Flight to quality takes hold in end-of-year video ad spending, pushing up prices

Video CPMs are up 5–8% YoY as advertisers shift focus to quality.

Brand video spend according to Standard Media Index (2016 vs. 2017):
1) Roku — ↑ 154%
2) Snapchat — ↑ 50%
3) Hulu — ↑ 19%
4) YouTube — ↓ 9%

Our thinking. Brands shifting away from buying the cheapest ad is smart. An ad that is never viewed or viewed by the wrong person has little/no impact on the bottom line (sales, votes, etc.).

More:
1)
YouTube is jacking up ad prices after a string of brand-safety issues

YouTube is telling brands to expect 20%+ increases in video CPM prices for it’s most premium content.

2) Facebook to Lift Longtime Ban on Pre-Roll Ads

3) 2017 was the year digital ad spending finally beat TV

Global ad spend in 2017:
1) TV — $178b
2) Digital — $209b


Remember. The numbers above include all digital ads (search, display, etc.). TV still accounts for 85% of video ad spend.


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