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From the very beginning of AdMonsters Screens in London last November, BBC Worldwide’s Tom Bowman made it clear: TV is not going anywhere. Perhaps a few years before, digital advertising folks had been intrigued by digital video becoming the great slayer of the TV beast as cord-cutters overran the mediascape, but research keeps suggesting viewers are watching even more TV – even as they consume hellacious amounts of digital video.
Advertisers are definitely meeting them there: according to AdMonsters and Adap.tv’s 2013 European Digital Video Outlook, 93% of agencies buying digital video inventory saw increases in budget, but less than a third reported that the cash injection came from TV budgets. The majority (64%) saw a shift from display budgets, while 19% reported an incremental increase – which is pretty impressive considering Europe’s current economic woes.
As highlighted Bowman’s presentation on BBC Worldwide’s multiscreen success during the Olympics, TV and video can (and should be) working together. And this sentiment was echoed in AdMonsters and Adap.tv’s research: 61% of respondents believed digital video initiatives should be aligned with TV efforts, with 79% of that group arguing for a complementary relationship.
However, while a majority of European publishers think digital advertising should be aligned with TV, European agencies are actually split, with half claiming digital video should be aligned with display advertising. In AdMonsters and Adap.tv’s 2013 European Digital Video Outlook, we peer into the reasons for this split and how a variety of factors – evolving buying and planning strategies, disregard for common display metrics and the desire for unified online video/TV measurement and cross-platform reporting – will push agencies to align digital video with TV.
European publishers also find themselves in a quandary – while they’re increasing supply of inventory to keep up with ramping demand and seeing extremely high fill rates, 54% report CPMs have stayed the same year over year, with 13% actually seeing decreased CPMs.
Showing a high disinterest in RTB, publishers appear to be missing out on programmatic video ad spend to partners such as networks. However, private marketplaces seem to be a programmatic solution that addresses publisher concerns over open marketplaces, and one that appeals to agencies further exploring the potential of data-fueled buying.
To get the full story behind these trends, download the AdMonsters and Adap.tv 2013 European Digital Video Outlook. And also check out the agenda for our upcoming OPS London event, which will feature even more discussion of the fast-evolving European digital video marketplace.