Innovation could be online video ads big trend for 2014
Posted on Jan 7, 2014 by YuMe
There has been plenty of movement forward for online video ads over the past few years, but 2014 could be the year during which many start truly innovating in this platform, according to iMedia Connection's Irfon Watkins. Many areas of this budding advertising platform are making strides in relevance and use by customers.
Brands are surely starting to take notice, as the Internet Advertising Bureau expects online video ads to hit double-digit growth in 2014. This is juxtaposed with the need to become better and more efficient at targeting the proper audiences, as separate research from Infectious Media found that only 54 percent of online video ads are actually seen, a sure sign that there is still plenty of room for improvement and innovation.
Watkins said one industry that will likely start realizing how and where true value can be gained from online video ads is retail, as competition among these businesses is always strong and the economy has been difficult.
"Video is now the key part of any brand's consumer research and 2014 will be the year when online merchants finally recognize the value of video as one of the fundamental sales channels," Watkins wrote. "If advertisers/e-commerce companies can connect interested video viewers with their e-commerce platforms when they have that purchase intent, they can give consumers a direct way to take the natural next step in their consumer journey."
The growth of videos in retail and other industries has been huge and will likely continue, according to a graph published by eMarketer. The website found that three-quarters of brands creating videos are starting to purchase from an online ad network, meaning they are looking for better placement online. Adding to this, ad buying among brands doubled from 2011 to 2013, with bigger jumps likely still to come.
Mobile will gain more value in the new year
"Advertisers themselves are allocating ever greater portions of their budgets to digital formats, and we can expect to see the mobile portion continue to rise next year," Watkins wrote. "As such, the experience has to be great, with the ad experience integrated seamlessly into the content experience."
CIOL recently published research from analyst firm Berg Insight that found the value of marketing and advertising will grow 26 percent each year from 2012 to 2018. At this point, mobile will represent 5.9 percent of ad spending across all media, with search advertising making up about half of mobile ad spending.
Rickard Andersson, a senior analyst with Berg Insight, told the news source that the amount of time users spend looking at their devices far surpasses what advertisers actually spend trying to create videos and other types of ads. Putting this in perspective, he said it takes up a "double digit percentage" of the user's time, but only single-digit amounts of spending by companies. This must change over the next couple of years if brands want to truly reach this burgeoning audience and will likely be a big stepping stone toward growth for many organizations.