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How we do video advertising in Europe (2022)

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IAB Europe and Pubmatic came together to do a study to diagnose the state of video advertising in Europe, which is a widely used resource on the web to advertise in digital media. The report highlights the desire of media buyers to continue to increase investment in video advertising, particularly on connected television (CTV).

Investment by format and type of format

Looking at the preferred formats for digital video campaign placements in this study, it is clear that the format Connected TV (CTV) it still has a long way to go before it catches up with the desktop and mobile web. And it is that the CTV it is an emerging channel with which advertisers can make measurable and profiled advertising. It should be noted that the Connected TV platforms are where content is consumed via streaming, accessible from Roku, Chromecast, Smart TVs, Apple/Android TV, etc.

Source: IAB Europe / Pubmatic

The most purchased video advertising is directed to the mobile web, with a quarter of media buyers spending more than 61% of their digital budget in this channel, while 17% say the same in relation to desktop computers. desk. However, only 9% say they integrate more than 61% of their campaigns with CTV and a quarter of those surveyed say they are not currently using it.

Additionally, respondents were asked how much of their digital advertising budgets are spent on the following three key format types:

in-stream (videos that stream before, during, or at the end of a video that a person is watching).
In banner (where a video player is embedded in a display banner ad).
outstream (ads that autoplay between web content and can be paused or skipped by viewers).

Given this, 65% of respondents say they have spent between 41% and 100% of their budgets on in-stream.

Source: IAB Europe / Pubmatic

Although it is this format that dominates, the study found that there is significant growth in outstream advertising. 37% of those surveyed stated that they had spent between 21% and 61% of their budgets under this type of format.

Preferred purchase methods

When it comes to the type of purchasing method used to buy digital advertising inventory, the IAB Europe and Pubmatic survey reveals that while the direct programmatic is the top purchase type for digital video advertising, only by a small margin: 89% of respondents will spend a portion of their budget through programmatic direct (buyers purchase inventory directly from publishers programmatically) ), compared to 82% for direct (buyers deal directly with publishers using non-programmatic channels) and 81% for real time bidding (RTB).

Source: IAB Europe / Pubmatic

Clearly, however, when both programmatic variants are combined, this form of purchase is preferable to apply to non-programmatic direct channels.

Future plans

An extremely positive picture that emerges from this research is that there is optimism among respondents regarding the trajectory of future digital video advertising investment. 93% of respondents believe that digital video advertising budgets will increase in the next 12 months.

Source: IAB Europe / Pubmatic

For its part, almost half think that these will increase between 11% and 30%, while 17% believe they will increase between 31% and 50%. This positive picture is also present when it comes to mobile video advertising, although to a lesser extent than digital video advertising in general (perhaps this is because respondents have left out the CTV format). Total, 89% of respondents say mobile video ad spend will increase over the next 12 months.

Source: IAB Europe / Pubmatic

Digital video advertising goals

On the other hand, this study found that, when asked about the objectives of their video campaigns, the winner is branding.

Source: IAB Europe / Pubmatic

52% of advertisers and agencies indicate that between 61% and 100% of their digital advertising budgets are on branding (21% spend between 80% and 100%). In contrast, only 18% spend between 61% and 100% of their budget on performance goals.

Source: IAB Europe / Pubmatic

Future video formats

The importance of branding for digital video advertising is again evident when it comes to the formats that respondents to this IAB Europe and Pubmatic study believe will bring them the most revenue over the next 12 months.

Source: IAB Europe / Pubmatic

The 51% of respondents believe that interactive video will be the format that will enter the most in the next 12 monthswhile the 42% think vertical video will generate more revenue and 35% think live video will. Both interactive video and live format are good channels for branding campaigns.

19% of respondents selected virtual reality and augmented reality as likely to generate the most revenue over the next 12 months.

Photo: Depositphotos

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