Online Videos: The Future of Advertisement Industry

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The colossal rise of video streaming traffic, has flung open the wide gates of a new era of advertising- Video content advertising. The research and development in this field has highlighted the fact that Online Video advertisement is the order of the day. Internet giants, such as Google and Facebook, are guiding the Ad marketers on how to make their ad campaign successful.

A recent report of Google discusses the worldwide online Advertisement scenario by taking us through its research. The basic barometers (like shares, views, comments, likes and watch time) contribute a lot for deciphering audience responses, which in turn helps the strategists to interpret the quality content (what the audience likes).  This also helps in inferring the efficiency of an ad campaign and its effects on brand metrics such as perception, awareness and audience interest.

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Google’s policy of ultimate customer satisfaction, reflects in it ad campaign as well. The brand metrics knowledge can be garnered through its Brand Lift solution, which focuses on a variety of insights. Brand Lift provides a detailed study of one’s online Ad Venture, allowing the Advertiser to get most out of its ad spend.

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YouTube’s TrueView campaign showed that 65% of the campaign garnered an average lift of 13%. Fortune 100 brands recorded a significant surge and 65% of Google’s preferred ads documented a hike of 17% in brand awareness. The Return on Advertisement Spent (ROAS) was exceptional on YouTube, compared to TV.

Focusing on the user is prima facie. The brand must intercept audience’s mind, by finding moments that match audience’s and brand’s goal. The presence of an advertisement at the right time is like building a map and a plan.

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The Exploded Adoption of Smartphone Driving Video Consumption

The foremost goal of video advertising is to increase brand awareness. With the phenomenal increase in the number of smartphones worldwide and nearly 50% of the online videos being streamed on mobile devices at the end of 2015, online advertisement is the order of the day.

The increasing mobile video traffic is giving a mouth-watering opportunity to Ad agencies and online publishers. Availability of cheap category smartphones, with the state of the art features, is playing a strong role in Video content consumption. In emerging markets like India, 60% of the users access the Internet through their smartphones.

The desktop online video market is shrinking, compared to its mobile phone platform but, still it is destined to rise with a commendable 21% every year until 2019.

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Rising Mobile Video traffic

With a staggering 79.34% predictive rise in global mobile video traffic between 2015 and 2016, Video ad revenue possesses a fertile ground for the marketers. The prediction soared the worldwide online video traffic again in 2017, compared to 2016, to a whopping 71%.

There are unimaginable 205.8 million digital video viewers in the US alone as on 2015, the numbers are predicted to skyrocket in coming times.

The rise may be attributed to the rise of internet users who watch online videos every day. And, as the global provider of streaming movies and TV serials, Netflix has recently debuted in the world’s fastest growing mobile and internet market, the online video penetration is fated to improve at an incredible rate.

The biggest enemy: Ad Block

The biggest fear of the Ad revenue centered companies like Facebook, Google etc, is the rising monster dubbed as Ad Blockers. According to a latest report by Adobe and PageFair, The loss in revenue, due to blocked ads, disappointingly increased by 86.3% YoY and amounted to a whopping $21.8 billion in 2015.

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Surprisingly, 90% revenues of Google for Q4, 2015 came from advertisements. To tame the advertisement demon, 1.6% of Ad Blocks are installed on mobile devices, because one cannot force feed an ad to another and privacy must be respected.

Condensing the above scenarios, it will be interesting to see how will the online video advertisements and the ad blocking softwares will chase each other. In this cat and mouse game, who will emerge victorious, that is for technology to decide. As of now, it is an undeniable fact that, we sometimes, do enjoy the online ads and many of them, become an integral part of our daily lives.

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