thanks to major events such as the FIFA World Cup, and the way broadcasters are increasingly collaborating to create a more data-enabled future for TV advertising.
In Europe, despite the arrival of new data regulations with the GDPR, premium content saw an increase of 31% in ad views and 22% in video views during the second quarter of the year, compared with the same period in 2017. In contrast, digital programmatic spending took a big hit immediately post-GDPR, with exchanges reporting anything between a 25 and 40% reduction in demand.
‘Big screen’ viewing on television sets captured almost a third (30%) of all ad views during the period. This may be partly attributed to the screening of the World Cup over the summer – still the most watched TV event globally – as fans sought the best quality viewing experience to watch the spectacle.
Data from the VMR indicates three key trends across Europe between April and June this year:
– Premium video continued to flourish across all devices and platforms. STB and OTT saw year-over-year growth of 21% and 41% respectively, while mobile ad views grew by 46% compared to 2017.
– As streaming services continue to grow in popularity, broadcasters are reacting to the competition. Sky is building Netflix into its premium service, while others are collaborating – the BBC, ITV, Channel 4 and network operator Arqiva are joining forces to invest in the Freeview platform, to offer combined free-to-view, live and on demand television.
– Direct-sold deals still dominate the market, accounting for 88% of premium video ads sold in Q2 – up 41% year-over-year.
Additional findings from the Q2 report included:
– Operator-driven syndication grew strongly this quarter, now accounting for 17% of ad views, as publishers strive to provide consumers with content whenever and wherever they want it
– Premium video continues to be an engaging format for viewers, as ad completion rates remained high in Q2, with pre-roll completion at 91% for both live and full episode, and mid-roll completion rates at 94% for live and 96% for full episode.
Thomas Bremond, General Manager, International, Comcast, commented: “As the convergence of linear and digital capabilities continues, premium video is perfectly placed to own a greater portion of the marketing funnel. Success will depend on the industry enhancing targeting and measurement capabilities, while still providing a brand-safe environment and engaging user experience.”