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Extreme Reach Q3 2014 Video Advertising Trends Report

Extreme Reach
Extreme Reach

HD advertising has become the standard for television, with 58% of ads in Q2 2014 delivered in HD. Political advertisers have the highest rate of HD adoption at 77%, while direct response advertisers have the lowest at 29%. Canada's TV media and advertisers have also embraced HD more than counterparts in the US, with over 90% of Canadian TV media supporting HD. As TV advertising expands to digital platforms, HD creative is also becoming the standard online.

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HD Advertising is Now the Standard on Television. HD is now the predominant format for TV advertising. In Q2 of this year, 58% of all TV ads were delivered to TV media in high definition. In Q2 of 2012, HD advertising first started to overtake SD with a majority of ads on network TV delivered in high definition. Over the past two years, HD has also become the standard across local TV media. This substantial shift by advertisers to high definition confirms an industry-wide focus on video quality and recognition of HDs increased brand recall and brand perception benefits. This edition of the report focuses on the HD distribution and adoption within key industry segments: Political marketers lead all other segments in use of HD advertising. Direct response marketers lag behind in adoption of HD for their TV commercials. HD ad creative is now becoming the standard for online campaigns as the ad industry converges TV and digital video advertising. Canadian advertisers and media outlets are even more HD-centric than their US counterparts. The purpose of this report is to provide advertisers, ad agencies and media outlets with specific details, benchmarks and insights that may help to inform their video advertising practices. 25% 70% 75% 80% 34% 77% 35% 41% 52% 58% 78%78%78%78% 2013 Q2 2013 Q2 2013 Q3 2013 Q3 2013 Q4 2013 Q4 2014 Q1 2014 Q1 2014 Q2 2014 Q2 58% 78% HD Distribution Index for Q2,2014 HD Media Index for Q2, 2014 Extreme Reach Research Group VIDEO ADVERTISING TRENDS REPORT Q3 2014 As Q3 comes to an end, HD Advertising Distribution continues to outpace SD, peaking at 63% as of late September 2014. 78% of TV media accept and air commercials in HD. 58% of TV commercials distributed to TV media in Q2 were HD.
Political Advertisers Choose HD Direct Response Advertisers Deliver HD Ads Less Frequently Political Advertisers Are HD Leaders Political advertisers make up the most prolific advertising group on television during an election cycle. They maintain one of the highest HD distribution rates of all advertising categories, delivering 77% of ads in Q2 in high definition. Opportunities for Political Advertisers If your opponents ads are still running in SD, you can stand out and realize significant advantages by implementing an HD everywhere ad program. Conversely, if youre considering distributing some ads in SD, be aware that your opponent will most likely choose HD and so will non-political advertisers. Choose HD whenever and wherever possible. Direct Response Advertisers Trail Behind in HD While most ads are now delivered in HD, some advertisers still havent made the switch to HD from SD. Direct Response advertisers in particular continually maintain the lowest HD adoption rate of all measured verticals. Regardless of why Direct Response advertisers prefer SD campaigns, there are clear opportunities for forward-thinking entrepreneurs to rise above the noise with HD, realizing substantial improvements in ad effectiveness and purchase intent. Opportunities for Direct Response Advertisers Better Results with HD: HD ads have shown a significant lift in intent to purchase and ad recall while simultaneously reducing the number of viewers who change the channel. Better Execution with HD: If you only distribute SD commercials, they may look acceptable in SD broadcasts, but when broadcast in HD, their comparatively poor resolution may compromise their effectiveness. Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 2013 2013 2014 2014 Political marketers embraced HD early and still maintain a significant lead over the industry average. Direct Response advertisers typically fall well short of the average HD distribution rate. Despite a surge in the last quarter, the Direct Response industry has averaged a 27% HD distribution rate across the past five quarters. Political HD Distribution % Direct Response HD Distribution % HD Distribution Index % HD Distribution Index % 77% 29% 80% 60% 25% 0% 34% 34% 77% 23% 35% 35% 79% 17% 75% 22% 77% 45% 41% 41% 52% 52% 58% 58% Video Advertising Trends Report Q3 2014
Canada Still Leads the US in HD Advertising HD Video Influencing Digital Campaigns and Player Size HD advertising trends differ significantly between the U.S. and Canada. Nearly all Canadian TV media have adopted HD and Canadian advertisers run more ads in HD than U.S. advertisers. This analysis illustrates a correlation between the rate of HD adoption by media outlets and HD usage by advertisers. In Q4 of 2011, Canadian TV media outlets took the lead with 65% adopting HD. Since then, Canada has As more TV advertisers reach viewers via digital media, video that plays in a 16 x 9 aspect ratio is becoming the default standard online as well. Its now a common practice to present the same commercial across all screens using the same pristine HD master file. Among Extreme Reach Digital clients, more than 80% of video campaigns utilize the 16x9 aspect ratio initiated by HD commercial content. Video Advertising Trends Report Q3 2014 More Canadian TV Media Support HD Canadian TV Advertisers are More HD-Centric Q2 Q2Q3 Q3Q4 Q4Q1 Q1Q2 Q2 2013 20132014 2014 Canada HD Media Index % Canada HD Distribution Index % US HD Media Index % US HD Distribution Index % 91% 62% 100% 100% 30% 30% 76% 33% 95% 65% 76% 34% 95% 72% 95% 75% 96% 76% 77% 40% 77% 52% 77% 58% Data Highlight: Canada has also outpaced the U.S. in terms of HD ad distribution, but the gap is narrowing. Data Highlight: Canada has steadily outpaced the U.S. in terms of media outlet adoption of HD since 2011. outpaced the U.S. in terms of media outlet adoption of HD. As the supply rose, so did the demand. Much like their TV media outlets, Canadian TV advertisers took an early lead in 2011, distributing 15% of all ads in HD. Since then, Canada has steadily outpaced the U.S. in terms of HD distribution. >90% >80% of video ads that run online also run onTV are 16x9,stemming from the HD creative master
Methodology About Extreme Reach Extreme Reach automatically collects a variety of data through the everyday advertising activities of the companys advertising clients and media affiliates. This report analyzes a portion of that data to reveal detailed trends and insights related to HD advertising. For this study, the Extreme Reach Research Group analyzed and referenced data from Extreme Reach is the leading provider of cross- media video advertising solutions that span TV, online and mobile. The company is also a leading provider of integrated tools for managing critical talent and rights issues. Thousands of brands and agencies, including nearly all of the Ad Age 100, look to Extreme Reach to activate, measure and optimize video advertising campaigns. The Extreme Reach video convergence platform unifies the workflow and metrics of television and digital video advertising. CORPORATE HEADQUARTERS | extremereach.com 75 Second Avenue | Suite 720 | Needham MA 02494 | 877.769.9382 | sales@extremereach.com All rights reserved. Extreme Reach is a trademark of Extreme Reach, Inc. Atlanta Boca Raton Boston Chicago Dallas Detroit Los Angeles Louisville New York San Francisco Seattle Toronto Video Advertising Trends Report Q3 2014 a sample of 5,600 television advertisers, 1,880 video post-production studios and content providers, nearly every commercial television and cable broadcast outlet in the United States and Canada, including all major broadcast networks, and 2,021 digital media outlets and aggregators. The companys cross-media video ad delivery network is the worlds largest, digitally connecting to more than 10,000 video media outlets. Extreme Reach manages and delivers 85 percent of all North American TV advertising and provides the most comprehensive digital campaign measurement capabilities in the industry. Extreme Reach is headquartered in Needham, Mass., with offices in 15 cities across North America.

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Extreme Reach Q3 2014 Video Advertising Trends Report

  • 1. HD Advertising is Now the Standard on Television. HD is now the predominant format for TV advertising. In Q2 of this year, 58% of all TV ads were delivered to TV media in high definition. In Q2 of 2012, HD advertising first started to overtake SD with a majority of ads on network TV delivered in high definition. Over the past two years, HD has also become the standard across local TV media. This substantial shift by advertisers to high definition confirms an industry-wide focus on video quality and recognition of HDs increased brand recall and brand perception benefits. This edition of the report focuses on the HD distribution and adoption within key industry segments: Political marketers lead all other segments in use of HD advertising. Direct response marketers lag behind in adoption of HD for their TV commercials. HD ad creative is now becoming the standard for online campaigns as the ad industry converges TV and digital video advertising. Canadian advertisers and media outlets are even more HD-centric than their US counterparts. The purpose of this report is to provide advertisers, ad agencies and media outlets with specific details, benchmarks and insights that may help to inform their video advertising practices. 25% 70% 75% 80% 34% 77% 35% 41% 52% 58% 78%78%78%78% 2013 Q2 2013 Q2 2013 Q3 2013 Q3 2013 Q4 2013 Q4 2014 Q1 2014 Q1 2014 Q2 2014 Q2 58% 78% HD Distribution Index for Q2,2014 HD Media Index for Q2, 2014 Extreme Reach Research Group VIDEO ADVERTISING TRENDS REPORT Q3 2014 As Q3 comes to an end, HD Advertising Distribution continues to outpace SD, peaking at 63% as of late September 2014. 78% of TV media accept and air commercials in HD. 58% of TV commercials distributed to TV media in Q2 were HD.
  • 2. Political Advertisers Choose HD Direct Response Advertisers Deliver HD Ads Less Frequently Political Advertisers Are HD Leaders Political advertisers make up the most prolific advertising group on television during an election cycle. They maintain one of the highest HD distribution rates of all advertising categories, delivering 77% of ads in Q2 in high definition. Opportunities for Political Advertisers If your opponents ads are still running in SD, you can stand out and realize significant advantages by implementing an HD everywhere ad program. Conversely, if youre considering distributing some ads in SD, be aware that your opponent will most likely choose HD and so will non-political advertisers. Choose HD whenever and wherever possible. Direct Response Advertisers Trail Behind in HD While most ads are now delivered in HD, some advertisers still havent made the switch to HD from SD. Direct Response advertisers in particular continually maintain the lowest HD adoption rate of all measured verticals. Regardless of why Direct Response advertisers prefer SD campaigns, there are clear opportunities for forward-thinking entrepreneurs to rise above the noise with HD, realizing substantial improvements in ad effectiveness and purchase intent. Opportunities for Direct Response Advertisers Better Results with HD: HD ads have shown a significant lift in intent to purchase and ad recall while simultaneously reducing the number of viewers who change the channel. Better Execution with HD: If you only distribute SD commercials, they may look acceptable in SD broadcasts, but when broadcast in HD, their comparatively poor resolution may compromise their effectiveness. Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 2013 2013 2014 2014 Political marketers embraced HD early and still maintain a significant lead over the industry average. Direct Response advertisers typically fall well short of the average HD distribution rate. Despite a surge in the last quarter, the Direct Response industry has averaged a 27% HD distribution rate across the past five quarters. Political HD Distribution % Direct Response HD Distribution % HD Distribution Index % HD Distribution Index % 77% 29% 80% 60% 25% 0% 34% 34% 77% 23% 35% 35% 79% 17% 75% 22% 77% 45% 41% 41% 52% 52% 58% 58% Video Advertising Trends Report Q3 2014
  • 3. Canada Still Leads the US in HD Advertising HD Video Influencing Digital Campaigns and Player Size HD advertising trends differ significantly between the U.S. and Canada. Nearly all Canadian TV media have adopted HD and Canadian advertisers run more ads in HD than U.S. advertisers. This analysis illustrates a correlation between the rate of HD adoption by media outlets and HD usage by advertisers. In Q4 of 2011, Canadian TV media outlets took the lead with 65% adopting HD. Since then, Canada has As more TV advertisers reach viewers via digital media, video that plays in a 16 x 9 aspect ratio is becoming the default standard online as well. Its now a common practice to present the same commercial across all screens using the same pristine HD master file. Among Extreme Reach Digital clients, more than 80% of video campaigns utilize the 16x9 aspect ratio initiated by HD commercial content. Video Advertising Trends Report Q3 2014 More Canadian TV Media Support HD Canadian TV Advertisers are More HD-Centric Q2 Q2Q3 Q3Q4 Q4Q1 Q1Q2 Q2 2013 20132014 2014 Canada HD Media Index % Canada HD Distribution Index % US HD Media Index % US HD Distribution Index % 91% 62% 100% 100% 30% 30% 76% 33% 95% 65% 76% 34% 95% 72% 95% 75% 96% 76% 77% 40% 77% 52% 77% 58% Data Highlight: Canada has also outpaced the U.S. in terms of HD ad distribution, but the gap is narrowing. Data Highlight: Canada has steadily outpaced the U.S. in terms of media outlet adoption of HD since 2011. outpaced the U.S. in terms of media outlet adoption of HD. As the supply rose, so did the demand. Much like their TV media outlets, Canadian TV advertisers took an early lead in 2011, distributing 15% of all ads in HD. Since then, Canada has steadily outpaced the U.S. in terms of HD distribution. >90% >80% of video ads that run online also run onTV are 16x9,stemming from the HD creative master
  • 4. Methodology About Extreme Reach Extreme Reach automatically collects a variety of data through the everyday advertising activities of the companys advertising clients and media affiliates. This report analyzes a portion of that data to reveal detailed trends and insights related to HD advertising. For this study, the Extreme Reach Research Group analyzed and referenced data from Extreme Reach is the leading provider of cross- media video advertising solutions that span TV, online and mobile. The company is also a leading provider of integrated tools for managing critical talent and rights issues. Thousands of brands and agencies, including nearly all of the Ad Age 100, look to Extreme Reach to activate, measure and optimize video advertising campaigns. The Extreme Reach video convergence platform unifies the workflow and metrics of television and digital video advertising. CORPORATE HEADQUARTERS | extremereach.com 75 Second Avenue | Suite 720 | Needham MA 02494 | 877.769.9382 | sales@extremereach.com All rights reserved. Extreme Reach is a trademark of Extreme Reach, Inc. Atlanta Boca Raton Boston Chicago Dallas Detroit Los Angeles Louisville New York San Francisco Seattle Toronto Video Advertising Trends Report Q3 2014 a sample of 5,600 television advertisers, 1,880 video post-production studios and content providers, nearly every commercial television and cable broadcast outlet in the United States and Canada, including all major broadcast networks, and 2,021 digital media outlets and aggregators. The companys cross-media video ad delivery network is the worlds largest, digitally connecting to more than 10,000 video media outlets. Extreme Reach manages and delivers 85 percent of all North American TV advertising and provides the most comprehensive digital campaign measurement capabilities in the industry. Extreme Reach is headquartered in Needham, Mass., with offices in 15 cities across North America.