Monday, September 15, 2014

Multi-Screen Viewing: Growth in Online Video

Over the last few years, marketing has evolved tremendously.   Traditional mass media has shifted to digital targeted media.  Although the way we communicate with brands has shifted, the essential elements of traditional media are still alive and thriving.  As of 2013, time spent with digital (including online and mobile) has surpassed time spent with TV, by just under 40 minutes.  Even so, the time we spend with TV is significant.  TV gives us the whole package- sight, sound, and motion.  We enjoy watching movies, TV shows, documentaries, news, sports, and special events on our large flat screen TVs.  As the increase in time spent with digital increases, we are no less interested in that same content, but are choosing to watch it elsewhere. 

Consumers are taking their video viewing online.  Time spent per day with digital video has increased over 800% in the last four years.  Consumers can purchase smart TVs, stream through devices like Apple TV or Roku, or access content through their cable provider on their laptops and smartphones.  Consumers are not only taking their traditional video needs online, but they are engaging with short-form video content as well.  YouTube is the second largest search engine and everyday over 100 million internet users watch an online video.  So what is important about this shift in video viewing for marketers?  That’s right, more ad opportunities.

Video ads see 3x higher CTRs than standard banner ads and usually appear in a less cluttered environment.  Video ads are accomplishing two advertising goals.  First, they generate awareness by reaching a large audience with a cost-effective CPM.  Second, they generate traffic at a higher rate than other digital ad formats.   Due to the increase in video advertising, ad views have spiked over the last year and will continue to grow.  As the industry evolves and content remains “king”, online video and video advertising is going to part a larger role in marketer’s budgets and digital strategies.   

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