New PubMatic/Forrester report: Video ads booming, header bidding climbing


30-second abstract:

  • A brand new PubMatic-sponsored report from Forrester highlights the increase in digital video ads, and factors to header bidding as a key technique for publishers using video ads.
  • Header bidding, the place all advertisers take part on the similar time within the public sale, has change into fashionable as a result of it doesn’t favor one advertiser over others, as waterfall bidding can.
  • The report additionally notes that header bidding in cellular apps remains to be problematic, however the progress potential is there.

“The future of advertising is video.”

That quote, from an unnamed C-level media govt, is cited in a brand new report – Video Advertising Requires New Monetization Strategies – undertaken by analysis agency Forrester and sponsored by digital advert agency PubMatic.

PubMatic instructed ClickZ that Forrester “prepared the analysis and writeup,” whereas it was allowed to remark and add enter.

Surveying 622 gross sales, operations and IT professionals at writer and media firms all over the world, the report discovered that almost two-thirds of programmatic advert spend this yr will likely be video-based.

According to a Zenith Forecasts research cited within the report, international digital video advert spending hit $45 billion final yr and is anticipated to exceed $61 billion by subsequent yr, for an 18 p.c annual progress fee.

‘Different strategies’

The greatest takeaway from this report, PubMatic director of promoting analysis Susan Wu instructed ClickZ through e-mail, is that video advert monetization, whereas a “tremendous revenue opportunity, [requires] different strategies, capabilities and best practices from what publishers have become accustomed to with traditional display.”

The report stated that client-side header bidding is publishers’ most chosen technique for growing advert income and fill charges.

Fifty-seven p.c of respondents stated that client-side bidding on desktop was their prime technique for reinforcing income and fill charges, whereas 54 p.c cited hybrid header bidding, which makes use of server-side implementation together with client-side. Open real-time bidding was chosen by almost 47 p.c.

For cellular, open RTB was chosen by 58 p.c, with client-side header bidding at 57 p.c and hybrid header bidding at 55 p.c.

PubMatic is a pioneer in using bidding, in which there’s a direct public sale amongst all advertisers on the similar time. This contrasts with the beforehand dominant waterfall-type bidding course of, which was seen by publishers as giving desire to some bidders over others.

In-app, OTT header bidding

While the report finds that header bidding is a success for earning money off video ads, that’s for desktop. Mobile in-app header bidding, nonetheless, is a extra difficult animal, though the report notes that cellular ads are anticipated to account for nearly three-quarters of all digital advert spending this yr.

Wu famous that cellular in-app “is not the same as desktop when it comes to implementation,” because it requires extra SDKs (Software Development Kits) that add latency. But the report stated that cellular is the most important progress alternative for video ads, and added that 30 p.c of publishers count on to extend video advert placements on both cellular apps or cellular net.

Additionally, the report factors to the expansion prospects of header bidding for video ads on Over-the-Top (OTT) TV and Connected TV (CTV), though that implementation is much less developed than cellular. Video ads are anticipated to develop on OTT by 21 p.c over the following 12 months, and by almost 26 p.c on CTV.



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