Top 4 Takeaways From the 2015 NewFronts Season

As the NewFronts wrap up, pitches for online video may be over, but now comes the hard part: evaluating the options. Online video’s explosive growth raises the stakes. It’s important to know the facts. Here’s what to keep in mind as media allocation decisions are made.

The NewFronts—that time of year when the ad industry and media companies converge to pitch and buy online video media placements for the upcoming year—have officially come to a close. While the events themselves are all about the sizzle, now that the NewFronts are over, marketers and agencies are comparing who has what to offer and deciding what will resonate with an advertiser’s audience while making the most efficient use of marketing dollars.

If you went to this year’s NewFronts events, you undoubtedly saw a dizzying number of statistics, research reports, case studies, new offerings, and probably a few celebrities for good measure. If you didn’t go, you’re probably wondering what you missed.

Why all the buzz? Online video is seeing explosive growth. According to eMarketer, U.S. online video ad spending is predicted to hit $7.77B this year, up from $5.96B in 2014. As advertisers devote more of their budgets to online video, the stakes become even higher for deciding where and how to invest in online video platforms.

Watch time on YouTube is growing fast, up 50% YoY.

Here is what to keep in mind as the dust settles on the 2015 NewFronts presentations:

Online video is no longer a nice-to-have in your media plan

To be where your audience is, online video is now a must. Every day, viewers watch hundreds of millions of hours of video on YouTube.1 And according to a December 2014 report from Nielsen, the amount of time viewers spend watching video on the internet has grown 38.5% from the end of 2013 to the end of 2014. With YouTube seeing 50% growth in watch time year over year2 and reaching more 18- to 34- and 18- to 49-year-olds than any cable network in the U.S.,3 online video can’t be overlooked.

Audience Reach Among 18- to 49-Year-Olds

Source: Google-commissioned Nielsen study (U.S.), December 2013-February 2015. Audience Reach among 18- to 49-year-olds for YouTube (mobile only) and 124 U.S. cable networks individually (television only).

Mobile screens work harder for your brand

When it comes to online video, mobile is a small but mighty screen. Recent research reveals that U.S. smartphone video viewers are 1.4X as likely as desktop and TV viewers to watch ads on their devices.4 Not only that, but video content on mobile devices also enables a stronger sense of personal connection to brands. Intuitively, this makes sense. When you’re watching a video on your smartphone, it’s just inches away from your eyes.

Source: Google/Ipsos MediaCT, U.S. “Brand Building on Mobile” survey, February 2015.

Online video delivers results, and you can prove it quickly

Engagement metrics (views, shares, comments, likes, and watch time) are important, but they don’t tell the whole story. Brand metrics—awareness, perception, and audience interest—provide additional insight into the effectiveness of your campaign. In running studies of advertisers who bought Google Preferred inventory (some of YouTube’s most popular channels) across a variety of verticals, results indicate those campaigns saw, on average, 80% lifts in ad recall and 17% lifts in brand awareness.5 These types of brand metrics can be measured in a matter of days with Google’s Brand Lift solution. Read more here

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Suite of Free Tools

$0.45 USD - $4.00 USD

Note: The accepted formula that Auxiliary Mode Inc. uses to calculate the CPM range is $0.45 USD - $25.00 USD.

The range fluctuates this much because many factors come into play when calculating a CPM. Quality of traffic, source country, niche type of video, price of specific ads, adblock, the actual click rate, watch time and etc.

Cost per thousand (CPM) is a marketing term used to denote the price of 1,000 advertisement impressions on one webpage. If a website publisher charges $2.00CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad. The "M" in CPM represents the Roman numeral for 1,000.

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