According to Statista, advertising spending worldwide will exceed US$630 billion in 2024. Another report by eMarketer indicates that the economic boom in Asia has led to an increase in advertising activity. Experts predict that advertising statistics will show that Asia-Pacific will become the top advertising market by 2022.
Advertisers are now focusing on demonstrating the authenticity, reliability and value of their brand, rather than just selling products and services. With the shift from traditional television to digital media, advertising agencies have refocused their efforts on increasing brand awareness and trust. With its effective storytelling techniques, video advertising has been a boon to advertisers.
Today’s video landscape is being transformed by the convergence of technological innovation and changing consumer behavior. The new media landscape spawned by the TV-video transition is increasingly automated, data-driven, addressable and accountable, with audience preference as important as the nature of the content. Videos are much more engaging to viewers than traditional display ads due to their dynamic nature. When marketing and advertising a product, it should be noted that 54% of consumers expressed a desire to see more brand videos.
CTV and OTT ecosystem
CTV started to gain traction in 2020 and is expected to grow rapidly in India over the next five years. As more companies undertake research and test solutions, they will recognize CTV’s potential as one of the fastest growing advertising channels.
The way the media industry is going digital indicates that traditional media concepts are a thing of the past. The whole business is changing: streaming services are no longer just platforms for watching movies and TV shows; they are now investing in the creation and licensing of globally successful original content, putting them in direct competition with the traditional television and video industries. We can conclude that traditional television will take a back seat in the near future.
According to eMarketer, OTT services will account for more than half of all digital video views in the US in the coming year, and India’s story is no different.
There are billions of connected TV devices in the world, and the global OTT market is expected to reach $194.2 billion by 2025. CTV and OTT enable incredibly precise audience targeting, making the advertising on these platforms benefits both the advertiser and the consumers. While the former benefits from higher conversion rates through precise targeting and consumers can reduce the effort required to search for the right products. Advertisers can target and retarget the same audience across multiple screens and channels with OTT’s multi-channel approach.
CTV advertising allows marketers to take a more targeted approach to advertising to their audience. The tracking system in the CTV is simple with video views, video completion and frequency can be reported using a third party server tag. The Integral Ad Science (IAS) Media Quality Report looked at CTV ad impressions and compared them to other types of digital video ads. As a result, they found that CTV ads have an average viewability of 93.3%.
New era consumers expect content tailored to their specific needs. So, consumer data is becoming increasingly important to bring a new level of granularity to video advertising to help buyers. In fact, 80% of consumers say they are much more likely to buy from companies that provide personalized experiences.
Video content more representative of customer preferences can be created using demographic data collected by AI. This information will allow brands to generate results that resonate better with them. It is now possible to create and distribute fully dynamic videos with many variations, thanks to a growing number of tools. When combined with target group specific data, one can create truly resonant video campaigns that play at the right time and in the right context – a powerful strategy for brand marketing.
Using data analytics in video ads can help you determine what your customers want based on their interactions with the website. Companies use this technology in conjunction with ad placements to determine their customers’ behavior on social media. Tying video views to clicks or conversions is a great approach to calculating your video’s ROI. You can bridge the gap between your content and other crucial marketing KPIs by including clickable links that allow readers to take key CTA actions (like making a purchase, opening an account, etc.).
Data Insights not only helps focus on audience and improve ad performance, but it also provides insights into audience behavior, demographics, improving ROI, and delivering insights. personalized advertisements based on the interests of specific audiences.
High Impact Instream and Outstream Videos
Instream video advertising has become the norm in recent years. It has become very effective, because the audience is captivated, watching and listening to the surrounding content, and therefore, inclined to continue watching the rest. In-stream video ads continue to be the most trusted and widely used system for displaying ads in relevant video context.
59% of business decision makers prefer video over written content, according to a study. Likewise, 90% of users say that a video influenced their decision to buy a product! These stats show just how effective video ads have become for business development in today’s increasingly digital world.
There’s no limit to deploying ads only in video content, and the expanded scope of opportunity makes it easier to target audiences with specific interests. Outstream videos make the video action stand out against a static background, displaying video ads during non-video content to grab more attention. Additionally, since outstream video playback stops when users scroll up or down, advertisers can collect more accurate statistics on the total number of views. Thus, it is entirely up to you which one to opt for, depending on your needs.
YouTube advertising landscape
YouTube, the world’s most popular video-sharing platform, has over two billion active users. This propelled YouTube to the forefront of video advertising, catapulting it to become one of the largest and most popular advertising platforms. YouTube’s advertising expertise offers brands a plethora of formats, placements, targeting and retargeting options.
Granular targeting is essential for a successful campaign, and YouTube ads allow the brand to be extremely specific about the target audience. Thanks to YouTube’s targeting options, companies can now target a very specific group of users or more general groups based on the products they are trying to sell.
TV has been YouTube’s fastest growing viewership channel for several years, but the pandemic has accelerated the streaming shift. Youtube connects advertisers with the most popular and relevant creators and channels to their business by advertising on CTV platforms – a curated approach the company is now promoting more broadly around its platform. CTV.
Today’s consumers, especially young Gen Z users, prefer watching videos and interacting while shopping, which has led to the birth of a host of video shopping platforms. According to reports, YouTube leads shopping services with its large potential audience, accounting for 40% of watch time of all ad-supported streaming services. This is the reason why companies are rushing into creating YouTube ads. Ecommerce widely uses this video platform to create engaging content and display it in front of the right audience.
In a word
Modern technology has given organizations unprecedented access to their target customers, resulting in a significant change in the way advertising is delivered. While, on the one hand, technology has disrupted the advertising industry, on the other hand, one must be aware of the harmful consequences it could bring, such as user privacy issues, cybercrime risks, redundant job roles, and more.
Technology in the video advertising industry provides a solution that combines all the necessary advertising tools into one system. Improved audience targeting is the result of automated processes and optimized operations. Meanwhile, the ad technology’s data collection capabilities provide relevant and useful information for future advertising campaigns. It’s worth emphasizing that the heart of any digital advertising campaign is storytelling and personalization, and technology is a tool to enable both of these components.
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