Digital video advertising poised to reach another milestone

Rapid consumer adoption of tablets, smartphones and computers has contributed to the overall growth of digital video advertising.

Posted on Apr 22, 2015 by YuMe

Digital video advertising campaigns launched by companies in an effort to attract the attention of both existing and potential consumers have yet to slow down. In fact, as more business-to-consumer brands discover how effective promoting goods and services can be using visual imagery, it's not unreasonable to expect the number of video ads being deployed to actually increase, especially when it comes to revenue generation.

"Video remains the most effective way to capture the attention of consumers."

In its new report, "Q1 2015 State of Video: Monetization, Audience, Platforms and Content," eMarketer predicted that spending on video ad creation in the U.S. is expected to reach $7.77 billion this year. However, by 2019, this number is expected to top out at $14.38 billion. As more people continue to adopt smartphones, tablets and computers, brands are feverishly working to create engaging video ads that will encourage consumers to buy the products or services being advertised.

Video remains the most effective way to capture the attention of consumers through advertising. People will be more apt to respond to a call-to-action embedded in a video ad, or retain the information communicated to them through video as opposed to in a written format. This is one of the reasons why brands have made digital video advertising an important component of their overall product marketing strategies.

However, as more people continue to disconnect from their televisions and turn to alternative ways to watch their favorite programming, companies will place increased emphasis on advertising on these channels. This is especially true for mobile.

Digital video advertising has quickly become the most effective way for brands to engage with consumers. Digital video advertising has quickly become the most effective way for brands to engage with consumers.

Spending on mobile advertising expected to make huge leaps
It's no secret that tablets and smartphones have become the go-to tech devices for many consumers. People engage with one or both of these gadgets on a daily basis and use them to accomplish any number of tasks, including streaming video.

Advertising on mobile devices has become a staple in the marketing portfolios of many brands. In a separate eMarketer report, the website wrote that globally, mobile advertising will reach $101.37 billion in 2016 and for the first time ever, accounting for more than half of all digital advertising spend. Many of these ads will be created to target both tablet and smartphone users. The growing adoption of these devices has created a niche consumer segment that companies know they'll need to penetrate to remain viable and stay relevant in the eyes of these individuals.

This increased focus will result in almost a 430 percent growth over mobile advertising figures recorded in 2013. All told, over the next four years, advertising on mobile devices will result in approximately $195.55 billion in spending, accounting for 70.1 percent of all spending on digital advertising.

According to eMarketer, there will be more than 2 billion people using a smartphone in 2016, while tablet ownership is expected to approach 1 billion this year. Given these figures, advertising on mobile devices has ceased being an optional strategy for brands.

These gadgets and their ability to deliver high quality video content, have effectively fragmented viewing audiences into different subgroups. There are many people who are loyal to their smartphones and will use this particular device more than any other for watching various kinds of video programming. The same rings true for tablet users.

Companies looking to make their video advertising efforts more robust cannot afford to neglect the mobile space. Doing so will not only alienate a rapidly growing consumer group, but companies will miss out an opportunity to remain relevant in the eyes of those who are no longer totally reliant on TV to watch programming.