Video Advertising Predictions 2012: Ad Exchanges, New Markets, or Evolution, Not Revolution?


Yes, most of the predictions were already been made when VAN didn’t even exist. So instead of repeating the predictions made elsewhere, we have tried to look at what hadn’t been given much coverage up to now.  We settled on ad exchanges, emerging markets and to give voice to someone who believes that 2012 will be year of evolution rather than evolution.  It’s worth noting that contributors were specifically asked to comment on their areas of expertise.

Andrew Moore, Managing Director, SpotXchange

Andrew Moore is Managing Director of SpotXchange, one of the world’s leading video advertising marketplaces, reaching over 110 million unique visitors each month in over 20 countries.  Here Andrew gives his views on what he thinks will be happening with video advertising.

Overview
2011 was a very strong growth year for online video advertising with spend doubling year-on-year in the UK alone. This growth will continue in 2012 with the buying strategy of advertisers changing dramatically.

Audience led targeting

In 2011, there was an emergence of audience led buying for online video using third party data companies, allowing advertisers to combine targeting across both display and video.  This trend is set to continue in 2012 breaking down digital silos and delivering user-centric planning.

Programmatic buying

As an RTB leader, we know that programmatic buying will remain a major trend in 2012 and RTB for video will become established as a key buying strategy for advertisers.

Demand for RTB enabled video is growing exponentially and this will continue as agencies, their trading desks and DSPs all look to adopt programmatic buying beyond just display.

Private marketplaces

Another major trend for 2012 is premium publishers creating RTB enabled Private Marketplaces for video. This enables publishers to capitalize on this shift towards programmatic buying whilst retaining control on pricing and exclusivity of access.


NEW OPPORTUNITIES 

Aljosa Jenko, Founder and CEO of HttpoolAljoša Jenko is Founder and CEO of Httpool, the leading Central and Eastern European video, display and mobile ad network and full service online advertising provider.  Httpool also have 16 offices across various emerging markets, from CEE  to Asia.  Here Aljoša gives his views on what he thinks will be happening in emerging markets.

Video advertising will continue to be the fastest growing online advertising segment across most of the emerging market countries.  While it only represents two to four percent in total online advertising on average, some of the largest Central and Eastern European as well as Asian countries have been experiencing similar explosion in both online video consumption and ad spend as the most advanced markets.

Chinese are watching more video content online than on TV

In Poland for example, video advertising has more than quadrupled within the last two years and surpassed five percent of the total online advertising a year ago. In parallel, the Chinese are already spending more time watching video content online than on TV.

More premium supply likely to come online

With increased mobility, production and consumption of professional content and improved connectivity online and mobile video ads will secure an even more significant role in 2012. In fact, the major limitations for current negligible use of video ads across emerging markets have been scarce quality video content, insufficient broadband and smartphones penetration and relatively high video production costs.

Finally, shift in media consumption in combination with interactivity, targeting, pricing, optimization and measurement opportunities will incentivize marketers beyond major FMCG, fashion and automotive brands to allocate their budgets to this exciting channel.

VETERAN’S VIEWPOINT

Ashkan KarbasfrooshanAshkan Karbasfrooshan is Founder and CEO of Watchmojo, a premium content company with a library of over 7,500 premium videos.

Having asked a number of video advertising professionals for their input on 2012 predictions, and having published a list of things that should happen but won’t, I think 2012 will be marked by a steady continuation of all of the main trends we have been seeing for a few years now:

– viewers shifting consumption from TV to web,

– advertisers following suit,

– flight to quality of programming,

– scale and brands mattering more than ever;

However, I don’t see any one of these things accelerating overnight because the incumbent (TV) and the biggest marketers are content with the status quo.  This doesn’t mean that things won’t change drastically in 5-10 years but year-over-year change will appear slow and steady.

I know this isn’t sexy but in my 10+ years in online media and six years in online video, I think this is most likely scenario.

 


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