When asked to name the biggest trend in digital, publishers responded with one word: video. According to The State of Digital Advertising for Publishers, a new report from Mixpo, this clearly presents both challenges and opportunities. The gap between advertiser demand for video ads and publisher supply of video inventory is notable. This seller’s market has made video a valuable ad product for publishers, but it has also created pressure to find new ways to deliver video and take full advantage of 2016’s video boom.
In April of 2016, Mixpo surveyed over 250 digital advertising professionals employed by U.S. publishers, and conducted personal interviews with 30 digital advertising executives in a variety of functions from eight of America’s leading media companies. The State of Digital Advertising for Publishers highlights the top ten trends that emerged from Mixpo’s research along with insights on how publishers can think about, and tackle, the most pressing issues in digital advertising.
While video is front of mind for respondents, Mixpo also found that programmatic has evolved from threat to revenue opportunity. In fact, for the majority of publishers interviewed, programmatically-powered audience extension is their fastest growing revenue source.
Attribution and measurement, along with viewability, top the list of publisher concerns followed by ad fraud and bots, the increase of mobile consumption and ad blocking.
Other key findings of their research include:
- More than a third (36%) of publishers use or plan on using Facebook video ads, with 13.6% using or planning to use Instant Articles.
- Publishers ranked pre-roll, interactive pre-roll and in-banner video as the digital ad formats with the highest perceived ROI.
- Facebook Dominates: 50.2% of those surveyed have run video ad campaigns on Facebook, compared to only 31.1% on YouTube, 17% on Twitter, 13.2% on Instagram, and 1.7% on Snapchat.
- Video Growing Beyond O&Os: In the past year, 61% of publishers have sold video ads as a part of their audience extension packages.
- Mobile is still a challenge, but for new reasons: 48% of publishers are ‘very’ or ‘extremely’ concerned with the increase in mobile consumption, while device fragmentation was among the least disconcerting issues.
- Ad blocking is a threat, but publishers are unsure of what to do: Nearly half of publishers (46%) said ad blocking is either “extremely” or “very”concerning, but on the long list of publisher concerns, ad blocking isn’t at the top.
- In the age of rich data, publishers stick to basic metrics: Nearly 54% of publishers surveyed work with at least four ad tech vendors, and 5% work with more than 16, making consolidated metrics difficult.




Viewers also reported that TV (89%) offered the most positive viewing experience, followed by tablet (63%), computer (54%) and phone (43%). Further, viewers paid the most attention to advertising on television (29%) compared to 23% for smartphones, 20% for computers and 17% for tablets.
Additionally, the study found that multi-tasking negatively impacts ad recall but not program plot recall. Importantly marketers need to understand drivers of engagement across platforms as well as those specific to their targeted demo. Identifying drivers and assigning value to each platform will better align expectations with campaign effectiveness.
The older the consumer, the more time spent watching television. Among adults 18-34, 39% of media consumption occurs on digital (e.g. smartphones, tablets and desktops), 15% on connected TVs (e.g. Apple TV, Roku, Google Chrome) versus 29% on live-TV and 17% on radio. In contrast, Adults 50+ spend 53% of their time on live-TV, 21% on digital, 17% on radio and 8% on connected-TVs. It’s no wonder traditional TV networks are clamoring to remain relevant and shifting to digital options such as HBO to go, CBS’ All Access and MTV’s Snapchat Channel.
The researchers found that blog posts and videos/podcasts are the second and third most effective types of content. Now, those are storytelling devices! Take, for instance, Frank and the Tower, a short film by REI that tells the story of Franks Sanders, a rock climbing guide who has ascended Devil’s Tower thousands of times over his long career. Sanders is a character in his own right. But for someone like me, who not only recently took up indoor rock climbing, but who also stood at the base of Devil’s Tower as a kid with binoculars in hand, the film really struck a chord. Who knows? Maybe one of the people I saw climbing the tower through my binoculars was Sanders. I think about this video all the time, especially when I’m thinking about which store I’m going to in order to buy more chalk for climbing.
In addition, the shift to mobile directly attributed to the increased use of smartphones to access news and the decreased use of desktops. Demographically, younger consumers prefer mobile for news access while older consumers look to desktop and tablet. Across multiple countries, over half (53%) reported that they use a smartphone to access news. Interestingly, consumers who report mainly using their smartphones to access news stories, do so by entering social media sites versus a branded website or app. Apps have become an impactful tool to send alerts and notifications to attract consumers and to bring them more regularly to the branded website.
The consumer adoption of ad blocking software is a most challenging problem for digital publishers, especially for those heavily dependent on advertising revenue. Of those that currently use an ad-blocker, the majority do so on a desktop with only about 8% do so on mobile. In addition, about one-third of consumers in Germany, UK, and the U.S. plan to install an ad-blocker on their smartphones in the next 12 months.





