Video ads are among the most appealing of the marketing tools available online. These provide a platform for the advertisers to provide a rich narrative and visual level that is almost at par with television while also offering all the advantages of tracking and targeting from the digital world. The only concern when it comes to online video advertising, is the cost involved behind the videos and the performance of the advertisements.
A new study conducted earlier this year by BI Intelligence dives deep into the heart of the key factors that are driving the growth in video advertisement. We have summarized the findings of the study here to understand what to expect in the days to come, and prepare your strategies in line with the trends.
Video advertisement costs to reduce
The study suggests that the revenue being spent on online video advertisements could reach up to $5 billion by 2016 whereas the revenue spent on TV commercials is likely to reduce by about 3% by 2016. Online video advertisements expenses are likely to reduce over the years as more publishers are likely to get involved in the process. All of these are sure to open up new avenues for marketers to venture into.
As far as performance is concerned, they have a click through rate of about 2% which is the highest when compared to any other digital format. Another question that most marketers raise as far as online video advertising is concerned is the viewability. In other words, marketers are not very sure if the multitasking viewers actually view their ads. At present, online ads viewed through streaming devices account to only a minuscule 2%. So it is likely that marketers would further experiment this format in the days to come.
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