Due to the trend of “cord-cutting” there’s been a shift among consumers in recent years from traditional TV viewing to online video and connected TV, making it vital for advertisers to have an online video presence. According to the IAB, it took 38 years for radio to reach 50MM users, 13 years for TV, 10 years for cable, less than 5 years for Internet, and less than 2 years for Internet Video.
Consumers of all walks of life utilize more online video now than ever before. Non-linear TV has become the new norm as heavy online video users continue to increase their online video consumption while decreasing their offline TV consumption. Despite these trends, online video advertising remains just a fraction of overall advertising spending.
The two main mediums expected to grow and change in 2017 are video and mobile. According to Cisco, 80% of all Internet traffic will be streaming video content by 2019, up from 64% in 2014. Marketers who are not currently utilizing online video as an extension of their digital advertising are missing out on a tremendous opportunity. Heavy online video viewers watch half of their video content online and are beginning to watch long-form content online.
Moreover, 70% have increased their online video viewing in the past 12 months while 35% have reduced their television viewing in that same time period. Integrating video into 2017 digital strategy will enable brands to collectively leverage the emerging technologies, scale, and efficiencies that video can bring to the overall digital marketing efforts.
Video inventory is expected to grow over the next few years as more consumption takes place online. Elite SEM recommends running a test video campaign as a branding and awareness tactic, while measuring on a viewable completion rate (VCR) and also measuring brand lift. A video campaign can also provide further insights for the target audience’s behavior, such as type of content consumed, time spent, device type, etc.
This is ideal for advertisers that have a large amount of video content available, which can be leveraged for a variety of online video executions. Since consumers attention levels are higher while viewing online video than TV, there is an opportunity to not only expand digital reach through online video, but also easily reach the consumers that are most difficult to reach through traditional TV. Several partners such as Teads, Tremor Video, YuMe and Amobee are all leaders in the online video advertising space that could be utilized for your marketer’s video campaign.
Interested in learning more about Display Advertising? Read our POV Inside Programmatic: Agency vs. In-House Management.