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Publishers See Strong Value in Video Ads, Finds Mixpo Report

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The biggest trend in digital right now is video, say publishers. Look for online video advertising to grow to nearly $10 billion this year. That comes from "The State of Digital Advertising for Publishers," a report issued today by online video advertising technology agency Mixpo.

Surveying 250 U.S. advertising professionals, Mixpo finds that video pre-roll, interactive video pre-roll, and rich media in-banner video ads are thought to have the strongest return on investment (ROI). Viewed as less effective are rich media without video, banner display ads, and social platform ads. Mixpo notes that in-banner video now plays a larger part in ad strategies as publishers try to fill a video supply gap by adding video to ad formats that traditionally haven't ad video.

Publishers put much of their video ad spending on Facebook: 50.2 percent of the publishers surveyed had run Facebook ads, while 31.1 percent had run YouTube ads.

"Due to Facebook’s first-party data, mobile-first ad formats, and advanced targeting and optimization capabilities, brands and publishers are increasingly turning to Facebook over YouTube as the preferred way to reach audiences with video," says Justin Kistner, vice president of product at Mixpo.

Viewers increasing turning to mobile devices, but advertising hasn't yet caught up. In Mixpo's survey, publishers say over half of their digital traffic comes from mobile devices. Publishers invested in mobile-first platforms and experiences to meet this demand, but monetization remains a challenge. Consumers spend 25 percent of their time on smartphones, the report says, but mobile gets only 12 percent of ad budgets.

For more, download the full report for free (registration required).

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