The use of video in digital marketing is exploding, reports Brian Binder for iCrossing. ComScore estimates that 84 per cent of the US population now consumes video content online. Video viewing on PCs alone has grown by 60 per cent since 2011, and mobile consumption has increased by around 30 per cent on both smartphones and tablets, with no sign of slowing down.
The combination of heavy growth in video consumption and an ever-evolving sophistication in online targeting is the foundation for why Evercore Partners projects that the online video advertising industry will grow to $8.1bn by 2016.
Companies are taking notice of these trends and developing new technologies for advertisers. Over the past few weeks alone, both Google and Facebook have announced new product launches and acquisitions to bolster their video offerings.
Google recently announced their “programmatic premium video marketplace,” Partner Select, as well as their purchase of the video advertising company mDialog, to join their DoubleClick team. Similarly, last week Facebook announced the acquisition of online video ad platform LiveRail, which offers real-time bidding and it pairs video ads with video content for more than 200 companies. It also launched a new video carousel in an effort to increase video views across the platform.
So with all these advancements, the question remains, what does this video evolution really mean for advertisers? Well, it solidifies the fact that video should be a key component of a brand’s media mix. However, it is important to understand how and where video fits within a programme.