What is Video Advertising?

Video advertising is the process of displaying ads either inside online video content – usually before, during or after a video stream, known as pre-roll, mid-roll and post-roll – or as standalone ads.
Video advertising is promotional content that plays before, during or after streaming content. Some marketing professionals also expand the video advertising definition to include display ads with video content, such as those that start playing when a person puts a mouse cursor over them and native video ads promoted on digital ad networks.

The Current State of Video Advertising

Video advertising is one of the most popular ways to reach online audiences. Experts believe video advertising will dominate the next decade, which suggests that now is an ideal time for marketing professionals to learn more about it and investigate how it could improve their reach and overall effectiveness with campaigns.

Although marketing with videos is gaining popularity, that doesn’t make it a guaranteed win for marketers. The results of an Irish study indicated 60% of respondents felt there was too much advertising associated with on-demand video platforms. Also, 35% said they got frustrated with those ads because they prevented them from watching their desired content.

Stats like those indicate marketers must be exceptionally careful to create video ads the audience perceives as genuinely valuable and relevant. The placement of a video ad also matters, since the goal is to make any advertising content minimally disruptive. If an ad appears where there’s a natural break in the programming, such as before a presenter discusses a new topic, viewers may be more willing to tune in. More and more marketers are using advanced solutions like Outbrain Smartads Scroll-to-Watch and Click-to-Watch video ads, in which the viewer actively opts-in to watch, and regains control over the online experience they want to have. This directly contrasts with the intrusive and annoying nature of pre-roll video, and brings much better completion rates. Check out this case study to see how it works.

Digital Video Advertising Trends

The digital video world is not static. Experienced marketers know they must stay on top of new developments to understand what audiences want and need. Learn about four relevant trends to watch.

1. Video Ads Are Not as Short

YouTube was one of the first platforms to offer six-second ads. Since late 2015, however, the most popular video ad length is 30 seconds. This data suggests that when it comes to video, people are willing to pay attention for a bit longer.

Image source: • Digital video ad impressions in the U.S. by ad length 2018 | Statista

In one recent example, OYO, one of the world’s largest hotel chains, released a series of “ad films” in the Indian market. Some of those are more than a minute long, and all of them emphasize that staying in a low-priced hotel room does not require sacrificing on quality. An advantage of an extended format is that advertisers have more time to tell a story and pull users into what’s happening on screen.

2. Mobile Users Tune in Longer

Research indicates smartphone users are more likely to watch long-form video ads than those lasting only six seconds. Once they’ve watched for six seconds, 72% of users continue to engage. Plus, they’re committed to the video more than those on a desktop.

Even among mobile users, however, attention drops sharply after 22 seconds. This finding suggests marketers creating video ads for mobile should be mindful of length based on the type of traffic they want to attract.

3. Video Ad Spend Is Increasing

A report published in April 2019 confirms digital video ad budgets are up 25% year over year. The growth is more substantial in specific industries. In media and entertainment, for example, video-based ad spending increased by 75% since 2018.

Advertisers need to remain aware of these shifts, especially if their companies show signs of pending budget cuts. Forgetting about video ads could cause them to fall behind competitors.

4. Animation Is Getting More Popular

The goal of any video advertising campaign is to keep the viewer interested. Companies can achieve magic by using animation in their ads. Additions like cartoons blended with real-life footage and motion-tracked graphics can make the content lively, relevant and fun.

Animation gives marketers more options for creating various types of video ads, some of which may be difficult or impossible otherwise. As professionals continue to study audience preferences, they’ll likely realize ways animation technology can make content more appealing. In a recent example, McDonald’s released an animated Christmas ad to audiences in the United Kingdom and Ireland.

Video advertising is an online medium that uses video content to interact with a consumer. The goal of any advertisement is to have the person, in this case, a viewer, make an action such as purchasing a product or signing up for membership.

There are different types of video advertising formats. These include the following: pre-roll ads, post-roll ads, and sponsored videos that play before or after (usually marked by arrows) other videos on the same site or on sites across the Internet connection with it because they share tags, language, and most often culture. Regardless of what type you use, using video marketing results in better ROI than banner-style advertisements!