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State of the Screens

Flight to quality takes hold in end-of-year video ad spending, pushing up prices

By February 6, 2018No Comments

Video CPMs are up 5–8% YoY as advertisers shift focus to quality.

Brand video spend according to Standard Media Index (2016 vs. 2017):
1) Roku — ↑ 154%
2) Snapchat — ↑ 50%
3) Hulu — ↑ 19%
4) YouTube — ↓ 9%

Our thinking. Brands shifting away from buying the cheapest ad is smart. An ad that is never viewed or viewed by the wrong person has little/no impact on the bottom line (sales, votes, etc.).

More:
1)
YouTube is jacking up ad prices after a string of brand-safety issues

YouTube is telling brands to expect 20%+ increases in video CPM prices for it’s most premium content.

2) Facebook to Lift Longtime Ban on Pre-Roll Ads

3) 2017 was the year digital ad spending finally beat TV

Global ad spend in 2017:
1) TV — $178b
2) Digital — $209b

Remember. The numbers above include all digital ads (search, display, etc.). TV still accounts for 85% of video ad spend.

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.