Video plays a significant role in our daily lives, as it is often featured on social media and used by brands to showcase products and services. A recent study found that people are more likely to share videos compared to other types of content, and over 80% of people base their purchasing decisions on a brand’s video. As a result, advertisers looking to effectively engage with their audience should consider incorporating video advertising into their digital marketing strategy.
The Estimates
According to Cisco, video is expected to make up 82% of internet traffic in 2021. Furthermore, a survey from HubSpot found that 51% of marketers who already use short-form video will increase their investment in the format next year. Additionally, social media has been identified as the top marketing channel by marketers, and eMarketer predicts that US social network video ad spending will increase to $24.35 billion in 2021.
Connected TV (CTV) advertising spending in the US saw significant growth, increasing from $9.03 billion in 2020 to $14.44 billion in 2021 and is projected to reach $19.1 billion this year. A large potential audience for these ads exists, as the Leichtman Research Group found that 82% of US TV households have at least one internet-connected TV device.
Chris Savage, CEO of video marketing company Wistia, believes that people will want more options for consuming content and that personalized content delivery, including video ads, will be an effective way to reach consumers who may prefer video over other forms of content.
Why Will Video Ads Work?
With the high demand for and investment in video advertising, competition for consumer attention is strong. If video advertising is not currently a part of your digital strategy, it is a good time to consider incorporating it. To effectively utilize video advertising, advertisers need to have a thorough understanding of their audience and product or service offering, as well as which video formats and platforms will be most effective. While short, “snackable” videos have been popular on some social platforms, they may not be the best choice for every brand.
Connected TV (CTV) allows for a more targeted approach to reaching your audience, as it can be easily directed to your desired target audience, unlike traditional TV spots. You can also repurpose videos created for social media for use on CTV to ensure consistent brand messaging. Additionally, using ads across different digital platforms provides valuable data to inform future video campaigns.
When deciding on the type of video ad to use for your business, consider the content that aligns best with your brand and goals. For example, behind-the-scenes, educational, and how-to videos may be suitable for an agency or as part of a larger video content marketing plan, while product teasers, demos, and explainer videos are more suitable for promoting specific products and services.