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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. 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. 11:19 am September 15, 2010 By Julian Horsey Tweet Share1 +1Shares 1Nielsen has been studying the effect of in game advertising on real-world products and its findings do show that adverts in games will increase the sales of the product in the real-world environment. The study was based on Nielsen’s US Homescan panel of more than 100,000 households, representative of the US population, including a subset of Homescan homes that scanned video game UPC (Universal Product Codes) barcodes. Nielsen compared the households that purchased at least one of the studied games before and after Gatorade branding was integrated into the games (the test group) with households that didn’t purchase one of the games (the control group). In the landscape ad agencies now work in, digital video ads are no longer so irrelevant that all consumers just skip them. Recent figures break down the surge: online video is now the fastest-growing ad category, growing 34 percent last year to nearly $11 billion.
According to a recent report by eMarketer the global mobile advertising market will surpass $100 billion in spending and account for more than 50 percent of all digital ad expenditure in 2016. Last year saw channels open up to video ads on apps geared toward younger audiences, such as Instagram and Snapchat.
Last autumn, Activision started sharing a 15-second clip from a longer live-action video on its Facebook page and on Instagram.
And with mobile Facebook adoption continuing to soar, this new study by Mixpo is especially noteworthy: Of 125 agencies, brands and publishers surveyed, 87 percent plan to run video ad campaigns on Facebook. Content in digital video ads has changed too, something we’ve seen across all platforms.
This infographic from Yume comes to us via Los Angeles Hyundai and explores “Important Details You Should Know When Placing an Ad”.
YouTube’s growing prominence in popular culture has shown that it can serve as much more than just a way to share adorable kitten videos – it has become a highly effective venue for accessing massive audiences through online advertising. YouTube has become the venue by which budding musicians and performers get their first big break.
Google is horse-dancing straight to the bank because of Psy’s immense YouTube success, and the perpetuating notion that the hottest headline sensations happen on YouTube.
YouTube’s advertising potential is as big as the record industry itself, hence Psy being invited to meet with Google’s Eric Schmidt (and the resulting obligatory dance lesson). Trying your hand at making a viral video that aims to dominate the social sphere is great fun, but making a less globally ambitious yet more useful YouTube advertising video is likely the way to go for advertisers who want to further their reach into the massive (and still very much untapped) YouTube advertising realm. Standard Banner Ad – These are just like the regular Google Display Ads, available as standard banner ads and rich media ads.
In-Video Overlay Ads – In-video overlay ads appear as pop-ups within existing contextually targeted videos that are targeted by selected queries. Creating YouTube video ads is easy and completely free – you can shoot it yourself for a homebrewed feel, or hire some help for a crisp, professional look. Probably the most popular YouTube video ad format, in-stream ads play your ad before or during another video from a YouTube partner. A viewer's immediate reaction tends to be full of grimaces, groans, and complaints since you’ve taken the liberty of interrupting their YouTube video viewing adventure. Viewers are obligated to sit through 5 mandatory seconds of the ad, after which they get to decide if they want to keep watching or skip the rest of the video and go on to what they wanted to see in the first place.
If you’ve done some good targeting and have an interesting video ad, viewers might opt to continue watching, which can only mean you’re doing it right! With in-stream video ads, you don’t pay unless the viewers watch your video for 30 seconds, or until the end of the video. Since you pay the same amount whether the viewer watches 30 seconds or the whole extended video, you can get more exposure for the same price.


In-stream ads allow for contextual targeting, interest targeting, and demographic targeting. YouTube’s In-Slate video ads appear before YouTube partner videos that are 10 minutes or longer.
In-Search video ads work similar to text ads in Google search, with advertisers bidding on keyword terms. In-display video ads appear alongside other YouTube videos, or on other Google Display Network sites that match your targeting options. YouTube has a number of tools, extensions, and targeting options that can easily go unnoticed, but are absolutely worth checking out. YouTube Analytics Data – YouTube provides a wealth of analytic data, letting advertisers collection information on metrics such as the number of views a video gets, user engagement, and at which points viewers stop watching the video. Remarketing – You can conduct YouTube advertising remarketing ads to users who have already watched your previous videos on YouTube or on the Google Display Network. Channels – YouTube Channels are free to create, and function as your business’s own station, not unlike a Facebook page.
Advanced Targeting Options – YouTube advertising offers some great demographic targeting options including niche interest targeting and age targeting. Homepage Ads – Advertisers can purchase prime ad space on YouTube’s homepage, ensuring plenty of eyeballs and attention.
Additionally, advertisers can opt for something referred to as a "Homepage Roadblock." Yes, it is just about intense as it sounds. The main point of being on the homepage is branding, so if you do have the dough to make the investment, ensure that you are making good use of the prime real-estate by incorporating dynamic ads and engaging, clickable features. Brand Awareness: YouTube videos let you create unique brand experiences and express your business’s personality. Product Launch: Videos are a great way to introduce a new product or build excitement about an upcoming release.
Audience Engagement: YouTube can be a great venue for connecting and interacting with customers. Customer Help: YouTube is a great place to offer how-to video solutions for common customer problems. With so many different ad formats to choose from, YouTube advertising is a playground for marketers looking to experiment with ad formats and gain exposure in a predominantly untapped market. If I am a user and I upload videos then in that case how can i earn through ads, is there a way that ads on my video I get certain share of those ads. I have been researching and experimenting a lot with Youtube advertising and more interestingly how to optimise the videos to rank in the SERP's. This is one of the most specific and clearly written educational advertising articles I've read in months.
This is a keeper and am certainly gonna bookmark this for furthert read, since most of my clients are now requesting for this medium as well. 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. 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.
This is the first time that this type of sales lift analysis has been done for advertising within video games. The scanned barcodes were matched to a reference library of more than 14,000 video game titles.
And it’s expected to grow an average of 29 percent a year through 2017, when it would top $23 billion. Programmatic ads, which refer to the automatic process of how time is bought to reach specific audiences, now offers opportunities to improve the targeting of video ads.
The ad delivery platform LiveRail quotes Nielsen OCR data that found the digital industry is only about 60 percent accurate in its demographic targeting.
Automated targeting technology is not the only reason campaigns have been successfully launched there.


The fact that mobile access to the Internet is the norm for a growing majority of usage time did not go unnoticed. Overlay video technology places an interactive layer of clickable options overtop of a streaming video.
Her technology and business journalism has appeared in the Technology Review, the Globe and Mail, Canada Computes, the Vancouver Sun and the Bay Street Bull.
Even companies that do not operate primarily online such as retail shops must still using the internet to be found and to expose their wares to the public. Justin Bieber first got discovered on YouTube, and more recently YouTube has made Psy’s hit “Gangnam Style” the most viral video of all time.
With YouTube being increasingly viewed as the place where pop culture happens, its advertising potential continues to grow exponentially. There are a number of factors that go into making a viral video a success, and more than just a little is luck. The options are nearly as numerous, with the two major options being display ads and video ads. Display ads let your ads appear alongside related YouTube videos, or as pop-ups within YouTube videos.
You can use topic categories and keywords to specify where you want these banner ads to appear. But there’s no denying that they are impossible to ignore, even if they are X-ed out immediately.
Don’t even think ‘sales pitch.’ Think about quick how-tos, or positive reviews from customers.
Check out our Guide to Creating YouTube Content, packed with video ad concepts and ideas, as well as information on recording your video and optimizing it for SEO. While I can’t testify to any added “truth” value, True View ads are a great deal budgeting wise because you only pay when viewers actually choose to watch your video. In fact, some studies have shown that longer videos (closer to the 60-second ballpark) tend to do better than the shorter ones. Viewers can choose to watch one of three ads or alternatively can choose to see regular commercial breaks during their video. You can customize your channel to express your business’s personality, and make it easy for viewers to subscribe to your future videos. A great example is Old Spice’s video response campaign in which they had Isaiah Mustafa, aka “the man your man could smell like” release a number of videos on YouTube answering questions and comments put forth by fans on Twitter and Facebook. Your videos can serve as a more engaging FAQ, or help customers gain a more advanced understanding of the features your product offers.
Answered some questions for me, and I am excited about all the possibilities of YouTube advertising that I did not know of.
I think Youtube is a hugely untapped area of online marketing that is only going to get bigger. The section on TrueView ads is exactly the kind of introductory information to that aspect of YouTube marketing I've been looking for. In May of 2012, over 10 billion online video ads were viewed, more than double the 4.6 billion in May of 2011.
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. A subset of programmatic is real-time bidding, the ability to block inappropriate ad channels for specific audiences, and better analytics reporting -especially on mobile devices – mean that digital video ads are increasingly finding the right audience. In Canada, spending on programmatic ads in 2014 only reached about 15%, but is expected to double this year, said estimates in another report from the company. She is the author of the short story collections Love from Planet Wine Cooler and Dry Stories. And that’s not just an empty title – “Gangnam Style” has reached nearly 1 billion views, and those views can be equated to serious YouTube advertising revenue.
And if all else fails and you’re really stuck, fall back on YouTube fundamentals – kittens! What’s great is that with this option, you can create videos longer than 30 seconds, allowing you to experiment with video ad lengths. My theory is that longer videos are probably developing a richer story that is keeping viewers engaged, rather than throwing out a short “look at this, you should buy it” ad.
This immense ad takeover doesn’t come cheap – a single day will cost you around $300,000, so this option is primarily for those with the deep pockets. I will definitely be digging deeper into this whole area to start advertising as best I can. 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.
Last year Instagram CEO Kevin Systrom’s personal involvement in vetting ads attracted special attention. 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.



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