Yahoo News 
Google and Facebook are expanding their video ads (GOOGL, FB)
This story was delivered to Business Insider Intelligence "Digital Media Briefing" subscribers hours before appearing on Business Insider. To be the first to know, please click here.
Google and Facebook each recently announced video ad expansions to drive continued ad revenue growth and ensure that both advertisers and publishers continue to see the value in using their platforms either to advertise or distribute content.
BI Intelligence
The news comes as tech platforms increasingly disappoint advertisers and publishers over brand safety issues and transparency around reach and viewability. The news also comes as 78% of marketers say they plan to increase their video ad production in 2018, according to Clinch research per MarketingDive.
Google’s latest video ad format, called Outstream Video Ads, will operate on mobile devices across Google video partner mobile sites and apps, and will offer advertisers a way of reaching mobile users with video ads outside of YouTube, per Search Engine Land. Google announced the new format on its blog. The ads will appear in banner ads, Interstitials, in-feed, and native for apps. For advertisers, the new format could enhance brand safety, because only Google video partners — a select group of high-quality publishers and mobile apps — will be eligible to run Outstream ads, improving advertisers' access to a powerful mix of high-quality video inventory. The format could also offer better viewability assurances on video ads delivered to mobile devices, because advertisers will be charged on a viewable CPM basis. The format also offers advertisers a way of reaching consumers on mobile devices, which are rapidly consuming a greater share of consumers’ time spend across a range of media devices. Mobile ad spend is expected to become the top ad medium this year, capturing 33.9% of total media spending, surpassing TV (31.6%) for the first time, per eMarketer.
Facebook is reportedly expanding pre-roll video ads, after testing the format on Facebook Watch shows earlier this year, according to Variety. With the expansion, pre-roll ads will appear more broadly in video content surfaced through search results or that’s posted on publisher Pages, as Facebook seeks ways to grow Watch. For now, Facebook won't insert pre-rolls in News Feed. Along with promoting "good" video content through monetization, Facebook also aims to limit "bad" content by demonetizing low-quality video or publishers that engage in “sharing and distribution schemes,” according to a recent blog post. Limiting low-quality video and expanding available video ad inventory by adding pre-roll ads creates a compelling environment for advertisers and brands. Further, high-quality publishers stand to gain more of advertisers' video spend on the platform as Facebook prioritizes content that builds engaged and loyal audiences. For Facebook's part, the platform has identified video as a venue to drive ad revenues, which are the bulk of its total sales, as it reaches capacity for advertising pushed out on News Feed.
To receive stories like this one directly to your inbox every morning, sign up for the Digital Media Briefing newsletter. Click here to learn more about how you can gain risk-free access today.
See Also:
