Facebook has become the second largest online video platform after YouTube by viewing time, largely thanks to muted autoplay streams - for the moment

This is about to change as Facebook seeks to grow viewing and expand inventory with a new standalone video hub, live streams and revenue share models for professional content

Facebook’s lofty ambitions to become a destination for long-form, premium video content will be harder to achieve and less compatible with current strengths than for online news 

While internet and device penetration among younger age groups are approaching saturation, the over 55s have seen an explosion in smartphone adoption, up 83% year-on-year, expanding opportunities for monetisation

More than 50% of ecommerce transactions are now through mobile. Smartphones widen the scope for anytime anywhere mcommerce events and larger-screened phones and tablets facilitate high value transactions

Internet advertising continues to grow quickly, display faster than search and classifieds. Online advertising spend in H2 2015 grew 14% year-on-year to just over £2 billion and the rise of mobile ad spend is dramatic

Paid placements for content marketing online in Europe will increase by 186% from 2014-2020, to over €2 billion

It is a particularly exciting area for premium publishers, who can leverage their content expertise to reverse the flight of ad money to lower-cost properties. Almost all are developing creative content offerings to capture this value

Metrics and measurement, disclosure and cost remain as challenges for content marketing online, but growth is strong due to high commitment to spend from advertisers

Facebook is extending its lead over rival Google in the fast-growing market for mobile display advertising, helping publishers solve the dilemma of mobile content discovery

Facebook’s success with advertisers is enabled by a mobile-centred data platform with unparalleled capabilities to profile users and identify them across devices and online properties

Strategic investments in online video, messaging, and virtual reality all bode well for the future of Facebook’s ad business, although regulatory uncertainty on privacy looms on the horizon

News publishers have emerging opportunities for content distribution due to 1) the transition from desktop to mobile and 2) a renewed interest on the part of tech platforms in news content as a driver of usage

Realising digital advertising revenues is highly challenging for news publishers, who are increasingly focused on long-term membership models; this raises the question of engagement with tech platforms as a means to boost digital advertising and subscriptions

The balance of risks and opportunities of such engagement is not yet clear. With usage flowing to platforms, most major publishers are now taking the position that the loss of control associated with getting on board is a necessary evil

Native advertising is growing sharply as a result of the shift in digital audiences and consumption to mobile devices, where limited screen size and usage modes favour formats that mirror the form or function of the platform and media

Publishers and advertisers are moving rapidly to exploit the opportunity. Publishers see unique native formats as a way to distinguish their ad offering in a highly commoditised internet advertising space, while advertisers and their agencies hope to get more bang for their buck

Between 2015 and 2020, we expect native advertising spend across Western Europe to grow by 156% to €13 billion, representing 52% of internet display and three quarters of net growth in internet display

Recently we attended the inaugural IABUK Digital Upfronts, in which 11 digital media companies pitched their wares to advertising agencies and advertisers.

UK growth in internet advertising is now powered by mobile, social and video, and these three areas were the focus of the Upfronts.

The Upfronts are symbolic of the rising importance of digital media in the UK and worldwide; while broadcast television remains the king of brand advertising, marketing and advertising are becoming less TV-centric.

UK consumers have embraced data-hungry services like Facebook and Google, but many also have concerns about privacy online; young people have a more positive view of the trade-off and know how to avoid targeted advertising

Businesses that are conscientious about consumers’ data gain their trust, and the gap between trusted brands and the market as a whole may grow substantially in the future

Despite Edward Snowden’s revelations on ‘Big brother snooping’, the UK Government has secured vast access to communications data without serious challenge to date

At its f8 developer conference, under the slogan “Build, Grow, Monetise”, Facebook rolled out a slew of new policies and initiatives designed to boost its appeal amongst users, app developers and advertisers

In its drive to encourage developers to build more apps that support the social network, Facebook is attempting to position itself as a “cross-platform platform” with 1 billion+ users that sits on top of iOS, Android and other mobile operating systems

Key announcements included App Links, an open source solution enabling linking across apps, which may drive additional usage, and Facebook Audience Network, an app ad network rolling out this year, which should drive additional margin and could challenge Google AdSense

Facebook has successfully transitioned its business to mobile, with the number of mobile users now exceeding those on PC, and mobile newsfeed ads accounting for nearly all revenue growth and over half of total revenue, now on a $10 billion annual run-rate

North America and Europe continue to account for the vast majority of revenue and revenue growth, despite flat audience penetration in both regions, as increasing mobile consumption and advertiser take-up have driven sharp increases in ARPU, particularly in the US

Despite tougher comparables and declining desktop revenue going forward, the rapid ramp up in mobile ad revenue, plus initiatives such as video ads, ads on Instagram and planned mobile ad network, should deliver strong growth through 2014 and into 2015