• IHS: Audience Data is Competitive Differentiator for Video Content Providers

    Late last week research firm IHS and video ad platform provider Videoplaza released a new report asserting that video content providers need to become "audience architects" - mining their user data to fully capitalize on the shift to programmatic trading of video advertising. The report is based on IHS's forecasts of the Western European video ad business, but many of its conclusions are equally applicable to US-based video content providers.

    IHS believes the primary driver of change is the exploding array of video-capable devices, which in Western Europe it forecasts growing from 340 million in 2008 to 1.1 billion in 2017. As video consumption away from TVs increases, and in particular moves to mobile devices, new challenges around limited ad space and lower ad loads have arisen.

    In addition, ad buyers' ability to track and target users across these devices has shifted their attention from editorial-based buying to audience-based buying. The result of this is that IHS forecasts data-driven programmatic buying will grow to 32.5% of all video advertising in Western Europe and over 49% in the U.S. by 2017.
     

    Given these fundamental changes, IHS believes video content providers must become more expert at tapping their own first-party data to preserve and grow the value of their video ad inventory. IHS highlights a number of different initiatives already underway as examples. It also notes that while there's no easy path for content providers to become "audience architects," it's essential that they do so as demands-side buyers become increasingly savvy about using data to their advantage.

    The report is here and is an excellent read for anyone trying to understand how technology is changing video advertising, where it's heading and what content providers must do to prepare themselves.