Fox Networks Group has joined Google in offering a six-second ad format that can’t be skipped on its digital properties, with the goal to eventually bring them to its linear TV networks as well.
"This is the first time that a broadcast television company has committed to the ad format, which YouTube introduced last year," the companies said, adding that he ultra-short sports strikes “a balance between appreciable brand lift and optimal user experience."
This post first originally appeared in Videonuze.
Most media companies earn money from over-the-top video in one of two ways: through subscriptions or through ads. SVOD dollars are on the rise as services continue to sign up new users, and some analysts predict SVOD services will be able to raise their subscription rates as premium content becomes the norm.
U.S. programmatic TV ad spending is forecast to grow more than 14X between 2015 and 2018, reaching $4.43 billion compared to $310 million in 2015.
The forecast, from eMarketer, shows programmatic ad spend increasing from 0.5% of TV ad spending to 6% over the next three years. Programmatic is expected to total just over $710 million this year and $2.16 billion in 2017.
Global digital advertising spend across mobile, wearable and online devices will exceed $285 billion by 2020, an increase of 78% from an estimated $160 billion in 2016.
U.S. Internet ad revenues topped $15.9 billion in Q1 2016, a record, and more than a 20% increase over last year’s Q1 record-setting $13.2 billion. The increase is the sharpest Q1 spike in ad spending on the Internet in four years, according to a report from the Interactive Advertising Bureau’s (IAB) Internet Advertising Revenue Report conducted independently by PwC U.S.
Despite campaign spending during this election year and brand spending during Rio’s Summer Olympic Games, U.S. spending on paid media is expected to climb just 5%, with most of the gain coming through digital channels.