Video: The unstoppable force running through advertising

With advances in technology and changes in media consumption, video has become the talk of the town for advertisers and consumers alike. In just the last few years the medium has grown leaps and bounds, eating up both ad dollars and consumer time spent.

Recently, Yieldr produced an infographic entitled Video Killed the TV Star, which highlights video’s rise to prominence. Some of the more eye-popping statics surround viewership, spending and the future outlook.

Video accounted for 64% of web traffic in 2014 and that number will advance upwards to 80% in 2019, while digital video consumption is up 13% YoY. While video consumption is on the rise, time spent watch traditionally TV is on a steady decline.

With these changes, has also come a redistribution of ad budgets. Global advertising revenue from online video has doubled between 2011 and 2014 to balloon to $11.2B. That figure is supposed to inflate to $19B by 2017.

Check out the full list of figures below.

Video Infographic

The impact of video is clearly being felt in the ad-tech world. One simply just needs to take a look at the strategies various players are taking. Facebook is on its way to building a video advertising empire as it goes toe-to-toe with Google’s YouTube. The ad giant just rolled out “suggested videos” after hearing concerns from advertisers about its silent (unless clicked on) auto play videos. Users will get a feed of autoplaying “suggested videos” after they watch a video, with ads appearing in between some of them.

Another example can be found looking at financial successes of digital ad companies. The Wall Street struggles of ad-tech solution has been much discussed. But, wouldn’t you know it, one of the few success stories is video platform TubeMogul. The company recently raised $82.9 million in a secondary market offering. The offering was for around 5.3 million shares sold at $15.75 a share, more than double its $7 IPO price less than a year ago. This has occurred while he overall value of public ad tech company stocks dropped more than 12% in the first quarter.

These are just two of several examples of how video is making a big splash in the advertising world. It’s imperative for agencies, brands and tech vendors alike to have an integrated video strategy in play.

Joseph Vito DeLuca
Joseph Vito DeLuca
Joe, American born, now makes his residence in Amsterdam, the Netherlands where he is VP of Marketing for Yieldr, a platform that activates data into efficient programmatic marketing solutions. In addition to the Netherlands, he spent three years working within Berlin, Germany's emerging tech scene and has additional experience in the US, Canada, UK and Italy.

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