Broadcasting and syndication companies taking TV advertising digital
Posted on Jul 21, 2014 by YuMe
As people around the world become more reliant on digital technology to view video programming, many brands and advertisers are adjusting their video marketing strategies to develop content that can be displayed where consumers are spending most of their time. The Internet and mobile devices, such as smartphones and tablets, have now given people the ability to watch digital programming on the go, and companies have had to adjust to this trend from a video advertising standpoint.
According to eMarketer, PromaxBDA and Mixpo conducted a joint study that found video ads for television shows - commonly referred to as tune-in advertising - used to increase viewership and ratings, are now being deployed on digital channels. Seventy-seven percent of U.S. syndication and broadcasting companies participating in the study said being able to reach viewers who use tablets and smartphones to view digital video content is one of the major benefits of this new tactic.
On average, adults in the U.S. spend as much as 2 hours and 51 minutes per day using a mobile device, eMarketer stated. Rhythm NewMedia recently conducted a study on completion rates that could be valuable for syndicators and broadcasters. The company revealed that on smartphones, video completion rates are 87.7 percent, and on tablets, the figure is slightly lower at 82.4 percent, but the numbers are high enough to justify investing in digital tune-in advertising.
According to Business Insider, revenue generation from video ads will have a combined annual growth rate of 19.5 percent over the next two years. Additionally, the website states that among all digital advertising formats, video has the highest click-thru rate at 1.84 percent with views reaching more than 35 billion in 2013. Video ads are a great way for companies to advertise goods and services to an increasingly digital community that will continue to grow larger.