December 9, 2016
In the next couple of years, digital video is going to continue to grow—that’s a given. According to eMarketer, we’re looking at double-digit rates: it’s estimated that through 2020, U.S. digital video ad spending will continue to grow at a pace that exceeds TV advertising. By contrast, T.V. ad spending growth will be at rates around 2.0-2.5%.
This biggest takeaway from this advertising ecosystem is that digital video is going to be new terrain for almost every company. Even industry veterans like Giant Media will need to double-down on innovation, focusing on aligning customer journeys with timeless stories.
Here are 3 trends that illuminate where media companies should focus:
Cross-channel is the cornerstone of media delivery
Marketers already know that consumers browse content across multiple devices. But MarketingLand dives into this trend even further. The biggest trend driving growth in media is the proliferation of new devices. From desktop to tablet, mobile, and even wearables, consumer experiences are becoming even more tailored to the moment.
But what does this trend mean for advertising?
“Today’s users expect advertising to be brief, targeted and convenient,” says Thomas Stern, columnist at MarketingLand. “Consumers engage with content at a feverish pace and scroll past ads that fail to capture their attention.”
Storytelling is the heart of a successful video advertising strategy. And cross-channel is the path to execution: companies need to understand how their campaigns will scale across devices.
Consumers aren’t the biggest fans of online ads
According to Mary Meeker’s Internet Trends Report, 92% of 3,200 Internet users surveyed said that they’d consider using an ad blocker. Meanwhile, 62% mentioned that they were annoyed by pre-roll ads.
What this trend reveals is that the future of video advertising is 100% consumer-centric. Brands and agencies need the absolute best storytelling and creative strategies. Ads can’t be ads anymore—they need to be narratives.
If your digital video feels like the ads you’re watching on TV, you may be veering off-course from the strategy that you need to convert audiences into loyal customers. Instead, give away valuable information.
Video is the future of social
According to a recent report from the Digital Marketing Association (DMA), video is taking over the social media landscape. One stat points out that 4 times as many consumers prefer digestible video content over text.
Another trend to consider is the rise of programmatic, which will soon become ⅔ of all digital video spending in the United States by 2019.
Marketers that support the right allocation of budget between advertising channels that include social, search engine marketing, and display. Social will amplify the performance of any video ad spend—provided that the creative of your campaign is strong.
The Bottom Line
The future of video is cross-functional. It’s deep rooted in quality—a story that is equally powerful across devices. The right advertising partner will know how to apply these patterns to your business and ensure that you are reaching your target audiences.
Give us a shout below if you want to take your video advertising to the next level in 2017!