The explosion
of online video
From analogue television to programmes on smartphones and tablets; from Magic Roundabout to videos on YouTube: the new frontiers of Internet Advertising are set to carry on growing
1. Online Advertising Today
According to the most recent Internet Advertising Revenue Report from the
IAB, in the United States, total revenues from internet advertising in 2011 amounted to $31.7 billion, up 22% on 2010.
1.1 Randall Rothenberg, President and
CEO of the
IAB, noted that the constant increase in digital investment demonstrates that advertisers are increasingly recognising digital’s potential (especially since the arrival of mobile) and are more likely to opt for online to engage users.
Search, display and video offer brands interested in digital significant opportunities, thanks to a marketing mix which is becoming more complex and rich, and therefore potentially more effective.
1.2 #BUDGET
#MARKET
#INVESTMENTS
And it doesn’t look like margins will settle down in the near future: in fact 90% of investment comes from the top 50 companies in terms of turnover. But even small and medium sized businesses are starting to understand the importance of digital and, after a few experiments, have started to allocate increasingly substantial budgets to online development. In particular the pricing model for digital advertising is moving towards performance parameters, a sign that it’s not just the tools themselves which have improved, but that advertisers are more familiar with the medium, they understand it and are starting to propose more precise and results-linked metrics.
Internet share, in terms of turnover, has exceeded both press and cable television, coming second after digital TV. The US leads the field in terms of online advertising with $154.9 billion spend in 2011, with Japan, China, Germany, the UK, Brazil, France, Australia, Canada and Italy making up the rest of the top 10 for largest investments.
The industries most active in digital are: retail (which represents 23% of total spending on online advertising), telecommunications (14%), financial services (13%) and technology (10%).
The Nielsen Global AdView Pulse report for Q1 2012 confirms that, in spite of worldwide economic problems, the internet grew substantially. Digital adspend increased 12% year on year, the only media to grow in double figures.
But what is the “weighting” of online in overall advertising spend? According to a study by GroupM (part of the WPP Group) published in April 2012, total investments in the internet is set to reach 16% of total spend. Considering how young the medium is the figure is remarkable.
2. From TV to YouTube
Television has always played a very important role in Western countries, particularly Italy where it was television, not printed press or radio, which brought about mass literacy. According to an Istat (Italian National Office of Statistics) study 94% of Italians watched television in 2011. But even for a country as traditional as Italy, habits change quickly. Traditional television hasn’t just abandoned all things analogue; it has also transferred part of its schedule to smartphones and tablets. Television is reinventing itself. In the US many people have transitioned from being passive viewers to active users thanks to
connected tv, interactive screens, on-demand and a permanent internet connection. In this way video formats continue to appeal to both advertisers and consumers.
1.3 #TV
#VIDEO
#SMARTPHONE
Technological innovation and the evolution of the media distribution landscape has led, according to the Nielsen Economic And Media Outlook of June 2012, to a sea change in the consumption of video content: today watching content on the computer has become just as popular (perhaps even more so) as watching it on the television screen.
So video has found a new lease of life online.
1.4 If when the internet first dawned it was just seen by advertisers as another channel where
TV ad spots could be shown it is no longer the case. It has become more separate from television media, finding its unique place, offering interactive solutions which are increasingly different from traditional adverts and metrics which are constantly moving away from simple
impressions.
So it’s no surprise that, according to a study published by eMarketer,
1 growth prospects for online video are impressive: +54.7% in 2012 compared to 2011, +46% in 2013, +40.2% in 2014.
1. marketingcharts.com
US Online Ad Spend to Grow 23.3% in 2012
3. The Viral Video Phenomenon
First let’s eradicate any doubts.
There is no such thing as a viral video in absolute terms. A video may be called viral when it manages to rack up a high number of views thanks to word of mouth from one user to another. So, as brilliantly put by the ReelSEO guide - The Social Video Blueprint:
“Where viral video is more of a destination («We did it, we’ve gone viral!») […] Viral is the end product… a video that gets a ton of view has reached viral status”
So
going viral, as you will see in more detail over the course of the following chapters, is a mix of creativity (by which we mean not just video content but also choosing titles, tags and categories associated with a video uploaded to YouTube), planning, distribution and promotion.
2 2. smartblogs.com
What really makes a video g...