Online video advertising seems to be most impactful in the hours between 3 a.m. and 12 p.m., according to a new study from cross-platform video advertising firm YuMe.
The study, which surveyed over 10,000 US respondents from a nationally representative online panel, measured ad receptivity and branding effectiveness to offer insight into monetization opportunities for video ad campaigns by leveraging consumer insights. In short, the survey found that both time of day and type of device affect ad performance.
In full, the report had a few interesting takeaways that help brands and publishers create the right content, at the most effective time and on the most relevant device:
- Consumers most open to advertising in the early morning. Overall ad receptiveness peaked at 5 a.m., with a receptivity score of nearly 60 out of 100. Because of this, platforms could charge a slightly higher price tag for ads aired during this time due to the overall higher level of receptiveness. Moreover, this trend is seen across all age groups including millennials, Generation X, and baby boomers.
- Consumers use mobile devices differently throughout the day. On average, respondents tend to view the most amount of video content on their smartphones during the morning and afternoon hours, and tablets and non-mobile devices (connected TV, desktop, laptop) during the evening. This hints that consumers would rather view content on larger screens when they have more free time, opposed to the morning rush hour when it may be easier to reach for a smartphone.
- Tablets and smartphones garner the lowest number of video views, but highest ad receptiveness. While tablet and smartphones commanded the lowest number of video views across all devices, they scored the highest ad receptivity scores, edging out ads on connected TVs, desktops, and laptops.
The success of early morning video advertising could be due to the fact that consumers have been exposed to limited content from publishers or advertisers. Thus, the morning offers marketers a window to reach consumers before they are bogged down by the intrusiveness of daily advertisements.
Consumers continue to increase their time spent consuming digital media, while advertisers continue to increase their ad budgets into digital channels.
The influx is not expected to let up in the near future. The US digital advertising industry will continue to experience remarkable growth through 2021 to reach nearly $100 billion in annual revenue, driven primarily by the sustained migration of ad dollars from traditional TV to digital video and the continued increase of social spending.
Overall, the strong growth of the US digital ad market can largely be attributed to increased time spent by consumers on digital media and brands’ increased comfort with allocating budgets to digital formats, particularly on digital video. In a recent 2016 survey of almost 400 US ad agencies and marketers, the IAB found that two-thirds of respondents plan on increasing spending on digital video in the next year.
Moreover, mobile will become the top destination for digital ad spending as advertisers continue to attempt to resolve the disconnect between the rapid growth in time spent on phones and tablets and the relatively small share of ad budgets that are allocated to such platforms — known as the mobile opportunity gap. In fact, mobile is set to eclipse desktop ad spend by 2018.
Dylan Mortensen, senior research analyst for BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on U.S. digital media ad revenue that forecasts revenue trends over the next five years and outlines the key growth drivers for overall digital ad revenue in the U.S.
Here are some key points from the report:
- US digital ad revenue is expected to reach nearly $100 billion by 2021, according to BI Intelligence estimates. This represents compound annual growth of 8% from the $68.9 billion expected in 2016.
- Mobile is positioned to become the top destination for digital ad spending as advertisers continue to attempt to close the “mobile opportunity gap.”
- Digital video advertising will grow faster than any other segment over the next five years, as consumers shift time spent online to phones and tablets. Revenue in this category is forecast to rise from $8.5 billion in 2016 to $23 billion in 2021.
- Social advertising in all formats is gaining traction and will be among the key drivers of digital ad growth in the next five years. Social ad revenue is poised to climb to $30.8 billion by 2021, up from $15.5 billion this year.
- Artificial intelligence, augmented and virtual reality, and sponsored content will help propel further digital ad growth in the next decade.
In full, the report:
- Forecasts US digital ad revenue through 2021.
- Highlights the rising popularity of digital media with consumers and brands.
- Explores why digital video advertising growth will exceed all other formats over the next five years.
- Outlines emerging technologies that will help propel ad growth in the next decade.
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