" eMarketer reports that businesses are spending more than ever on digital video ads. <- more ->
According to the report , Spending on digital video is expected to reach $ 27.82 billion in 2018 alone: a growth rate of 30%.
At that figure, says eMarketer, the budget for video ads will offset a quarter of all digital ad spend in the United States - compared to digital ad formats like static or moving images, or textual s.
But where exactly is this money going? And what is responsible for the surge in digital video ad purchases by businesses? We took a closer look at the report and collected thissome of our own data to find out.
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Where is the ad spend going?
Much of this spending appears to be for video ads on social media.
Looking at the combined video ad spend on Facebook, Snapchat and Twitter in the US, Facebook takes the fronts - earning about 87% of the total. This includes video ad revenue generated on Instagram, which is owned by Facebook.
In terms of all video ad spend in the US - in social media and in the beyond that - Facebook wins 24.5% of the total.
Interestingly, eMarketer does not include YouTube in the total video ad spend on social media - but points out that the sharing platform of videos, which belongs to Google, dis expected to generate $ 3.36 billion in video ad revenue this year.
This is less than half of Facebook's expected amount ($ 6.81 billion).
Why video ads?
To determine what might be responsible for this growth in digital video ad spend, we wanted to take a closer look at consumer buying behavior. We asked 850 internet users in the US, UK and Canada: What ad format is most likely to get you to buy an item online?
Almost half of all respondents indicated that they are most likely to purchase an item in line after seeing a video ad, compared to all other ad formats.
This could be a deciding factor for companies in deciding the splitof their budgets: better return on investment, or conversion to buy, of video ads compared to other formats. And while that number might look different for every business, 64% of consumers are generally more likely to buy a product online after watching a video.
This may be due the fact that video ads are more likely to show the user how a product or service is being used. Text ads can also be used to explain - but the word count on these ads can be very limited, leaving advertisers with little room to capture the user's attention. Image ads can show users the benefits of a product or service, but only with a single snapshot.
Videos, however, can go a step further by showing the viewer how a brand can meet a hitherto unmet need. They can capture multiple moments in a visual way which is more appealing and allows the user to imagine themselves in the same situation.
In addition, more and more social networks are creating more and more ways for businesses to allow users to natively purchase a product (or book an advertised service) in the app.
Finally, let's explore this concept of a native and seamless experience. Video ads that appear on social media often do so in the same streams we might scroll for fun, or out of curiosity and boredom. As such, video ads come more naturally, as opposed to something like a TV (video) commercial break traAdditional - where the fact that we are watching an is a little more obvious.
Additionally, unlike TV video ads, social media video ads allow the user to take immediate action on the ad, on the same device they are watching - to make a purchase.
"Marketers rely on In-Feed video ads to capture user attention and build brand awareness, "eMarketer Senior Analyst Debra Aho Williamson said in the report. This echoes the feeling that users are more likely to respond to an ad that exists as part of something they already do, making it easier for them to become customers.
Of course the same principles applyto video ads than to good content: be relevant, useful and meet users where they are. <- Call to action code -> <- end Code for calling the action -> <- Call to action code -> <- end Call- Action code ->