2013′s top internet video advertising trends

The past 12 months have seen video advertising online become a more popular way to reach consumers, and internet video advertising is likely to become even more effective in 2013.

Posted on Dec 18, 2012 by YuMe

The past 12 months have seen video advertising online become a more popular and effective way to reach consumers, and internet marketing consultant Armando Roggio wrote in a December Practical eCommerce article that internet video advertising is likely to become even more effective in 2013.

"Online retailers will be using video in 2013 to increase sales, find new potential customers, and build brand relationships if key streaming-video trends continue," Roggio wrote.

According to Roggio, there will be three major trends embraced by video advertisers next year:

1) Brands increasingly turn their attention to online: According to statistics cited by Roggio, about 96 percent of the top web-based retailers will turn to online video ads to help drive revenue. In comparison, about 32 percent of the same organizations surveyed looked to video to help boost sales in 2011. In particular, companies will be using internet video ads to talk more about specific products or services rather than about a brand more generally.

These findings correspond with the results of a recent report cited by BizReport. Of the more than 4,100 brands polled in that survey, 23 percent of companies said they turned to online advertising in October of this year, with 11 percent now exclusively using web-based platforms to reach consumers.

2) More companies will realize the benefits of online video: Because so many more people are now turning to e-commerce sites for their purchases, Roggio wrote that an increasing number of companies will by next year use online video advertising to reach consumers. This trend is already playing out for some businesses, as the Practical eCommerce article cited one report which claimed that a web-based video ad campaign may increase conversion rates by as much as 40 percent.

In particular, pre-roll ads are likely to become more prominent with brands trying to reach e-shoppers, as the format is one of the most widely accepted ad placements and such spots are typically not ignored, Roggio wrote. For example, YuMe reported in August that from April to June of this year, 69 percent of all pre-roll spots were viewed until completion.

"Ad blockers cannot stop pre-roll video, and pre-roll video can include links directly to the advertiser," Roggio wrote. "For all of these reasons, online video advertising could be a great way to find new customers in 2013."

3) Ads to entertain and inform: The formatting of internet video advertising is no longer simply to inform, as brands next year will look to create spots that are more entertaining and thus more likely to encourage consumers to view them repeatedly and share on social media sites, according to Roggio. Examples cited of how brands can create better video campaigns include a recent spot by Coastal Farm Stores depicting Batman as a grocery store clerk, and a multi-spot campaign by Macy's featuring characters from the classic movie Miracle on 34 Street plus a slew of modern celebrities.

"In 2013, more merchants may produce content videos that entertain shoppers or inform them," Roggio wrote. "These videos are relatively easy to share on social media sites and can go a long way to building brand relationships with shoppers."

According to Todd Wasserman, Mashable's in-house marketing expert, this trend toward more entertaining video ads is being driven by the rise in mobile devices, as the smaller screens found on smartphones and tablets makes some traditional video formats less likely to be seen. Today's consumers are constantly connected, which means that they are more distracted than ever. While smartphone owners may not want to sit through a standard ad, they may watch a video through to the end if it is entertaining.