottom line is that programmatic advertising increases efficiency and saves money - two very valuable advantages. By opting for automation, it puts human beings out of the equation, and buying ads becomes less expensive and more dependable. Also, and very importantly, program channels and content holders are able to optimize their KPIs (key performance indicators), and attain a deeper insight into the behavior of consumers [2].

A Lucrative Future With Programmatic Advertising

There are a number of exciting predictions: 

1. Purchases of programmatic advertising will skyrocket, and ultimately, purchasing will surpass conventional, manual ad purchasing. Furthermore, industry experts predict that leading up to 2020: “programmatic advertising will drive 100% of advertising purchases. Organizations not championing automation will fall behind those that do" [2]. 
2. Traction will be gained in the field of DCO (dynamic creative optimization), the cutting-edge display advertising which delivers automatic multi-variate testing, namely, algorithms which interpret results and ascertain how to deliver advertisements for the most optimal performance. 
3. There will be more header bidding [2] such as that offered by the OONA platform. This empowers channels and content owners with a high tech method so they are able to offer inventory to multiple advertising exchanges at the same time.
4. Personalisation will become more intelligent. When channels and content owners are able to laser focus their programmatic ads to individual viewers, then they can leverage strategies including explicit demographics and geo-location [2].

Now, along with other like minded leaders in the industry, Hochart believes that although a substantial amount of artificial intelligence is already integrated into programmatic advertising, more high tech AI marketing applications have the potential to produce even better results, and for OONA, which already providers its users with a patented AI personal assistant, and is exploring machine learning, this is worth exploring.

Currently, Smart TVs, OTT platforms such as OONA, connected TVs, PlayStations and other game consoles, provide the best digital whistles and bells. Further, the maturing of Advanced TV, has come during a period when: "multiscreen interaction has become the norm' [3], and according to an eye tracking study conducted by Facebook in 2017: "a whopping 94 percent of US viewers keep a phone on hand while watching TV" [3]. - This is not surprising, considering that smart phones seem to have become bionic extensions of many peoples' hands!

Advertisers can now build campaigns according to users' hyper-connected, fluid and dynamic behavior across varied screens and devices - thanks to Advanced TV. According to eMarketer, in 2018: "almost 200 million will use some type of OTT platform [and it] forecasts these numbers will grow steadily into the next decade" [3]. However, as Chuck Moran of Martech Today notes: "not all elements of Advanced TV are set up to extract the data necessary to make targeted buying feasible" [3]. And this is where OONA Mobile TV is at an advantage. Step forward Siskabot.

Taking a Cutting-Edge Approach

OONA creates a deep personal one-to-one experience between the user and the world first AI genie in the app, Siskabot. This guarantees high tech CX which engages users at a completely new level, and provides important data which is necessary for successful ad targeting. It also enables consumers to connect with the ads that interest them, and can save them money. And on top of this, viewers can accrue rewards in the form of a virtual currency - tcoins. - tcoins can be gained just for watching content and ads, sharing content with friends and family, and connecting with Siskabot, They can then be redeemed for branded goods and services, discounts, meals, fun days out, free telephone minutes, and Telkom Indonesia products.

Siskabot appears in person when the app is downloaded, and has regular conversations with each user to:

1. Find out the exact type of entertainment content they love, such as series, films, fashion, celebrity news, cookery, combat, live sports, motors and bikes, educational programs, documentaries, news, etc. 
2. To discover what kind of branded products and services they would chose, and the cool video and other type of ads they would like to see. 

As OONA viewers are rewarded with tcoins for interacting with Siskabot, this means that a note of everything they want in terms of branded products and services, and viewing content, is kept up to date. Further, everyone who uses the OONA platform is safe in the knowledge that OONA operates with complete transparency, and all users' data is kept strictly confidential. Ultimately, the combination of standard data collection, and OONA's Siskabot's data, is a winning combination. 

References

[1]. Digital TV News (2018). "Rise of mobile drives advertisers to invest $30bn in online video despite ongoing risks."  http://www.digitaltvnews.net/?p=31411 Accessed 29 Aug. 2018.

[2].  Kloefkorn, Sheila (2017). “Trends In Programmatic Advertising To Watch This Year.” Forbes. https://www.forbes.com/sites/forbesagencycouncil/2017/05/16/trends-in-programmatic-advertising-to-  Accessed 29 Aug. 2018.

[3].  Moran, Chuck (2018). “The future of TV advertising in today’s digital world.” Martech Today. https://martechtoday.com/the-future-of-tv-advertising-in-todays-digital-world-215750 Accessed 29 Aug. 2018.