Internet video advertising: the best value in the ad world?
Posted on Nov 29, 2012 by YuMe
Compared to the initial costs and return on investment involved with more traditional forms of advertising such as in print and television, internet video advertising is one of the best ways for brand marketers to see a high ROI while also reaching a large yet targeted audience. Even though more and more Americans are turning to internet-enabled devices to view content, the price brands pay to reach potential customers online is still far lower than for spots appearing in other formats.
This past October, an estimated 183 million Americans viewed more than 37 million videos online, according to comScore. Throughout the month, the average viewer watched more than 1,254 minutes of web-based content. In addition, close to 11 billion online video ads were shown to U.S.-based web users, equaling approximately 3.8 billion total ad minutes. Close to 52 percent of the country's population watched video advertising online in October, with the average viewer seeing more than 68 internet video ads over the course of the month.
Not only are more Americans watching online video ads, but web-based video advertising has also proven to be one of the more effective ways to reach a targeted audience. A YuMe report from August found that from April through June of this year, 69 percent of pre-roll video ads were viewed until completion. In addition, during that three-month period 76 percent of 15-second ads and 65 percent of 30-second spots were seen all the way through.
"For business owners and marketers, the explosion in online video consumption represents a massive opportunity if handled properly," strategic marketing consultant Chris Horton wrote in a June Social Media Today article. "To be effective, your online video marketing strategy should incorporate a healthy mix of video content that mirrors and compliments your other content marketing media."
Monetary value of internet video advertising
Online ads are not only a proven and reliable way to reach potential customers, but they are also comparatively one of the most cost-effective ad strategies available. Online Media Daily reported that CPMs (cost per every 1,000 impressions) for internet video ads was on average about $9.93 in June. In comparison, print ads can cost as much as $100 for every 1,000 impressions, Mashable reported.
Despite all of the benefits a targeted web-based video ad campaign can provide, many marketers are still reticent to fully embrace video advertising online. The Interactive Advertising Bureau in October reported that only 6 percent of all web-based ad budgets are devoted to digital video commercials.