ADOTAS – The numbers are in, and they’re telling us the future is now. Even the slickest of TV ad execs might be looking over their shoulder quite a bit these days. A recent report from the IAB makes it clear that Internet advertising is blasting holes in the mountain that is broadcast TV.
In 2013, Internet ad revenues jumped to $42.8 billion, a record that surpasses broadcast TV ad numbers for the first time. Out of that astonishing number, a 17% increase over 2012’s record setting revenues, digital video brought in 2.3 billion, making it the fourth largest format behind mobile. Now we see the power streams of digital video and mobile advertising converging to create a new torrent of cross-screen innovation.
Finally, brands are fully buying into the post-desktop paradigm and following consumers’ eyeballs to where you’ll always find them these days—staring down at their smartphones. The lines between TV and the Internet become less distinct as users move fluidly across screens for entertainment, information, socializing, and purchasing. The mandate for brands today is to figure out the dynamics of consumers’ ever-changing habits, and how to maximize on the potential advertising synergies.
Obviously, social media also plays a big role in all of this. Facebook’s new autoplay feature is just a recent example showing just how fast video use is growing. The richer and more personal experience afforded by mobile video advertising is a limitless opportunity for brand marketing. Soon longer form ads, such as the Premium Video Ads that were recently introduced by Facebook will enable an even more immersive storytelling experience. This type of advertising, full of movement, sound, and artistry, is sure to win advertiser dollars away from traditional TV ad spots.
Mobile ads are a team player, creating symbiosis with other marketing channels. A significant portion of online consumers use multiple devices at once, shopping on their tablets and working on their laptops while watching TV with a side of texting, tweeting, or Facebooking on their phones. This creates an extraordinary, albeit complex, opportunity for advertisers to reach their (very) targeted audiences through a behavioral orientation instead of a device or platform specific constraint.
As many juicy opportunities as there are in mobile video advertising, there are a like number of challenges. Mobile users are notoriously impatient, unpredictable, and often a step ahead of the advertiser (think teens and twenty-somethings). Your ad better open immediately, play sleekly, and make itself entertaining or useful within seconds. Context is everything, and the ability to target the message is the holy grail. Some of this is true in TV advertising, but mobile intensifies and granulates “the hook” immensely. Done right, mobile video ads can capture even consumers who systematically skip through all other forms of advertising.
All the big players are in the game: In addition to Facebook, Google’s YouTube-powered BrandLab, Twitter’s Publisher Network, and Apple’s Workbench have been rolling out features and wooing big clients. But there’s all that complexity, a lot of pent-up demand, and critical scalability requirements yet to be fully addressed. There’s a fantastic opening for specialized technology companies to deliver on the promise of mobile video with best-of-breed solutions.
Advertising buyers will move their dollars from TV to mobile video when they have visibility into the cost-benefit outcomes. The technology specialists who can deliver innovative software and services that bring together device-agnostic formatting, responsive design features, built-in sharing capabilities, tracking tools, and flexible production templates have the advantage. Clients want to use a single video source to efficiently and consistently deploy ads across all mobile devices, apps, and media owners. Scalablity in production and deployment as well as control over visual and experiential quality are the factors critical to the near-term success of the format.
Consumers are ready to embrace online and mobile video advertising. The technology is in place, thanks to industry leaders who are creating comprehensive video solutions for agnostic in-banner video ad formats. The content that can be created with today’s technology is sure to attract a greater and more enthusiastic audience than ever before. Now is the time to make it happen!