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Uncovering the top trends in video advertising across YouTube, Facebook, Instagram, and Connected TV 2019 INSIGHTS REPORT
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Page 1: Uncovering the top trends in video advertising across ... · the platforms that offer skippable ads. Interestingly, the longer the ad length on YouTube, the higher the VCR. YouTube

Uncovering the top trends in video advertising across YouTube, Facebook, Instagram, and Connected TV

2 0 1 9 I N S I G H T S R E P O R T

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2019 State of Digital Video | Insights Report 3Data powered by

TABLE OF CONTENTS

Introduction

Video Ad Budgets

Quick Primer On Views

View-To-Completion Rates

Length Of Creative

Connected TV

Direct Response

Devices

Time Of Day

Age Of Viewers

CPM & CPV

Customer Success Story

Conclusion

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2019 State of Digital Video | Insights Report 1Data powered by

I INTRODUCTION

Decoding the Mega PlatformsThere’s a startling statistic that next year (2020),

82% of internet consumption will be video.* In

addition, eMarketer data shows that say that

over 75% of the advertising on video will be run

through the mega platforms of YouTube, Facebook,

Instagram, Amazon Fire TV, and other CTV channels

next year. So as a marketer, how do you create a

unified approach to these platforms to reach this

booming audience?

Each year our analysts pull together this report

to help answer that question. We analyze data

from campaigns that ran on these mega platforms

through PixabilityONE to gain insights to help

advertisers. On the following page are some of our

top takeaways from this year’s report.

*Source: Cisco Visual Networking Index

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2019 State of Digital Video | Insights Report 2Data powered by

Facebook, YouTube, and Instagram continue to be the primary video ad platforms for

agencies, but CTV platforms are right on their tail.

YouTube continues to be the king at delivering view-to-completion rates (VCRs) among

the platforms that offer skippable ads. Interestingly, the longer the ad length on YouTube,

the higher the VCR. YouTube is also the only social platform that delivers ads on every

device including TV.

Facebook is the best way to generate clicks through video, and surprisingly to some, the

best way to reach an older demographic (45 and older). It’s also seeing a high increase in

view-to-completion rates.

Instagram is also a good way to generate video clicks, partially because it’s primarily a

mobile platform where most of the clicks happen. It is also the platform with the highest

percentage of users under 34.

CTV platforms with their non-skippable ads offer the highest volume of views, but, they’re

required views. This is part of the reason they also have higher CPMs than YouTube on TV

screens, for example.

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2

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I INTRODUCTION

Top Takeaways

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2019 State of Digital Video | Insights Report 3Data powered by

VIDEO AD BUDGETS

Industry Survey: Video Ad Spend & Platforms of ChoicePixability recently conducted a survey

of leading agency executives to

uncover how they’re approaching their

video ad buys. The first takeaway was

that Facebook, YouTube and Instagram

continue to be the ad platforms of

choice, but CTV is gaining ground. A full

85% of respondents are running video

campaigns on at least one Connected

TV platform.

The second big headline is that video

ad spend will continue to increase.

None of the agencies we polled are

predicting a decrease in client spend,

while 83% are predicting an increase.

Social Platforms Still Lead Digital Video, But CTV Is Coming On StrongPercentage of Agencies That Run Video Campaigns On Each Platform100%

80%

60%

40%

20%

Facebook YouTube Instagram Roku Twitter Snapchat AmazonFire TV

Linear TV

Open WebHulu

Majority of Agency Executives Anticipate Increases In Video BudgetsPercentage of Agencies Anticipating Each Type of Shift in Budgets in 2020

70%

60%

50%

40%

30%

20%

10%

Decrease by 10%+ Decrease by 1-10% Stay The Same Increase by 1-10% Increase by 10%+

90% 88% 88%80%

61% 58%

17%

63%

20%

42%36%

27%

76%

Source: Pixability Video Advertising Survey, July 2019

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2019 State of Digital Video | Insights Report Data powered by

QUICK PRIMER

The Differing Definitions Of A View When looking at the data in this report, it’s important to note

that each of the mega video ad platforms has a different

definition of what constitutes a view. Below is a quick primer of

current definitions:

YouTube In-Stream: A view is defined as a when someone

watches 30 seconds of your ad (or the duration if it's shorter

than 30 seconds). Ads can appear on mobile, desktop, tablet, or

Connected TV screens.

Facebook Views: A view is defined as 3 seconds or more of an

ad appearing on-screen. Ads appear on mobile, desktop, tablet

devices, and some TV with the Facebook CTV app.

Instagram Views: Like with Facebook, a view is defined as 3

seconds or more of an ad appearing on-screen. Ads appear on

mobile and tablet only.

CTV Views: For this report we included Amazon Fire TV and

Roku, both of which have non-skippable ads, which usually get

close to 100% view-to-completion rates. All ads are viewed on

Connected TV screens.

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2019 State of Digital Video | Insights Report 5Data powered by

VIEW TO COMPLETION RATES

Non-Skippable Connected TV Ads Deliver Highest View-To-Completion Rates — But YouTube Remains High, While Facebook And Instagram Are ClimbingConnected TV platforms like Amazon Fire TV and Roku deliver the highest view-to-completion rates because these ads are non-

skippable. On YouTube, view-to-completion rates remain high, growing by a small margin again this year.

While Facebook and Instagram have the lowest view-to-completion rates of the platforms measured, their rates are growing rapidly.

This could be partially a sign of Facebook’s overall full-court press into video along with algorithmic improvements to better find

those consumers that view ads to completion.

Non-Skippable Connected TV Ads Deliver Highest View-To-Completion RatesView-to-Completion Rates By Platform

View-to-Completion Rates Climb Year-over-Year Across Facebook And InstagramYear-Over-Year Change In Video Completion Rate

200%

250%

150%

50%

100%

YouTube In-Stream

Facebook Views

Instagram Views

100%

80%

60%

40%

20%

YouTube Facebook Instagram Amazon Roku

49%

17%6%

98% 99%

20%+

240%+

190%+

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2019 State of Digital Video | Insights Report 6Data powered by

100%

80%

60%

40%

20%

Go Longer With YouTube And Stay Shorter With Facebook & InstagramView To Completion Rates By Creative Length By Platform

15-second Creative 30-second Creative

YouTube Facebook Instagram Amazon Roku

LENGTH OF CREATIVE

Longer Creative Drives Better Performance On YouTube, While Shorter Creative Rules On FacebookOn YouTube, our analysis found that view-to-completion rates

actually increase when creative length is doubled from 15

seconds to 30 seconds. This is consistent with what we’re

seeing across many campaigns, with some advertisers like

Pixabiity Client, Frost Bank, seeing incredible results with

videos that are five minutes or more (see customer spotlight on

page 13).

Longer creative is not the right move on Facebook and

Instagram, however, where view-to-completion drops

drastically with longer creative. Therefore, marketers should

avoid investing in long-form creative on these platforms, and

opt for engaging short-form creative instead to grab consumer

attention, and keep them from scrolling.

35%

3%7% 4%

99% 98%

51%47%

98%99%

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2019 State of Digital Video | Insights Report

CONNECTED TV

Connected TV Delivers High Views, But They’re RequiredAmazon and Roku both deliver nearly 100% view rates — viewers cannot

skip ads so nearly all the impressions result in a view.* YouTube on TV

Screens — YouTube inventory that runs exclusively on living room screens

— delivers a 48% view rate, which is healthy considering it is skippable

unlike other CTV options.

All three platforms are effective at reaching leaned-back audiences, but

each of the three deliver very different metrics. While Roku delivers mostly

view data, YouTube delivers deeper engagement data and Amazon delivers

really unique purchase habit data (see sidebar on the right).

YouTube’s Skippable Connected TV Offering Delivers High View RatesAverage View Rate Across Connected TV Platforms

100%

80%

60%

40%

20%

YouTube on TV Screens Amazon Roku

*View and view-to-completion rates on Connected TV devices like Amazon and Roku aren’t always exactly 100% because viewers may switch off or otherwise navigate away from apps during an ad.

7

Data powered by

48%

98% 99%

QUICK PRIMER

Amazon Fire TVWhile all CTV platforms offer access to performance reporting and audience insights, Amazon Fire TV is able to deliver a sophisticated offering to advertisers: unique reporting, metrics, and insights that leverage its massive retail network. Here’s a taste of what Amazon can report on:

Detail page views (DPVs)The number of views of the advertised product’s detail pages on Amazon.

Add To CartsThe number of times a promoted ASIN is added to a customer’s cart.

PurchasesThe number of times any amount of a promoted product or products are included in a purchase event. Purchase events include video rentals and new Subscribe & Save subscriptions.

New To Brand PurchasesThe number of first-time purchases for promoted products within the brand over a one-year lookback window.

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2019 State of Digital Video | Insights Report 8Data powered by

DIRECT RESPONSE

Facebook And Instagram Continue To Drive The Most Direct Response In VideoWhile YouTube is best for driving deeply engaged viewers, Facebook

and Instagram is where marketers go for clicks. YouTube has new

direct response options like CTA extensions that work well, but the

Facebook platforms still earn higher click-through rates. Because

Connected TV platforms like Amazon Fire TV and Roku still don’t

offer many click-through capabilities, they’re best used as drivers of

view volume. The ultimate takeaway for marketers is they shouldn’t

just pick one platform to achieve all their goals but should use a mix

of platforms based on their KPIs.

Facebook and Instagram Deliver Superior Click-through RatesAverage Click-through Rate Across YouTube, Facebook, And Instagram

1.20%

.80%

.40%

YouTube Facebook Instagram

MARKETERS SHOULD USE A

MIX OF VIDEO PLATFORMS

BASED ON THEIR KPIS.

.11%

1.15%

.47%

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2019 State of Digital Video | Insights Report 9Data powered by

DEVICES

Where Users Are Engaging With Video On Each Platform In last year’s State of Digital Video

analysis, Pixability found that living room

screens accounted for 14% of YouTube

impressions. This year, we found that

number continues to increase, with

living room screens delivering now

15% of overall impressions on YouTube

— highlighting that this should be an

ingredient to any CTV campaign. Looking at

YouTube only, mobile delivers the highest

click-through rate, while all devices deliver

a relatively even view rate.

This chart to the right tells a great story

that Instagram is really a mobile-only

platform, Facebook is mobile plus desktop,

and YouTube is the only major video

platform to truly span all devices.

All Devices Drive Views, While Mobile Dominates Click-Through Rates On YouTubePerformance By Device On YouTube

View Rate CTR

70% 0.30%

60% 0.25%

50%0.20%

40%0.15%

30%

0.10%20%

0.05%10%

Desktop TabletCTV Mobile

Mobile Delivers Lion’s Share Of Impressions, While CTV Grows On YouTubeImpressions By Device Across YouTube, Facebook, And Instagram

20% 40% 60% 80% 100%

Mobile DesktopTablet TV

Facebook

YouTube

49%

59%

47%

.01%%

98%

81%

64%

2%

4%

14%

15%

7% 15%

.1%

51%

.28%

Instagram

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2019 State of Digital Video | Insights Report 10

TIME OF DAY

Viewers Turn To Different Video Platforms Throughout The DayEach video platform sees different peaks in impressions as viewers turn to platforms at specific

times during the day. Amazon Fire TV and Roku achieve their highest share of viewership

between 10 AM–12 PM, while Facebook peaks from 2–4 PM. On YouTube, audiences most often

tune in from 6–8 PM, and Instagram video viewing peaks from 8–10 PM. By embracing a holistic

strategy, and developing complex campaigns that include dayparting, marketers can optimize

their approach to video to reach and engage viewers in a way that maximizes impact.

Viewers Turn To Different Platforms Throughout The Day*Share Of Impressions Per Hour Across Platforms

Amazon Fire TVYouTube Facebook Instagram Roku

12 AM

12 PM

2 AM

2 PM

4 AM

4 PM

6 AM

6 PM

8 AM

8 PM

10 AM

10 PM

9%

8%

7%

6%

5%

4%

3%

2%

1%

SPOTLIGHT

DaypartingHave you noticed that your video strategy performs better at certain times of the day? If so, you should include dayparting in your approach — by enabling this setting, marketers can ensure their campaigns are optimized to bid higher during high-performing hours, and optimized away from low-performing hours.

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Data powered by

8 - 9 A MC O M M U T I N G

1 2- 1 P ML U N C H T I M E V I E W I N G

6 - 1 0 P MP R I M E T I M E

*Based on Time Zone of User

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2019 State of Digital Video | Insights Report 11Data powered by

AGE OF VIEWERS

Older Consumers Are Engaging on FacebookFacebook skews the oldest of the

platforms analyzed, with 35+ year-olds

accounting for 58% of impressions on

the platform. Overall, the 25-34 year-

old segment is the largest demographic

group across YouTube, while Instagram

skews the youngest with 18-34 year-olds

accounting for 69% of impressions.

Click-through rates tend to increase with

age across Facebook and Instagram,

with the 65+ demographic delivering

the highest click-through rate overall.

Facebook delivers the most clicks overall,

followed by Instagram.

Marketers should test a mix of YouTube,

Facebook, and Instagram for their video

campaigns based on the target age

demographic and other KPIs..05%

1.05%

.13%

1.35%

.13% .05% .11%

1.15%

2.38%

3.42%

.62%

1.73% 1.8%

.39%.46%

30%

Older Consumers Click More OftenAverage Click-through Rate Across Demos

4%

3%

2%

1%

25-34 Is Largest Demo Across PlatformsImpressions Across Demos

5%

15%

25%

35%

45%

65+

65+

55-64

55-64

45-54

45-54

35-44

35-44

25-34

25-34

18-24

18-24

22%

37%

28%

8%3% 2%

12%

19%16%

12% 11%

28%

41%

20%

8%

2% 1%

.13%

1.31%.97%

YouTube Facebook Instagram

YouTube Facebook Instagram

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2019 State of Digital Video | Insights Report 12Data powered by

CPM & CPV

YouTube Delivers The Lowest Normalized CPM Across Connected TV PlatformsCompared to Amazon Fire TV and Roku, YouTube’s living room

screens offering delivers a lower relative CPM. This highlights

YouTube on TV Screens as a good candidate for marketers looking

to test out CTV strategies through its lower price point, and the

ease of extending YouTube campaigns to living room screens.

Cost-Per-View Decreased Across YouTube And Facebook, And Rose Slightly On InstagramCPVs plunged on YouTube as Google made strides to bring down

the cost of video advertising on its platform, while demand drove

Instagram CPVs up slightly (partly due to demand for Stories). As

demand drives fluctuations in the price of video, marketers must

understand how each platform defines views, and remain vigilant

to ensure their dollars are driving the maximum impact.

Benchmarking Connected TV CPMsConnected TV CPMs Normalized Against YouTube on TV Screens

On YouTube and Facebook, CPVs Decreased Year-over-YearPercentage Increase/Decrease In CPV From 2018 to 2019

250%

10%

-10%

-30%

0

-20%

5%

-15%

-35%

-5%

-25%

200%

150%

100%

50%

YouTube on TV Screens

YouTube In-Stream

Amazon Fire TV

Facebook Views

Roku

Instagram Views

212%

100%

4.5%

219%

32.5%

11.4%

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2019 State of Digital Video | Insights Report 13Data powered by

CUSTOMER SUCCESS STORY

How Pixability Delivered Cross-Platform Success For Frost BankFrost Bank's agency, McGarrah Jessee, is one of the

many partners that work with Pixability to run video

ad campaigns across YouTube, Facebook, Instagram,

and Connected TV with a unified approach, rather

than in silos. Frost Bank worked with its agency,

McGarrah Jessee, to develop a campaign around

inspiring optimism, in part through long-form digital

video. Working with Pixability, Frost and McGarrah

Jessee chose to run the video series across YouTube,

Facebook, Instagram, and CTV, accessing multiple

video touchpoints with consistency. Using the

PixabilityONE platform, the videos were optimized

toward completed views and completion quality, as

measured by Oracle Moat, and saw great results

including:

• 3X higher click-through rate than benchmarks

• 3X higher completion quality rates than

benchmarks

On YouTube and Facebook, CPVs Decreased Year-over-YearPercentage Increase/Decrease In CPV From 2018 to 2019

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2019 State of Digital Video | Insights Report Data powered by

CONCLUSION

How Can Marketers Take Advantage Of These Trends? As audiences shift away from traditional TV to digital video,

it’s critical that every brand and agency master the platforms

that will best reach their target: YouTube, Facebook, Instagram,

and CTV. Unfortunately many marketers are still taking a siloed

approach to these platforms — keeping results separate and

not optimizing across them. This is why our PixabilityONE

platform can not only optimize campaigns just on YouTube, but

across all of these platforms.

No matter what kind of video campaigns you’re running

right now, siloed, or unified, the data from this study shows

that there are unique strengths to each platform. The key to

driving real engagement and love of your brand in 2020 will be

leveraging these strengths.

For more information about insights from PixabilityONE or

about running campaigns across these platforms, get in touch

with us at [email protected].

INSIGHTS CHECKLIST

Here’s What Marketers Need To Know:

Look for a partner with expertise on YouTube,

Facebook, Instagram, and CTV. Only partners with

experience in all can fully understand the strengths

of each.

Look to run unified campaigns that leverage the

strength of each platform so you can turn certain

platforms off if they’re not performing in relation to

others.

Look to YouTube to drive the most engaged views,

CTV to drive highest sheer volume of views, and

Facebook and Instagram to drive the most direct

response. And don’t be afraid of long-form creative

on YouTube — it’s the way of the future.

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