EMEA Video Benchmarks

Transcription

1 EMEA Video Benchmarks 2017

2 CONTENTS 2017 In Review 3 Market Insights 4 > > Belgium > > Finland > > Ireland > > Italy > > Netherlands > > Norway > > Spain > > Turkey > > UK Summary 14 Glossary 15 Methodology 16 About Videology 16 2

3 2017 IN REVIEW In response to a series of high profile press exposés into the more dubious content at the far-reaches of the video ecosystem, 2017 was the year that advertisers reasserted themselves at the centre of the online video narrative. There was a flurry of keynote statements, from major global advertisers, stating new positions on key metrics such as quality, transparency, safety and ROI. Some high-profile brands went as far as to suspend investment in online video until required standards were met. Through 2017, Videology responded to this advertiser rallying cry by maintaining focus on providing the most intelligent integrations and expertise across the major broadcasters and key premium publishers, ensuring that our clients benefited from best-in-market access to high quality media. The global outlook for advertising in 2018 is buoyant, with major sporting events including the Winter Olympics, World Cup and political campaign spending, forecast to drive growth of 4.7%. Within this growth, online video continues to set the pace, with the EMEA instream market expected to show a compound annual growth rate of 12.2% for As the competition for consumer viewing becomes fiercer, effectively navigating the everchanging video landscape becomes imperative for a brand s success. Our 2017 EMEA Benchmarks Report provides brands and agencies with key insights into the complex world of converging TV and video based on billions of impressions and thousands of campaigns planned, optimised and executed through our platform. It is encouraging to see many of the industry challenges of 2017 resolved, we believe that by addressing the key concerns of advertisers the industry is set to enjoy further exponential growth through RYAN JAMBORETZ, CHIEF COMMERCIAL OFFICER 3

4 Market Insights

5 BELGIUM Market Insights 2017 Internet penetration in Belgium is levelling off. In early 2017, 73.9% of the population aged 12 and older used the internet via any device at least monthly, a share unchanged from Younger individuals and those in higher social groups were more likely to be internet users. According to AdExBenchmark 2016 (IAB Europe, June 2017), digital ad spend in Belgium reached 0.9 billion in 2016 (6.2% growth year-on-year). TV consumption, still dominates screen time and the long-term reach of broadcast television in Belgium is substantially greater than that of any other media platform in the country. VIEW THROUGH RATE WAS 1.99% 72.4% 78.9% VS. VAST 60% 40% 73% 27% VAST 1.46% 72.0% 78.7% 2.79% 73.1% 79.2% OPTIMISED TOWARDS CTR OPTIMISED TOWARDS VIDEO AD COMPLETION 39% RATE IN BELGIUM 2.11% 70.8% 77.9% % 71.7% 1.60% 75.0% 77.6% 81.3% TV VIEWING REMAINS RESILIENT AVERAGE MINUTES PER DAY VIEWED TOP 5 AD INDUSTRY SECTORS AGGREGATE CAMPAIGN PERFORMANCE FMCG 2.3% 74.3% 79.9% FINANCE 1.3% 73.7% 80.4% STYLE & FASHION 3.7% 65.4% 75.1% AUTOMOTIVE 1.5% 69.9% 76.9% RETAIL 1.1% 65.7% 77.5% Source: Statista 5

6 FINLAND Market Insights 2017 Digital ad spend in Finland reached 355 million, 29.4% of the 1.20 billion total media ad spend in 2017 (emarketer, 2017). By 2021, digital ad spend is estimated to reach 443 million, accounting for 34% of total media spend. Digital video ad spend was estimated to reach 22.5 million in 2017 (PwC, June 2016). For several years, the average time spent online per day in Finland has exceeded time spent with TV. In 2017, Finland has seen large growth in digital video viewership because of high internet penetration and fast connection speeds. Digital video viewing happens across multiple screens - 82% of all video campaigns within the Videology platform in Finland ran on, and 18% ran across mobile. VIEW THROUGH RATE WAS 0.74% 76.7% 82.6% VS. VAST 82% 18% 58% 42% VAST 0.53% 74.9% 81.2% 1.73% 85.1% 89.0% 46% RATE IN FINLAND OPTIMISED TOWARDS CTR OPTIMISED TOWARDS VIDEO AD COMPLETION % 0.75% 0.45% 77.7% 76.9% 79.7% 82.9% 83.0% 84.5% TRADITIONAL TV & STREAMING IN FINLAND % OF RESPONDENTS WATCHING TRADITIONAL TV ON A WEEKLY BASIS 86% TOP 5 AD INDUSTRY SECTORS AGGREGATE CAMPAIGN PERFORMANCE USE OTHER DEVICES WHILE WATCHING TV 56% STREAMING OR DOWNLOADING TV, SERIES OR MOVIES ON A WEEKLY BASIS 53% HEALTH & FITNESS AUTOMOTIVE FMCG 0.59% 1.04% 0.83% 77.5% 74.1% 82.3% 83.1% 81.0% 87.2% STREAMING AND DOWNLOAD SERVICES USED IN FINLAND: 56% STYLE & FASHION 0.50% 78.3% 83.6% 53% RETAIL 0.38% 85.0% 85.0% 47% Source: AudienceProject, Insights Traditional TV & Streaming in the Nordics, UK & US 6

7 IRELAND Market Insights 2017 Digital advertising in Ireland rose by 13.7%, from 445 million in 2016 to 506 million in 2017 (emarketer, Sept 2017). Digital ad spending growth will continue to grow at just over 5% per annum, increasing its overall share of media. emarketer said 2017 was a major milestone for ad spending in Ireland, as advertisers enthusiasm for marketing on mobile drives digital growth and prompts digital to eclipse all other categories combined. More than 65% of all video campaigns within the Videology platform ran across mobile. VIEW THROUGH RATE WAS 0.76% 78.6% 83.8% VS. VAST 35% 65% 0.03% 14% 86% VAST CONNECTED TV 0.74% 78.4% 83.1% 0.77% 78.7% 84.1% 0.28% 97.1% 98.5% 65% RATE IN IRELAND OPTIMISED TOWARDS CTR OPTIMISED TOWARDS VIDEO AD COMPLETION % 0.69% 0.46% 76.8% 80.1% 84.9% 82.5% 85.1% 88.8% TOTAL AV VIEWING AMONGST ADULTS IN IRELAND Other 3 Stand-alone 5 online video service TOP 5 AD INDUSTRY SECTORS AGGREGATE CAMPAIGN PERFORMANCE Short-form video Pay-per view Broadcast players mins of AV daily 170 Live TV FMCG 0.74% 78.9% 83.9% Recorded 21 TV RETAIL 0.76% 81.3% 85.5% HEALTH & FITNESS HOME & GARDEN FINANCE 0.71% 0.87% 1.00% 77.7% 78.2% 74.9% 83.1% 83.7% 81.6% Format by minutes across all devices Adults 15+ Base: All respondants 15+ (time weighted) Fieldwork period: Jan/Feb 2017 Source: A/V Data Solutions Data - all adults, TV households, all day 7

8 ITALY Market Insights 2017 emarketer estimates digital ad spending in Italy will rise by 8.0% in 2017 to 1.8 billion. By 2021, that figure will reach 2.27 billion, equating to nearly a quarter of the country s total ad market. According to AdExBenchmark 2016 (IAB Europe, June 2017), video spend reached 0.4 billion in 2016 and a further growth of around 35% is expected in (Data provided by Osservatorio Internet Media del Politecnico di Milano 2017). Most further growth in digital will come from video, owing largely to the changing ways TV is viewed, including the launch of new over-the-top (OTT) video service providers. REACH WAS 2.48% 68.8% 77.5% VS. VAST 57% 43% 60% 40% VAST 1.36% 62.2% 73.4% 3.98% 77.6% 83.1% TV AND ONLINE VIDEO VIEWERS YEAR ON YEAR % 5 56% RATE IN ITALY CTR 2.52% 2.12% OPTIMISED TOWARDS CTR Linear TV Online Video VTR VCR 60.5% 68.4% 71.4% 76.5% OPTIMISED TOWARDS VIDEO AD COMPLETION Source: emarketer, September

9 NETHERLANDS Market Insights 2017 emarketer estimates total media ad investment in the Netherlands will grow by 1.5% in 2017 to 4.2 billion. By 2021, that figure is expected to reach 4.35 billion, making the country the sixth largest ad market in Western Europe. Advertisers in the Netherlands spend a significant share of their ad budgets on digital. emarketer predicts that digital outlays will account for 43.1% of total media ad spending in 2017, equivalent to 1.81 billion. PwC predicts digital video ad spend to reach 57.8 million in 2017 (PwC report, June 2016). VIEW THROUGH RATE WAS 1.11% 82.2% 85.9% VS. VAST 58% 42% 42% 58% VAST 1.37% 80.2% 84.6% 0.75% 84.9% 87.9% 57% RATE IN THE NL OPTIMISED TOWARDS CTR OPTIMISED TOWARDS VIDEO AD COMPLETION % 1.03% 0.99% 86.7% 82.1% 88.6% 89.5% 85.9% 91.7% TV REVENUE Netherlands, ( millions) 2000 TOP 5 AD INDUSTRY SECTORS AGGREGATE CAMPAIGN PERFORMANCE FINANCE FMCG TECHNOLOGY & COMPUTING AUTOMOTIVE HOME & GARDEN 0.64% 0.68% 1.04% 1.24% 1.65% 82.7% 79.9% 72.3% 86.8% 88.9% 86.7% 84.1% 77.2% 89.8% 91.3% Millions Pay TV OTT Streaming Physical Home Video Total Source: PwC, Ovum 9

10 NORWAY Market Insights 2017 In 2017, digital ad spending in Norway was up year-on-year by 5.8%, totalling 902 million. According to emarketer, Norway has the most developed digital ad market in the Nordic region, with digital outlays accounting for 54.7% of total ad expenditure in Digital video is also becoming a daily habit for many people in the country. One in five residents polled said they streamed TV or other video content via over-the-top (OTT) services or providers such as HBO, Viaplay or Netflix on a daily basis, while 13.2% were viewers of video-on-demand (VOD), including TV series or films they had downloaded, bought or rented. (emarketer, Global Media Intelligence Report, 2017) VIEW THROUGH RATE WAS 0.65% 72.9% 79.9% VS. VAST 60% 40% 50% 50% VAST 0.57% 71% 78.3% 0.77% 75.6% 82.5% 31% RATE IN NORWAY 10 OPTIMISED TOWARDS CTR 0.35% 1.50% OPTIMISED TOWARDS VIDEO AD COMPLETION 62.8% 71.9% 70.5% 78.4% TRADITIONAL TV & STREAMING IN NORWAY % OF RESPONDENTS WATCHING TRADITIONAL TV ON A WEEKLY BASIS 84% TOP 5 AD INDUSTRY SECTORS AGGREGATE CAMPAIGN PERFORMANCE USE OTHER DEVICES WHILE WATCHING TV 73% STREAMING OR DOWNLOADING TV, SERIES OR MOVIES ON A WEEKLY BASIS 56% FMCG TECHNOLOGY & COMPUTING ARTS & ENTERTAINMENT HEALTH & FITNESS 0.35% 1.49% 1.37% 2.24% 70.5% 55.9% 76.6% 55.7% 78.4% 67.5% 82.0% 61.6% STREAMING AND DOWNLOAD SERVICES USED IN NORWAY: 48% 60% 72% Source: AudienceProject, Insights Traditional TV & Streaming in the Nordics, UK & US 10

11 SPAIN Market Insights 2017 Television still boasts higher penetration in Spain than any other medium. Between September 2016 and June 2017, 85.7% of individuals aged 14 and older watched free-to-air broadcast TV on a daily basis, according to data from Ipsos. emarketer predicts that advertisers in Spain will spend 2.15 billion, or 39.8% of their total ad budgets, on TV in The second largest portion of Spain s advertising market is attributed to digital, which in 2017 reached 1.5 billion and will be worth 1.85 billion in Digital video will remain the biggest driver of digital ad spending growth in Spain over the course of the forecast. Spain had the fastest-growing mobile ad market in Western Europe this year and it is predicted that by the end of 2019, mobile will account for 54.3% of the country s digital advertising landscape. VIEW THROUGH RATE WAS 1.67% 72.4% 79.6% VS. VAST 71% 29% 63% 37% VAST 1.33% 74.5% 81.1% 2.5% 67.5% 76.1% OPTIMISED TOWARDS CTR OPTIMISED TOWARDS VIDEO AD COMPLETION % 1.73% 1.87% 68.9% 74.1% 82.3% 77.1% 81.2% 86.7% 65% RATE IN SPAIN TELEVISION ADVERTISING MILLION, SPAIN TOP 5 AD INDUSTRY SECTORS AGGREGATE CAMPAIGN PERFORMANCE Traditional TV advertising FMCG 1.86% 74.6% 81.3% Online TV advertising AUTOMOTIVE 1.65% 71.3% 79.1% HOME & GARDEN 1.50% 72.7% 80.3% Source: PwC, Entertainment and Media Outlook España HEALTH & FITNESS 1.96% 75.4% 82.3% RETAIL 1.88% 70.8% 78.8% 11

12 TURKEY Market Insights 2017 In 2017, digital ad spending in Turkey reached 0.59 billion in 2017 and accounted for 25.8% of the total media ad spend (emarketer, 2017). This number is only expected to rise in coming years. Video is growing in Turkey as the market shifts to the wide array of content accessible via OTT platforms. Online video revenues are set to overtake the physical home video segment for the first time in 2017, and growth of 13.8% CAGR will produce revenue of 64 million by Next-generation services are of increasing importance in the Turkish market, with tablet ownership accelerating and a large proportion using second-screen devices for TV viewing. VIEW THROUGH RATE WAS 7.36% 61.2% 74.1% VS. VAST 97% 3% 100% 7.1% 60.8% 73.9% 14.6% 70.8% 77.8% OPTIMISED TOWARDS CTR OPTIMISED TOWARDS VIDEO AD COMPLETION 82% RATE IN TURKEY 7.7% 60.0% 74.5% % 71.1% 4.1% 77.8% 81.1% 83.7% TV AND ARE ESSENTIAL ADVERTISING REVENUE TOP 5 AD INDUSTRY SECTORS AGGREGATE CAMPAIGN PERFORMANCE $1.6b $2.3b $94m $33m HEALTH & FITNESS 7.42% 63.1% 75.4% FMCG RETAIL STYLE & FASHION 6.35% 7.03% 3.19% 73.6% 63.4% 79.3% 83.2% 78.7% 86.5% TV will remain the most important advertising medium. Turkey has a significant mobile advertising market. AUTOMOTIVE 4.12% 65.6% 77.4% Source: PwC 12

13 UK Market Insights 2017 TV sits at the heart of the multi-device landscape with additional digital platforms being additive. Standard linear viewing declining just 4 mins from 2006 to Data from BARB/ Thinkbox report in 2017 shows that TV remains the undisputed heavyweight champion for audio visual advertising - 79% of all time spent with video is TV content. Digital video budgets were at an all-time high, equating to 1.3 billion in This amount is expected to nearly double by 2021, reaching 2.5 billion, as advertisers and agencies embrace video s ability to effectively and efficiently reach and influence audiences (emarketer). A notable change in how brands in the UK delivered their digital video campaigns was the increase in impressions that ran on connected TVs. In 2017, 11% of campaign impressions were delivered to this device, almost doubling year-on-year. This is reflective of the strong consumer uptake of over-the-top content and viewing via connected TVs. VIEW THROUGH RATE WAS 0.67% 82.9% 86.8% VS. VAST 60% 29% 11% 31% 31% 69% VAST CONNECTED TV 0.51% 82.4% 86.6% 1.14% 77.9% 82.7% 0.001% 98.3% 98.7% 56% RATE IN THE UK OPTIMISED TOWARDS CTR OPTIMISED TOWARDS VIDEO AD COMPLETION 0.63% 0.48% 82.4% 88.9% 86.7% 91.7% AVERAGE VIDEO TIME PER DAY ALL INDIVIDUALS; 4HS 37 MINS % 88.5% 91.6% Facebook & YouTube 8% TOP 5 AD INDUSTRY SECTORS AGGREGATE CAMPAIGN PERFORMANCE Other 13% RETAIL AUTOMOTIVE FMCG 0.57% 0.76% 0.79% 83.9% 83.5% 83.0% 87.7% 87.4% 87.2% 79% of viewing is TV content Live TV 60% FINANCE 0.54% 85.7% 89.3% Playback TV 10.8% TECHNOLOGY & COMPUTING 0.61% 81.6% 86.0% SVOD 4.1% Broadcast VOD 3.9% Source: BARB / Thinkbox 13

14 SUMMARY Video viewing is normalised behaviour, viewer penetration rates are high throughout Europe. emarketer forecasts that digital video viewers in Western Europe will reach million in 2017, representing over half the total population. According to emarketer forecast, the two largest markets for digital video will be the UK and Germany, with 42.8 million and 40.4 million viewers, respectively (source: Worldwide Digital Video Viewers: emarketer s Estimates for ). TV viewing is fragmenting, cross-platform campaigns are presenting new data driven opportunities for brands. A notable change in how brands delivered their digital video campaigns was the increase in impressions that ran on connected TVs. In 2017 in the UK, 11 percent of campaign impressions were delivered to this device, almost doubling year-on-year. This is due to the strong consumer uptake of over-the-top content and viewing via connected TVs. View-through-rate was the leading campaign objective in the majority of European markets, as advertisers sought to maximise exposure of their brand to key audiences. The split between VAST vs. integrations differed widely across markets, from 14 percent in Ireland to 100 percent in Turkey, as marketers looked to benefit from enhanced measurement and creativity. Mobile viewing is increasing as a percentage across the region. In 2017, Videology observed a stark difference in device split across markets, ranging from 65 percent of impressions on mobile in Ireland to 3 percent in Turkey. This is reflective of advertiser demand, better infrastructure and access to content. 14

15 GLOSSARY Ad Impression A metric depicting the number of times an ad is served. Click-Through Rate (CTR) Percent of video impressions that have received a click. Includes only eligible impressions, as some formats are not clickable (e.g. Connected TV). Reach Number of unique users that video impressions were served to. Video On Demand (VOD) Systems which allow users to select and watch/ listen to video or audio content such as movies and TV shows when they choose to, rather than having to watch at a specific broadcast time, which was the prevalent approach with over-the-air broadcasting during much of the 20th century. IPTV technology is often used to bring video on demand to televisions and personal computers. View-Through Rate (VTR) Percent of video impressions where the viewer watched 100% of the creative. Viewable Rate The percentage of ads delivered that delivered the opportunity to be seen by a user. Video Ad Serving Template (VAST) A universal XML schema for serving ads to digital video players, and describes expected video player behaviour when executing VAST- formatted ad responses. Video Player-Ad Interface Definition () Standardises the communication between video players and in-stream video advertising. enables a rich interactive in-stream ad experience, as well as enhanced campaign measurement and reporting. Video Completion Rate (VCR) Average percent of creative viewed (including partial views) for video impressions. 15

16 METHODOLOGY Videology ad decisions billions of impressions across major broadcasters and premium publishers, private marketplaces, ad exchanges and networks. By analysing the plethora of data generated through our unique position within the ecosystem, we are able to aggregate and share performance insights. These include performance by device type, ad length, viewability and ad categories. ABOUT VIDEOLOGY Videology (videologygroup.com) is a leading software provider for converged TV and video advertising. We believe in a world where all media, irrespective of format or buy-type, will be addressable in some shape or form. A world where every ad-placement will be dynamically decisioned and allocated in real-time, powered by the application of deep customer analytics and optimised for better outcomes for both media owner and advertiser. The growing trend of hyper-fragmentation of audiences across platforms and devices requires an open technology platform with proven ability to scale across markets to simplify an increasingly complex world of television. By simplifying big data, we empower marketers and media companies to make smarter advertising decisions to fully harness the value of their audience across screens. Our math and science-based technology enables our customers to manage, measure and optimise digital video and TV advertising to achieve the best results in the converging media landscape. Videology, Inc., is a privately-held, venture-backed company, whose investors include Catalyst Investors, Comcast Ventures, NEA, Pinnacle Ventures, and Valhalla Partners. Videology is headquartered in New York, NY with key offices in Baltimore, Austin, Toronto, London, Madrid, Singapore, Sydney, Tokyo and sales teams across North America. 16

17 European offices UK Noah s Yard 10 York Way London, N1 9AA SPAIN Paseo de la Castellana, 40. Planta Madrid 17