Connectivity combined with the magic of moving pictures – this is how videos became the new print. Discover why video today is one of the fastest-growing opportunities in digital advertising
The emotional draw of the viewing experience and the global adoption of broadband allowed the rapid increase in the digital video interest, both by the consumer and advertisers. The popularity of videos on social channels, not only YouTube but also Facebook and Instagram, and the accessibility of HD videos on mobile devices boosted video traffic – today half of it, on a global level, is mobile!
This is why video is becoming a very effective marketing tool for both lead generation and brand awareness, but also for user engagement, since it increases the open rates and click-through rates. Let’s take a closer look at some of the latest statistics related to the rise of video adv.
A new research from BI Intelligence shows that video is rapidly becoming the dominant medium of the smartphone era. The digital video advertising revenue from PC and mobile-based video ads will arrive to $5 billion this year, and grow at a five-year CAGR of 21.9%. The report predicts that the total revenue will reach $13.3 billion by year-end 2020, based on IAB’s historical data from.
One more important statistic shows that video is replacing static display advertising on desktop: it will account for 41% of total desktop display-related spending in 2020, up from a 26% share this year. Also, video ads perform better than standard display ad units. In-stream video ads, including ads that play before, during, and after video content, yielded click-through rates (CTRs) that were 18x higher than HTML5 banner ad units in February 2015, according to Google’s Rich Media Gallery (BI).
These numbers undoubtedly show that online video is quickly becoming a key way for users to satisfy their information and entertainment needs, at the same time becoming the future of content marketing, and an inseparable part of all marketing strategies.
Media Publishers Report: video has highest growth in engagement
The latest Shearablee’s Publishers Scorecard brings very interesting statistics regarding the video engagement. Among the Top Ten, including National Geographic, People.com and Playboy, BuzzFeed Video saw the highest growth in engagement, with 45 % growth compared to April 2015, and close to 18 million total actions (including all post-level likes, shares, favorites, retweets and comments).
Video is emerging as one of the top digital advertising formats on both desktop and mobile. Mobile will be the biggest driver of digital-video ad spend in the near future, with ad revenue growth over 3 times faster than desktop before 2020.
So what is the secret? We are living in an era of information overload, and video offers a simple and almost natural engagement, easy to digest and fast to consume. The rise of social video platforms, such as Snapchat, Vine and Instagram, offers endless (free) possibilities for all types of businesses. This is why 2015 is confirmed to be the year of Video Advertising!