In episode 03 of Pixels and Points, Matt and Susie explore updates in the world of advertising and digital media spending – from YouTube‘s latest ad feature to how digital advertising is set to outgrow traditional ads for the first time.

Transcript

Matt Nelsen: Hello again, welcome to Pixels and Points. I’m Matt Nelson, Digital Media Director here at Redroc, and with me is Susie, our media buyer and planner. Today we’ll be discussing a couple of articles, and I’ll start with the first one about YouTube’s new ad strategy.

Susie Brown: Great, let’s dive in!

Matt Nelsen: My article is about YouTube now displaying ads on paused videos. They tested this recently, and the results were favorable for them. When you pause a video, whether on CTV or any device, an ad will now appear. They’ve gotten rid of display ads during video play and are bringing them back in this new format.

Susie Brown: Smart move on their part, especially to boost revenue from non-Premium subscribers.

Matt Nelsen: Exactly, they’re trying to make it as unintrusive as possible. Previously, display ads would appear at the bottom during the video. Now, when you pause, the ad will show up, and it will disappear when you unpause. It sounds like it’ll be more like a banner rather than taking up the full screen.

Susie Brown: That’s less disruptive. What’s your take on how effective this might be for advertisers like us?

Matt Nelsen: It’s a nice avenue for us. It allows us to advertise on YouTube more strategically and helps keep the platform free for users. It might also reduce the typical annoyance that comes with YouTube ads.

Susie Brown: Definitely a plus for user experience. What do you have for us today, Susie?

Matt Nelsen: All right, Susie, your turn. What’s new from your end?

Susie Brown: Today, I’m discussing the NewFronts, a big convention this week where companies unveiled what’s new in digital media. The major takeaway is that digital video ad spend is expected to surpass linear ad spend by 2024 for the first time ever.

Matt Nelsen: That’s a significant shift. What does that mean for platforms like Paramount Plus?

Susie Brown: It’s interesting because Paramount Plus led the streaming market in Q1, likely boosted by the Super Bowl. It’s becoming a key player alongside HBO, Disney, and Amazon Prime.

Matt Nelsen: Seems like streaming is the future of sports broadcasting too.

Susie Brown: Absolutely. Another point from the NewFronts is the importance of new measurement metrics, like attention metrics. They’re trying to figure out how to ensure that ads are actually being seen, not just played in an empty room.

Matt Nelsen: The evolution of ad metrics is fascinating. How are companies planning to implement these new metrics?

Susie Brown: They’re experimenting with things like gas station TV monitors that can detect when eyes are actually watching the screen. It’s about verifying that the impressions served are genuine.

Matt Nelsen: That’s quite innovative. Any other insights from the NewFronts?

Susie Brown: Well, the focus on multicultural audiences and AI was evident. There’s a push to optimize ad delivery and targeting using AI, which is becoming integral to our strategies.

Matt Nelsen: It seems AI is becoming a staple in our industry, not just a buzzword.

Susie Brown: Exactly, and it’s helping target ads more effectively, ensuring they reach the right audience at the right time based on real-world conditions, like the weather.

Matt Nelsen: That’s all for today’s episode. Thanks for joining us, and we look forward to bringing more insights next time on Pixels and Points.

Susie Brown: Thanks for watching, and see you next week with some updates on traditional media upfronts!