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Publishers look to video

News, 13 July 2016

SEATTLE, WA: Digital video's value is growing and publishers are adopting new video ad formats as part of their strategy to meet demand according to a new study.

The State of Digital Advertising Report from video ad tech firm Mixpo, based on survey data and interviews with 263 US sales and marketing professionals at media owners, highlighted the trends publishers have identified in digital advertising.

Facebook's recent algorithm change, which caused referral traffic to drop, is a particular concern for publishers who are wary of becoming dependent on third-party platforms that define how their content is monetized.

But half of those surveyed had run video ad campaigns on Facebook, compared to only 31% on YouTube, 17% on Twitter, 13% on Instagram, and 2% on Snapchat.

They ranked pre-roll, interactive pre-roll and in-banner video as the digital ad formats with the highest perceived ROI.

"Publishers are up against many challenges—Facebook battles to replace them as the daily homepage for information, mobile consumption is disrupting ad formats and inventory volume, and campaign execution has become even more complex," said Kyoo Kim, chief revenue officer at Mixpo.

"Our research found, however, that as digital advertising matures publishers are beginning to operationalize in a much more thoughtful way, which allows them to realize more stable revenue opportunities."

For example, programmatically-powered audience extension has become the fastest growing revenue source for a majority of publishers, with 59% currently leveraging programmatic for audience extension, and another 17% planning to do so in 2017.

Mobile remains a challenge but not for the technical reasons that have previously been an issue.

Most publishers can offer a good mobile experience on any device, but half (48%) said they were "very" or "extremely" concerned with the increase in mobile consumption, since this leads to new headaches around attribution and ad viewability.

Data sourced from Mixpo; additional content by Warc staff