January 19, 2016

Grab That Smartphone: Video Inventory Is Mobile

If you’ve ever reached over the table at lunch to show a friend the latest Colbert clip, you’ve participated in the fastest growing source for video inventory: mobile. In 2015, programmatic video advertising held the minority share of the total US digital video ad spending. Now, programmatic-driven video advertising growth is in double digit percentages, fueled by TV budgets finding a new home in digital and marketers’ desire to connect with users beyond the banner ad.

Enthusiasm for automating the procurement of video advertising remains high, signifying that the landscape will evolve further in 2016. eMarketer reports that in 2015, video consisted of only 39% of total programmatic ad spend. It is projected to surpass 50% in 2016 and over 60% by 2017.

Even still, marketers seem unsure that supply will catch up to this demand. Forrester reports that 40% of agencies and 27% of advertisers believe there’s a lack of premium inventory. Is this a misconception or is there an actual deficit of premium inventory?

The truth is, publishers hold the key. They’re the content creators and buyers. We rely on their ability to generate more video content. Publishers like Conde Nast and Time Inc. have built out video studios focusing on generating more content. Until these publishers are able to produce thousands of streams monthly, buyers can access more inventory by focusing on other video channels such as mobile and connected TV.

According to comScore, people in the U.S spend about 2.5 hours a day on the mobile device – a little more than half the time they spend online. And a growing portion of that time is spent watching video.

“Must see” TV has transformed into “when I want to see” TV, creating a whole new segment of highly engaged users. These users are now found across a multitude of mediums. Premium inventory is available, but we must be willing to follow the trends and go where the eyes are.

Here at the Trade Desk, we’ve seen partners adopt a multi-channel approach and find great success in scaling video campaigns, while hitting conversion goals. By targeting inventory channels such as desktop, mobile, apps, and connected TV, you can deliver your message to users who actively choose to engage with the content, which will naturally translate into higher completion rates and higher conversion.