True Video Convergence Arrives in Australia
Advertisers embrace holistic approach to channel neutral planning and buying
Sydney, 30 April 2015 – Videology, a leading software provider for converged TV and video programmatic advertising, has found that advertisers are no longer treating TV and video in isolation, but instead taking a holistic approach to broadcast planning and buying.
For the past five years in Australia consumer behaviour has pointed to viewing convergence. With over 69% of campaigns running across two or more devices in Q1 2015, advertisers are beginning to realise that they need to utilise multiple screens to effectively reach their target audience. Released today, Videology’s Quarter 1 2015, Australian Video Market At-A-Glance shows conclusively that this convergence is finally occurring in the advertising world. In a big way. For marketers, it’s vital to understand the behaviours associated with this seismic shift in content consumption, in order to maintain the value and effectiveness of advertising budget.
Three signs that media convergence is a reality for Australian advertisers in 2015:
- Booking lead times in Q1 averaged between four to eight weeks out from start date, in line with TV booking deadlines, as video becomes part of a wider broadcast plan, driving more cost efficient reach.
- 69% of all placements utilised for Q1 campaigns were taken from upfront traded inventory, versus 31% RTB inventory, as advertisers seek to replicate how they currently plan and buy TV.
- Stronger focus on audience optimisation, including reach and frequency goals. While over 80% of our campaigns in Q1 were optimised to VTR, which demonstrates engagement, we’re seeing increasing numbers of multiple KPI campaigns, with the emphasis on showing the right ad, to the right person, at the right time.
Sarah Wyse, Managing Director ANZ, Videology feels that it’s imperative that advertisers understand the changing consumption habits of TV and video. “As the video platform operating over half of programmatic video ads in Australia, Videology has a unique view on how advertisers and agencies trade media. Despite advertisers intuitively knowing that they should be spreading their budgets across TV and video, there has been no scientific proof, via a panel-based measurement system, to suggest the optimal allocation of budget. Through Videology’s platform, advertisers are becoming empowered to make sense of their own data to establish the best channel plan across traditional TV and online video. Q1 has been a clear indicator that this has moved from a theoretical concept to a reality.”
Other key findings from the Quarter 1 2015, Australian Video Market At-A-Glance include:
- 100% of video campaigns were bought on a CPM basis, as TV advertisers increasingly take advantage of digital video for branding campaigns.
- 28.6% of all impressions running on our platform in Q1 were FMCG ads, more than any other category; beating last quarter’s leader, Automotive, into second place.
- 23.6%, almost one quarter of all campaigns, were delivered against Nielsen OCR audits, up 6% from Q4 2014, again showing that audience verification for video is important to traditional TV advertisers.
- At 81% of all campaigns run in Q1, view through rate (VTR), was the most frequently requested measurement metric, consistent with 79% in Q4 2014, showing that advertisers continue to utilise video as a branding medium.
- Videology’s video viewability score reached 74% in Q1, well above the industry average of between 50% and 60%.
- 15 second creative continues to grow in popularity, accounting for 68% of all video impressions in Q1. 30 second spots account for 32%, down 5% versus Q4 2014, as advertisers embrace shorter, more interactive spots.
The full Q1 2015 Australian Video Market At-A-Glance infographic can be downloaded here.
Videology (videologygroup.com) is a leading software provider for converged TV and video programmatic advertising. 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 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, with key offices in Baltimore, Austin, Toronto, London, Paris, Madrid, Tokyo, Singapore, Sydney and sales teams across North America.
For more information, contact Rikki Webster at firstname.lastname@example.org.