Google has become more open in the last 12 months: GroupM report
In the second State of the Video report, GroupM delivered many valuable insights into the industry-wide changes that are shaping the video ecosystem
Published - 12-November-2018
Google has opened up its doors to agencies in light of increasing brand safety concerns, GroupM has said in a report.
In the second State of the Video report, GroupM said that “Google, for one, has become more open in the last 12 months - as it had to.”
Concerns about brand safety peaked in 2017 and the topic continues to remain one of the hottest topics of conversation between client and agency. In the report GroupM said that the agency has always asked that media partners allow true third-party verification via a tag on the page. “Our most concerned clients demand it and direct investment to partners who comply. Resisting independent verification creates doubt among planners and clients alike as to what’s really going on.”
The report delivered other valuable insights into the industry-wide changes that are shaping the video ecosystem. The highlights:
Modernising TV Advertising
The report that studies the trends in the world of video content, mediums, and advertising drew attention the perils and procedural quagmires of addressable television advertising.
Ad buying ecosystem on television is “complicated” the report said. “In 2018, we are in limbo between the traditional and the modern. We have a choice: Force-fit digital video into linear mechanisms, systems and pricing structures, or modernise television to look more like digital – targeted, automated and optimised,” the report states.
Explaining the paradox of modernising television advertising with addressability the report said: Television’s core function is still reach. Data adornments are welcome only if they make that reach more intelligent and more intimate, expanding television’s relationship to sales and downstream financial and performance metrics, as any advertiser on earth would hope to achieve.
A Prime Platform for Advertisers?
Amazon Advertising encompasses tools for buying, search, and display formats. The Amazon advertising suite offers both pure branding and aids to sustain awareness over time through retargeting. Amazon has multiple tools for advertisers from Sponsored Products and Sponsored Brands, Amazon DSP, and Advertiser Audiences.
But Amazon’s Video OTT platform is not primed for advertisers the report suggested. Amazon Prime is almost entirely free of spot advertising, but Amazon does offer ad inventory in Twitch and IMDb, as well as natural breaks in NFL games on Prime in the US and on its website and app.
“Video advertising is scarce, so Amazon Prime should not be viewed as a significant competitor in the supply of ad inventory,” the report said.
Amazon video’s potential to complement its proven strengths in product search and e-commerce excites advertisers. But Amazon is dispensing with ads on Prime “to preserve its user experience, but may develop free and themed channels where advertising sits more naturally,” the report said.
Crystal ball gazing
As the ecosystem gets more and more complex it is “better to get back to basics,” GroupM said in the report. “The purpose of advertising is to create demand and then harvest it. All channels have the potential to contribute to both. They do that best when they create a great user experience for both viewers (users) and advertisers.”
Finally the report advised advertisers to get used to making video that is relevant to the user and the platform use case. “This is essential if they are to benefit from a data-rich, multi-platform world.”
The agency further predicted that linear viewing of ad-supported TV is not going to grow, the economics of ad-funded OTT are questionable and that subscription fatigue is eventually inevitable. The undeniable truth that the report concluded is that: It is only going to get harder to get audiences to sit through interruptive ads.