The advertising world is becoming a competitive landscape every day. Each industry and brand is experimenting with different forms of advertising to outshine the competition.
One form of advertising that has taken the leverage of technological advancements and has gained a priority spot in the advertising landscape is online video advertising.
Online video advertising has emerged as a major player in the fast-paced and competitive marketing industry. Brands can now connect with their target audience in a more engaging way through online video ads, making it a game-changer. The increasing demand for online video content among consumers is a testament to its effectiveness.:
- In 2022, 3.37 billion users were consuming video content through the internet, and the number is expected to reach 3.5 billion in 2023.
- The audience reach of online videos worldwide is 92%.
- Video content held 82% of the share in attracting global traffic.
Brands and advertisers have shifted from traditional TV ads to digital video ads. In the year 2022, US digital ad spending increased by 21% and the projection for 2023 was 17% reaching the mark of 55.2 billion.
Did you know, there was an increase in video ad spending by 9% in Q3 of 2023.
But the question is why there is a sudden inclination toward online video ads?
Why Do Online Video Ads Matter?
1. They offer Better Engagement and Reach
Traditional video ads have often lacked in achieving the desired KPIs and also lacked in targeting the intended audience. Online video ads offer advertisers the opportunity to reach, engage, and interact with the intended audience. Another benefit of opting for this approach is that online video ads have the capability of being shareable. This way if an ad goes viral it increases brand awareness as well as brand value.
2. Personalization and Relevancy
Consumers today are living in a paradox, they want personalized ads but not at the expense of their data. To break this paradox, advertisers can leverage contextual targeting which targets the relevant audience while adding a layer of personalization.
Contextual targeting leverages the already generated interest of the user which makes the ads more relevant while increasing the chances of engagement. According to a study, 80% of consumers are inclined to interact with a brand that provides personalized advertisements.
3. Metrics and Analytics
Metrics and analytics are important tools for optimization and making the right decision. Online video ads offer advertisers a wealth of insights such as measuring viewership, tracking engagement, understanding consumer behavior, and much more. These insights help advertisers make data-driven decisions and optimize live campaigns.
What are the types of Ad formats Advertisers can Leverage?
Pre-roll: These are 15-30 seconds of ads that appear just before the main video, typically used to grab the viewer’s attention.
Mid-roll: These ads appear in between the main video as natural breaks. the purpose is to keep the viewer engaged without interfering with the viewing experience.
Post-roll: As the name suggests these ads appear at the end of the video. If the main video grabs the interest of the user, post roll video ads can have a higher engagement rate.
Native ads: These ads are integrated into the content. These ads blend seamlessly with the content giving an exact look and feel. Often users fail to identify these ads.
Skippable In-stream ads: Ads that can be skipped by the user after 5-6 seconds and can be placed as pre-roll, mid-roll, or post-roll.
Non-skippable in-stream ads: These are the same as skippable ads but users cannot skip these ads.
Outstream ads: These are mobile-only ads that begin auto-muted. These ads are majorly used to increase the reach.
How to Boost Online Video Advertising?
Now that we have an understanding of why advertisers are inclined towards online video ads and what the various types of ad formats advertisers can leverage, let’s delve into how to boost online video advertising
1. Become a storyteller
Stories are the greatest form of making an everlasting impression. When a user can resonate with the story they tend to share it as much as they can. Advertisers must focus on the story to create an everlasting impression.
2. Be creative with visual appeal
When the story is combined with creative display it boosts the ad performance significantly. Humans remember 80% of what they see when they see. This is the reason that when a creative ad surpasses the existing benchmarks people remember it for a longer period.
3. Create a balance between Promotion and Entertainment
Striking a balance between promoting your brand as well as entertaining the audience. If one of the two is more the ad would lose its purpose.
Conclusion: The Future
In conclusion, we can agree that online video advertising is a formidable tool that has revolutionized the way of advertising. With the rapid technological advancements the future of online video ads is bright. Augmented reality, virtual reality, and other emerging technologies are poised to reshape the landscape of unexplored possibilities.
