2|SOCIAL CRACKS THE CODE ON DIGITAL VIDEO MOST IMPORTANT PARTNERS FOR DIGITAL VIDEO CAMPAIGNS PLATFORMS DELIVERING BEST ON VIDEOADVERTISING FEATURES Q. Who are the most important partners when planning a digital video campaign Q. Which platforms do you feel best deliver on these features when placing a digital video pre-roll campaign Base: Involved in Digital/Mobile Advertising JUNE 2016 APRIL 2017 Social (FB, Snapchat,Twitter, etc.) Video Platforms (YouTube, Vevo etc.) Full Episode Players (Hulu, Cable digital properties, etc.) Video DSPs (Videology, Tremor Video, etc.) Ad Networks Publishers (BuzzFeed, Vice, Vox, etc.) Multichannel Networks (Maker Studios, Fullscreen, etc.) Percent of RespondentsPercent of Respondents56% 59% 28% 34% 27% 24% 8% 68% 60% 33% 33% 30% 20% 13% IS FACEBOOK THE NEW YOUTUBE Since our previous study on the topic of video,less than a year ago (June 2016), we see asignicant shift in where advertisers want to putdollars when it comes to video. Social platforms(Facebook, Snapchat, etc.) are now decidedlymost important when planning digital videocampaigns, voted as such by 68 percent ofparticipants vs. 56 percent last June, a 12 pointlift. That puts social platforms (and presumablyFacebook is dominant) as the number onedistribution partner, eight points ahead of videoplatforms (YouTube, Vevo, etc.), which wererated as most important by 60 percent of thosesurveyed. (In previous research, video platformswere ahead of social by a small margin, and onlymarketer, not agency respondents put social inthe top spot). Further inquiry shows us that among sevenpossible distribution platform types, social getsthe highest marks for delivering on engagement(59 percent), ROI (39 percent) and customerservice (38 percent); whereas video platformsdeliver best on measurement and reporting.Perhaps YouTube’s announcement that theywill allow more third-party verication andmeasurement is being recognized here. SOCIALVIDEO Customer Service38 %25% Measurement/Reporting38 %44% ROI38%33% Engagement59%36% 3|SOCIAL CRACKS THE CODE ON DIGITAL VIDEO PRIORITIES WHEN PLANNING DIGITAL VIDEO PRE-ROLL CAMPAIGNS Percent of Respondents 36% 35% 34% 33% 30% 27% 26% 20% 18% 13% 11% Measurement & Reporting Pricing Engagement Viewability Audience Delivery Quality of Video in which ad is placed Brand Safe Environment Transparency Video Views Click-to-Play Contextual Relevance Q. What are your priorities when planning digital video pre-roll advertising campaigns (select up to three.) Base: Involved in Digital/Mobile Advertising and Place Digital Video Pre-Roll Advertising Campaigns MEASUREMENT IS KING When push comes to shove, numbers matter, underscoring the transparencyadvertisers have been asking for from their media partners. When asked to selecttheir top priorities for placing pre-roll digital campaigns, more than one third ofrespondents rated measurement and reporting on top (36 percent) followed bypricing (35 percent), engagement (34 percent) and viewability (33 percent). 4|SOCIAL CRACKS THE CODE ON DIGITAL VIDEO Q. What percent of your overall advertising budget is currently allocated to digital video Q. When it comes to placing pre-roll digital video advertising, how likely are you to invest in the following formats in the next six months Base: Involved in Digital/Mobile Advertising and Place Digital Video Pre-Roll Advertising Campaigns THE NEAR TERM In the next six months, advertisers will increase video budgets, reporting theirallocation of overall budgets to digital video at 28 percent, an increase from 25 percent in our June 2016 research wave. Both agency and marketerrespondents have cited higher allocations than we saw last June. Which formats will rule the day 1.58 percent ‘denitely will’ be investing in short-form video2.38 percent in premium video3.Live stream and user-generated are lower down the list for pre-rollplacement; more than one quarter say they will still be buying these formats BUDGET ALLOCATION TO DIGITAL VIDEO ADVERTISING LIKELIHOOD TO INVEST IN DIGITAL VIDEO PRE-ROLL FORMATS Allocation of Overall Budget to Digital Video Average of Respondents 26% 29% 24%26% JUNE 2016JUNE 2016APRIL 2017APRIL 2017 AGENCIESMARKETERS Percent of RespondentsDEFINITELY WILL MIGHT DEFINITELY WILL NOT 58%39%3% 38%53%9% 28%57%15% 28%45%27% 28%45%27% Short-form Premium Long-form User-Generated Live Stream 。。。。。。