Q1 has seen nothing but an uplift in online video advertising and there’s no doubt that currently everyone is excited about video ads. Publishers are able to sell an interactive ad format to brands that and brands are able to experiment with a new type of advertising that can engage the user to become part of the experience.
To put in perspective on a global scale, Deloitte predicts a 56.4% year-on-year ad spend growth in the UK, making the market incredibly optimistic. Similarly, Brightroll’s annual video survey revealed last year that 69% of advertisers believed online video advertising was more effective than social media.
So what does this mean for media spending?
Nielson, a global information and measurement company, produced this graph for a better understanding of the industry.
Online video ad spending is predicted to nearly double in only four years from $4.14 billion dollars in 2013 to $8.04 billion by 2016, a 25% compound annual growth rate (CAGR).
One might be quick to jump stating this is the end of TV; however, advertisers are often seeing online video campaigns as an addition to TV advertising and part of an integrated 360 marketing campaign rather than a full-on replacement (See: Gillette How To Series Campaign). To simplify, display advertising is getting gutted while TV ads are experiencing a thinning and although TV is not going away, the money between the two is getting split from a budget once dedicated only to TV.
Canadians have always been internet savvy, leading the pack and we are still among the world’s most devout users of online video advertising as stated to a new report by Baltimore-based digital advertising firm Videology.
Videology’s report states that Canada continues to outpace other global markets in terms of “cross-device” video advertising. Across all devices, online video advertising in Canada grew 119% on a year-on-year basis, with online video advertising on PCs/computers seeing 63% year-on-year growth.
The industries taking advantage of using online video are diverse; however, it is consumer packaged goods companies who maintained at the top, followed by automotive, beverave alcohol and entertainment.
It’s also substantial to note that popularity of online video contributes to its ability to target not only with age and gender but also location and behavioural targets. This has contributed to 95% of advertisers using some form data-driven targeting in the first quarter, a 13% increase over the fourth quarter of 2012. See VMG’s campaign for Longo’s Leaside launch targeting a 7km radius.
Additional highlights from the Q1 Canadian Video Market Statistics:
- In Q1 of 2012, 30 second spots accounted for 37% of all online video advertising. In Q1 of 2013, 30-second spots were up over 52%.
- 72 percent of video buyers’ budgets for the medium increased in the last year.
- The average spending increase of those whose video budgets rose was 53 percent, compared with just 20 percent the year previous.
- Of those whose video budgets increased, 39 percent of buyers shifted spending from TV budgets compared with just 27 percent in 2012. Similarly, 41 percent of buyers shifted money from display advertising to fund increases in online video.
- The average amount of TV spending tapped for the increase in online video was 11 percent.
- 76 percent of marketers plan to add video to their sites, making it a higher priority than Facebook, Twitter and blog integration.
Exciting times for the Canadian online video landscape!