Ad spend is generally good for those selling quality videos. However, the spend has been even better this year thanks to a lot of concerns over brand safety that have been raised this year emanating from YouTube’s multiple controversies and brands wanting to steer clear of political news. According marketing executives, that has meant that ad spend has increased on brand safe platforms such as Hulu and ESPN. Conversations with the media executives revealed that not everyone brand is stopping its campaigns from running on YouTube and other political news sites, however advertising on programmatic video CPMs at non-political publishers and connected TV providers like Apple TV and Amazon Fire has been on the rise. This could partly be attributed to advertisers’ desire for brand safe video content.
“I think video CPMs on Hulu have increased around 20 percent year over year, even more expensive than prime-time TV sometimes,” said a media head from a Chicago-based agency. “Generally speaking, open exchange video CPMs are up 5 to 8 percent year over year.” The agency executive further added that two financial service clients have stopped programmatic ads from political news on any site since around a year ago and the two brands haven’t gone back to advertising on hard news sites today, while most brands whose target audience primarily consists of millennials and younger audiences are much more comfortable with advertising on YouTube since their consumer base spends most of their time on the video sharing platform.
“We haven’t started to do a big shift into premium programmatic video yet, largely because that is typically a large holding-company level private marketplace deal tactic,” said this person. “For certain luxury clients like automotive, it may make sense to cherry-pick premium video inventory, but largely we don’t see the economy of scale in [PMPs].”