Advertising truly is an ever-changing industry. From announcements to newspaper ads to banners to digital media, the way marketers reach consumers is constantly evolving. Today, brands and marketers are slowly shifting budgets to more immersive, engaging forms of advertising, and online video is paving the way.
Unlike intrusive banner ads and pop ups, online video ads are here to stay. A September 2014 survey from Harris Interactive and Goo Technologies found that 94% of people believe mobile ads and online video ads will survive the next 10 years. Compare this with the 29% of Internet users that think pop up ads will survive the same amount of time, and you have a pretty clear picture of consumer ad preferences.
So a majority of people believe online video will be around in 10 years. Heck! We’re so sure online video will continue to dominate the advertising world that we built our company around it. Here are the three reasons why we’re confident that online video advertising will stand the test of time.
Online Video is the Ultimate Storyteller
No time restraints. No creative limitations. Online video presents brands and marketers with the opportunity to embrace in-depth storytelling, and those that have successfully done so typically see above-average results. Companies now realize that video viewers aren’t looking to sit through a repurposed TV spot. People want to connect with a brand on a deeper level—and powerful storytelling via online video will help them do just that.
Take a look at these three outstanding examples.
Bell’s Whiskey “The Reader” – 2.3 million YouTube views
Thai Life Insurance “Unsung Hero” – 22.1 million YouTube views
Extra “Origami” – 2.1 million YouTube views
Online Video Inspires Word-of-Mouth Advertising
If you are able to inspire emotion through online video (usually happens through storytelling), then viewers are more likely to share your content with friends and family. The content people choose to share acts as social currency. In other words, Internet users will share online video ads that make them look good amongst their peers.
You have to create a value exchange: entertaining content in return for viewership and potential engagement. Why is word-of-mouth advertising so important? Take a look:
- 61% of people are more likely to watch company videos that friends have shared. (Source)
- Word-of-mouth is the primary factor behind 20-50% of all purchasing decisions. (Source)
- 92% of consumers around the world say they trust earned media, such as word-of-mouth and recommendations from friends and family, above all other forms of advertising. (Source)
Here are a few examples of entertaining branded videos. Some of the branding is subtle, increasing the potential for organic views and shares.
Bear Naked “Urban Surfing” – 2.9 million YouTube views
Pepsi “Test Drive” – 43 million YouTube views
NBC Sports “An American Coach in London” – 8.5 million YouTube views
Online Video Directly Affects Purchasing Decisions
Studies have found close ties between online video and purchase intent. Animoto, for example, conducted a survey in December 2013 and found that:
- 96% of consumers find videos helpful for making online purchase decisions.
- 73% of all consumers are more likely to make a purchase after watching videos explaining a product or service.
One of the greatest online video successes, “Our Blades Are F***ing Great,” catapulted Dollar Shave Club into Internet stardom. The video prompted 12,000 orders within the first 48 hours after its release and to date, has earned more than 16.5 million YouTube views.
Seventy-five percent of advertising executives already believe online video ads are equally or more effective than TV commercials, and 91% believe the same when compared with display ads.
As one of, if not the most, effective and engaging forms of advertising, online video will no doubt stand the test of time. Brands and marketers are still feeling out the medium and experimenting with different video players, content tactics and distribution strategies.
Business Insider Intelligence estimates that that online video ad revenue will reach just over $9 billion by 2016, increasing at a five-year CAGR of 35%. When it comes to online video marketing, there is still ample room for growth. Because more and more Americans are watching online video each month, brands will continue to invest in the medium in order to attract and engage customers.
This is why online video advertising is here to stay. Though the industry is constantly in a state of change, online video advertising is the now, and companies that fail to realize this will ultimately miss out on reaching and interacting with a large, captive audience of online video viewers.