News You Can Use: Outstream Video Spend Overtakes Pre-Roll

Each and every week Unruly scours the web for the biggest headlines in advertising, compiling them all together in one handy place so you can stay up-to-date with the newest trends and breaking stories.

This week we’ve got a special edition of News You Can Use, focusing on the latest ad spend report from the IAB and PwC.

1. Mobile video is fastest growing online ad format

According to the IAB and PwC’s report, advertisers spent £476 million more on mobile video ads in 2017, making it the fastest-growing online ad format.

This boost means that mobile now accounts for 45% of all digital ad spend in the UK – compared to just 9% five years ago. However, the IAB’s chief digital officer Tim Elkington noted “there’s still significant room for smartphones share to grow” as they accounted for 59% of online time¹ in the final quarter of 2017.

The growth in mobile video in 2016 (69%) took total spend on the format to £1.17 billion, accounting for 73% of all video spend (£1.61bn) in the UK. Video ad spend overall (including phones, computers and tablets) increased 47% to £1.61bn in 2017.

2. Outstream video ad spend overtook pre-roll

Spend on outstream video formats increased 94% in 2017, totalling £900m, overtaking pre/post roll video spend for the first time. The push towards outstream comes as brands and advertisers move away from UGC and pre-existing video content. Outstream formats also tend to drive higher viewability and increased brand metrics.

3. 80% of display spend was spent programmatically

80% of the £3.84bn spent on display advertising in the UK was traded programmatically in 2017 – up from 72% in 2016. 63% of this was through direct means, such as private marketplaces, rather than on open exchanges (17%).

These numbers line up closely with the latest report from eMarketer, which forecasts that US programmatic ad spend will reach $46bn by the end of 2018 – accounting for 86% of all digital display spend.

4. UK digital ad market is worth £11.5bn

The total UK digital advertising market is now worth £11.55bn, up 14.3% y-o-y.