AdTech Weekly Roundup

A look at how last week’s news affects mobile publishers…

Vertical video ads are coming to YouTube
It was revealed this week that YouTube is embracing vertical video ads to let brands “provide a more seamless mobile experience” for viewers. The company also revealed plans to sell advertisers video ads based on users’ personalized home feeds. Advertisers can now snap up slots that fill up a users’ screen when they’re viewing content on YouTube’s mobile app in a similar way to the ads served by the likes of Instagram and Snapchat. When viewers tap on a vertical video ad they can be redirected to an external link, like a company website. Hyundai is among the brands to have trialed the new creative format, which expands based on the dimensions of the video. YouTube’s chief product officer Neal Mohan said that, when used in combination with the Google-owned platform’s classic horizontal video formats, the test campaign to promote the automaker’s most recent SUV model resulted in a 33% uplift in brand awareness and a 12% uptick in purchase consideration.

IAB Europe Estimates 80% of Mobile Traded Programmatically In 2017
The European Programmatic Market Sizing Report released this week at DMEXCO, reveals that programmatic display advertising in Europe grew 27.1% to €12bn ($13.94 billion) in 2017. The report, produced by IAB Europe and IHS Markit, showed about 62% of European display ad spend was traded through programmatic channels last year. More than 80% of mobile — up 53.2%, from a year ago — was traded via programmatic channels, bringing in about €6.8bn. Video rose 74.1%, up 64.6%, generating €3.9bn. Western Europe generated €10.8 billion and Central and Eastern Europe gained €1.2bn. Investment levels continue to rise, and more advertisers are moving to new ways of buying and working with partners on hybrid models to give them more understanding and greater control over their spend, stated Simon Halstead, chair of IAB Europe Programmatic Trading Committee, and Head of Open Demand, International at Oath.

Social Media Helps Businesses Stay Competitive, Build Brand Awareness
New research from social-media management platform Hootsuite shows that businesses, no matter their size, value social media. Hootsuite based its findings on recent feedback from roughly 9,000 businesses across 19 countries. Overall, 87% of respondents agree with the statement that social media is important to staying competitive, while 80% reported that social media is now more important to their business and customers than it was last year. Of note in the study, a majority (54%) of organizations now believe that social transcends their marketing teams. A full 90% of organizations now report using social to build brand awareness; 77% to manage their brand reputation; 71% for building and managing an engaged community; 61% to increase lead conversions and sales; 50% to gain market and customer insights; 47% for delivering customer service; 35% to attract job applicants; and 22% to identify crisis and manage communications.

Millennials Prefer News on Digital Platforms, Trail Older Demos
Data from Nielsen’s Total Media Fusion report shows that although digital news reach for millennials is higher than for older adults, their total news consumption — from digital and TV sources — is still much lower. Digital news reaches 88% of millennials ages 21-37 in a month, according to Nielsen — about 80% for adults 38 and older. But millennials consume way less news overall — 146 hours of news a year from all digital and TV sources, with adults 38 and older tallying 502 hours. One key factor here is millennials’ TV news reach total — for broadcast and cable — which is less than 61%, with older adults at 90%. Radio news has millennials trailing older adults as well, at 24% for millennials and 36% for adults 38 years and older. Still, Nielsen says, when it comes to specific major news events, millennials’ monthly reach numbers spike both for TV and digital news, such as with the 2016 presidential election and the presidential Inauguration in January 2017.

Connected TV is Ad Tech’s New Darling
Ad tech vendors are searching for a way out of the current commoditization trap they’re stuck in and think connected TVs may be it, according to chatter among ad tech executives at Dmexco. Many vendors at the conference claimed to have an offer for connected TVs, said Paul Gubbins, head of programmatic at News UK-owned video marketplace Unruly. “It’s clear that those vendors are looking to make the pivot from mobile or display to help create incremental value ahead of potential exits.” EMarketer estimates there will be 182.6 million connected TV users in the U.S. in 2018, representing 55 percent of the population, up 8.1 percent from 2017. As much as some major advertisers are making investments in connected TV options, they still face challenges with targeting this growing audience across screens. Sizmek, for example, is building a single platform for advertisers to buy linear, addressable and connected TV inventory sourced from supply-side platforms Telaria, SpotX and Freewheel.

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