New IAB Report Charts 2x Growth in Digital Video Advertising
The revenue associated with digital video advertising is continuing to grow, with mobile video leading charge. According to the Interactive Advertising Bureau’s Internet Advertising Revenue Report (which was produced by PwC and released by the IAB this week), video advertising revenue hit $7 billion in the first half of 2018, up 35% from the first half of 2017.
“This is nearly double what it was just two years ago,” IAB research director Kristina Sruoginis said during a presentation outlining the findings. “That video growth should be no surprise to anyone paying attention to the space.”
Perhaps most notably, mobile video accounted for 60% of the video ad revenue, up 61% year over year and accounting for $4.2 billion of video ad spend.
“Last year, it was about 50/50 (desktop and mobile),” PwC partner David Silverman said during the presentation. “As consumers are shifting their focus from a desktop screen to a mobile screen, marketers are following with their budgets.
The IAB and PwC project that digital video growth could be further fueled by the rollout of 5G, as well as “innovative formats and new pricing models, including premium placements and ad campaigns capable of running across an expanding universe of screens.”
Facebook Properties Lose Share
Despite seeing overall content consumption grow in September, Facebook properties continued to lose market share. In fact, Facebook-related properties (including Messenger, Instagram, WhatsApp, and Facebook’s flagship app) fell by 7%, year-over-year, according to a new analysis of Nielsen data by Pivotal Research.
The declines continued despite the increasing popularity of Instagram, which saw usage increase by 41%. WhatsApp saw usage increase by 38%, year-over-year, too.
In aggregate, Facebook’s core properties fell by 13%, while time spent per user fell by 20%, year-over-year.
Pivotal suspects that privacy and security issues could be to blame, stating that “it’s impossible to identify the degree to which concerns around data privacy have had any lingering impact, nor if Facebook’s efforts to improve the quality of time spent (at the expense of volume of time) might be causing these declines.”
Google My Business Adds “Social” Features
Google has introduced a series of updates to its Google My Business app that are designed to make it easier for businesses to connect with customers.
Growing in popularity since its launch in 2014, Google My Business lets businesses manage their online information as it appears in Google Search and Maps, including opening hours, contact details, photos, and reviews. Last year, a new feature that let businesses edit their listings directly from within Google Search was unveiled.
“When we built the Google My Business app, we wanted to make it easier for small businesses like you to take advantage of that opportunity, and turn those searchers into your customers,” said Google My Business engineering manager Curtis Galloway, in a blog post.
This latest update, which is rolling out to businesses on Android and iOS this week, includes access to a quick Post button, which offers an easy way to add photos, special offers, and other new information to a business profile.
New Google Experiment Aimed at Black Friday and Cyber Monday Marketers
Google is rolling out a two-week experiment that will allow advertisers to promote special marketing deals in Black Friday and Cyber Monday ads using Promotion Extensions, which was first introduced out last year.
Promotion Extensions ads show special offers as an extension to the main ad, without needing to create new ads. For example, Bed Bath & Beyond can use Promotion Extensions to display a “30% Off” promo code or “$20 Discount” on all orders.
The experiment will run between Nov. 14 and Nov. 27. The ad will appear at the top of the search results and will be part of the ads that have Promotion Extensions.
Last year, 100% of searches for Black Friday occurred between Nov. 19 and Nov. 25. The days leading up to Thanksgiving Day are the most important to get the deals in front of consumers.
Opt-In Approach for Advertising Challenged by the FTC
The Federal Trade Commission is coming out against the idea that companies should be required to obtain consumers' explicit permission before drawing on their online activity for ad targeting.
“If consumers were opted out of online advertisements by default (with the choice of opting in), the likely result would include the loss of advertising-funded online content,” the FTC says in a staff report submitted to the National Telecommunications and Information Administration.
The report, unveiled this week, comes in response to the NTIA's call for public comments about online privacy and is one of the FTC's first major statements on online privacy since a slate of new Commissioners took over this year.