64% of Ad Budgets Will Be Spent on Video in 2020, Study Shows





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TiVo remotePubMatic has released the results of a study focused on global video ad and monetization trends, showing the changes and challenges with video monetization and how solutions will impact viewers.

According to the study, 64% of programmatic ad budgets this year will be spent on video. While advertisers are embracing digital video, they’re also finding that a new platform requires new strategies for reaching a target audience.

There were three key findings from the report:

  • Publishers Embrace Programmatic Advertising and Header Bidding for Video Monetization. As video advertising opportunities arise, the study reveals that client-side header bidding is the number one integration strategy used for programmatic monetization of video inventory as publishers achieve maximized ad revenue and increased fill rates.
  • In the Midst of Tech Gaps, Cross-Platform Video Partners Can Lend Support. 64.2% of publishers find the lack of technology available to be their biggest obstacle in managing video monetization. The solution to these challenges requires a strategy that leverages ad tech tools and partnerships to help.
  • Publishers Look to Audience-Based Solutions To Capitalize On Future Of Video. Publishers need well-rounded partners to help optimize their inventory. 59% of publishers acknowledged that they’re looking for partners who can help monetize first- and second-party data, followed by 55% that seek partners who can provide identity solutions and capabilities.

The study goes on to show that mobile app and mobile web usage is set to see massive growth going forward. Advertisers will need to continue to build partnerships and develop tech tools to best implement ads for mobile viewers.

“This study has proven that the key to video monetization success is ensuring publishers’ partners are aligned with a company’s roadmap,” said Susan Wu, director of marketing research at PubMatic. “Particularly as header bidding becomes a greater part of publishers’ programmatic video strategies, ad technology providers are in a unique position to deliver the right teams and tools to help publishers capture audiences and yield ad revenue benefits across all addressable digital video content, including desktop, mobile web, mobile app, OTT, and CTV.”

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