When used as a marketing medium, videos are compelling. A well-produced, strategically placed video can elicit an emotional response from the audience. Video ads can also drive home a message and become an ongoing talking point for people who watched it.
Video ad spending has grown over the years, from $25 billion in 2017 to $34 billion in 2019 and is projected to grow to $52 billion by 2023.
Native video advertising is a massive part of video ad spend. In 2018, native video advertising accounted for 56% of video ad spending.Before exploring the reasons why video ads are huge, here's a quick look at what it's all about.
Native video ads fall under the definition of native advertising.According to Outbrain, native ads don't look like display or banner ads, but part of the content. Advertisers design native ads to match the look and feel of the media format where the advertisements appear. Consumers will have a difficult time identifying a paid native video advert because it's served in-feed and is unobtrusive.
Top Reasons Why Video Ads are Big Now
The human brain loves storytelling and ads that have a personal connection. No other medium comes close to telling a story like a good video. A video advertisement has images, audio, and text – all in a format that is easy to digest and remember. Curated video ads can deliver a message faster and more precise than any text or banner ad.
Take this Land Rover Dragon Challenge marketing campaign, for instance.
The native video ad strategy used to showcase the world's first ever attempt by a vehicle to scale China's Heaven's Gate landmark had all the elements of a great story.
The video was suspenseful, eye-catching, and had a compelling enough narrative that showcased what Land Rover vehicles are all about.
Native video advertisements are crucial in quickly building trust with consumers. People view videos as an authentic representation of a brand. Consumers trust brands that produce video content 58% more than brands that don't.
Videos also help create awareness before a purchase. Consumers invest their time in learning more about a product they want to buy by watching videos.
These days, the Internet is all about video. According to Cisco, global consumer Internet video traffic will account for 80% of all consumer Internet traffic this year. This forecast doesn't even include peer-to-peer (P2P) video exchanges. In late 2015, Facebook announced that videos on the site generated eight billion views daily. Videos are at the heart of all social media platforms and very easy to share. Videos generate 1200% more shares than text and images combined. Consumers are 27% more likely to click on an online video advertisement than a banner ad.
Here's more: as of March 31, 2019, Facebook has over 2.38 billion monthly active users (MAU). According to this Merchdope article, 1,300,000,000 people use YouTube, and users watch 5 billion videos each day. Imagine the conversion rates if even half of these users watch a native video ad.
Native video ads give the audience an experience that captivates their imagination. Instead of competing with a consumer's journey on a site, advertisers can take part in it. People visit websites for a reason – they're interested in its content.
The seamless nature of native video compels the user to watch, not because advertisers force them to. These videos captivate audiences because they think it's part of what they came for. The good news is that native videos often give even more information than is expected. Collaborative marketing efforts help advertisers deliver effective video ads tailor-made for specific audiences.
When it comes to online advertising, the stigma of intrusive pop-up ads is still going strong. Intrusive ads are annoying and unethical. These ads follow a user around the internet and pop-up when least expected. The use of ad-blockers helped users block these annoyances, but website owners took a hit in ad profit. Native video advertising addresses the problems encountered by advertisers due to ad-block browser extensions because the ad looks like it's part of the website.
Native video advertisements are NOT pre-roll video ads. Pre-roll ads are those that appear before the actual content. Unlike native video ads, consumers don't like pre-roll ads because in most cases, these ads are unskippable. Users who want to watch the content don't have a choice but to watch the pre-roll ad. Consumers view the lack of choice as a negative and most skip the video altogether.
One of the main factors that drive the success of video ads is collaboration. It all starts in creation and collaboration around content. In most of the company’s advertising agencies and several internal stakeholders are involved in video creation and distribution. In many times this ends up in a huge battlefield in which emails, Wetransfer download links, non-documented requests or approvals battle about priority. It can be easy: bring together people, content, ideas, tasks and videos in one place – in a digital and agile “Workroom”. Request a demo today!