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BI Intelligence spoke with personalized video advertising platform AnyClip about their techniques for developing native creative for any website.
From a single video ad, the company is able to recreate anywhere from 10 to 30 new permutations that stay true to the tone and messaging of the brand.
Each permutation is catered and customized for different target audiences and publisher sites. This leads to increased engagement from consumers with an ad over a longer period time, translating to greater return on investment.
Some of the problems with online advertising that AnyClip is looking to address are plain to see for anyone familiar with the industry, including: Â
- The supply of digital ads is not matched by demand. There's a disconnect been the growth in digital video ad budgets and the dearth of attention paid by consumers to these ads. This is reflected in the growth of ad blockers, and the low completion rates of video ads as people turn to the âskipâ button. Digital video ad revenue is forecast to rise from $8.5 billion in 2016 to $23 billion in 2021, a compound annual growth rate of 22%, according to BI Intelligence estimates. Yet by 2020, the number of people in the US using ad blockers is expected to more than double from 44 million in 2016 to over 100 million, causing a loss of as much as $12 billion in ad revenue, according to analytics firm Optimal.
- The short shelf life of a typical digital advertisement. Even if consumers like an ad when they first view it, their engagement with that ad will still fall off when they watch it subsequent times. Indeed, AnyClip argues that engagement drops exponentially as consumers are repeatedly exposed to the same ad. This defeats the purpose of video advertising. Marketers see digital video ads in a similar light as TV ads â a branding tool to connect with audiences emotionally, and build accumulative brand awareness by showcasing their product and logo to an audience multiple times.
AnyClip tries to resolve these issues by using technology to analyze, understand, and monetize content via the delivery of personalized video ads:
- AnyClip's triple-layered technology stack. AnyClip has access to a content library made up of millions of video clips sourced from media owners like Universal, Turner, Chelsea FC and more. This isn't unique, per se. Many companies have their own digital video libraries. What differentiates AnyClip is the technology that it applies to this library. This is made up of three pillars: a tagging system for understanding categorizing video, an automated video editing tool, and a programmatic platform to deliver and review targeted ads.
- Metadata tagging on AnyClip's content library. The company taps into the AI tools provided by the likes of Google, IBM Watson, and Clarify to create its own image and video recognition system. This system tags a range of attributes in a video clip â colors, lighting, when a scene starts and ends, and the content that's featured or action that occurs in a scene, including product placements. There's enormous value in this kind of system as it enables old video to be turned into monetizable content.
- Editing tools to recreate different video ads. AnyClip's technology creates a template for new content to be spliced into an existing ad. It searches through the video library for content similar tags as the clips that will be replaced. Humans are involved in the final stage of refining the video. They review and smooth out the final product so that old and new clips flow seamlessly. The final product is then run through the tagger one last time, and its clips are marked to prevent them from being used again.
- Programmatic delivery and performance review. AnyClip uses a combination of internal and external demand-side platforms (DMPs) to deliver a native personalized ad for particular websites and visitors. When an ad is served, AnyClip's analytics team analyzes the performance of the campaign to determine if and when it needs to be refreshed with a new permutation. The company's inventory mix is made up of 40% direct premium publishers, or direct sales relationships, 30% ad exchanges, and 30% programmatic.
Dollars are increasingly flowing from traditional ads to digital, as strong growth in mobile, video, and social spending continue to change the face of the US media market.
Over the next five years, marketers will especially embrace mobile. Mobile will drive up spending on video, search, display, and social, and propel the migration of ad dollars away from traditional media, including newspapers and magazines.
BI Intelligence, Business Insider's premium research service, has compiled a detailed report that forecasts spending trends for the major digital ad formats - including search, display, and video - and mobile vs. desktop. It also examines trajectories for social ad spending and programmatic ad buying, which cut across digital formats. Finally, the report looks at how spending on traditional media formats will grow or contract over the next five years, as digital, and particularly mobile, rises.
Here are some of the key takeaways from the report:
- Mobile will be the fastest-growing advertising channel and buoy spending on each of the digital formats. US mobile ad revenue will rise by a 26.5% CAGR through of 2020.
- Digital video ad spending is rising faster than search and display. US digital video ad revenue will rise by a CAGR of 21.9% through 2020.
- Mobile search will overtake desktop search ad revenue by 2019. Mobile search ad spend will rise by a 25.2% CAGR, while desktop search ad revenue will decline during the same period.
- Mobile display ads, including banners, rich media, and sponsorships, will overtake desktop display-related spending even earlier, in 2017.
- Social media ads, which cut across display and video, are seeing fast adoption. US social media ad revenue, which includes video and display ads, will grow by a CAGR of 14.9% through 2020.
- The rapid embrace of programmatic ad-buying tools is fueling a dramatic uptick in the share of digital ad spending coming through programmatic channels. Programmatic transactions will be a majority of total US digital ad spend this year.
- Unlike digital, traditional ad revenue will remain flat overall through 2020. Total traditional ad revenue will rise by a CAGR of just 0.4% between 2015 and 2020.
In full, the report:
- Forecasts ad revenue for emerging digital ad channels and formats like mobile, video, social and programmatic over the next five years
- Explores why ad revenue is flowing from desktop to mobile
- Examines the stagnation of traditional advertising channels like TV, magazines, and newspapers
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