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June 27, 2016

Why marketers should use video ads?

When a person hears the word video, all they could think would be a series of moving visual media. Video in a much broader definition is an electronic medium that is used for recording, copying, playback, broadcasting and display of moving visual media. Digital video has quite the same definition with what video is. However, the only thing that makes them different is that the representations of moving visual images are in the form of encoded digital data. Many people love to watch videos, especially those that are in the internet. That is why, advertisers have innovated the use of video for product advertising. This one is called digital video advertising.

Digital video advertising can be simply described as an advertisement using digital video. These online display advertisements have videos within them.

Why businessmen should use video ads?

It has been reported that digital video advertisement had increase by 41.4% in 2013 and by almost 40% in the year 2014. More and more internet users will be viewing video ads because it can be viewed easily on different devices such as personal computers, tablets, phones and connected TVs and at this point of time the use of these devices are escalating. It would not be hard for the advertisers to choose video ad because of this. On the average, entrepreneurs and advertisers have spent more than 10 million U.S. dollars annually.

digital video 243x300 - Why marketers should use video ads?

The table above shows the US digital video ad spending by device in the year 2014-2020. It can be noticed that there is an increase of the total amount spent for this kind of advertisement. In the year 2014, it has spent a total of 5.24 U.S. billion dollars. When year 2015 came, it increases by 2.42 U.S. billion dollars. At the end of this year 2016, it has been estimated that the total amount spent will be 9.84 U.S. billion dollars which is an increase of 2.18 U.S. billion dollars has been made. With these figures, the predicted total amount that will be spent in digital video advertising in the upcoming years – 2017, 2018, 2019 and 2020 will be 11.72 U.S. billion dollars, 13.39 U.S. billion dollars, 15.15 U.S. billion dollars and 16.69 U.S. billion dollars respectively. People can see its great inclination. Though this table only represents the U.S. total amount spent but accordingly, China, Netherlands, Canada and Europe have been also sky-rocketing their total amount to be spent in digital video advertisement.

Digital video have been popular in social media sites, more specifically on Facebook. Facebook is the earliest site that has a backer of the format with the introduction of auto play video ads in 2013. However, other social media sites have also adopted the digital video ad units and this includes Twitter and Instagram.

From the surveys that have been conducted, it has been reported that more and more businessmen and advertisers will focus their promotion of products using digital video ad. There are a lot of benefits in using this kind of advertisement. One of this is video ads perform better than standard display ad units. People love digital video advertisement because aside from its very impressive style of video edits and layouts, it contains information that could satisfy and answer the queries of the customers.

Sources:

https://thirdpresence.atlassian.net/wiki/display/WIKI/Introduction+to+Video+Advertising

http://www.emarketer.com/Article/What-Factors-Hinder-Digital-Video-Ad-Spending/1013676

http://www.businessinsider.com/mobile-boosts-digital-video-advertising-2015-4

http://www.mediapost.com/publications/article/274795/agencies-and-brands-have-upped-digital-video-ad-sp.html

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