In the ever-evolving digital video advertising landscape, there remains one constant: finding new and innovative ways to better target your customer. The ads you see today are increasingly more creative and engaging, agile and mobile. Due to the advent of specialized platforms and solutions, brands can target their audience more accurately than ever before. Brands are ultimately looking for the Holy Grail: The right viewer to watch the right ad at the right time.
We’ve seen the digital video advertising market innovate and expand over the past year. But we can expect 2014 to be an even impactful year than ever before. As we look to the year ahead, here are a few trends that should be on every brand marketer’s radar.
1) Brands will become involved in media buying.
As digital buying becomes more programmatic, the process will become more transparent, analytical and scalable. Brands can take advantage of this and participate more in the media buying process. From a brand marketer perspective, the question will become, “Why get a black box from an agency, when my team can monitor the media buying ourselves?” I think at the very least, brand marketers will insist that their agencies work with vendors who can provide a lot of transparency and analytics. This trend might not necessarily be a good one for television networks, but it will certainly benefit everyone else.
2) Consolidation between video and banner ads will no longer work.
Video ads are not the same as banner ads. The branding and creative behind a display banner and a video ad are two entirely different things. As the advertising video market has grown, we’ve seen vendors with background in banner and display advertising, attempt to use the same expertise to create video, but that knowledge isn’t something that translates over to video. As the process of setting up a video advertising campaign becomes more scalable and simple, brands and agencies alike will come to the realization that these disparate methods shouldn’t be bundled into the same media buy.
3) However, consolidation between video and television ads will continue to work...For a while.
TV is much closer to online video advertising than banner display. For this reason, marketers will probably continue to have their broadcast media buyers purchase ads, not their digital buying team. However, despite the similarities between video and television ads (results, branding focus, budgets, effect), there are major differences. If you try to repurpose a television ad for online, it doesn’t work as well. An online video ad that was created for the online medium performs ten times better than a TV ad repurposed for online. As the market becomes more educated on the real, tangible differences between online video and TV ads, we’ll begin to see marketers begin to consider these advertisements as two separate ad platforms.
4) Advertising budgets will split between banner display, TV and online video.
As the market becomes more aware of the differences between banner display, TV and online video ads, companies will allocate advertising budgets accordingly and separately. The measurement for display ads, vs. TV ads, vs. online video ads, all vary. So why would you put one whole budget to three different forms of advertising, with wildly different results and metrics of success?
5) Mobile video will keep on growing….and fast
Mobile has been, and will continue to be, a massive opportunity for marketers to advertise directly to consumers -- who are always connected via a mobile device. Fortunately for marketers, programmatic vendors are already providing inventory on the same video exchanges, so the transition to online video ads via mobile, is seamless. The current issue with mobile video ads is that the data still isn’t there. We don’t have the consumer insights that we should. This will get better in 2014, however, it might be another year before we see significant improvement.
Think of where we were with digital video ads at this time last year, and just imagine where we’re headed. Sure digital advertisements today are more creative, personal and targeted than ever before. But in 2014, video ads are going to help brands connect to their consumers in more relevant and meaningful way.