As more eyeballs and dollars shift to digital video, what does it mean for marketers?
According to eMarketer, although TV still dominates the advertising market, brand marketers are reallocating larger portions of their print budgets to serve ads on desktop and laptop computers, smartphones and tablets. Local ad dollars are also flowing more rapidly to digital, as are the ad budgets of small to medium-sized businesses. The reason for this shift is largely because people today are managing multiple screens and also beginning to favor on-demand technology for streaming video over broadcast TV. Digital video gives people access to the information they want, when they want it, and that has become very appealing to today’s connected consumer.
An April study from IAB showed that 63% of respondents plan to allocate more dollars to desktop video, and 62% expect to increase their mobile video ad spending within a year – proving that video advertising is not just a fad that will be leaving us any time soon. Facebook, Instagram, Snapchat have started to amp up their video recently and Pinterest has jumped on the bandwagon as well. With these massive companies making big moves around digital video, you’re bound to see marketers and agencies push more dollars in that direction.
We are now connected to multiple screens and often at the same time. Many of us now look for the quickest ways to get real-time news throughout the day and have become more reliant on various on-demand services.
And although it might not be tied with its TV predecessor, digital video has carved out a new channel for marketers — it has its unique value adds, ways of engaging audiences, and diverse formats that are not easily replicated on the big screen. Marketers should not be waiting for digital video to overtake TV, but instead, be following people’s preferences and behaviors to determine how best to use it for their brand.
To learn more about the inevitable rise of video advertising, read James’ full column featured this month in Marketing Land.
Magnetic is a digital marketing and artificial intelligence company. We use machine learning and AI to deliver smarter, faster, and more effective advertising. Our powerful AI platform continuously analyzes the attributes of 320 million live user profiles alongside real-time inventory supply and bid opportunities to deliver highly performant and profitable campaigns for our clients.