The
wave of investments on ad companies and agencies was on back since a
couple of years. The number of investments on video ad networks
is posed stunningly in the investment sphere. Companies like
Brightroll, Yume and Tremor Videos raised more than over 100 million
USD in 2011. The investment flowing into the industry could have
posed more than just a couple of industry leaders. CEO of Ignition
One, Margiloff, however, looked into the other side of the screen and
felt that there cannot be many industry leaders in a same vertical.
Hence the industry cannot be multi polar. He correctly pointed out
that some of the companies were just raising their revenue
potentials.
Back
in 2011, the industry was a bit bleak and the top marketers were not
that inclined to invest on Video ads. However, advertisers understood
the potential were quite aggressive. The demand of pre roll videos
was getting high and they were just beginning to roll over the
industry on a massive scale. User generated content was still on the
go and the traditional media companies were a bit reluctant to let
goo the conventional mode of advertisement.
In
this point, websites like YouTube were the emerging players and in
2011 they just reached a milestone to be the next big thing for
advertisers. It catered to 47% of views and 80% of users in the US
alone in the year. This led Barclays to reveal that the side could
generate $1.6 billion revenue through video ads. It was just the
beginning and thus was the raise of video advertisements in the
industry. Meanwhile the US video ad industry was expected to burgeon
to USD 2 billion and the revenue generated to USD 3 billion.
The
video marketing industry was beginning to grown as a unique vertical.
There was generation of huge money in the range of USD 400 million
from video and display ad networks. Hulu had revenue of USD 500
million and other aggregators like Daily Motion, Metacafe and Break
Media were emerging as prominent players. Of USD 3 billion, ad
networks and aggregators booked about USD 1.7 billion and the rest
USD 1.3 billion was spent on publishers. The traditional media
companies too bagged a huge share of the amount as 50% of the money
spent on aggregators and Networks was directly siphoned out to them.
Hence, the video ad industry grew as a large business vertical for
business and now it is on the mainstream of the online ad industry.
The
primary hurdle for video publishers was the incompatibility with
search engines. The text based publishers are indexed by search
engines easily and hence content marketing found a better foreground
than that of video marketing strategy. The video ads are dependent on
sharing and distribution over destination strategy. But the rise of a
number of disruptions in the market cleared the way for video
advertisement to be on the center of digital advertisement.
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