Dissecting 2017’s full year IAB UK Adspend results

By | Ad Spend, Banner - Advertisers, Banner - Content Creation, Banner - Native Video, Banner - Publishers, Banner - Reporting, Banner - True Native, Native advertising, Uncategorized

So, the headline news at the IAB yesterday was that the UK’s digital advertising market is up 14.3% YOY and was worth a staggering £11.55bn last year. The numbers have finally been crunched and there’s some interesting nuggets in the report which we, along with all the key players from publishing groups and adtech companies, submit to twice a year. The key takeaways are:

  • Smartphones are driving the bulk of the growth – an increase of 37% YOY
  • 45% of all digital advertising is delivered on smartphones
  • Online video is now the largest display format – accounting for 39%

Separating native and sponsored content

From a native perspective, one of the interesting changes to themethodology is separating sponsored content from native. As native advertising becomes a catch-all, encompassing click-out formats and promoted social media posts, it’s become important to work out exactly what is stay on site brand content and what may have simply shifted from traditional display budgets. For the record, Native (which includes Facebook and Twitter) is now worth over £1 billion, with sponsored content making up £124 million.

Growth chart

Video formats shift

Pre-post roll has lost its crown as the largest video format, having been overtaken by outstream in 2017. With budgets shifting from television to online, this could be because of limited pre-roll availability and the need to find audiences online at scale.

The growth of the private market place (PMP)

With 4/5 of display budgets being traded programmatically, it’s clear that programmatic has been a huge success. What’s more interesting is the shift to programmatic direct – up 10% YOY and now making up 63% of trading. Mary Healy from Accenture is Chair of IAB UK’s Display & Data Steering Group. She said:

”Programmatic direct and PMPs will continue to take the lion’s share of the spend as brands realise that context is just as important as it is in other media. 2017 certainly highlighted a number of concerns across the digital media ecosystem, which has forced the industry to re- evaluate many of the practices we had followed in the past”

With GDPR looming, it could be that these deals – essentaillty selling named inventory rather than just finding the audience regardless of the environment, will grow further during 2018. A lack of reliable data combined with brand safety fears could well mean that buyers are increasingly looking for high quality, contextually relevant publisher environments rather than open RTB.

Digital is the big winner

Finally, gazing into the crystal ball, GroupM predict that digital will outperform the UK ad market again in 2018 – a 10% increase versus 4.8% generally. One thing is clear – as we continue to look downwards on our smartphones, spend on digital continues to head upwards.

How to split your ad budget in 2018

By | Ad Spend, Banner - Advertisers, Banner - Content Creation, Banner - Native Video, Banner - Reporting, Banner - True Native, Content, Native advertising, Uncategorized

3 ways to split your ad budget

With the new financial year comes a new advertising budget – but are you spending yours as wisely as possible? The savviest advertisers are in on the secret that there are three particularly important ways to invest your native ad budget in 2018. Bump these to the top of the priority list to give yourself the best chance of success…

Three is the magic number

It’s that time of year again when advertisers set about the task of allocating the budget for the coming months. While it might be daunting to deviate from the tried and tested plans of old, the most successful marketers set aside a try and test budget for new channels – those who have yet to try native content might want to consider branching out.

But first, as any good multi-tasker understands, you need to work out your top priorities in order to make the wisest decisions for your business.

In an interview with the Native Advertising Institute (NAI), Trine Lundahl, Client Service Director at Aller Media, recommends that advertisers invest in three core areas: production, testing and distribution. It’s on these three pillars that the success of your native advertising campaign is likely to rest.

Let’s take a closer look…

Production. Investment in production is crucial; without the right content resonating with your target audience, the power of native is severely compromised. And without high quality content that offers real value, native is reduced to the same relevancy as the rest of the background noise – i.e. the countless other ads you’re fighting to be heard over.

Testing. Testing is critical to allow you to both scale and convert your content that’s performing best. It’s a smart tactic to try multiple pieces of content to see which perform best. Then you can take the learnings from this when briefing the next batch. Just remember to clearly define how and at what point during the process you’re going to test format and content, right from the start.

Distribution. There’s no point in having top notch content if nobody gets to see it. Your budget needs to focus on getting that quality content out there and in front of the right eyes. This can be done by investing time and money in distributing the content in credible editorial environments to allow new audiences to discover it.

So, you can see what needs to be done. The real question is: do you try to accomplish it all yourself, or bring in a network that can help with the planning and execution of campaigns to simplify spend and give you a welcome breather?

Collaboration with an agency – is it for you?

DIY is a tempting approach, at least on the surface. By shouldering the burden yourself you can cut down on spend. However, not only will you be limited to the level of expertise you possess and the resources at your disposal, but it may also take much longer to implement your strategy.

The production, testing and distribution stages of a native advertising campaign are increasingly significant and important to success. Anyone looking to invest their budget wisely should be particularly aware of these elements and how they should feed into campaign planning and strategy, or else look to partner with an agency that can demonstrate this understanding.

At TAN Media, we combine all three for end-to-end campaign management and in-depth analysis, allowing our customers to simplify their budget, reduce production time and enjoy access to premium publishers.

To find out more about true native for advertisers, contact us today.

Decline in programmatic while mobile and native make big gains

By | Ad Spend

Programmatic ad buying fell by 12% in the first three months of 2017, versus the same time last year, new data from MediaRadar shows.

The numbers gathered from looking at advertising spending and buying patterns showed 39,415 advertisers bought ads programmatically in the first quarter, which compares to 45,008 in the same three months in 2016.

A lack of faith in programmatic buying has grown, thanks to concerns over fraud, brand safety and a lack of transparency in how ad prices are decided. This means companies and agencies are taking on more direct advertising, such as sponsored editorial or buying brand-safe PMPs (private marketplaces).

Advertisers worry about having little control of their ads

The main concern is that companies have less control over exactly where their ads appear when they are placed programmatically. Instead, a software-led process automates buying, placement, and optimisation via a bidding system.

Todd Krizelman, the CEO of MediaRadar, explained the decline was likely due to problems for companies like YouTube, but that the form of advertising was continually evolving. He expects to see new growth in programmatic buying, but a shift towards programmatic direct models.

Mobile and native formats saw the greatest growth overall

MediaRadar also found that high-CPM ads in mobile and native environments made the biggest gains. Native buyers were up 74% from 2016 to 2017. This is part of a bigger trend which has seen native almost triple since 2015. There were just 981 buyers in 2015, now there are 2,882.

This is because native has a click-through rate of up to four times more than non-native on mobile. People are also more likely engage with native content, as it is non-disruptive.

Overall, the top five sectors seeing success in buying native advertising were media and entertaining, professional services, financial and real estate, technology, and wholesale. The top five ad placers in the US for native were Secco Squared, Potential Investments, Answers Corp., NextAdvisor and JPMorgan Chase and the United States of America.

Video and specialist print ads also proved resilient

Video ads were also making money in the first quarter. Comcast, Procter & Gamble, Microsoft, Toyota, and Verizon all put cash into ads with video. On mobile, Brown-Forman, Time Warner, Anheuser-Busch, Simplisafe, and Liberty Interactive had the highest number of placements.

Traditional media forms continued to decline. Print ad pages fell by 8% against last year after a 6% decrease in spending, but regional titles and specialist publications were still successful.

These conclusions were drawn from a study of 266,324 advertisers and considered their use of digital, native, mobile, video, email and print advertising.

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