Cord cutting isn't just a consumer topic. Business models can fall victim to the trend, as well. Google recently announced that it will be shutting down its marketplace for traditional television advertising to focus on digital video solutions. It is clear that even the largest advertising platforms can no longer invest in trying to better the 'old' system, and must move full-steam ahead with digital video to stay competitive.
Tags: adwords, Canoe Ventures, digital advertising, digital video, EBIF, google, online video, online video advertising, television advertising, TV ads, TV advertising, VAST, video advertising, VPAID, web publishers
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Online video advertising is growing strongly with Forrester predicting U.S. online video ad spend will reach $5.4 billion by 2016 (from $2.0 billion in 2011). The increase in video advertising is substantially outpacing current online ad spending growth by 37%. With all of that money being spent, successful Advertisers will look for video formats that provide the highest ROI. What is the video format that gives you the greatest bang for the buck? Evidence clearly points to Interactive Video (VPAID - Video Player-Ad Interface Definition) over Non-Interactive Video (VAST – Video Ad Serving Template).
When measuring online video metrics, advertisers need to look past the traditional click through rate to see the real success. Viewers of online video content are immersed in the publisher content and they do not want to leave the page and open a new window to gather additional information. Clicks for non-interactive video (VAST) ads are often driven by users attempting to close out of an ad they are not interested in. These unqualified clicks drive up CTR but are ineffective in changing consumer intent.
VPAID’s clear advantage over VAST is its growth of brand awareness and user engagement. In a study... Read more