Video advertising has become an integral part of the digital marketing landscape over the past few years. As the world continues to shift towards a digital-first approach, it is important to explore the future of video advertising and the trends that are shaping the industry.
Video advertising is not going anywhere. In fact, it’s projected to grow even more in the coming years. According to eMarketer, video advertising spending in the United States alone is expected to reach $41.89 billion by 2023, up from $26.15 billion in 2019.
One of the key trends that are driving the growth of video advertising is the rise of mobile devices. With the increasing use of smartphones and tablets, people are consuming more video content on the go. In fact, a study by Cisco found that mobile video traffic accounted for 60% of total mobile data traffic in 2020. As a result, advertisers are shifting their focus towards mobile video advertising to reach their target audience.
Another trend that is shaping the future of video advertising is the rise of over-the-top (OTT) streaming services. With the popularity of platforms like Netflix, Amazon Prime Video, and Hulu, traditional TV advertising is becoming less effective. OTT streaming services provide advertisers with the opportunity to reach a highly engaged audience that is actively seeking video content. As a result, we can expect to see more advertisers shift their advertising dollars towards OTT platforms.
Besides the rise of mobile and OTT, the future of video advertising is also being shaped by advances in technology. One of the most exciting developments in this space is the use of artificial intelligence (AI) and machine learning. These technologies are enabling advertisers to deliver highly targeted and personalized video ads to their audience. For example, AI can analyze consumer data and determine the video ads that are most likely to resonate with a particular audience. This can lead to higher engagement rates and better ROI for advertisers.
Another technology that will have a significant impact on the future of video advertising is virtual reality (VR) and augmented reality (AR). These immersive technologies provide advertisers with the opportunity to create truly unique and memorable video ad experiences. For example, a car manufacturer could create a VR ad that allows viewers to experience driving one of their vehicles in a realistic virtual environment. While VR and AR are still in their early stages, we expect them to become more mainstream in the coming years, presenting advertisers with new opportunities to engage with their audience.
As the world becomes more digitally focused, privacy concerns are becoming more prominent. In response to this, many platforms and advertisers are exploring new ways to protect user data while still delivering effective video ads. One approach that is gaining traction is the use of contextual advertising. Instead of relying on user data to target ads, contextual advertising uses the content of the video or website to determine the most relevant ad to display. For example, if a user is watching a video about travel, a contextual ad for a travel company may be displayed. This approach allows advertisers to deliver relevant ads without compromising user privacy.
The future of video advertising is bright. As mobile and OTT continue to grow in popularity, advertisers will need to shift their focus towards these platforms to reach their target audience. Advances in technology like AI, VR, and AR are providing new opportunities for advertisers to create engaging and memorable video ad experiences. While privacy concerns remain a challenge, the use of contextual advertising is one approach that can help advertisers deliver relevant ads while still protecting user data. As the world continues to shift towards a digital-first approach, video advertising will remain an essential tool for advertisers looking to connect with their audience.
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