Is the hype over Video Advertising justified?
According to IAB’s latest Report, online advertising revenues in the United States totaled $23.1 billion for the first six months of 2014, which signifies a 15.1% increase compared to 2013. This is the case also in Europe, where online ad spend grew by 11.9% and generated €27.3 billion.
As one would expect, Video is indeed on the rise on both sides of the Atlantic ocean. How significant is it though in the equation and how bigger is Video Advertising going to get in the near future?
In a recent interview with The Wall Street Journal, Daryl Simm, chief executive officer of Omnicom Group’s media operations, advised marketers to move between 10-25% of their TV budget to online Video.
Moreover, David Silverman, Partner at PwC, stated in the IAB US Report that “digital Video is seeing gains that reflect a new ‘viewing’ paradigm that is taking place on interactive screens, big or small.”
Indeed, Online Video advertising grew 45.4% in Europe in 2013 with the strongest growth being recorded in Bulgaria (94.1%), Hungary (75.4%) and Romania (71.3%).
That being said, is all this hype around online Video Advertising justified? What’s so special about it and what’s in it for marketers?
Kalin Kalevski, Sales Manager of ThinkDigital Bulgaria, offered to share his thoughts on the emerging role of online Video Advertising.
The Liberation of Video
Try a short survey. Ask brand marketers, media planners and creative professionals what will soon be the most efficient way of conveying their message to their customers. I am sure most of them will reply “Video”. Why? Think about it: appealing to the emotions of the customer is always a winning strategy and the truth is that Video has repeatedly proved its ability to touch people and evoke emotions.
However, for a long time, Video Advertising was available solely to the big spenders and was confined to the TV screen – the only medium able to deliver video content to mass audiences.
The times have e-changed though! And here is why Video is changing marketing communications, once again:
With smartphones in every pocket and affordable DSLRs delivering Hollywood-quality videos, it is now cheaper than ever to produce video content. The abundance of available technology enables brands of any size and budget to create video content.
More importantly, this affordability gives brands the chance to recruit fans and turn them into brand ambassadors that produce branded content and distribute it to any social network via platforms, such as Daily Motion.
It’s easy to distribute
Recent advancements in technology and connectivity have brought marketers to the point that enables them to use video for campaigns across a multitude of platforms besides traditional TV. From smart TV and Mobile, to Social and Display.
As a result, brands can now run multiscreen campaigns and provide a seamless communication experience for users across numerous device types and a variety of platforms.
This brings a significant marketing budget shift. For instance, in the US online Video ad revenue will reach nearly $5 billion in 2016, up from $2.8 billion in 2013, while TV ad revenue will decline by nearly 3% per year during the same time period. Video ad views exploded in 2013, topping over 35 billion views in December and averaging over 100% year-over-year monthly growth during the year.
Video is about to go Programmatic
Sooner rather than later, a considerably high percentage of brands will go programmatic with regards to their online Video ad spending. And publishers will follow. In fact, they already are. For, publishers across the globe are looking more and more into participating at programmatic marketplaces in order to provide effective media solutions to advertisers, whilst boosting revenue from their premium inventory. It’s a trend that will reshape the entire industry.
Where Storytelling meets effectiveness
Video is one of the most engaging and immersive ways for storytelling. And, given the fact that Video ads boasts the highest click-through rate of all digital ad formats (an average CTR of 1.84%), we don’t need a crystal ball to identify the future status of Video advertising.
Online video ad revenues are bound to hit back-to-back all-time highs. That’s because advertisers have realized that Video is a must if you are looking for the best ROI on your campaign & you are eager to increase your chances of getting noticed online.
So, the question is (not if, but) how soon you are going to add Video to your mix.
ThinkDigital did recently run a Dailymotion campaign for Cappy, a popular fruit juice brand that is owned by the Coca-Cola Company. Are you curious to see what happened? Click to see the case study.
P.S. To find out more about how you can take advantage of Dailymotion’s creative capabilities and make impact with your messages, feel free to read this one-pager and/or contact us at email@example.com.