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Marketing in the UK: Finding the Best Value in Video Ads

February 27, 2017 | Video | Social Media | Advertising

Justin Taylor
Managing Director for the UK

Teads, a provider of out-stream video advertising solutions, has seen more UK brands investing in the format to reach consumers outside of pre- and post-roll video ads. eMarketer’s Sean Creamer spoke with Justin Taylor, Teads’ managing director for the UK, about the value of the learning experiences that come from giving audiences the option to interact with ads.

eMarketer: What differences exist between digital video and linear TV, in terms of reaching audiences?

Justin Taylor: Linear TV is the key domain for brand marketers when the goal is reach. And then there’s much more targeted video, which has mainly been live in-stream video.

eMarketer: Are UK audiences open to digital video ads shown during, before or after the content they watch?

Taylor: Research shows that users don’t want to be forced to watch advertising. That view on pre-roll is challenging for the marketer, as audiences don’t want to watch ads before they watch content.

“The key is to have advertising on the end-user’s own terms. So if they choose to watch it, they can engage with it.”

We have to find the best value exchange we can deliver, and that’s where we’re starting to see changes. No one really wants to watch an ad without context. The key is to have advertising on the end-user’s own terms. So if they choose to watch it, they can engage with it. If they don’t want to watch it, they can move on quickly.

eMarketer: How has out-stream video helped brands reach consumers with the appropriate message?

Taylor: We’re trying to find a balance of how out-stream can compliment both pre-roll video-on-demand [VOD] and linear TV-like content. We’re starting to see audio and visual ad targeting getting smarter about the audience. There will certainly be cases where the end-user will be receptive, but still may not necessarily want to see [ads]. Video, whether it’s [in-stream or out-stream], will bring in more consumer-driven opportunities.

eMarketer: How much of the video spending in the UK is going to out-stream video?

Taylor: In the UK, out-stream as a category accounts for around 40% of overall video spend. The reason we’re seeing this growth is because of the user experience. It’s a nonforced advertising proposition. If a user doesn’t want to engage with the video ad, they scroll past it. If they do want to engage, they engage with it or click it. User choice is important, because we [now] have to think smartly about [consumers’] likes and dislikes.

“Live is going to be massive in the 2017 video landscape.”

eMarketer: How has programmatic helped in audience targeting?

Taylor: Programmatic is a great tool on the [ad] buying journey for making intelligent purchasing decisions. You can accelerate the quality of placement, because it is data-driven and autonomous. By feeding it more data, marketers get a good quality of delivery and quality of audience, based on the reach of the audience and also the actions on the back end. [Programmatic] is going to strengthen media planning opportunities and make marketers think about how or why they make a placement—and [about] the type of reaction and action wanted from that placement.

eMarketer: What role will live video play in 2017?

Taylor: Live is going to be massive in the 2017 video landscape. It is going to be increasingly important for brands, because of the authenticity of broadcasting in the moment. The more live opportunities a brand can offer—either within crossover platforms or distribution-reach opportunities such as Teads or a publisher—[the more they’ll] create a landscape driving people to watch more commercial spots. We are also going to start seeing an increase in creativity.

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