As I have mentioned in my previous post, videos are probably the fastest growing web feature in the online marketing industry today. It has seen tremendous growth over the past several years and continuously gaining popularity among the business sector.
According to the survey conducted by Brightroll, Inc. on the spending patterns for online video advertising, 56% said that they see online video ads as more effective in their marketing campaigns. A whopping 94% of the respondents are confident enough and would spend more in this type of feature than they did last year.
I think this is a good enough proof of how promising this video industry really is. Todd Sacerdoti foresees that “this segment of online advertising will continue to become a staple in every media buyer’s arsenal”. And the pattern is obvious.
“Over the last year, online video advertising has continued to mature as a trusted and proven medium for reaching highly engaged audiences at scale across premium content sites online.”
In an interview done by ReelSEO with Google’s Ari Paparo, Group Product Manager of Advertising Product, in-stream video advertising will be “huge” this year. This forward movement of video advertising becomes more promising as media sales agencies are learning to adopt the video standards imposed by the Internet Advertising Bureau (IAB). The IAB has developed standards for the technical inter-operations for all of the video players.
Grant Crowell of ReelSEO interviews Ari Paparo of Google
According to Paparo, these development standards are going to make a huge difference.
“It’s going to allow for liquidity, where agencies can now buy the way they want to buy. For publishers, they can now share inventory, syndicate, use ad networks to fill their back inventory – all these logjams in the video market are going to go away next year, because of a lot of great work that’s been done this year.”
One of the reasons why businesses are developing trust on video advertising is that they see an increase in their ROI (Return on Investment). This boils down to lower rates, better access to quality inventory, the rise of performance-based metrics such as cost per video view (CPV) and cost per engagement (CPE), and better targeting. And as business owners are getting more chances of grabbing great deals for ad placements, they are embracing video advertising with a smile on their faces.
But of course, some are still not completely convinced with this new marketing game so they are not putting high hopes on video advertising (which, of course, is very normal). I think they still need more statistics and solid proof that this will work for them. It’s very hard risking your money in something you will not benefit on.
So, what is holding them back?
One factor is the price. Although we’ve mentioned that most businesses are happy with the ROI, 32% still think that rates are a bit high and they would adopt faster if the costs are lowered. The need for better-defined industry standards and better success metrics, as well as a more transparent formula for ROI are also reasons why some haven’t completely embraced the video marketing business.
What must be done?
According to Todd Sacerdoti, the key is to educate video advertisers.
“My hope is that this study will form the basis of a continued effort to educate the industry about online video’s capabilities, as well as the areas that need attention in order for it to continue to move forward.”
Christopher Rick of ReelSEO believes that “better educating the advertisers will certainly help build confidence in the format”.
And that is true. Advertisers need to really understand what’s in store for them in video advertising. They need to know exactly how this system works. Just like buying any new gadget, we want to know the facts about it – the advantages and the disadvantages. After everything is clear, we then decide if the advantages are good enough to outweigh the risks. So the more advertisers understand video advertising, the more confident they will be to embrace it.