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Rubicon Project Research Technology

Why video will eclipse search and display advertising within the next five years


By Ronan Shields, Digital Editor

September 1, 2016 | 4 min read

Over 90 per cent of media professionals believe video advertising will overtake static ads in terms of media spend within the next five years, as social media consumption becomes increasingly animated on platforms such as Facebook and Snapchat, according to research.

4G is spurring the growth

These were the findings published today (1 September), in a study from ExchangeWire Research which also observed that 42 per cent of media owners and 36 per cent of media buyers participating in the study forecast that this transition will happen within the next two years.

Commenting on the results, Rebecca Muir, head of research & analysis at ExchangeWire, said the transition was driven by the global spike in video consumption from consumers over the past 18 months, and further quoted figures from Zenith Optimedia’s online video forecast forecasting the mobile would further spur this spike.

A key driver behind this is the growing dominance of social video platforms, especially the rise of mobile video consumption on platforms such as Snapchat and Facebook, plus the growing technological capabilities of mobile data through the growing uptake of 4G and 5G cellular networks. Publishers and advertisers are thus looking to capitalise on this shift in consumption by offering consumers video content compatible with such formats.

The study, commissioned by Rubicon Project, entitled ‘UK Mobile & Video Advertising Truths’, found that media buyers and media sellers predict the growth in video ad spend is likely to come from new formats such as 360 video and VR.

More than four-in-five (83 per cent) of UK buyers and 72 per cent of sellers also believe video advertising to be a more engaging consumer experience than that of traditional banners, according to the study.

James Brown, managing director of UK & Nordics, Rubicon Project, added: “Growth over the next five years will be driven by the value realised by media buyers, and the desire within the media sales community to match demand to supply. As a technology company it is incumbent on us to educate, innovate and support our partners through this exciting time.”

According to the latest IAB figures ad spend figures, paid-for search still accounts for the majority of all digital spend growing 15.3 per cent during the period to hit £4.36bn. Classifieds, including recruitment, property and automotive listings, grew 5.2 per cent to £1.11bn (13 per cent share). However, the same study also vouched for the fact that mobile and video were the two main drivers of growth in 2015 (see chart).

IAB Ad Spend numbers

Speaking with The Drum, ExchangeWire's Muir further went on to say that social networks' shift to mobile and video was driving the shift in spending patterns, especially with Facebook-owned Instagram, which has dramatically increased the duration of its ad units in recent months.

"These ads are now available in both landscape and portrait," she said recounting that during the course of the research she also observed how creative outfits are beginning to embrace such ad formats as a means of creating compelling content.

A full copy of the report UK Mobile & Video Advertising Truths can be downloaded for free here

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