Even before the internet, video advertising has been widely used by businesses in all industries. Your TV commercials are the very first examples of this. Commercials have been around since black-and-white television.

If you remember your childhood well enough, you probably recognize the line “Got Milk?” This campaign is designed to encourage Americans to consume more milk and dairy products back in the 90s. The California Milk Processor Board’s advertising agency, Goodby Silverstein & Partners, created the original “Got Milk” ad campaign in 1993. Later on, milk processors and dairy farmers were able to license it for use.

Other popular ad lines include “Be Like Mike” (Gatorade), “Snap into a Slim Jim” (Slim Jim), “You’ve got mail” (AOL), “Do the Dew” (Mountain Dew), and “Wassup!” (Budweiser). If you still remember how these lines sounded in commercials, then it’s clear evidence of how video advertising has been effective in reaching out to customers.

Today, video advertising is evolving rapidly due to technological advancements and changes in consumer behavior. Digital video advertising platforms like YouTube, Facebook, Instagram, and TikTok have made it easier for businesses to create short videos that can be streamed on various devices and social media channels. Video content is also created to be more shareable and engaging, with shorter formats optimized for mobile devices and social media feeds.

Looking ahead, businesses can expect even greater changes in video advertising as technologies like artificial intelligence become more widely used. Using AI, advertisers will be able to analyze customer data and personalize content based on factors such as demographics, interests, and browsing history. This will enable them to deliver more targeted and effective marketing messages to consumers, resulting in higher conversion rates and increased ROI for their video advertising campaigns.

So what does the future hold for digital video advertising? In this guide, we’ll take a look at some of the key trends that are shaping this dynamic industry, including the rise of mobile video consumption and the use of new technologies like AI. We’ll also discuss how businesses can adapt to these changes to stay competitive and succeed in today’s digital marketplace.

What is Video Advertising?

Digital video advertising is the use of online video content to promote products or services. This can include TV commercials and product placement in videos to social media posts, and sponsored influencer content.

Much like its predecessor, advertisers use video advertising to reach a wide audience and promote their products or services. However, unlike traditional television commercials, digital video  ads are more targeted and personalized due to advancements in technology like AI.

It’s also much cheaper than TV commercials, as digital platforms such as YouTube, Facebook, and Instagram offer different pricing models to suit the needs of businesses. This makes video advertising an effective marketing tool for both small and large companies alike.

With mobile devices becoming more ubiquitous, we expect that digital video advertising will play a more significant role in reaching customers in the years to come. Businesses leveraging video advertising will have a competitive advantage in the marketplace and enjoy greater ROI on their marketing efforts.

 

Video Ads Statistics

• According to recent Cisco reports, 82% of all internet traffic will come from videos in 2022.
• In 2020, the most popular type of video content for B2B companies to create was product videos. 41% of global B2B marketers were developing social ads, while 47% were creating training videos.
• The average video consumption is 84 minutes each day.
• About 14.9% of all Millennials spend over 10 to 20 hours watching online videos weekly.
• A recent study showed that nearly all consumers (90%) watch videos on their mobile devices.
• 88% of video marketers are satisfied with the return on investment from their video marketing campaigns.
• 78% of marketing professionals say that videos have helped increase their sales, while 86% said videos helped to boost traffic to their website. 
• Video advertising spending in the United States was expected to reach $55.34 billion in 2021.
• The cost-per-view for YouTube ads generally falls between $.010 and $.030. With over 2.3 billion monthly active users, YouTube is one of the most popular platforms for video ads among marketers.
• The use of video marketing is popular among B2B and B2C marketers, with 71% and 66%, respectively, using it in their strategies.

 

Digital Video Advertising Trends

To stay ahead of the game and understand what your audiences want, it is important to continuously educate yourself on new developments. Here are video advertising trends that should be at the forefront of your strategy.

1. Adjust video ad lengths according to the platform.

You should vary the length of your video ads according to which channel they will be shown on. Shorter ad lengths are better for attention-span-challenged platforms like Snapchat or Instagram, while longer-form videos can work well on YouTube or Facebook.

This also applies to the type of content you create. For example, short, snappy product demos or testimonials are well-suited for social media platforms, while how-to videos and longer explainer tutorials may work better on YouTube.

 

2. Think mobile first.

Viewers prefer to watch videos on their mobile devices, so it’s essential to optimize your content for this consumption. This means considering screen size and aspect ratio when creating videos, designing ads that are easy to view on a small smartphone screen, and utilizing features like autoplay or vertical videos.

For example, to reach your audience on Twitter, you might focus on creating short, punchy video ads optimized for sound-off viewing. On the other hand, Instagram videos can be longer and more impactful due to their full-screen display.

 

3. The importance of video in sales and marketing is growing.

As video continues to gain popularity, it is becoming an integral part of sales and marketing strategies. This means that marketers need to find new ways to leverage the medium in their efforts, whether by creating videos themselves or collaborating with professional content creators.

B2B companies might work with agencies or production studios to produce custom explainer videos, case studies, or whiteboard animation ads. Meanwhile, B2C brands might work with marketers and influencers to create engaging brand testimonials or product demonstration videos.

 

4. Using silent videos with captions.

Another video advertising trend is using silent videos paired with captions or subtitles. This can increase view times and make your ads more effective on audio-sensitive platforms, such as Facebook and Instagram.

Instead of including a voiceover in your TikTok ad, you might include text in the video to convey the message. You could also add subtitles to longer videos when uploading to Instagram or Facebook, which can help the ad be more easily understood by viewers watching without sound.

 

5. Using endless loop in TikTok ads.

One emerging trend in video advertising is endless loop videos in TikTok ads. When your video begins and ends without any jarring transitions, viewers are more likely to watch the entire thing. This can be a fun and engaging way to capture your audience’s attention, especially if you are targeting younger demographics.

 

6. Extending content value.

You can extend the value of your video content by adapting it for different platforms, which will help you reach a wider audience. For example, you might repurpose a single video for distribution on Facebook, Instagram, YouTube, and your company website.

Various content types are more successful in different places. To utilize this trend, you must check where each type works best. For example, a long-form interview might do well on YouTube. You could then take that same content and post it as a teaser video on Instagram before breaking it down into clips for TikTok or Instagram Reels. If you want, you could go further by taking the audio from the video and turning it into a podcast episode.

 

7. Featuring influencers in branded content.

Utilizing guest stars and subject-matter experts is a fantastic way to increase brand awareness and grow your audience. We’re seeing this pop up all over the video marketing world for a good reason too!

Collaboration is essential to taking advantage of this trend – both creators and influencers can get advantages from being exposed to new people, places, and opportunities.

 

8. The importance of ad transparency.

In recent years, social media and search platforms have faced increased scrutiny due to their ability to influence voters’ decisions. As a result, new standards have been proposed for advertisers and influencers – as well as the platforms they publish on. These guidelines would include displaying ads more clearly and disclosing when an individual has received money, products, or services in exchange for posting an endorsement.

 

9. Use TV-Connected Hosting Platforms.

Although more people are consuming online videos on mobile devices, this doesn’t mean they only do it on small screens.

Online videos are now more accessible than ever before due to smart TVs. This technology allows people to use their smartphones as a remote and watch YouTube (and other platforms) videos on the big screen. For video marketers, this is further evidence of the preference your audience has for online video content. Therefore, it should be included as part of your content marketing strategy.

YouTube is an example of a video hosting platform that has stream-to-TV capabilities. Not only will your target audience be able to watch them on their television sets, but you’ll also gain added exposure from being searchable on the YouTube platform.

 

10. Using Streaming, or Over-the-Top (OTT), Video Ads.

In today’s society, it is no surprise that people are streaming a lot of television. With so many new streaming services available, viewers have access to an abundance of content. This golden age of TV provides viewers with endless possibilities and numerous options to choose from.

Since many people are using OTT services, it’s an opportune time for advertisers to place their videos where these individuals are watching. With OTT platforms, there is a captive audience compared to other online video forums such as social media. Your ad is placed before the content your audience wants to see, so they’re more likely to remember your brand.

We’ve found that streaming ads are usually most successful when they’re creative, brief, and high-quality. If social media is where you test out quick video content filmed on an iPhone, OTT is where you go all-out.

 

What Type of Marketing KPIs Is Video Advertising Suited For?

Before locking in a video advertising strategy, pick the most critical key performance indicators (KPIs) to track. Doing so allows you to determine if your current methods are effective or if changes need to be made.

Video ads have three primary KPIs, each corresponding to a different stage in the marketing funnel: Awareness, Consideration, and Conversion. Your KPIs (key performance indicators) will differ based on your objectives.

• Awareness: The percentage of conversations about the brand, the increase in recall or recognition, and the number of unique views.
• Traffic: The percentage of new visitors to a site from clicking on a link in a video.
• Lead generation: The number of conversions, cost per lead, and overall conversion rate on video channels versus those who don’t watch videos.
• Purchases: The number of purchases from people that clicked on a link or promo code in a video ad, as well as the average amount spent.

The goals and KPIs listed above are not exhaustive, but they provide a jumping-off point for what you should measure in your video advertising strategy. Note that you don’t have to use the same KPIs yearly. As your marketing goals inevitably change over time, so should your KPIs. This is why it’s a good idea to go back and check in on the KPIs you’re using for video advertising or any other purpose at least once per year. This way, you can be confident that they remain aligned with your company’s overarching objectives.

 

Why Should You Include Videos in Your Advertising?

There are many reasons why video advertising should be a part of your marketing mix. First, it helps you increase brand awareness and reach a wider audience. Second, it allows you to tell your company’s story in an engaging way that resonates with potential customers. Third, it can boost click-through rates as people seek out more information about the products and services you offer.

Videos also helps to build trust with potential customers, as people can see your products or read reviews from others who have used them before buying. In addition, video advertising is cost-effective compared to other marketing methods, such as cold calling or print ads. Finally, video content can be reused across multiple platforms, allowing you to get the most out of your investment.

 

Conclusion

Overall, there are many benefits to using video advertising in your marketing strategy. Whether you’re looking to increase brand awareness, drive more traffic to your website, boost purchases, or build trust with potential customers, video is a powerful tool that can help you achieve your goals. With the right approach and KPIs, you can effectively leverage video to grow your business and connect with the right audience.