IX Perspectives

Video Supply Increases, Brand Dollars Follow

The Index Exchange engineering and development teams have been working extra hard for months now. From managing a stream of header tag and wrapper integrations to expanding Index’s capability to sell ad space for the gamut of digital media formats, the days have been hectic. The hard work is immediately apparent when one dives into Index Exchange marketplace data, which I did today to prepare this post.

The graph below depicts impression and spend volume for video inventory from January 2016 to April 2016.

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Source: Index Exchange, Exchange Wide Data (November 2015-April 2016)

As you can see, there is a massive jump in video supply from February 2016 to March 2016: impression volume (the number of video impressions purchased) was 11x higher in March than in February. Spend followed: buyers spent 11x more on video impressions in March than they did in February. Supply continued to rise into April in a less pronounced way – spend and impression volume were both approximately 2x higher in April over March.

While this increase in video supply no doubt highlights the dogged determination of our engineering team, it also speaks to general media consumption. More and more of the publishers we work with produce video content for their sites, partly to reap the benefits of higher CPMs, but also to connect with audiences who wish to consume content and information via this medium.

The sizeable increase is also a function of an uptick in header tag video integrations. More publishers have opted to market all available inventory to programmatic demand first, by way of the header. If programmatic prices beat direct-sold campaign prices, the impression will clear for a programmatic buyer. With header run auctions that support video sales, buyers have the opportunity to reach a captive audience on myriad digital properties in real time, cherry pick the audience profile just the way they want it, and name a competitive price to secure the right impression.

Needless to say, we’re beyond excited about the opportunity header and video will present for the programmatic ecosystem and are eager to monitor the continued growth of Index Exchange’s video market.

Note: for reference, below is a graph depicting the top video buyers in Index Exchange from January 2016 to April 2016.

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