- Posted May 1, 2014 by
Online Video Booms as Advertisers Follow their Audience
Slowly but surely, online video is becoming a popular media among top advertisers to reach their desired clients and audiences. According to eMarketer, $68.50 billion is expected to go to TV in terms of advertising budget this year, with only a $5.80 billion budget going to online video. But the video advertisement industry is growing fast, faster than anyone imagined it would do. And it has been accepted well by publishers too. You can see publishers like CNN and BBC putting high importance on their video contents, featuring top videos right on the homepage. Video is now proven to monetize efficiently, and often attract premium ad rates when compared to other online advertising channels. A site like Wall Street Journal Online features their top videos in one of the central spots on the homepage and streams live analysis twice a day. Video is certainly growing in popularity, and importance.
Some attribute the rapid growth in the online video industry to smartphones and tablets. Indeed, handheld devices have changed the way people interact online. In its recent report, “5 online video advertising insights for 2014″, Kitara Media identifies mobile engagement as one of the key drivers of video success. Consumers are engaging on multiple devices and screens, and video seamlessly fits all devices and platforms. It is thriving as a medium, and advertisers are successfully using video to promote tailored, branded content towards their audiences. Marketers have embraced the idea, and are enjoying the scalability and flexibility offered by online media platforms.
Although most of the major video ad platforms were only accessible to large corporations because of the restriction on minimum budget requirements, things are changing rapidly, with companies like Virool.com introducing self-serve platforms. Nowadays, you don't really need a five figure purse to get a campaign started. And you can always count on your video to become viral, provided your video contains all the right elements and surprise. The simplicity, and the ability to reach out to small-budget customers is what makes a video ad platform like Virool one of the fastest growing startups in Silicon Valley. Just last year, this Y Combinator startup raised $6.82 million in seed funding. By now, they have a client base of around 50,000 customers, many of whom are ordinary people like me and you.
Tech Research firm Gartner predicts the overall mobile advertising industry to grow to $42 billion by 2017, with video showing the highest growth. Use of both smartphone and tablet keeps on growing, and video works particularly well on these two. Online video has for long been an untapped market, but top marketers report that they are already loving the experience. They say online video offers unique targeting, scaling and reporting opportunities. And you don't have to take their words for it, stay-at-home mom promoting "How to make Christmas cookies" will give you a similar feedback too.