A new era of video advertising has arrived, and it’s shaking up the marketing world. With advances in smartphones, tablets and streaming services, the use of video for advertising has evolved well beyond the confines of cable TV. That’s because many people are changing their video viewing habits. According to Deloitte, 80% of U.S. consumers are now paying for streaming video service, up from 73% before the Covid-19 pandemic began. Additionally, as of last year, 78% of people watch videos online each week, and 55% say they watch them daily.
Mobile phones in particular have gotten bigger, faster and more conducive to video advertising. Today, businesses have the opportunity to serve personalized video messaging right into the hands of consumers like never before. Not only that, but it has proven to be effective. Viewers reportedly retain 95% of a message when they watch it through video.
In more than 15 years working in the digital landscape, I have seen video grow by leaps and bounds. Internet speeds have had a lot to do with this, but so has the growth of content. It was mostly larger brands and companies that came to my company for video advertising five to seven years ago, and now it is much more varied. Today, we run video campaigns for political campaigns, fitness brands, coffee brands, small charities and more.
What’s On The Horizon For Video
Statista defines video advertising as “all ad formats within web- or app-based video players.” This includes the video ads that show before, during or after a streaming video, as well as the text- or image-based ads that appear over a video. Think about the last time you watched a YouTube video, for example. The video ads you saw before, during and after the video, and the banner-like overlay that showed up while you watched, are all considered video advertising.
Using ad spending as an indicator, video advertising will likely continue to grow for the foreseeable future. Video ad spending in the U.S. increased from $8.92 billion in 2017 to $10.18 billion in 2019. That number is expected to reach as high as $12.66 billion by 2024.
What’s driving that growth? Mobile. In 2017, mobile made up about 35% of that $8.92 billion in ad spending, with the rest going to desktop. The prediction for 2024 is that mobile will account for about 73% of video ad spending. This is probably largely due to the previously mentioned advancements in mobile technology, the rollout of 5G and ever-growing mobile usage.
U.S. adults spend an average of three hours and 43 minutes on their phones each day. By 2021, they may be spending 100 of those minutes consuming video. The number of mobile internet users is expected to grow to 295 million by 2023. The sheer volume of mobile users, combined with the time spent consuming video while on mobile, makes video advertising an essential part of any marketing campaign.
While data on social media video ads isn’t included in Statista’s video advertising data, the numbers elsewhere are impressive. Social network video ad spending is predicted to jump from $5.65 billion in 2017 to $14.89 billion in 2021. That’s just in the U.S. One of the biggest advantages of social media is its global nature, with billions of active users worldwide. Considering the massive reach of social media, the breakneck growth of social video advertising is unlikely to slow.
Social networking growth has brought a new method for video advertising with it as well — vertical video. Although the majority of users still prefer to watch videos horizontally, the way they are using social media on their smartphones is creating a need for advertisers to display video content vertically.
Tips For Getting Started Or Increasing Your Use Of Video
If you’re interested in getting into video advertising or increasing your use of video, here are a few things to keep in mind.
First, start by creating a detailed plan for what you want your video to accomplish. Just like any marketing campaign, your video advertising campaign should have clearly defined goals. Who is your target audience, and what do you want them to do? Is the video meant to attract new visitors, convert visitors to leads or close prospects?
Next, decide what type of marketing video works best for achieving those goals. Demonstration videos are great for showcasing products or services. You can use a brand video to share your company’s mission or vision. Educational, how-to or explainer videos help customers better understand how your product or service can benefit them. Whichever type you choose, keep your video conversational, actionable and measurable.
Once you have your goals and messaging down, it’s time to create your video. Depending on your budget, you can enlist the help of video professionals to produce your video and bring your vision to life. If you are on a tighter budget, there are many resources online to help you create your own videos. The same mobile devices that you aim to advertise on can create some pretty amazing videos. There’s even data suggesting that video production quality isn’t as important to viewers as content that fits their interests and passions.
Finally, and perhaps most importantly, get your video out there. Share your video ad with the world, and be sure to track its performance. Monitor views, reach, click-through rates and conversion rates closely. The only way you can find out whether your video ads work is to get them in front of an audience.
Sight, sound and motion have been unleashed in a way that no one could have imagined just 10 years ago. The golden age of video is upon us, and it looks as though video advertising is poised to become a marketing juggernaut. In today’s increasingly digital world, video advertising will likely continue to be an important part of marketing plans well into the future.
Feature Image Credit: getty
CEO of Thumbvista, a mobile advertising company based in North Carolina serving clients from all over the world. Read Linden Ryan Skeens’ full executive profile here