A 2017 report on digital video ad spending by IAB states that advertisers plan to spend over $9 million on digital video advertising this year. That is a jump of more than 38 percent over last year. The expected jump coincides with a majority of advertisers' (61 percent) plans to increase their spending on digital video advertising in 2017. As such, the upward trend of digital ad spend on video advertising should come as no surprise.
The Rise of Online Video Consumption
App usage is expected to account for 20 percent of total media consumption in 2017. Let us put that into perspective. A U.S. adult, on average, spends close to two and a half hours every day consuming content on their mobile device. Much of this is driven by native app experiences, such as YouTube and Facebook. Compared to 2016, this is a jump of more than 10 percent. Furthermore, video-watching forms a significant part of a user's mobile experience, together with audio streaming, social networking and messaging. In fact, incentivized in-game videos have been finding favor with online audiences. 60% mobile users are okay with engaging with in-game video ads, in return for in-game rewards, such as an extra life, or purchase credits.
Given all of that, it should not come as a surprise that marketers are bullish about digital video ad spending in 2017.
Video Advertising Trends in 2017
As users move to mobile devices for watching long-form content, mid-roll ads are following suit. In the last quarter of 2016, smartphones accounted for 48.2% of mid-roll ad impressions, going neck and neck with desktops. Mobile video is expected to grow at a rate of 33% this year, which means it is likely that mid-roll ad impressions will comfortably outrun their desktop counterpart. Likewise, pre-roll ads are seeing a shift, as well. Brands and agencies are going for shorter pre-roll ads (5 to 15 seconds long), Geico's pre-roll campaigns being the best example of the trend.
Why Video Advertising Is Effective
We can process visual information much faster (60,000 times) than text. In addition, our visual memory is connected to our median temporal lobe, which is also responsible for emotions. Thus, you have a much better chance of eliciting a favorable response from your audience with a good video ad than you do with a text ad.
Four Tips for Profitable Digital Video Advertising
However, successful digital video advertising is much more than telling a good story. The following are some tips for creating a successful video advertising campaign.
1. Avoid repackaging TV ads for digital advertising. Millennials comprise the bulk of internet audiences, and they value experience more than anything else. Rehashed TV ads can be disruptive to users' video-watching experience, which can have a negative impact on your brand.
2. Keep your ads relevant through advanced targeting, personalization and device and platform matching. For instance, a resolution of 768*1024 is recommended for running full-screen vertical ads on a tablet. The same for smartphones is 320*480.
3. Move beyond brand awareness. Get creative with your video ad campaigns to drive more traffic to your website or increase your in-store sales.
4. If your goal is brand awareness and recall, reveal your brand in the first five seconds of the ad, as this in-depth Google research on digital video ads advises.
Don't Forget to Measure the Effectiveness of Your Digital Video Ads
At Pocketmath, we help marketers measure the reach and impact of their video ad campaigns through Video Events Reporting. The easy reporting tool lets you analyze the performance of your digital video ad campaigns, which helps you reach more people and get powerful results.
Interested in mobile video advertising? Try Pocketmath!
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