The growth of digital advertising has skyrocketed. It’s everywhere, and it has clear benefits over traditional ad placement. Open any of your social media accounts.
You almost immediately see paid posts, ads retargeting you for that flight you’ve wanted to book, celebrity endorsements on your Instagram feed, and so much more.
We want to focus on the importance of a more specific type of digital advertising by diving into the growing market for ad-supported digital video.
In today’s advertising world, we can place a safe bet on two things: video content matters, and nothing is permanent. Video stories, featured videos, and posted videos are everywhere you turn now. Websites feature videos as soon as you land on the home page. Facebook now has video stories. YouTube has video ads that play before you can finally watch that cute dog video your friend sent you. The craziest part of all of this is how fast these features have appeared throughout our digital landscape.
There is a virtual explosion in digital video placement and viewership. The best part? It doesn’t appear to be stopping anytime soon. Evolving maybe, but not stopping.
According to a study conducted by eMarketer, digital video viewership is expected to increase over 8% this year. The rise in revenue associated with digital video advertising seems to be making waves too. According to the IAB Internet Advertising Revenue Report, digital video advertising reached $9.1 billion in total revenue in 2016, a 53% increase from 2015. Specifically on mobile devices, revenue has increased 145% to $4.2 billion.
With this growth of digital video viewership, more affordable data plans, easier WiFi access, and faster download speeds, what does this mean for the near future of the world of advertising?
eMarketer’s study also found that spending on digital video advertising is expected to grow by 28.5%. We’d say this allocation of ad dollars is a logical decision, even based solely off of social media trends.
Since Facebook launched support for in-feed video in 2014, it has grown to serve more than 8 billion video views per day, as of 2016. Snapchat was serving up 7 billion video views per day at the same time, with under a tenth of the audience size of Facebook.
Even for those internet users who prefer to stay off of social media, video viewer traffic made up 64% of total Internet traffic in 2014 and is expected to rise to 79% by 2018.
Video content matters. And as we can see, nothing is permanent, but rather constantly progressing. When the market was trending towards an increase in cinematic scale advertising, it unexpectedly turned towards a small screen consumption experience. Influencer videos, pre-roll advertisements, interactive video ads- these are all now capturing target markets at a faster speed and making targeting easier and more specific. We could continue to list the benefits but we know you don’t have all day, so you’ll have to see for yourself.
Digital advertising, whether it be video or display, is the new place to be. Create a cool, dynamic, graphic ad, use a great photo with unique typography, or create a short video; the possibilities are endless. Digital advertising lets you take your creative skills to a whole new dimension. Embrace it and jump right in. And if you need help with this, AMPs is here to do just that. You can read more about our advertising services here. Learn More>>