For Paid Media, Video Represents Enormous Value to Brands
Since 2004, when the Interactive Advertising Bureau (IAB) began tracking digital advertising spend, it had never surpassed the level of ad spend dedicated to television…until last year. In 2016, digital narrowly outranked TV in ad revenues, $72.5 billion to $71.3 billion respectively. While we have seen steady growth in digital advertising over the past decade, now, the level of budget being allocated to digital properties is expected to soar. According to eMarketer, over the next several years digital ad spend will experience double-digit growth annually, ballooning from an estimated $83 billion in 2017 to $129.23 billion in 2021.
Certainly, marketers are not turning away from traditional ad channels, but digital has gained favor for three primary reasons:
- The popularity of digital channels with younger audiences, in particular social platforms like Instagram and Facebook.
- The ability to track performance of ad spend on digital and to attribute value to specific campaigns.
- The opportunity to greatly personalize and segment messaging to user audiences.
As analytics tools and programmatic marketplaces have proliferated, paid media professionals have become better equipped to measure attribution on Google, social networks, and beyond. Additionally, online consumers have let down their guard and prioritized utility over privacy, allowing marketers to gain valuable insights that can be used to create better brand experiences and more accurately target with relevant messaging. Still, many media teams remain challenged to generate enough high-quality content to adequately personalize their advertising campaigns at scale, especially with the rise of video on social and other channels.
The growth in demand for personalization in advertising is converging with a growth in video consumption across all users. In fact, by 2019, video will represent 80% of all internet traffic globally according to Cisco. Much of this growth is due to mobile devices, with Zenith estimating that next year global video consumption on mobile devices will grow by 25%, and mobile ad spending will grow 49% to nearly $18 billion. For marketers and media analysts, there is incredible opportunity to engage and convert consumers with video ads, specifically ones that are optimized for mobile-viewing, meaning short-format and vertical. Unfortunately, video is one of the most difficult content assets to scale, as it is often costly as well as time and resource-intensive to create. Indeed, eighty-three percent of marketers in a survey conducted by Buffer said they’d like to create more video content if they didn’t have restraints such as time and resources.
Today’s brands must get creative with their creative strategies in order to ramp up video ad development to fill a growing set of digital channels. And video is not just useful as an ad format to drive engagement, but often is also able to substantially increase conversion and revenue for brands. This can help to explain why video is even performing in ad units that are otherwise trending downward, such as display. According to eMarketer, “Video is the only subcategory of display ad spending that is growing, as rich media, banner ads and sponsorship all shrink.”
At Olapic, we’ve long recognized the potential impact of video, including short-form and vertical ad units on digital properties, as a way to stand out from the noise and capture the attention of desirable audiences. To help paid media and marketing professionals develop enough content to personalize and target more effectively, we launched Content in Motion, a tool that turns static imagery into high-quality animation for use across channels. So far, our clients have realized powerful results, and are able to create tons of variations on their videos to test and segment in a way that would be far too inefficient using standard video creation methodology.
Smart brands are thinking differently about their digital video advertising strategies in order to stay ahead of competition and to continually optimize performance. If you haven’t found a way to scale video creation to support your digital ad units, now is the time to do so. Seven in 10 US teen smartphone users surveyed spend at least 3 hours per day watching digital video with their devices. As these younger consumers come of age and gain in spending power, there is a fantastic opportunity to engage and convert them with well-placed, relevant video assets.