H1 2020 I EUROPEAN EDITION - FreeWheel
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H1 2020 I EUROPEAN EDITION
CONTENTS
THE YEAR OF
ACCELERATED
CHANGE
5 VIDEO VIEWING SOARS AS 9 THE RISE OF NEW 13 CONCLUSION
CONSUMERS HUNKER DOWN DIRECT-TO-CONSUMER
AT HOME OFFERINGS
14 ABOUT THE AUTHORS
6 LIVE VIEWING SURGES, EVEN 10 EASE OF IN-DIRECT DEALS
15 GLOSSARY
WITHOUT SPORTS ENABLES GROWTH AMID
CHALLENGING TIMES
15 SOURCES
7 LOCKED DOWN, WE TURN
ON THE TV 11 PREMIUM VIDEO PRESERVES
FAVORABLE VIEWER EXPERIENCE
2
WHATEVER
YOU WANT,
WHENEVER
YOU WANT,
WHEREVER
YOU WANT
3
Rather than driving new trends, COVID-19 has
accelerated changes already taking place with audiences
and advertisers. Spending time at home led viewers to
watch more across both TV and premium video formats.
People confirmed their preference for watching content
on the ‘big screen’ with 66% of video views occurring on
a connected TV or set-top box. Despite the disruption
to live sports, there was a significant increase in digitally
delivered ads for live content, which also reflects the
ongoing investment for this capability in the premium
video space.
As a result of economic uncertainty and programming
disruption, advertisers around the world pulled back
spend on traditional TV. Although overall budgets saw
negative growth for the first half of the year 1, some
advertisers accelerated investments in the digital
space, as brands moved budget from cancelled linear
campaigns to digital channels. In some cases, the halt
of “business as usual” freed up time for marketers to
try alternative strategies, including OTT/CTV, but most
markedly programmatic buying, which increased
dramatically as the year progressed. With audience
consumption of premium video steadily climbing,
advertiser interest in the medium will only increase, and
more and more brands will embrace premium video as
one of the most effective strategies for connecting with
targeted audiences.
4 | FREEWHEEL VMR EUROPE | H1 2020 | #FreeWheelVMR
VIDEO VIEWING
SOARS AS CONSUMERS
HUNKER DOWN AT HOME
Confined to their four walls, and often with time
to spare, audiences in Europe turned to home
entertainment. In the first half of 2020, premium
video views increased 12% year-over-year (YoY), and
premium video ad views increased by 21%. (CHART 1).
Subscription service adoption also increased, with a
16% increase in user growth YoY 2.
CHART 1
VIDEO VIEW AND AD VIEW GROWTH
H1 2020
+12%
AD VIEWS
+21%
VIDEO VIEWS
5 | FREEWHEEL VMR EUROPE | H1 2020 | #FreeWheelVMR
CHART 2
CONTENT COMPOSITION BY FORMAT LIVE VIEWING SURGES,
H1 2020 AD VIEWS EVEN WITHOUT SPORTS
Despite the disruption to live sporting
9% events and the consumer shift away from
+13% YOY traditional TV, live TV consumption soared
in the digital space, as audiences flocked
to scheduled programming, particularly
news, in search of the latest COVID-19-
related updates. Consumption increased
across all content durations and formats,
82% but live ad views increased the most YoY, at
+7% YOY +73%, significantly more than VoD ad views.
(CHART 2)
9%
+73% YOY
6
LOCKED DOWN,
WE TURN ON THE TV
The pandemic proves that when stuck driven by at-home watching and higher total ad views; once the pandemic is behind
at home, people prefer the best viewing consumption. In keeping with previous us, we predict content consumption on
experience possible: ‘the big screen.’ quarters, consumers were least likely to mobile will increase to its usual levels, as
In Europe, ad views on STB and CTV engage with content on desktop, with ad people turn to their devices once again to
comprised 66% of total views in the first view consumption notably decreasing keep them company while commuting,
half of 2020. (CHART 3). Compared to 2019, (-18% YoY). Although mobile ad views grew traveling and dining out.
ad views on CTV increased by 46%, largely 3% YoY, mobile share decreased to 22% of
CHART 3
AD VIEW COMPOSITION
AND GROWTH, BY DEVICE 31% 35%
H1 2020 CONNECTED TV SET TOP BOX
+46% YOY +21% YOY
12% 22%
DESKTOP MOBILE
-18% YOY +3% YOY
7 | FREEWHEEL VMR EUROPE | H1 2020 | #FreeWheelVMRCHART 4 FORMAT COMPOSITION BY DEVICE, AD VIEWS H1 2020 8 | FREEWHEEL VMR EUROPE | H1 2020 | #FreeWheelVMR
THE RISE OF NEW CHART 5
SHARE AND GROWTH OF AD VIEWS BY
DIRECT-TO-CONSUMER DISTRIBUTION PLATFORM
OFFERINGS H1 2020
Ad views on owned-and-operated
channels increasing by 14% YoY as content
companies, like brands, work to create
direct relationships with their customers.
through services like Discovery+, Joyn in
Germany, the ongoing growth of BritBox
and PlutoTV expanding its reach with TiVO+
and its launch in Spain. These offerings
allow content companies to forge direct
relationships with consumers and collect 79%
PUBLISHER
valuable first-party data so they can create PLATFORMS
+14% YOY
more personalized experiences and offer
marketers more targeted advertising
opportunities – in turn driving more value,
and higher CPMs.
59%
STB
+25% YOY
91%
MVPD
/ OPERATOR
-14% YOY
21%
DISTRIBUTOR
PLATFORMS
41%
DIGITAL / IP
+6% YOY
-13% YOY 9%
AGGREGATOR
/ PORTAL
-4% YOY
9 | FREEWHEEL VMR EUROPE | H1 2020 | #FreeWheelVMREASE OF IN-DIRECT DEALS
ENABLES GROWTH AMID
CHALLENGING TIMES
As COVID-19 disrupted workflows and approach is increasing. Earlier in the year, adjustments in real time. Programmatic
made it hard, or impossible, for people when buy-side decision-makers reported deals are also easier to postpone, or cancel
to meet in-person with teams, clients or their need to pause Q1 and Q2 spend than most direct deal commitments,
prospects, automated technology and whilst they modified their messaging and which contributed to an initial reduction in
programmatic workflows showed their in-market tactics due to the coronavirus, programmatic spend in March and April,
value. Although the in-housing trend is programmatic established itself as a followed by a rebound later in the first half.
decreasing for advertisers 3, the number of responsive method of transacting, enabling
campaign buys purchased using a hybrid agencies and brands to make campaign
CHART 6
TOTAL VOLUME OF AD VIEWS, EUROPE
85% DIRECT
87% Q4
15% INDIRECT
13% Q4
10PREMIUM VIDEO
PRESERVES
FAVORABLE VIEWER
EXPERIENCE
In the first half of the year, viewers were
able to watch premium video content with
11% fewer ads in each midroll, and each
break was 25% shorter. In Europe, the most
significant reduction was for CTV to just
over five ads per break although still higher
than for mobile and desktop. Another shift
was an increased share of 1-2 ads per break
(8%). In keeping with a premium video
trend, ad completion rates continues to be
very high – as expected where audiences
are engaged in episodic or long-form
compared to non-premium short-form
content.
11 | FREEWHEEL VMR EUROPE | H1 2020 | #FreeWheelVMRCHART 7
AVERAGE NUMBER OF ADS PER
MID-ROLL BREAK, FULL EPISODES, EUROPE
70s
53s
44%
4.5
37%
4.0 5.2
4.4
4.2
19%
2.5
12 | FREEWHEEL VMR EUROPE | H1 2020 | #FreeWheelVMRCONCLUSION
In the first half of the year, premium
content providers played a critical role
for audiences during uncertain times,
providing entertainment and trusted news.
While the pandemic disrupted media and
marketing, TV included, advertisers still
took advantage of premium video’s unique
targeting capabilities and immersive
experience. In the second half of 2020, we
predict spending will rebound as brands
adjust to a new normal.
13 | FREEWHEEL VMR EUROPE | H1 2020 | #FreeWheelVMRBIOGRAPHIES
ABOUT THE
AUTHORS
DAVID DWORIN JAMES HAVELOCK HALEY GLAZER HEDI GARGOURI
Leads FreeWheel’s Advisory Manager in FreeWheel’s Advisory Senior Consultant in the Consultant in the Advisory
Services team, where he helps practice based out of London. Advisory Services team, working Services team based out of Paris.
clients navigate the ever evolving His areas of expertise include with media clients to deliver Working with media clients to
premium video ecosystem. Prior rights and content workflows industry benchmarking, network deliver industry benchmarks,
to joining FreeWheel, David and their commercialisation optimization and reporting and network optimization and focuses
spent a decade leading growth including expertise in their analytics enhancements. Prior on inventory monetisation and
strategy initiatives at leading underlying processes. Prior to FreeWheel, she worked in ad linear addressable activation. Prior
agencies, consultancies, and to FreeWheel, James focused sales research and corporate to freewheel, Hedi focused on
professional services firms. on delivery workflows at CTS analytics at Scripps Networks Marketing Mix Modeling and CRM
and Ooyala as well as content Interactive and iHeartMedia, and analytics at Ekimetrics and has
workflows at the Financial Times. has just completed her Master’s an extensive experience in Digital
Degree in Data Science. Marketing and web analytics
while working at Converteo.
14 | FREEWHEEL VMR EUROPE | H1 2020 | #FreeWheelVMRGLOSSARY
Ad Completion Rate – Measures the variety of long-form and short-form Long form – Video content eight Programmatic – The use of automation
percentage of ads that were completed web-based content. minutes or longer. software or managed services to execute
once started. an advertising deal.
Content Vertical – Content genre, e.g. Mid-roll – An ad break that occurs in the
Addressable TV – Addressability is a news, entertainment, sports middle of content. Programmatically Delivered –
form of personalization that optimizes Opportunity decisioned via auction
relevance and timing to deliver effective from multiple sources (note inc
Deal ID – Unique deal identifier of a Multichannel Video Programming programmatic guaranteed).
brand engagement at scale. It is a
programmatic transaction that can Distributor (MVPD) – Provides pay
means of connecting your product,
be used to match advertisers and TV services delivered either through
content, or offer with the people who Publisher – Owner or licensor of content
would be most interested in it. publishers directly. broadcast satellite or cable TV. Examples
include Comcast and Verizon. (content rights owner).
Ad View – Occurs each time an ad is Direct-sold – Advertising deals made Set-top Box Video On Demand
displayed. MVPD / Operator – A service provider
directly between a publisher and an (STB VOD) – Accompanies a cable/
that delivers video programming
advertiser. broadcast/ satellite setup. Contains a
services, usually for a subscription fee
Aggregator / Portal – A party that cable input and outputs to a TV.
(pay television). Usually includes cable,
aggregates and delivers content to Distributor – A party other than the satellite, and telecommunications
users; They do not fit the traditional content rights owner that manages service providers. Syndication – Viewing that occurs
Publisher or MVPD / Operator outside of a publisher’s Owned and
the platform upon which content and
relationship. Operated properties or primary
advertisements are delivered. Over-the-top (OTT) – Viewing content platforms.
delivered over an internet connection.
Clip - Video content under 5 minutes long
Dynamic Ad Insertion (DAI) – Process
Video View – Accrued after the first
of dynamically inserting ads into a Pre-roll – An ad break that occurs before
Connected TV (CTV) – A television set frame of video content is displayed.
content stream, such that different ads content starts.
that is connected to the Internet via can be inserted into the same ad break.
OTT devices, Blu-ray players, streaming Virtual MVPD (vMVPD) – Digital-only
box or stick, and gaming consoles, or Premium Video – Video content that cable alternatives that offer access to
has built-in internet capabilities (i.e., Linear – Traditional broadcast, cable, or is professionally produced, rights both live and on demand premium
a Smart TV) and is able to access a satellite television. managed, and limited in supply. video content for a subscription fee.
SOURCES
[1] France and Germany Digital Ad Spending Update Q2 2020. Retrieved at: [3] IAB Europe Attitudes to Programmatic Advertising Report 2020.
https://content-na2.emarketer.com/france-germany-digital-ad-spending- Retrieved at: https://iabeurope.eu/knowledge-hub/iab-europe-attitudes-
update-q2-2020
to-programmatic-advertising-report-2020/
[2] The Global Media Intelligence Report 2020, eMarketer. Retrieved at:
https://content-na2.emarketer.com/global-media-intelligence-2020 - [4] Freewheel’s programmatic delivery (Markets Module)
Western Europe figure
15 | FREEWHEEL VMR EUROPE | H1 2020 | #FreeWheelVMRThe FreeWheel Video Marketplace Report highlights the
ways in which advertisers, publishers and distributors are
using premium video content to drive advertising outcomes.
The data set used for this report is one of the largest
available on the usage of professional, rights-managed
video content worldwide, and is based off of census-level
advertising data collected through the FreeWheel platform.
More Information
H1 2020 David Dworin, VP, Advisory Services
ddworin@freewheel.com
Media Inquiries
Dan Friedman, VP, Communications
daniel_friedman@freewheel.comYou can also read
