Member Article

Harnessing the growing popularity of video advertising

Harnessing the growing popularity of video advertising

By Owen Sagness, general manager of Microsoft Advertising & Online in the UK

While it’s always interesting to read about the jump in ad spend over the last year, the findings revealed by the IAB and PwC Digital Adspend Study published this week confirmed what the industry has experienced first-hand. Digital ad spend is up 17.5 per cent to a record six-month high of over £3 billion, or £66 per person online.

However, one finding in particular stands out as a trend with the potential to impact many aspects of the digital advertising industry, from media to creative to publishing: the undeniable growth in the popularity of video. Video accounted for almost one fifth of all advertising spend in 2013 - a sign that the message is getting through to the industry.

Online video ads vs. television spots

Whilst TV remains to be as popular as ever, companies are increasingly investing more money in video. In the digital age it’s far easier for video content to go viral when it originates online, rather than on television. It’s also much more cost-effective than purchasing television advertising, and with effective targeting has the potential to reach more relevant demographics. Online video is being made easier for advertisers as well; for example, Microsoft’s video network provides access to online video advertising space across approximately 350 accredited publishers on a range of different devices and platforms, whilst enabling advertisers to use Microsoft account data for tailored targeting.

Tapping into the creative potential of video

With the rise of video populating the web, the marketplace is more crowded, all vying for the attention of the consumer. In order to stand out, video content needs to be creative, engaging and most importantly, short. Some advertisers have managed to achieve this by bending the very limits of video themselves, rather than just the content. A recent anti-bullying campaign from Singapore that demonstrates this well is the “Share it to End it” video, produced with JWT Singapore, which gets shorter every time it’s shared until only one frame remains.

Video advertising in a multiscreen world

Traditional advertisers must take advantage of the fact that cross-screen strategies will enable them to engage consumers on multiple devices. It’s worrying to see still some major brands not taking advantage of video. As demonstrated by the significant growth in mobile and tablet spend, consumers are increasingly choosing to use multiple devices and this behavioural change is one that can be fully utilised through the medium of video.

Final thoughts

The study confirms that traditional and digital advertising are growing increasingly integrated, with mediums such as video serving multiple purposes across a breadth of platforms. As an industry we need to listen carefully to consumer demands and learn from the successes and failures of others (and sometimes, ourselves). It’s up to us to remain relevant, by working together and forcing ourselves to keep challenging what’s possible in digital advertising.

This was posted in Bdaily's Members' News section by Owen Sagness .