EXPOSING THE BLACK HOLE OF ONLINE VIDEO ADVERTISING
There were lots of interesting things to catch the eye in the Advertising Association/Warc annual adspend figures for 2018, e. g. the amount of adspend now going to online video. When you compare this share of video adspend with the relative share of video ad viewing, everything gets weird. And eye-wateringly expensive. TV including BVOD accounts for 95% of video advertising time, according to analysis of industry data. Online video such as YouTube, Facebook and the long programmatic tail together account for 4%. Cinema is the remaining 1%. In other words, the average person watches 17 minutes of TV advertising a day (the 95%) and one minute of non-broadcaster online video advertising (the 4%). Yet AA/Warc figures show that £1.9bn was poured into that single minute a day and £5.1bn into the 17 minutes.