Online Marketing Taking a New Turn With Ads Embedded Videos

The advertising industry has seen a paradigm shift in the last fifteen years since the Internet started its dominating role as a new marketing medium. It is unlikely to see any business today without online appearance. Online marketing itself has also evolved through many generations, from the initial approaches such as email marketing, website text and banner ads, to more recent Google AdWords, social network marketing, and video advertising.

Video advertising has become increasingly popular among marketers. The main reason being that online video sites have grown exponentially in the past three years since YouTube. Furthermore, video advertising tends to be considered as a means with fairly accurate target audience. Many other factors making online video advertising appealing to marketers include:

  • Across all the age groups, viewing of online videos is strong and becoming mainstream.
  • Viewers that are in the upper income brackets take action after viewing an online video content.
  • Taken into consideration the portal and UGC visitors, branded media site visitors are more responsive.
  • Statistics show that 80% of net users recall seeing a video ad and 52% have taken action, including 16% making purchases.

According to Forrester Research, Inc “Growing consumer adoption of online video will result in a dramatic 72 percent increase in online video ad spending to $7.1 billion by 2012. More customer-centric online video applications will increase the medium’s appeal for consumers and marketers”

eMarketer, a research company says “In the US, spending on online video ads is projected to more than triple by 2011. In Europe, the market is expected to grow even faster, thanks partly to the expansion of high-speed broadband in the UK, France, Germany and Scandinavia.”

According to ABI Research, “Online video ad spending in Europe will increase from $200 million in 2008 to $2.46 billion in 2012”.

Currently, many video sites are trying to seek ways to generate revenues from their high volume video uploads. They insert ads before, during, or after the play of a video. This approach sometimes upsets many viewers due to the distraction or unnecessary extra viewing time. An alternative way of video advertising is emerging as a preferred way by marketers, that is, blending the ad information into the video content itself. This new approach delivers more effective marketing signals. To achieve the above, a marketer provides incentives in the form of monetary awards to the videographers, who in turn produce innovative and high quality content videos.

Online publishing of videos with ads is a growing market sector with the possibilities of engaging the viewers in interaction with the advertised product or service in a very pleasing manner.

By Alex Tung

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