Video Advertising and its supremacy over Television ads

There has been an upturn in video industry in recent years. This trend is substantiated by the rejuvenation of traditional advertisement as a primary marketing strategy. As marketing is targeted primarily in the digital domain, digital video advertising is gaining good ground in the market. The fact is backed by an Industry report by AOL. The report has highlighted another contrasting feature, it is the state of spending on TV advertisement, which is laconic compared to digital ads. In fact, the expenditure is being bypassed to internet ads from television advertisements. Above it, the finding highlighted the overshoot of net expenditure in video ads by 42% along in the US, in year 2015. The figure attained in the country amounted to USD 7.46 billion last year. The poised amount by 2019 is USD 13 Billion, which is almost double of the present sum.

As highlighted, video advertising bagged the highest among in the advertisement sector with exponential spending. The critical high point now is where exactly companies channeled their advertisement expenditures? AOL surveyed about 300 entities integral to the video market comprising of ad publishers and brands. As reported, these market entities have increased their expenditure on digital ads with addition expenditure on television budget. Hence brands are now oriented towards digital media leaving aside TV broadcasters to market their products. The increase in internet penetration and migration of businesses to the internet domain ads to substance to this fact.

 In 2012, as highlighted in the report, 18% of total buyer’s digital spending came from TV broadcast.

This number has more than doubled reaching 39% in 2015. Therefore, targeting consumers with video advertising through digital broadcasters is on mainstream. In 2012, 18% of surveyed entities funded digital video with earnings from TV. This increased to 31% in 2015. On an average, 10% of TV expenditure are now channeled to digital media. Videos are now targeted towards desktop, mobile devices, apps and through OTT modes. 55% of buyers are targeting specifically to mobile ads or in app videos.

As the industry is changing drastically. There is a chance that it would be stricken with more dynamism in coming times. Digital video industry has augmented increasing the prospects of video advertisements. Furthermore, a number of new devices bring up the new trend of virtual reality might incur a huge disruption in the advertisement market. Publishers are brands should remain open to new markets, new technology and newer trends in the advertisement world reaping the benefits. It should be noted that the path breakers in the sector would be the ones to gain optimally.

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