Online Video Will Remake Advertising In 2014

Video marketing has evolved well beyond brands posting videos on YouTube and expecting results. Native advertising, social media, and semantic search technology have coalesced to transform video into a more targeted channel to engage consumers where they are online.

A recent study by video marketing firm Pixability found that 99% of the world’s top brands are active on YouTube, but the results are uneven. Fewer than half the brand videos posted ever exceeded 1,000 views. Meanwhile, other platforms, including Facebook’s native video ads, are growing in popularity.

Video ad spending is expected to reach over $9 billion by 2017 because of significant developments in consumer behavior. One is the rise of mobile smart devices. A Dartmouth study found that consumers are turned off by banner ads, since these ads aren’t very relevant and are a poor fit for the mobile form factor. 

Another key factor driving video ads is dramatic changes in media viewing habits. eMarketer estimates that time spent on digital media will soon surpass time on TV. Facebook’s ability to reach the coveted 25-34 demographic now meets or exceeds major TV networks, Nielsen has found. This creates opportunities to reach audiences across mediums and complement commercials with online video ads.

Effective videos are relevant and engaging to capture interest, and should be placed when and where consumers want to see them. That’s why so many companies are deploying new native video ad experiences to work across all devices.

NPR has created an ad unit called Center Stage, which features prominently positioned creative alongside video. Amazon has launched a new ad unit for retailers to showcase product demos in an effort to improve the shopping experience. Amazon is also integrating search into video: a query on diapers returns a related video.

The results are pouring in. Forbes’s BrandVoice native ad platform is anticipated to account for 30% of its ad revenues by 2014. Likewise, LinkedIn’s native ad unit should generate nearly $46 million in ad revenue by 2014.

Higher stakes, better results

It’s clear the stakes are now higher for brands. That’s why new technology that takes into account video recommendation is crucial to pairing interests.

Of course, determining whether the video was a key-influencing factor requires using better metrics. Metrics have shifted from one-click attribution models to looking at the entire impact from multiple perspectives: relevant scale (it’s not about numbers, but about reaching the right consumers); socialization (likes, tweets)); viral activity (shares, reposts); time spent, and engagement. That means taking all marketing channels and attribution models into account to understand if your video is really working for you.

Marketers have the tools to use video more effectively through a combination of native advertising and technologies such as semantic or predictive search that dramatically improve relevance. The future of online video is already emerging.

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