Ideas & Insights
Our blog is where we share our ideas and insights into the digital world.
In December 2016, internet marketing analysts predicted unprecedented growth of video advertising on the web for 2017. They were not wrong. It has always been a powerful medium with web video producers citing impressive statistics. Despite being around 3% of web content, video accounts for over 97% of viewed material. That is impressive, demonstrating how the importance of the growth of video only continues through this year.
It was revealed in March 2016 that online revenue from programmatic video advertising increased 1600% between 2012 and 2015. That trend is expected to continue through this year. By 2020, estimates suggest that half of all revenue raised directly through marketing will come from programmatic video (using real time data to target a core audience at the right time). All forms of video advertising are in a growth phases with several new developments in the coming years expected to continue that trend.
Video has always been important, but it has undergone several growth spurts with this most recent being the biggest and most important yet.
Video production used to be out of the budget of most ordinary people; SMEs and sole traders could not contemplate affording the cost. Naturally, it was considered a frivolous expense with a low potential ROE for small businesses. That is no longer the case as cheaply available HD video recorders and the advance of video technology on phones means producing a video is affordable. SMEs still use video production agencies for production value and quality that most people do not have the time to produce. Overall, it is cheaper and more accessible.
Marketing is a large part of any business’ budget. Studies show that social media users are more likely to share a video than a blog article or an image. This means with the right video, your marketing campaign can go viral with very little effort beyond your first upload. When users share your video content, much of the hard work or marketing is done for you. The real growth area is bite-sized videos: recent analysis shows that the most engaging videos are less than 10 seconds long.
Users simply cannot help but be drawn to video. Some social media platforms use an autoplay feature, compelling users to watch a video. This is useful for you as users are drawn to moving images. If they don’t want to watch it, they will pause or stop it. User engagement for video has increased since Facebook introduced this feature.
The early part of this decade may become a golden age or boom period for video advertising. Another trend for 2016 (and growing through 2017) is the ability to upload live video to social media. Periscope (which Twitter owns) was one of the first services but Facebook has recently jumped onto the bandwagon too. Now, customers can be part of the action at the time it goes ahead. The potential for product placement and live brand promotion could be the next big thing in social media promotion.