Online Video Advertising is Gaining an Edge over Traditional Advertising
Online video advertising, a trend introduced by e-commerce, revolutionized the advertising landscape by making an impact on enterprises, globally. The millennial approach to ads not only helped businesses and agencies reduce cost but also drastically increased their ROI. According to reports by Magna, the research arm of IPG Mediabrands Ltd; in 2017, digital ad spending reached $209 billion worldwide, catering to 41 percent of the enterprise arena, while commercial TV received $178 billion. Witnessing the tumultuous victory over television advertising, enterprises believe that online video advertising is here to stay and will radically grow in the foreseeable future.
Impact on Retail and Traditional Advertising
The reason behind the success of online video content is that it is simple, appealing and it increases sales. The power of videos is such that it discards online listings and photographs, let alone retail outlets. A report from Statista anticipates a 246.15 percent increase in global e-commerce sales reaching up to $4.5 trillion by 2021. In 2017, 74 percent of all online traffic was caused because of audiovisual content, according to research by KPCB.
The shift of sands has already forced many businesses to either move to e-commerce or become omnichannel. Advertising agencies have started digital verticals to keep up with the market. Even though television commercials are not far behind, investors are now looking to gain quick results out of advertising and online videos is the key. Instead of investing in an advertising agency, prominent brands have started to build in-house teams to produce content.
Video is here to stay
In 2018, analytics predict more brands and enterprises to invest more in content, primarily to garner higher ROI and secondly, to differentiate themselves from the competition. Furthermore, digital ads are expected to make up nearly 50 percent of all ad spends by 2020, according to Magna. So it is safe to say, online video advertising is here to stay and will soon dominate the advertising space.