Video Ads are Dominating

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AdvertisingVideo / 23 October 2016

There’s been a huge surge recently in the in popularity of online video ads. Companies are earmarking sizeable chunks of their advertising budgets for video. Programmatic video ad spend now accounts for over a billion dollars every year. And that’s far from the end of the story. Cisco predicts that a dominant 80% of online traffic will be accounted for by video by 2019. There are a number of explanations for the growth of online video. The bottom line, however, is that it’s a booming market sector that’s set to keep on growing. It’s gaining a real foothold in western markets like the UK and also developing markets like India.

Great tools for engagement

Video’s capacity to create an immersive environment gives it an advantage over other forms of online marketing, such as display advertising. The eye is instinctively more drawn to moving images. Add sound to that and you have a form that engages in a far more powerful way. Television advertising can also offer this to a degree, but video advertising is starting to get the edge here too. Research by eMarketer shows that online video advertising is now consistently outperforming television in some categories. It’s particularly effective in engaging with audiences that more traditional media find difficult to reach, such as younger adults and light TV watchers.


The potential of online video ads has encouraged some big hitters to get involved. Instagram launched its video advertising service in 2015 and Snapchat has plans to follow suit. Facebook already hosts video content and then, of course, there’s YouTube. Now owned by Google, it has the capacity to reach huge audiences with targeted video advertising embedded in streamed content. Google is also going further by developing video advertising functionality for search engine results pages. Known as in-SERP advertising, it offers opportunities for video advertising that’s tailored to the viewer’s interests. The involvement of companies like these is also improving viewability. Online video marketing hasn’t always worked well across all devices. With standardisation initiatives like Open W, however, optimisation is rapidly improving.

Online video is a rapidly developing form of advertising with enormous potential. With its access to hard to reach market sectors and its capacity for targeted, tailor-made marketing it’s a form that’s sure to keep on growing.

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