2016 Publisher Outlook
Monetising in the Age of Mobile & Video
State of the industry
As consumers increasingly turn to mobile and video, publishers are faced with the biggest challenges yet around creating, distributing and monetising content. We know—we’re a publisher, too.
To understand the changes at play, we talked to more than 300 premium publishers in the UK, identifying the challenges and opportunities they see and how data and automation are empowering them.
Here are some key takeaways:
79%
of publishers increased their mobile inventory in the last year
Video is projected to be the #1 revenue driver this year
3/4
of publishers find off-platform syndication important or extremely important
The Tech Tax continues to plague publishers
Meeting the Mobile & Video Demand
Consumers are in control when it comes to what they’ll watch, on which device and when. They demand more flexibility across platforms, expect more personalisation in content and crave more inventive experiences. Publishers are hyper focused on meeting those demands on mobile and video, areas in which they anticipate to see the most growth in the next 12 months.
Mobile
Faster ad loads, engaging ad units, and more mobile web-based content are cited as the top opportunities of mobile, while ad blockers and quality of experience and creative are seen as the largest challenges.
<80%
of publishers expect to increase mobile investment in the next 12 months
More than half plan on increasing up to 25% more
26%
plan on 25-100% more
>50%
of publishers expanded inventory this past year
Mobile saw the greatest increase
Even video and display growth were primarily in mobile
78%
of publishers saw up to 50% mobile traffic growth in the last 12 months
20%
saw 50-100%+ growth
Accelerate your mobile growth
Start HereConsumer Snapshot: A Mobile-Led World
93% of UK adults have a mobile phone, 75% have a smartphone
An average adult mobile user spent ~2 hours online each day—Almost 2X as long than on laptops and personal computers
60% of 16-24 year olds say a smartphone is the most important device for connecting to the internet, ~3X the 2nd most important device, a laptop
Video accounts for the majority of mobile data traffic. In 2015, 58% of all mobile data traffic was video, including video through streaming apps.1
22M people will watch video on mobile phones at least monthly this year—+11.6% over 2015. By 2019, nearly 48% of mobile phone users will use their devices for video viewing.2
Video
Digital video is expected to be the #1 revenue driver for publishers in the next year, primarily fueled by its association with an improved user experience; quality creative, better targeting and better load times.
Video and interactive formats are expected to contribute more revenue in the next 12 months
35%
of publishers believe that outstream video specifically will drive this growth
Fast-forward your video program
Start HereConsumer Snapshot: Video Obsession
72% of people claim to watch short-form video, with nearly a third saying they watch either daily or at least weekly
Smartphones are 2X as likely to be used for watching short-form video than for full-length programmes
Video advertising in the UK now accounts for £711M, an increase of 51% YOY. Pre & post roll take the lion's share at 76%, followed by outstream / in-read at 21%, then viral / other at 3%.
Mobile video experienced the fastest growth within mobile display in 2015, up 98% YOY3
Distribution Revolution
Third-party publishing platforms like Facebook Instant Articles, Apple News and Google AMP still fuel the distribution debate among publishers. But what originally sparked panic seems to be paying off for many.
>93%
of publishers believe distributed media has had a positive effect; 35% deem it “extremely positive.”
Almost all respondents claimed that syndication is essential to their strategy. Not surprising, given that most publishers receive more than 25% of their traffic via syndication referrals.
Analyse, Optimise, Monetise, Repeat
The more things change, the more they don’t stay the same. As consumer behaviours evolve, we’re seeing changes in how publishers are buying inventory and, as a result, the value of that inventory. In 2016, publishers have been more aggressive in bringing greater efficiency to their businesses. The key: Data.
Now more than ever, it’s critical to invest in tools that:
- Identify where consumers are coming from and which traffic sources are the most valuable
- Layer intelligence on top of execution technology to improve real-time decision-making and ensure brand safety
- Optimise constantly to assess buyer patterns and pricing so you can attract more valuable audiences
Analytics & Optimisation
Publishers depend on a vast array of third-party services, the most common being data management, analytics and performance reporting. More than 66% cite the ability to access data holistically across platforms as very/extremely important.
€50 million or more
€20 million to less than €50 million
€5 million to less than €20 million
Less than €5 million
While many publishers rely on a DMP, they do so for different reasons. The most commonly cited uses: cross-device matching and data security, followed by audience extension and audience segmentation and targeting.
All this suggests that publishers realise they need to be just as data savvy as their advertisers. It also points to the costly gap between in-house and third-party capabilities.
Tech Tax Tyranny
Publishers are still prey to the tech tax—dollars lost to multiple intermediary vendors across the ad buying process.
>41%
rely on 5-10 vendors; nearly 25% use 11+ vendors
<50%
of ad media spend goes to publishers4
Monetisation
Direct sales and SSPs are expected to see the highest volume of inventory sales over the next 12 months, followed by ad networks, exchange-based sales and agency trade desks.
The vast majority of publishers use PMPs
55%
of publishers rely on a single PMP; 36% use multiple partners
While PMP transactions have grown, there are still challenges, with tech deficiencies and management execution costs ranking the highest. The lowest ranked challenge? Lack of demand.
Simplify your monetisation strategy
Start HereHeader Bidding Is Here To Stay
Header bidding shows no signs of slowing down despite concerns about its longevity and latency.
Nearly half of all publishers use header bidding technology
The majority use partner solutions
Of those, 60% use five or more partners
What’s Next?
While today’s media landscape makes it increasingly difficult for publishers to drive revenue, there are solutions. As you advance your content creation, distribution and monetisation strategies in light of current trends, here are key issues to consider:
- Are you and your partners focused on mobile video monetisation?
- How are you driving more holistic efficiency across display, mobile, video and TV?
- How do you access unified intelligence, brand safety and measurement?
- What mechanisms do you have in place to control and maximise inventory yield?
- How are you minimising the Tech Tax?