Most of us start our day by reading the news, be it online or from the traditional newspaper, and come across multiple banner ads.
Unfortunately, with time, people have become accustomed to ignoring such ads leading to ‘banner blindness’.
A creative and engaging alternative solution to this problem is video advertising.
Video advertising has grown to become a popular choice of marketing among advertisers including small and medium size businesses, largely credited to the advent and popularity of social media and AI-based video creation tools.
Following this trend, Statista projects that ad spending in video advertising is expected to grow at a CAGR of 6.80% during the period of 2023-2027. As of 2022, 86% of marketers were using Facebook for advertising, while YouTube came forward as the most popular social platform among 90% of marketers.
As video advertising becomes a crucial and smart advertising choice, it raises two questions:
- Where are we at right now?
- What does the future hold?
Current State of Video Advertising
The video advertising industry has come a long way from broadcast video advertising to digital media.
As more users (80%) now prefer consuming video content over text, the production of video content and video-based advertising are gaining momentum.
According to a study conducted by NogenTech, 91% of marketers produce video content to connect with their target audience.
This trend is largely driven by the growing popularity of social media platforms such as YouTube, Facebook, Instagram, and Tik Tok, as well as the dominating growth of video content on these platforms.
However, we can’t deny the truth that video advertising holds great importance on the open web platform as well.
Nevertheless, open web platform also has its own limitations.
The Rising Need for Interactive Video Ads
Let’s revisit where we started in this blog – banner blindness. Whenever a user comes to a website, ads are displayed on the webpage including the video ads.
As a human tendency, almost every user wants to avoid ads and get to their content as fast as possible. Furthermore, as they are looking for something specific, they tend to ignore anything that might not serve them a purpose. This leads to low viewability for the ads.
Sometimes the video ads are auto-muted and tucked away in a corner, out of sight of the website visitor. This leads to ads going unnoticed and the advertiser’s message remains undelivered.
As per NogenTech’s research, 61% of marketers consider engagement a key metric for video advertising, while 42% measure the ROI of their campaign through customer engagement and retention.
However, the limitations of ad placement on the open web lead to a fall in engagement rate, loss of ad dollars spent, and advertisers being unable to meet their targets.
These problems require an additional layer of creative and interactive video optimization solutions.
To solve this issue, advertisers need to optimize the ad creatives to give relevant and personalized experiences to the users. Additionally, advertisers should make the ads interactive to attract attention, create engagement and enhance brand recall.
As attention spans are decreasing and users are bombarded with information from multiple sources, it is an onerous task to grab those lost eyeballs.
For this very reason, advertisers should move to add interactive elements such as shopping links and product features to their video ads, which allows their audience to engage with the ad. These elements improve the CTR and message delivery for the advertiser.
With 3.1 billion viewers of digital video, the momentum for video advertising has just begun. To keep up with the industry changes, let’s explore the upcoming trends in the market.
The Future of Video Advertising: Trends You Cannot Ignore in 2023
- Short-form video content: As attention spans are shrinking worldwide, in addition to people preferring video content over text, short video content is becoming popular. This trend can be largely observed on social media platforms such as Tik Tok, Youtube, and Instagram, churning out bite-sized and easily digestible content. According to recent research, by Statista, short-form videos are expected to grow at a CAGR of 11.09%, during the period of 2023-2027.
- Shoppable videos: Another advertising trend to watch out for is shoppable ads. These ads include a CTA and an interactive button to direct the user to the store and complete the shopping experience without a hassle.
- Explainer or Demo Videos: Due to ease of content consumption, users prefer demo videos to understand the features and benefits of a product. If you are a product-based company, demo videos are a fruitful way to attract new customers.
- User-Generated Content: User-generated content has been witnessing a boom in recent years due to social media popularity among people. Advertisers can utilize this strategy to market their products from a customer’s point of view, enhancing the authenticity and awareness of their brand.
- AR/VR Videos: As per the latest data, the augmented reality (AR) & virtual reality (VR) market are expected to hit $52.05 billion by 2027. AR and VR videos provide an opportunity to create immersive and interactive experiences for the target audience, which the marketers should monetize to achieve their target engagement and mind-share among their audiences.
Final Thoughts:
The advertising world is ever-changing. To stay relevant in the market, it is imperative to keep up with the trends. A huge majority of marketers continue to consider video as a key marketing tool and with its growing popularity, this trend is here to stay for quite some time. Videos being easily shareable, accessible and memorable, provide the opportunity to develop a connection with your audience, and with new technologies such as AR & VR along with interactive shoppable ads, marketers can effectively monetize the video content.