Online video has played a huge part of the Advertising efforts in the past few years. In fact in countries like the US where the proliferation of video platforms like Netflix and YouTube has increased manifold, we see that the spending on video ads have increased by leaps and bounds.
US spending on online video ads stands at a whopping $13.23 billion as we head into the latter half of 2017. And that spending is not going to slow down in the near future. In fact according to latest reports from E-Marketer, we find that the growth figures are at a double digit annual rate and will look to hit the $22.18 billion mark by 2021.
So if these numbers have piqued your interest you must be wondering where do I invest my money in if I want to reap the same rewards out of this burgeoning media revolution. Well that may depend squarely on you audience. In fact the younger the audience the more likely that they are not interested in traditional video platforms like TV and are spending more of their time on online video consumption.
Among the online video platforms who are the forerunners? Well most results show that as far as paid subscriptions are concerned, Netflix holds a clear lead ahead of its competitors with a proliferation rate among both desktop and mobile users that is rivalled by no other. Turning onto the other big competitor in the free to watch segment, YouTube remains king especially when ad campaigns and Influencer Marketing is taken into consideration.
Online video has managed to grab the lion’s share of online traffic accounting for nearly 74% of all traffic in 2017. But as we have discussed many times in the past, getting views on a product doesn’t exactly translate to money in the bag. So how are the conversion metrics? Well, including videos on the landing page of a product can increase the conversion rate by as much as 80%. In fact, you don’t always have to even include a video in the literal sense, just including the word ‘video’ somewhere in the subject line has been found to make subscription email opening rates jump up by 19%.
But what about the downsides to video marketing? There are indeed a fair few of them and 43% of marketers have identified that money, time and resources are a constraint in the field of producing more video content. However, despite that, the overall perspective on video advertisements as a whole are changing as marketers see a revenue growth rate of 49% among users who consume video content. This has led to a change of thought where 52% of marketers believe that videos are the best method to increase their brand awareness.
With a userbase of over a billion users, platforms like YouTube have the eyeballs of over one-third of the entire audience on the Internet. And even newer platforms like Snapchat have immense potential with viewers watching over 10 billion videos daily! If online advertising is your niche, then there is no better moment than now to make the jump to video content!