Advertisers, across all industries, use online video to drive awareness and increase engagement with their brand. And consumers will increasingly watch videos online as the quality of broadband improves around the world and new forms of online video content become available. In fact, eMarketer estimates 65.1% of internet users worldwide will be watching digital video by the end of 2018, with that figure climbing to 67.5% by 2021.
Paving the Way for New Forms of Video Advertising
Since mass-streaming services like YouTube and Netflix blessed our internet feeds over a decade ago, consumers have flocked to watch digital media. Only two years after YouTube’s very first video, the ability to advertise on YouTube rolled out in 2007. And a decade later in 2017, more than half (51% to be exact) of all U.S. marketers advertise on YouTube.
As the availability of online video content across mobile messaging apps and social networks continue to widen, digital video usage will continue to increase. Just look at Facebook and Instagram who have gone full throttle on video with the ability to upload fully edited videos, share live videos, and even turn static photos into video advertisements. Today, there is no shortage of how you can watch and advertise on social media.
But what about where video started—on our TV?
To Cut the Cord, or Not to Cut the Cord?
Where consumers go, advertisers go. And today, consumers are cutting the cord on cable TV—making Connected TV (CTV which is part of over-the-top or OTT) one of the largest opportunities for advertisers to reach new audiences and enhance the effectiveness of their video ad campaigns. Traditional TV, or linear TV, subscribers are losing the viewership battle with 1.1 Million U.S. subscribers lost in only the third quarter of 2018. And in today’s connected world, there are three times more CTV-only homes in the U.S. than there were in 2014, and that number is only expected to rise.
But what about those who are not cutting the cord? According to Telaria, 76% of those who still have linear TV have at least one CTV service—making advertising on CTV no longer a nice to have, but a MUST have if you want to reach your audience.
Living in a Multi-device, Multi-screen World.
Just like how we shop and communicate on multiple devices, many people will watch TV on one device while doing other things on another device (surfing the web, playing a game, checking Facebook, etc.). By 2020, 71.9% of the U.S. population will simultaneously watch TV while on another device, an increase of 18.7% from 2016. Also, many Connected TV services are moving off of mobile onto the big TV screen. Earlier this year, Netflix reported that 70% of its viewing happens on TV sets, while YouTube says that watch time of its content on TV sets has doubled year-over-year with users watching over 180 million hours daily of YouTube content on TV screens—making the viewership of CTV larger than those watching linear TV in the U.S..
According to eMarketer, linear TV ad spend will see a steady decline from 2018 to 2022. However, U.S. digital video spend will steadily increase. By 2022, programmatic video will account for more than 83% of all U.S. video ad spend.
Ultimately, the future of advertising lies in the consumers’ hands. As newer forms of content become available and as technology advances, advertisers will need to adapt to the preferences of their audiences. A key marketing strategy is to always stay on top of trends and continually improve advertising campaigns to meet the needs of the consumer.
See how Sojern can help you optimize your video campaigns by contacting us today.