Smart Stats: TV Budgets Moving to Online Video

For our Smart Stat series, Digiday hunts for new statistics that have implications for digital marketers and asks industry experts to talk about what each stat means for brands. Here’s our most recent installment:

Marketers will allocate 5-15 percent of their TV budgets to online video in 2012, according to Media Decoder.
“At 5 percent of the TV industry, we are at the estimate that most people are anticipating, $3 billion,” said Jason Krebs, chief media officer of Tremor Video. “If it goes to 15 percent, you won’t be able to get any usable quotes about it from anyone in the digital video industry because we’ll all be too drunk after splitting up the $10 billion. Though some of my competitors aren’t necessarily coherent when they’re sober… bam.”

Facebook overall ad revenue in 2012 will be $4.2 billion — up 32% from 2011 — and will reach $12.6 billion by 2017.
“While there is no doubt that Facebook will further monetize its user base that is nearing 1 billion, how they will do it remains the large unknown,” said Jeff Hasen, CMO of Hipcricket. “My bet is that additional advertising will be slowly phased in and tested. Relevance will be paramount and the user experience with more ads will be enhanced or neutral. Too much is riding on it being done any other way.”

A ComScore study has found that 31 percent of display ads online aren’t even seen by users. On some sites, that number was as high as 91 percent.
“Accounting for and tracking viewable impressions is becoming increasingly important for brand advertisers, especially those who are looking to increase awareness or drive consideration via digital,” said Sarah Sikowitz, group media director at 360i. “Standardization around what counts as a viewable impression is imperative if it is going to become an industry-wide metric. Publishers will need to rethink how they sell inventory and agencies/brands will need to implement proper tracking mechanisms to ensure they’re delivering.”

According to StatCounter, website traffic from mobile devices has been steadily increasing up to a current average of 15 percent of all visitors.
“With the number of emails opened on mobile growing steadily, it only makes sense that the click-through rate to mobile Web also ramps up,” said Marci Troutman, CEO of Siteminis. “With these click-throughs ramping up, adding in SMS, QR codes and mobile banner ads, having a destination that is mobile-optimized for your consumers is no longer a nice-to-have and has become a needed component for marketing.”

Apps not using UDID data will see 24 percent less ad revenue.
“The inability to track users across apps has a wider impact than advertising,” said Ludo Collin, CEO of EachScape. “It further increases fragmentation in the mobile space by forcing many companies to come up with their own version of the UDID, for the most part, so there is a network effect particularly for publishers who serve their advertising to the same users across multiple applications.”