A survey indicated that YouTube accounts
to 18.9% of total online video ads in
US. Its revenues, in 2014 was posed to be USD 1.13 billion. This, however, is
the number only for advertisements in short video format, excluding banners and
other ad formats on the website. The number, further excludes the site’s income
from traffic and content acquisition. In present time, the website has grown to
the largest video sharing platform transforming as a lonely giant in the
industry. Yet, there exist certain lapses in the site for advertisements.
Advertisers are finding it tough to
target specific audience in the format, as the structure itself does not
support detailed technology. Hence, it is not easy to attain targeted advertisements
in the site. Users on the other hand are craving for high quality videos as
well as content. An apparent issue is that, audience spend much time in irrelevant
contents most of the time that divert them off the course. Moreover, videos where
ads appear are mostly not brand friendly. Hence, promoting online video ads in YouTube might not always be successful as it is
meant to be. A tough competitor of the website, AOL, has been increasing its
revenues lately. The contrasting figures are brought out by eMarketer. AOL contains
premium video content that are produced professionally. Following these high
quality content, revenues of the site are expected to increase further.
Spending on digital ads have
augmented in the US. In 2015, there was a hike of 56% hauling the net amount to
USD 5.96 billion. As forecasted by eMarketer, by 2018, growth will slide down
to 13.9% as advertisers will seek for broader paradigms such as mobile devices
like smart phones and tabs. Hence, the relevancy of app advertisements and
phone video ads will increase significantly. In fact, the market has already
started boiling up.
By 2018, the prospects of digital
display ad augmented further in the US. It is poised to heighten up to 30.1%
from 21.6% in 2014. Aspects like interactive elements will become the forefront
of digital advertisements. Hence, static ads formats on the likes of banners
will become a passé.
A lapse in the online video ads market is the shifting
dynamics of video content platforms. There has been a substantial change in the
domain with the rise of paid video services. Services by Netflix or Amazon
Prime videos has disrupted the market their user base in increasing exponentially.
The framework for advertisement in these channels are completely different than
that of free media like YouTube.
Innovation, both in technology and
business strategy must be materialized to bring better prospects in the ad
market. The industry has been through a volatile period with new trends. Digital
advertising is the latest mode to reach target audiences for business. It is
just its transformation that creates timely disruptions. These, however, have
always turned out as boons rather than banes.
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