One of the noteworthy digital marketing stories of last year – the growth of video advertising – is picking up momentum.
Expect many more headlines about this trend in 2014.
I posted about the topic last summer. Half a year later I’m even more confident the market will quickly expand.
I anticipate significant growth and innovation in the video ad space this year, both on the advertiser side (from the number of buyers to an increased willingness to test creative specifically tailored to the medium) and on the publisher side (e.g., the types of formats made available).
Factors driving video ad growth include:
There is increased consumption of the digital media that supports video ads, especially via mobile phones.
Increasing number of ad vehicles
For example, Facebook introduced video ads last month. Expect Facebook, Twitter and other ad sellers to tweak their existing video ad formats and to add new ones.
A front page story in today’s Wall Street Journal discussed the WatchESPN app, which ESPN owner Disney sees “as a way to cash in on growing demand for online video.”
Media agency recommendations
Agency planners are more frequently recommending video ads as a component of comprehensive advertising campaigns.
Increasing comfort level of ad buyers
As ad buyers themselves watch more online videos it’s natural they’ll become knowledgeable about, and interested in, video ad formats.
Meanwhile, Google took a step to comfort some more traditional-minded marketers when it recently announced it’d allow advertisers to test the use of Nielsen measurement tags on YouTube ads. (Nielsen reportedly expects this to become permanent in 2014.)
These tags will provide third-party metrics similar to Nielsen’s television audience ratings and should lead some hesitant marketers to initiate YouTube video ad campaigns.
More inventory made available on ad exchanges
Publishers are increasing the amount of video ad inventory available on a growing number of so-called programmatic platforms/exchanges, which makes it easier to plan, execute and optimize large-scale ad buys.
1. Many of the marketers who step into the arena for the first time in 2014 will quickly increase their expenditures on video ads.
They will be impressed by the flexibility and measurability of video advertising. For example, the ability:
- Target specific DMAs (defined geographic areas) at low cost; e.g., to expand into additional markets, including international ones, that are beyond the reach of their TV ad campaign budgets
- Test creative executions head-to-head while monitoring metrics such as completed plays, clicks to website and online conversions
2. More marketers will run tests to see how their target markets respond to broadcast plus online video ads
My former Universal Studios colleague and now co-founder of a digital marketing & analytics agency, Frank Vertolli, recently published an article that references such a test his agency ran on behalf of a travel industry client.
3. Customized creative executions
We will see more examples of video ads that take advantage of the medium’s unique opportunities to engage target audiences.
One of best video ads I’ve ever seen in the wild (i.e., while going about my business) targeted me based on a previous YouTube.com video view.
I was on a weather site when I saw a video thumbnail image featuring the stars of the Comedy Central show, Key and Peele. The comedians’ faces caught my attention because I’d recently watched a few of their show clips on Comedy Central’s YouTube channel.
I clicked the “Play” button. The video opened with voiceover saying, “We know you like watching Key and Peele on YouTube, but you’ll love watching the whole show even more on Comedy Central.” After a snippet of comedy the spot ended with the comedians pitching benefits of watching on TV.
The ad was a fantastic example of a creative execution specifically made for a given situation.
Here’s one of the ads from the series:
For many advertisers the easiest way to get video ads online is to reuse television spots. However, in time we’ll see more advertisers embracing the fuller potential of video ads by creating content geared to the medium.
All the trends and opportunities mentioned above reinforce one another, which strengthens my belief that 2014 will be a year of impressive growth in the video ad market.