Everybody knows the feeling: sitting at home after a long day of work or school, Phone or tablet in hand, scrolling through some video’s just to relax. YouTube, Dumpert, Facebook, RTL XL.. There are countless platforms which help you consume video content on any type of device, whenever you want it. The commonly accepted name for this type of content consumption and distribution is ‘Video on Demand’. People who recognize themselves in the previously sketched persona are also known with the (annoying?) video advertisements which always seem to find you when you start up a video, whether it be before the start of the video, or during the viewing of your video content.
We call this online video advertising, and make a distinction in type depending on the place of the advertisement in the content you want to view. When it’s placed before your video content it’s called a pre-roll, when it’s placed during your content (like halfway somewhere) it’s called a mid-roll. I’m not going to bore you with the definition of a post-roll, because I feel this type of advertising is everything but interesting for brands.
Yesterday the quarterly ‘Ad Spend Study’ was released, a study done on online advertising spend in the Netherlands conducted by Deloitte and IAB. This study (Dutch) pointed out that revenues from display advertising in Q4 of 2014 have grown with 11,8%, totalling €582 million, 15% of which is accountable to video advertising (€90 million). This means ‘video’ is now the best format in display advertising with a +30% revenue growth in 2015. So what can we conclude from those figures? Online video advertising is booming!
“But aren’t those annoying for viewers?”
Possibly, yes. But of course there are ways to minimize that. YouTube for instance has figured out a means for the viewer to decide for themselves if they want to view the advertisement or not, through something that is called Trueview. The viewer is obligated to watch 5 seconds of a video ad, after which the viewer gets the choice to click out of the ad. Effectively this means your brand gets at least 5 seconds visibility. For advertisers this has a few advantages. You only have to pay if the full video is viewed, if it’s clicked off before it’s finished you don’t pay anything! Which means you get the first 5 seconds (maybe more) for free.
In this video (in Dutch!) Trueview shows what it’s all about:
“Is video advertising effective enough for my company to invest in?”
You can judge yourself. The image underneath is an overview of the results of a study done by the American Online Publisher Association on online video advertising effects. Remember that, even if your ad is not fully viewed, your brand already gets 5 seconds of attention. And next to these results you’re able to measure the effects of your ad yourself; if the viewer decides to click past the ad, it will not have had much effect on their opinion of your brand. If they do decide to view it though, you know that the viewer is interested in your message.
A lot of information on online video advertising is already available, for instance on the website of IAB, the branch’s knowledge platform. Other advertising benchmarks and effectivity studies are to be found everywhere on the web, for instance this one. Consumers are viewing more and more video content online instead of offline, don’t miss this chance to reach them!