Marketing spending is always the clearest indicator of where marketers see value. By that measurement, online video advertising is a lucrative strategy set for yet another boost in popularity.
While online video spending topped $4 billion in 2013, that figure is set to more than double by 2017, according to research from MediaRadar reported at the Online Publishers Association. The research credits valuable insights into online video marketing as stepping stones to increased value and broader adoption of the advertising medium.
In order for online video advertising to hit its projected $9.1 billion figure, marketers will have to get smarter about how they construct and deploy their advertising campaigns. This means using consumer feedback and continued research insights to fine-tune strategy and adjust best practices.
MediaRadar identified several key trends that are shaping video advertising today and for the future. Here are some of the highlights from the company's findings.
Online Video: The New TV
It's time to think of online video ads as the modern-day version of television advertising. While traditional TV ads aren't going anywhere, many marketers now see online video as a parallel platform with better prospects in terms of cost-efficiency. According to MediaRadar, one-third of marketers have already started shifting television ad budgets toward online video spending.
This shift indicates that many marketers feel TV and online video advertisements accomplish similar objectives and that spending for both might be redundant. But while similarities exist, online video ads are consumed much differently among the public than standard television ads.
Using 15-Second Ads to Combat Video Skipping
Despite its popularity on television, the 30-second commercial doesn't play well online. While 30-second ads are the second-most common ad length online, they are particularly prone to being skipped by consumers, which diminishes their value. The ideal ad duration for online outlets is much shorter than on traditional platforms, but finding the right balance will be the challenge for marketers.
MediaRadar's findings suggest that ads of 15 seconds or less may provide the most value. These ads are less likely to be skipped by consumers, but they still deliver strong brand visibility. Extending these ads to 30 seconds can provide diminishing returns via fewer consumer views.
Using Rich Media Advertising to Bolster Brand Visibility
Video presents inherent problems on its own, including consumers skipping videos and the murky engagement levels of videos that autoplay on a site. Brands can combat this challenge by complementing video with rich media advertising on the page.
By supplementing video with rich media ads, marketers can be confident that their brand is gaining some exposure with every page view. The paired ad campaigns can increase the value of each element by developing a more engaging brand experience for consumers.
Some industries are further along than others in pairing rich media ads with online videos — MediaRadar notes that women's fashion websites have already seen a 51 percent engagement of this practice while tech sites lag behind at 11 percent — but today's research suggests these paired campaigns will maintain significant value in the years to come.