Ad agency execs say online video ads are more effective than traditional TV advertising

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This next bit of news doesn’t really come as a shock, especially since practically everyone is using the internet these days. According to a recent poll which surveyed ad agency executives, online video ads are increasingly more effective than publicly aired TV ads. Of course, there’s no mention whether or not online ads see the kind of viewing statistics as those played during the Superbowl, but I’m willing to bet some of them actually do pretty well.

75% of the ad agency execs polled agree that online video ads are more effective, compared with 17% of execs that say they are much less effective. Adversely, when you compare online video ads with those featured on social media and popular search engines the execs agree that online video ads are still more effective.

A new eMarketer report even highlights the fact that online video ads are more effective then direct ads and visual ads.

“The popularity of digital video viewing is helping drive the expansion of the online video ad market. Ad execs may be responding to U.S. consumers’ seemingly endless demand for online video.”

What does all this mean for you? Well, clearly these advertising agencies are taking notes on this information, so we can expect to see a huge increase in video advertising in the future. In fact, recent research predicts that we’ll see a total increase of video ads by 40% this year alone. Business are expected to spend a combined total of $4.1 billion on video advertising by the end of the year.

Companies are spending lots of money on video ads, and because of how effective they are one can only expect to see new platforms for the content. Will Netflix soon display video ads to increase revenue? What other streaming services will take advantage of revenue generated from video advertising? It’s only a matter of time before we start to see more companies cash in from such technology.

“Ad buyers are faced with an increasingly complicated equation when it comes to online video ads, and they need to consider which sites to purchase ads on, what format the ads will take and how to measure their effectiveness.”

What we can take away from all of this is that online video ads will soon become widely used everywhere, not that they aren’t already. Do you mind video ads or do you often find them obtrusive? What would you do if video streaming services implemented advertisements and commercials like traditional TV?

Keep in mind, in regards to the videos ads for streaming services, it is merely speculation on my part due to how effective and popular they are. No streaming services have announced any interest in displaying video ads, at least not at this time.

[via Mashable, eMarketer]

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5 comments

  1. Briley Kenney
    Author/

    [@Mike] The point here is that really Mobile usage is on the rise, and so is mobile advertising. Since a lot of us use mobile devices to watch a lot of video content, it’s going to suck when streaming services start to get plastered with more ads. :/

  2. KMHamm

    There’s a thing called a “bug” that shows up on TV programs. They’re the little videos or logos that appear & disappear at the bottom of the screen during whatever you’re watching. They are getting larger and larger and more invasive and distracting. I can see this happening more on online videos, not that it isn’t already. Eventually, the ads will take up the majority of the screen space and we’ll be left with a postage stamp sized area for actual content. It will be at that point that subscriber “no ad” services will really begin to make money. BTW, the term “bug” comes from the phrase, “to bug” as in “to annoy”.