Most video advertisers start with a base linear TV ad plan and then extend reach by adding other video options that can include CTV, addressable, VOD and digital video. It’s a given that marketers are interested in uncovering ways to smartly invest national linear TV ad spend to compensate for price inflation, although 2020 CPMs have dramatically declined.

Social media advertising will remain vulnerable in Q2 and possibly longer. CPMs will stay low, spending cuts will persist, and ad creative will be tricky to get right.

This StatPack provides a visual overview of trends in display, video and mobile ads bought programmatically, both in the US and worldwide.

Following is a hypothetical example, which demonstrates that the advanced target CPM value is more cost-effective than a standard age/gender transaction, but it may be less efficient than an addressable buy for SUV prospects:. Standard age/gender buy: $125.50 CPM. Advanced target buy: $72.25 CPM. Addressable target buy: $42.50 CPM.

With connected TV adoption rising, advertisers are keen to access an increasingly sizable audience on a sizable screen. In fact, many connected TV ad buyers may pay north of $20 CPMs to do so, according to a new digital ad pricing statpack that eMarketer will be releasing April 10.

As more customers turn to digital options for their video entertainment, TV ad spending is flattening. In our latest report on US video, we forecast that US advertisers will spend $70.30 billion on TV this year, a decrease of 2.9% from 2018.

Video at Scale + Closed Loop Measurement = Holy Grail for Advertisers

This week, YouTube has rolled out an audio-first ad unit in beta, available via auction on Google platforms, including Google Ads and Digital & Video 360, on a CPM basis. Previously, ads running during music content on YouTube were supported by programmatic video ad buys on YouTube. YouTube US Ad Spending.

Including mobile as a device in conjunction with things like desktop and in the cases when they're running video, even connected TV.”. As was the case with digital advertising more broadly, performance ads held up better, with less steep drops in CPMs and revenues and quicker rebounds.

But ad spend across industries will be less on average, due to budget constraints and falling CPMs. Video is well-positioned for branding campaigns. Some advertisers are focusing on the upper funnel as they find it difficult to make sales—and digital video is a good substitute for campaigns in channels with less media consumption like out-of-home (OOH) and radio.

Video has long been in greater demand than other display formats (but also without as much supply as advertisers might like). Falling prices due to reduced overall demand will make video placements even more attractive compared with static banners. Campaigns that couldn’t profitably use video at higher CPMs may now make sense.

“Historically, people have gotten such good CPMs from video that even if they have subscription businesses, they keep the video outside of the paywall,” Brightcove’s Green said. “I would expect that video will stay that way as long as the CPMs stay up. It's just when people don't have much scale, they figure they might as well throw it behind their paywall.”.

A May 2020 survey of 173 US ad sellers by the Interactive Advertising Bureau (IAB) found that podcasting CPMs had declined 6% due to the pandemic. Meanwhile, CPMs for streaming video, social media, and display were down a much greater degree. Another reason why podcast ad spending may grow amid the pandemic is that podcasts are coming into their own as an advertising medium.

Because video ads have higher rates than display, fraudsters in these instances aim to profit off the difference between the video and display CPMs. Another 0.5% of impressions were infected by malware. An example of this is where an ad forces website redirects.

“Rewarded video provides user-value exchange and enables the user to actually benefit from that time they've just spent in engaging with the video ad,” said Anala Prabhu, growth product marketing manager at Facebook Audience Network. Having effective ad formats isn’t enough, though.

“Consumers are spending more time consuming both short- and long-form video content on their mobile devices, and brands also view in-app video as a high-value interactive format that they’re willing to pay high CPMs for to reach those audiences,” she said. She added that the rise in mobile video has come to some extent at the expense of traditional linear TV.

With CPMs down and TV ad sellers seeking price protection, it’s possible that more networks will reduce their ad loads in months to come. NBCU was active in the video streaming space this quarter. In April, it unveiled its full list of sponsors for its new streaming service Peacock. Peacock was made available to Comcast subscribers in April, but it won’t roll out nationally until July.

Though most of its video is watched on mobile, there is indication that the site is contributing to rising connected TV inventory. Between Q4 2016 and Q4 2018, the share of YouTube video views that occurred on TV screens in the US increased by about 6 percentage points, according to digital video studio Collab. As supply levels rise, connected TV CPMs should decline.

“There’s a lot more scale on CTV than before,” said Karim Rayes, chief product officer at video advertising platform Tremor Video. “So, budgets have been able to shift there.”. March and April were brutal months for most advertisers and publishers, but CPMs and spending bottomed out in April, according to advertisers and agencies we interviewed.