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Digital video series: What is the future of online video advertising and will it take over from TV? The Drum catches up with a cross-section of the online video industry to discuss the evolution of online video advertising. As part of The Drum’s latest digital media supplement, focused on the opportunities of online video, we are publishing a series of articles exploring a range of topics, from how to produce effective branded content to the challenges of video real-time bidding.
In today’s article, we ask: What is the future of online video advertising and will it take over from TV? As for whether digital video will take over from TV, I think digital video is more likely to take budget spend away from other mediums, such as print, outdoor or digital display, rather than TV.
Our recent 2013 UK Digital Video Advertising report gives a clear indication of where things are headed in this space. As with any development within advertising, including the future of online video advertising, it depends on the audience. The future of online advertising is intertwined with how the video on demand (VOD) market develops.
I don't believe however, that TV will ever stray too far from the centre of campaigns, as it can still draw large crowds and produce high volumes of impressions from a marketing perspective. TV will always have its place, but will come under increasing pressure to become more accountable, especially with the advent of connected TV. It is essential to understand that they are different mediums, using similar ad formats, that should be complementary to one other, like any other type of media.
The future of online video advertising will focus on addressable media – the ability to target people based on their age, gender and interests.
The winner will be the player that can generate the most efficiency – providing the right message to the right audience at the best price. Data will define the future of video advertising, playing a role before, during and after ads are seen by the consumer. Online video won’t take over from traditional TV per se, it’s not simply a case of one medium replacing another.
With constantly improving streaming capabilities on smartphone and tablet devices, including rising 4G network subscriptions, consumers are watching video content on more than just their TV. Online video advertising won’t kill TV, although as more and more content is viewed on smart TVs there will obviously be a shift. Since this trend has kept growing almost unstoppably since 2005, there's no sign it will ease off pretty soon.
If you want to get a comprehensive overview of the opportunities to monetize your existing video archive or your upcoming daily video production, the International Advertising Bureau has put together an official set of guidelines and metrics to make sense of the emergent set of standard in-stream video ad formats. All other recommendations in this document should be considered best practices and should strongly be considered for adoption, but are not necessary for compliance. Although many of these formats can apply to full-screen and live experiences, this document does not specifically address those environments because of the high level of customization between publishers. While this document's purpose is to develop more standardization in the most common areas of the digital video landscape, the IAB continues to encourage creativity and innovation in video ad formats. As with all IAB guidelines, this document will be updated as the dynamic digital video advertising landscape progresses and new ad formats become more widely adopted. In November 2005, the IAB Broadband Committee (now the Digital Video Committee) released creative guidelines for online video commercials to further enhance the user experience and improve the efficiency of planning, buying, and creating online media without constraining creative opportunities for marketers. Since 2005, both the experiences and consumption of video content have evolved significantly and newer video ad formats have been introduced to compliment these emerging types of video experiences and environments. Currently the most common digital video ad experiences are either viewed within or around "in-stream", "in-banner" or "in-text" video formats.
In-Text Video is generally user-initiated and triggered by relevant highlighted words within content. Linear Video ad: The ad is presented before, in the middle of, or after the video content is consumed by the user, in very much the same way a TV commercial can play before, during or after the chosen program. One of the key characteristics of a linear video ad is that the user watches the ad in addition to the content as the ad takes over the full view of the video. Common linear video ad formats include pre-rolls, interactive takeovers, and short bumper vignettes that appear prior to the video content stream. Non-linear Video ad: The ad runs concurrently with the video content so the users see the ad while viewing the content.
Both linear and non-linear video ad formats have the option of being paired with what is commonly referred to as a "Companion Ad". Companion Ads: Commonly text, display ads, rich media, or skins that wrap around the video experience.
The primary purpose of the companion ad is to offer sustained visibility of the sponsor throughout the video experience. Companion ads may offer click-through interactivity and rich media experiences, such as expansion of the ad, for further engagement opportunities. A time-limited video advertisement that can be shown before, in the middle of, or after the user sees the content in the video player. It is important to note that this is a minimum consideration set and that other ad sizes may also be offered by a publisher in addition to at least one of the listed sizes. It is recommended, but not required for guideline compliance, that publishers adopt the following list of specifications in order to encourage standardized and more operationally efficient submission practices.
Scalability: If scaling of ad is possible, publishers should disclose to buyers in creative specs how scaling may occur.
Publishers should disclose to advertisers when running multiple ads in a pod during commercial breaks.
Publishers should accept at least one of the following formats for companion ads: jpeg, gif, png, swf (Adobe Flash), and xap (Microsoft Silverlight). In order to deliver optimal user experiences, publishers should continuously manage and analyze the ratio of ads to content. Ad duration can continue if the user continues to interact with the ad based on publisher criteria.
When possible, simple interaction cues, such as a small graphic or animation, should be included to ensure users understand when and how to interact with the ads. If user interacts with invitation, content is paused and full video ad is displayed in the video window. If user does not engage with overlay it may disappear, collapse to a "leave-behind" companion ad or be persistent for entire content play.
Publishers should include a persistent close button in the upper right corner of the overlay ad unit. Publisher should clearly use overlay labels to identify unit as "Advertisement" within frame or next to overlay unit. The ad is most commonly presented anchored to bottom of player, but may be anchored along the top or side of player at the publisher's discretion.

Like the overlay, this unit presents an invitation to engage with the ad concurrently with the content experience. However, rather than overlaying the content, the non-overlay ad's invitation resides outside the live video frame but within the video window. It is important to note that this is a minimum consideration set and that other ad sizes may also be offered by a publisher in addition to one of the listed sizes. The primary purpose of companion ads is to offer sustained visibility of the sponsor throughout the video experience. Companion ads may offer click-through interactivity and rich media experiences, such as expansion of the ad for further engagement opportunities, and may include text, graphics or rich media and may be combined with any of the format standards listed above to create unique experiences for users and opportunities for advertisers. Creative specifications for companion ads are not detailed in this document and should continue to be governed by each individual publisher. Publishers may continue to accept companion ads in other sizes, however, the minimum requirement is to accept one or more of the listed sizes for companions.
Originally written by IAB Digital Video Committee for IAB and first published on May 1st 2008 as "Digital Video In-Stream Ad Format Guidelines and Best Practices". The Digital Video Committee of the IAB is comprised of 145 member companies actively engaged in the creation and execution of digital video advertising. To put it another way, thata€™s like watching the 1954 Cecile B Demille classic The Ten Commandments six times in one month (dona€™t try this at home-or anywhere). For business owners and marketers, the explosion in online video consumption represents a massive opportunity if handled properly.
Any decent online video marketing strategy should also take into account the rapid consumer shift to mobile devices generally and tablets specifically. You can target online audiences the same ways you target with your normal display advertising. According to NPD, mobile and tablet shoppers are three times as likely to view a video as laptop or desktop visitors. We can take your video and put it in front of people who’ve been researching for a car online, and even to those who’ve visited your website. At AOL’s digital upfront in New York recently, CEO Tim Armstrong instructed audience members to check under their seats for a car key. Such is the hype that marks the two weeks of online-video presentations from the likes of Hulu, YouTube, Yahoo, AOL and others.
Most of the advertising growth in online video will happen because it steals chunks of the $70 billion spent on TV in the U.S. YouTube is where younger people watch video, and its financing for premium content means Hearst gets to experiment and learn relatively risk-free, Ms. But publishers would rather see their own sites accumulate big audiences, which would let them keep complete control as well as all the ad revenue. Where YouTube has scale that individual publishers do not, Hulu has a large supply of TV content—making it a comfort zone for marketers and media buyers accustomed to TV advertising. In March, Hulu had 1.75 billion video-ad impressions, a 39% year-over-year increase, according to ComScore data. But video ads on Discovery Communications’ digital sites grew a more modest 9% in March vs. The Wall Street Journal has expanded its reach by distributing beyond its own sites, but it plans to give video more prominence on its properties soon.
It remains to be seen how many publishers can pull that off and how many will largely rely on ad networks or other partners for their video ads — a less profitable future than the splashy digital-upfront pitches suggest. Telkom’s latest IP Connect price cuts will kick in on 1 June 2016, and ISPs have explained what their subscribers can expect from them.
Telkom’s Openserve has announced ADSL IPC price cuts, which is great news for Internet service providers and ADSL, VDSL, and Telkom FTTH subscribers. Online Communication Agency providing fast connection to your markets, with full time positioning specialist to keep your content relevant!
If we manage to break down the whole picture, we will be able to understand our consumers journey engaging them by statistics, devices and context. As this looks more like a utopia than anything else, it is now part of our reality, and the sooner we embrace it, the sooner we will get the expected results.
A recent survey found that 70% of senior advertising executives are planning to shift more of their television advertising budget over to online video advertising. But if you see an online video that inspires or outrages you or makes you laugh, you can simply press a button and share it with hundreds or even thousands of people—which is something 92% of mobile video viewers do regularly. But with video, you can find websites that cater to highly focused audiences who have a huge amount in common.
You can test different videos and discover exactly which ones do the best job of converting viewers into customers. It’s what people want.  According to Software Advice, more than 90% of online consumers say they’ll  watch an online video ad compared to other forms of marketing content such as case studies (84%), webinars (78%), free trials (61%), or ebooks (48%). Every day, agency trading desks like IPG Mediabrands and Xaxis are using software like ours to buy ads that appear on TV content – the difference is the content is now streamed on computers, tablets and more. Advertisers are seeing the benefits of automated buying with VOD and it won't be long before they start demanding its use elsewhere. We are rapidly moving towards being able to effectively reach a consumer on whatever screen they are using at any given time.
This will be the single highest drive behind the development of online video advertising, and could see it take the majority hold away from TV. TV continues to be the best way to reach mass audiences and delivering high impact, but online and mobile video are very strong compliments to it.
The introduction of online GRPs into the digital lexicon demonstrates a shift in the way that digital marketers are approaching video advertising, and targeting TV budgets. Linear TV’s issue of wastage, which is currently still the norm, will become less acceptable over time. There is no doubt that the proliferation of different devices including mobile phones, tablets, living room entertainment systems, connected TVs, to name a few, are fundamentally changing how people access and engage with TV and video content.
We’ll move further away from simply buying environments and focus on our specific audience and the story we tell to them. What we will see is a convergence of video media as it’s accessed through an ever increasing range of devices, it will be driven by data and differentiated by the context, not the environment in which it is viewed.
Rather than take over from TV, online video advertising and TV will unite forces and become one. Additionally there are interesting second screen opportunities that can link with on demand and linear TV, so there's a lot of activity in this area.
The ability to watch video content on numerous devices will continue the growth of online video advertising.
In the short term online and offline planning and buying will continue the process of convergence.

Video actually has the opportunity to complement TV as people can download video content to their phone that allows them to interact with TV programming. The last report from LiveRail shows that average CPMs keeps growing bravely, and internet video consumption has been experiencing a massive growth of 40% and more.
That's why it is so important that you keep up with both technical and creative aspects of online videos, and the new entrants in this field are those in-stream ads you can see on the big video platforms like YouTube or Hulu. This document is meant to build upon those guidelines by offering more detail on both the creative and technical aspects of video player and ad development. These ads come in a number of sizes and shapes and typically run alongside or surrounding the video player. When frequency capping is practiced, publishers should disclose frequency capping practices to the buyers. The ad plays for a prescribed minimum length of time (usually length of video creative) inviting the user to interact. Publishers have significant inertia around the companion sizes they use on their sites today.
The purpose of this minimum is to provide a core group of sizes so media buyers can rely on the portability of their creative. One of the goals of the committee is to implement a comprehensive set of guidelines, measurement, and creative options for interactive video advertising. New data from comscore Video Metrix reports that in May of 2012, 84.5% of the US internet audience watched online video. According to a Brightroll survey of US ad agencies, high prices, limited reach and lack of targeting are considered the top three growth hurdles. To be effective, your online video marketing strategy should incorporate a healthy mix of video content that mirrors and compliments your other content marketing media. The medium is gaining momentum across the board, and advertisers are jumping in head first. He called the three people who found one to the stage and, Oprah-style, awarded one of them a shiny new Mustang convertible.
But many publishers are finding that building audiences large enough to capture real ad growth is harder than it seems. But simply producing high-quality video doesn’t automatically attract vast sums of TV dollars. As a result of this we see providers, developers, marketers and advertisers working together to create that data access to consumers. If you want a television commercial that doesn’t look embarrassingly amateurish and have it play on local or national television states during a time when people are actually watching, you have to spend a LOT of money. Seventy-five percent of advertising agency executives say that online video ads are more effective than traditional television ads. When you advertise to a television viewing audience, you’re speaking to a large and general audience.
Online video ads tend to be smarter, funnier, more shocking or inspiring than traditional television ads, which are seen by a wider audience and run a larger risk of causing offence. The Internet allows you to trace a customer’s buying journey from the moment they perform a search or click on a link and arrive on your site to the moment where they make a purchase.
Here’s the clincher – only 24% of national brands aren’t even using online video advertising yet. Nielsen Online Campaign Ratings gives agencies a way to make direct comparisons to TV, and products like our own BrandPoint help them act on that reporting. However, in order to achieve this, advertisers need to be buying their media programmatically and centralising the decision-making process. We will be creating a more effective dialogue and gaining a far deeper understanding of our viewing audience. What’s more, as consumers are plugging their digital devices into TVs to watch online video content, they’re also seeing online video ads on the biggest screen in their homes. Part of this process is that both TV and online video mediums need to learn from each other. Online video advertising will grow into a whole new area of creativity, which we have already seen the forerunners of this year with Vine and Instagram.
All buttons should be enabled throughout the video ad play, with the exception of Fast Forward. In May of 2012, over 10 billion online video ads were viewed, more than double the 4.6 billion in May of 2011.
EMarketer predicts that the space will grow more than 40% annually for the next three years, before leveling off to a still-robust 20%. Those dollars also want TV-like scale, and not many players have both: mainly YouTube and Hulu.
For example, impressions on ESPN sites totaled 563 million an eightfold leap from March 2011, ComScore said. On the Mobile World Congress in Barcelona, (MWC 2015) there was plenty of things to discuss.
With this aspiration in our minds and souls, we will have the tools to fill the mobile data gap where industries work together in innovation for the sake the human kind.
It’s hard to drill down and find the small niche markets comprised of the exact kind of person who’s likely to become a customer. However what is and will always remain true is that consumers will always be interested in high quality entertaining content regardless of its source and delivery mechanic.
The personalisation that advertisers are used to in the online world will sync with TV advertising. Traditional TV has to keep up with the tracking and targeting capabilities of online video technologies.
Starting form from 5G and big data, to the Internet of Things and next-generation handsets the digital madness caught everyone. If we follow this path, we can be close to change the way how advertisers and marketers deal with the so-called “mobile data problem.” As we could determine and have a clear mind about, according to the insights discussed at MWC. The online video advertising sector has to find metrics that attract the attention of the TV planners and buyers who make their decisions on gross ratings points. And if they want to see it for themselves, they have to drop what they’re doing, find the television show you’re watching, and hope that the commercial airs again before the end of the show.

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