The growth and evolution of online video
2015 is being touted as the year for online video to come of age. Marketers and advertisers alike should relish the growth opportunity that programmatic presents, given programmatic spend is expected to rise by 40 per cent this year in the UK.
Around 20% of this goes on video, according to research by the Institute of Directors, while the latest figures from insights provider IHS and video analytics company Vidiro suggest advertising revenue from online video is set to grow globally by 70% over the next three years1.
Brand advertisers embrace video advertising because it harnesses the power of sight, sound and motion to drive consumer emotion and shift brand perceptions. It is a highly effective brand building format, which can elegantly transition from TV to desktop to mobile, which ultimately is driving programmatic growth.
In fact, at Yahoo, we expect video to go fully programmatic this year propelled by our acquisition of BrightRoll, which offers both a media neutral DSP and the industry’s largest programmatic video marketplace.
Quality inventory is crucial when it comes to brands making the leap online, as it helps to build that all-important trust factor in the medium by delivering the ideal environment for brands to engage with their target audiences. And, of course, the strides now made in programmatic technology allow more accurate tailoring of the creative in real time to maximise impact and ensure high recall.
A demand-side platform’s performance is closely allied to the quality of its data source. Take BrightRoll’s recent work with a large retailer on a video campaign, which was achieving around a decent 50% in terms of in-target efficiency. Using segments from Yahoo’s database, which has now been integrated into its DSP, results have rocketed to over 80% in-target.
Success in online video advertising, however, is not down to programmatic technology alone. Creativity is key, arguably more so than on TV, with brands having to not only engage and inspire consumers with compelling imagery and storytelling, but also to take into account the different channels and devices at the 21st century consumer’s disposal.
As the fastest growing digital format in the UK, it’s no surprise that there is a lot of buzz around video. Although high-impact formats like video are paving the way for a new era of programmatic, it must be said that there is still a lot of scope for standard advertising formats, which can also be bought programmatically.
A good cross section of formats is needed to encourage a broad array of brands with a variety of budgets to advertise online, and although video is a huge growth driver, it should be seen as part of the wider programmatic mix. Ultimately it’s about what resonates with consumers and the winning formula is compelling creative combined with the smart use of data to find the right users and drive that all important ROI.