The definition of insanity
According to Einstein (yes, Albert Einstein, the father of the relativity theory), “ insanity is doing the same thing expecting different results.” Talking about online videos, we are pretty much putting this quote in practice: online video advertising offers the opportunity to reach more new customers and to communicate more effectively with existing customers doing something advertising has been doing for years now. Basically, doing the same thing expecting different results. But then Mr. Einstein comes again showing everything is relative, especially when we are talking about the digital world, the parallel universe where communication, entertainment and information got superlative definitions – online video advertising is the natural evolution of all media, if we dare to say. Why? Four good reasons to start:
1. The Power of The Internet: do we still need to mention it? In case we do, just check the post about the future of advertising. Very elucidative.
2. Display became tedious: Display advertising comes in various formats: text, graphics, audio, animation or the combinations of all of them. With time and all the fuss regarding content and non-intrusive policies, banners started to be displayed within the content itself, what made netizens get used to them and CTRs drop drastically. There is the demand of a new format, that delivers the message effectively in a fast paced environment where users will interact positively with the ad. Online video comes to answer all these requirements.
3. Prices are far low that were back then: One of the main reasons marketers in general did not include online video in their strategies was the high prices of productions and commercialization. Well, this reality has changed. Nowadays, there are many softwares that have cheapened the price of production keeping the quality and video ad networks who offer unique and non-intrusive formats and premium traffic with accessible prices through real time bidding. (Have you heard of Advision? No? About time: we have the perfect video solution for you.) As if not enough, social networks are THE tool regarding sharing and spreading the “word of mouth” around. And if you do it right, they will do it basically for free.
4. Predictions: Let’s check the numbers, as usually they talk by themselves - According to Forrester Research, almost $13 billion was spent on online advertising in 2012. Online video ad spending is expected to go from $3.5 billion in 2012 to $7.6 billion in 2017, overtaking text ad spending by 2014. If those numbers seem high, here is another one that might surprise you: based on comScore Video Metrix, in the United States alone, online video ads were viewed over 110 billion times in 2012; with the second half of the year seeing an increase of about 9 billion from the first half. In the UK, online video represents a 24% share of the total digital ad spend in 2012. Video advertising grew 46% to £160.0 million from £109.0 million, accounting for 12% of online and mobile display in 2012; up from 10% in 2011. In the last three years video ad spend has increased almost six-fold (471%).
These are only four of many reasons why online video ads have become the standout of the online advertising world. Technology has evolved faster then anything else nowadays: processors are faster, devices are thinner and lighter, video services that were once relegated to the computer or laptop are available on-the-go or in the living room. While this trend is nothing new, we are crossing a new threshold in the ability to consume video in an engaging experience. And as we know it, this is the future: content, entertainment and information combined, offering the best viewing experience and making advertising a choice.
©2010-2013 *DiosaLuminosa (Einstein - DeviantArt)