Upfront Traded Media Now Dominates Australia’s Online Video Market

Upfront Traded Media Now Dominates Australia’s Online Video Market

August 26, 2015

Sydney, 26 August 2015 – Videology, a leading software provider for TV and video advertising, has found that more video campaigns are utilising traded, upfront media than ever before, as the video market shifts toward universal media planning.

Released today, Videology’s Quarter 2 2015, Australian Video Market At-A-Glance report shows that brands are increasingly seeking out converged programmatic strategies to help them make sense of the total audio visual (AV) market. With a strengthened focus on guaranteed, traded media, over Real-time Bidded (RTB) inventory, advertisers are taking a more considered approach to budget allocation.

In Australia, online video represents 7% of the total audio visual advertising market in terms of revenue. 6% of the 7% is traded upfront media, secured from broadcasters and premium publishers. Despite the noise in market around RTB, it only represents 1% of the total revenue in Australia’s AV market.

As the platform operating over 50% of the programmatic video ads in Australia, Videology has a unique view on how media is traded. As advertisers and agencies focus on securing premium inventory upfront due to supply constraints, there are increasing signs in Videology’s Q2 report that video is being bought on the same schedule as TV:

  • 72% of placements utilised for Q2 campaigns were taken from upfront traded inventory, versus 28% RTB inventory, as advertisers seek to replicate how they currently plan and buy TV.
  • Booking lead times in Q2 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.
  • KPIs are now more audience-centric than performance-based, as brands seek out customers across multiple screens.

One of the biggest highlights between April and June was the three-fold increase in mobile campaigns, from 3% in Q1, to 9% in Q2, as the handheld medium continues to nip at the heels of desktop as the dominant 2nd screen. Multi-screen campaigns also grew to 75%, up from 69%, during the same period.

On the latest findings, Sarah Wyse, Managing Director ANZ, Videology commented, “Over the last quarter, we have seen an increased emphasis on the planning of online video buys. Whilst we know RTB is a very important part of the media mix, it is only one part of a much bigger picture. In a supply constrained market guaranteeing quality and audience to a broadcast advertiser is key. A combination of both traded and RTB media is optimum and we are starting to see advertisers openly embrace this approach.”

Other key findings from the Quarter 2 2015, Australian Video Market At-A-Glance report include:

  • At 80% of all campaigns run in Q2, view through rate (VTR), was the most frequently requested measurement metric, consistent with 81% in Q1 2015, showing that advertisers continue to measure video as a branding medium. We also saw increased numbers of multiple KPI campaigns, with the emphasis on showing the right ad, to the right person, at the right time.
  • Accredited by the Media Ratings Council (MRC), Videology’s video viewability score remained consistent at 74% in Q2, well above the industry average of between 50% and 60%.
  • 15 second creative continues to grow in popularity, accounting for 76% of all video impressions in Q2, up a further 8 percentage points from Q1, as advertisers embrace shorter, more interactive spots.
  • At 24%, almost one quarter of all campaigns running in Q2 were in the FMCG category, retaining its dominance over Automotive for the second consecutive quarter.
  • At 25%, one quarter of all campaigns were delivered to 3rd party audience verified objectives in Q2, up 4% from Q1 2015, again showing that audience verification for video is important to traditional TV advertisers, who are increasingly allocating budgets to digital channels.
  • 100% of video campaigns were bought on a CPM basis in Q2, as TV advertisers take advantage of digital video for branding campaigns.

About Videology
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 Sydney, Singapore, Tokyo, London, Paris, Madrid, Baltimore, Austin, Toronto, and sales teams across North America.

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