Advertising The Drum Arms Video Advertising

Addressing the challenges of global video advertising growth


By Chris Sutcliffe | Senior reporter

June 11, 2019 | 5 min read

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Video advertising is far and away the largest driver of ad growth, as advertisers and brands clamour to reach audiences who are increasingly digital and mobile first. At the same time, investment in high-quality video ads can be expensive, particularly for challenger brands, and the fragmented digital video landscape means that an effective video ad on one platform might fail to land entirely on another.

Join The Drum x Peach for a panel on global video advertising

Join The Drum x Peach for a panel on global video advertising

For brands looking to grow the proportion of their audiences outside of their home territories, those challenges are multiplied exponentially. Everything from how ads are bought and sold to which format works best varies wildly between territories, and while the adage that content is king is still true the context in which those video ads appear can entirely change how successful they are.

A video ad on a linear television service has a captive audience, one that does not exist on VOD and dedicated video platforms where users have been habituated to greater control over what they see. Similarly, social video presents unrivalled opportunities to reach younger audiences at scale, but mobile devices come with their own set of challenges for ad creation and dissemination.

For instance, it has been reported that vertical video delivered on Facebook delivers much better ROI on a cost-per-click basis than square video, which has not been created specifically with the mobile format in mind. Similarly, as OTT video becomes more important to the legions of cord-cutters who are opting out of the traditional linear TV model, advertisers are being forced to frontload information in their video ads thanks to the addition of the ‘skip’ button.

Those issues are exacerbated still further by the fact that the territories that have been earmarked as crucial to growth - China, EMEA and South America - are enormously different from one another, and for advertisers not already based in one or more of those territories to succeed requires a wealth of local knowledge. Many brands, particularly the challenger brands that would benefit most from gaining a foothold in those markets, will struggle to gain that local expertise on their own.

Global delivery, too, is increasingly a focus for brands and advertisers looking to supercharge their international presence. That, however, comes with its own issues related to rights management and workload. Automation can help alleviate some of those issues, but unless advertisers work with a partner that can enable international distribution, it can be very hard for a brand or advertiser to do that on their own.

James Carpenter, president US of Peach, explains: “At the moment the system is very linear. There are a lot of hands that digital files pass through, and those multiple touchpoints make the process slower, costly and prone to human error. It is also very cumbersome for the advertiser, who has to spend a long time filling in online forms that will be sent down a supply chain.”

Those impediments can hamper advertisers’ ability to reach new audiences, no matter how good their creative. At a time of increased competition among brands for new audiences, that could be the difference between ultimate success and failure.

This year at Cannes, The Drum in association with Peach is putting together an expert panel to determine best practice for taking video advertising truly international. Featuring insight from James Carpenter, president, US., Peach; David Kassler, global CEO, Tag; Kevin Lemberg, head of partnerships - ad platform, Comcast Technology; Jillian Gibbs, founder, APR; and Stephen Lepitak, editor, The Drum (moderator), the session will set out to find solutions to the challenges that prevent advertisers achieving their full potential on the world stage. Peach will be able to share their expertise in the development of a tech suite that has led to them working with most of the major broadcasters and media agencies worldwide. For more information or to book your place at the panel, click here.

Following the panel, there will be an opportunity for attendees and the panel of experts to share knowledge at a networking session, taking place at The Drum Arms pub, which doubles as a happy hour at the end of a long day.

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