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Twitter is testing a new way to deliver video ads more akin to the process of buying traditional TV commercials, according to Ad Age.
Twitter is testing guaranteed pre-roll video ads with Dentsu Aegis Network and about a dozen brands the multinational digital marketing company represents. Guaranteed placements ensure these brands a minimum amount of ads that run before premium videos, and can be targeted to specific demographic segments. If successful, the new capabilities can roll out to a broader set of Twitter’s advertising clients, and help drive some TV ad spend to the platform. Here are a few observations from the partnership:Bridging the gap between traditional TV and digital media. TV ad buyers are accustomed to locking-in guaranteed commercials ad space during the upfront process, typically held over a few weeks in spring. By replicating some of that process, Twitter is appealing to traditional TV advertisers by providing a simplified ad buying experience, while also committing to a minimum reach. Having high-quality, premium video content is important. Pre-roll guarantees will run prior to premium videos, which includes content from TV networks, digital publishers and sports leagues, per AdAge. Twitter’s strategy is focused around live videos, and it’s imperative that the company strike more media licensing deals to increase the amount of high-quality inventory on the platform. Traditional TV advertisers buy commercials on prime time shows with massive audiences, so Twitter has some work to do in convincing brands to run guaranteed video ads on their platform. Content that ads run inside IS pre-approved by Twitter’s clients. Twitter will allow brands to chose the content that ads run prior to, allowing a higher degree of control that other digital properties don’t necessarily offer right-out. For example, Facebook does not let brands chose where their ads are delivered. However, letting TV advertisers chose certain content types could help alleviate concerns over brand safety. Baking in third-party measurement for verification. These ads will meet standards set by the Media Rating Council (MRC), and will be verified by Integral Ad Science. Third-party verification of video ads on digital and mobile platforms is a trend becoming increasingly important for advertisers. With a slow of recent reporting errors from Facebook and other digital properties, third-party will likely become an industry standard and expectation for video advertisers.
Consumers continue to increase their time spent consuming digital media, while advertisers continue to increase their ad budgets into digital channels.
The influx is not expected to let up in the near future. The US digital advertising industry will continue to experience remarkable growth through 2021 to reach nearly $100 billion in annual revenue, driven primarily by the sustained migration of ad dollars from traditional TV to digital video and the continued increase of social spending.
Overall, the strong growth of the US digital ad market can largely be attributed to increased time spent by consumers on digital media and brands' increased comfort with allocating budgets to digital formats, particularly on digital video. In a recent 2016 survey of almost 400 US ad agencies and marketers, the IAB found that two-thirds of respondents plan on increasing spending on digital video in the next year.
Moreover, mobile will become the top destination for digital ad spending as advertisers continue to attempt to resolve the disconnect between the rapid growth in time spent on phones and tablets and the relatively small share of ad budgets that are allocated to such platforms — known as the mobile opportunity gap. In fact, mobile is set to eclipse desktop ad spend by 2018.
Dylan Mortensen, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on U.S. digital media ad revenue that forecasts revenue trends over the next five years and outlines the key growth drivers for overall digital ad revenue in the U.S.
Here are some key points from the report:US digital ad revenue is expected to reach nearly $100 billion by 2021, according to BI Intelligence estimates. This represents compound annual growth of 8% from the $68.9 billion expected in 2016. Mobile is positioned to become the top destination for digital ad spending as advertisers continue to attempt to close the "mobile opportunity gap." Digital video advertising will grow faster than any other segment over the next five years, as consumers shift time spent online to phones and tablets. Revenue in this category is forecast to rise from $8.5 billion in 2016 to $23 billion in 2021. Social advertising in all formats is gaining traction and will be among the key drivers of digital ad growth in the next five years. Social ad revenue is poised to climb to $30.8 billion by 2021, up from $15.5 billion this year. Artificial intelligence, augmented and virtual reality, and sponsored content will help propel further digital ad growth in the next decade.
In full, the report:Forecasts US digital ad revenue through 2021. Highlights the rising popularity of digital media with consumers and brands. Explores why digital video advertising growth will exceed all other formats over the next five years. Outlines emerging technologies that will help propel ad growth in the next decade.
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