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The Rise of Video Advertisements
Just like any industry, trends can be found in the field of advertisement; constantly changing and shaping the industry as a whole. One of the most recent trends in the field of online advertising has been the loss in popularity of banner ads at the tops of pages, and the massive gain in popularity of video advertisement throughout websites and applications.
There are several main reasons why online video advertising has become such a large staple of the industry in such little time. A study conducted by Locowise, a social performance measurement agency, determined that traditional banner ads have an average audience engagement rate of 4.6%, in contrast to video ads’ 5.6% rate. This 1% difference in engagement rates may not seem like much of a difference on paper. However, when you take into account the millions of views ads receive daily through online traffic, a one percent increase in audience engagement can be a critical advantage.
Another benefit and attraction of video advertisement is the room for creativity advertisers have when publishing video ads. Unlike display ads, videos are relatable to the audience, incorporate audio as well as visual, can tell a story, and most importantly, attracts viewership. Multiple studies have shown that in mobile apps, the click through rate (CTR) of video ads can be up to 7.5X higher than display ads. It is no wonder that video ads have taken the online advertising industry by storm.
According to PubMatic’s Global Digital Ad Trends, around 75% of all digital advertisers have already, or plan on increasing their budget for video ads. If this statistic is indicative of anything, it is that digital video ads are the future of advertisement. With countless brands focussing their funds on digital video ads, and shifting their budget away from display, and even television ads; media platforms that can support shareable, clickable video ads are placed at a massive advantage against platforms that can not. Because of this, one question arises. How will this trend in advertising affect the media as a whole?