The market for digital video advertising on news websites and social media in the UK is projected to grow annually by almost 25% for the next two years. Some of the reasons for this growth are the continued increase in smartphone owners, faster 4G Internet services, and positive feedback to interesting videos on the Internet.
Furthermore, Facebook is planning to make some changes in its online video advertisement approach. Internet video’s growth and changes have significant effects on digital marketing agencies in London.
Growth of Online Video Ads in the UK Media Market
Online video ad revenues are expected to surge in the UK. PwC published its Entertainment and Media Outlook report which stated that video ads on social media and news websites will increase from £316m in 2014 to £717m in 2018. Online video is the fastest growing segment of all advertising forms. Presently, Google, Twitter, and Facebook are the main competitors when it comes to tapping the online video boom, including live videos.
The mobile advertising market, on the other hand, is predicted to rise by 17% yearly until it reaches £2.2 billion in revenues next year. Mobile advertising revenue is predicted to rapidly outpace consumer magazine advertising revenue. Social networks and messaging services will be decisive elements in this growth.
Video Changes in Facebook
Facebook plans to roll out online video changes this year. Publishers of Facebook videos are not making money from their content despite a high number of shares. Facebook seeks to change this by offering to add advertisements 20 seconds after a video clip has been played. The ads, however, will only apply to videos which are at least 90 seconds long.
Facebook aims to share 55% of ad revenues with publishers, which is near the rate that YouTube offers to content producers. YouTube currently dominates the online video ad market. By applying ad revenues to videos which are 90 seconds longer or more, Facebooks places importance on users who watch videos longer than those who watch many videos quickly.
Marketing through Online Video Ads
Online video ad growth increases opportunities for internet marketing. Digital marketing agencies in London can make online video ads which are specifically customised for target markets. They do not even have to be videos that sell products per se, but focus more on reaching out to customers and engaging them in online conversations.
Furthermore, audiences who watch and comment on live video ads provide rich information regarding how, when, and why they view these digital videos. This information increases customer insight which can be used to improve future video ads, website experiences, and products/services.
Creation of Engaging Online Video Content
Facebook’s planned video changes highlight the need for engaging online video content. With hundreds to thousands of videos begging for consumers to view them, digital marketing agencies are more pressed to find new ways of attracting audiences to watch videos longer. Instead of making product-focused videos, customer-centric clips may be more appropriate, so users will watch them longer.
In addition, content must be interesting or valuable enough to audiences for them to finish watching the video in Facebook, even after ads appear. Digital marketing agencies should think of benefits they can offer upfront for users to finish the whole video in spite of distracting ads.
Digital marketing agencies in London see opportunities in online video growth and changes. They are motivated to create content that will induce the initial view, as well as longer watching. Live videos, in turn, offer chances for creating authentic content that will draw target audiences and improve their perceptions of not only company brands, but the experience of live advertisements as well. This effect can greatly increase interest in and consumption of future online videos.
“Facebook May Soon Start Pushing Ads between Videos in Collaboration with Publishers,” Agamoni Ghosh, International Business Times, Jan. 10, 2017
“Online Video Ads to Lead UK Media Market Growth,” The Telegraph, June 4, 2014