ONLINE VIDEO ADS ARE EXPLODING

September 30, 2016

 

Online video ads are one of the fastest-growing ad mediums, far outpacing growth in spending on television and other digital formats. Online video ad viewing is exploding.  Over 35 billion video ads are viewed monthly. 

 

Video ads provide a level of visual and narrative richness that equals television, while offering all the advantages of digital, including advanced targeting, tracking, and increasingly, automated buying of video ad units.

 

Here are some of the key video trends:

 

Online video ad revenue should reach nearly $5 billion in 2016, up from $2.8 billion in 2013, while TV ad revenue will decline by nearly 3% per year during the same time period.

 

Video ad views started exploding in 2013, topping over 35 billion monthly views, averaging over 100% year-over-year monthly growth since then.

 

Online video ads are significantly more expensive than other formats, but prices are steadily declining as more publishers rush into video, and placements open up.

 

Video ads have an average click-through rate (CTR) of 1.84%, the highest click-through rate of all

digital ad formats.

 

Viewability, the question of whether video ads are actually seen by multitasking online viewers, has emerged as an issue, but we believe that overall demand for online video is too high for viewability to put too much of a crimp in the video ad market.

 

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