Video advertising is booming as this chart shows
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Today, more people than ever are going online in search of video information and content.
Research shows that, over the last year, the numbers of British people using TV, video and movie sites such as YouTube grew by 28%; the total time spent on these sites grew even further by 91% (Nielsen Net Ratings).
Almost 21 million UK residents visited a video related website in September 2007 compared to 16 million in September 2006. These figures mean the online video sector is now visited by 63% of British web users and opens up a whole new idea of ‘bringing product to market.’
Although video advertising online is not new, the growing number of people subscribing to broadband worldwide means more consumers can now access high quality video online and on demand through speedier internet connections.
Many websites now carry some form of video. Global media organisations like the BBC, BSkyB and The New York Times have all switched to a ‘multi-platform’ approach to information supply and delivery, incorporating traditional media such as television, radio and print with digital media in the form of websites, and online video and audio streaming.
Advertisers are starting to exploit the benefits of video advertising, by showing videos on their own sites and other popular ones such as YouTube and Bebo.
Consumers are more willing to interact with video online because they can search and play videos on demand. Videos played online also tend to be shorter and snappier as research from the Internet Advertising Bureau (IAB) shows that the traditional 30 second commercials as seen on television do not have the same impact online. This is because the internet is fast paced, and just as consumers can access video on demand, they can also switch off on demand.
Online retailer has already integrated video onto its website, using catwalk promos to showcase various product ranges from a series of different angles. A consumer can now identify how a pair of trousers will fit, hang and move by watching a model walk up and down a catwalk in a Next video.
Using video not only helps sell more products through the advantage of moving image but cuts down on returns as consumers get a 3D view of the garments and see how they hang on a person. are also embracing video advertising on the web by showing their commercials both offline and online. As a brand building exercise this is an excellent opportunity to engage a wider, more diverse audience.
2008 is looking like becoming the breakthrough year for online video. The IAB recently produced a Video Marketing Handbook to “inspire agencies and advertisers alike to consider video as part of their marketing plans”.
A key section within the document discusses advertiser funded video (AFV) – content paid for and produced by advertisers but aired on a third party website.
According to the IAB, successful AFV combines the editorial needs of the website owner with the marketing communications objectives of the brand, while ensuring the viewer is entertained, informed or educated.
In-text video advertising is another form of video advertising which allows users to view a video when they roll over a double underlined word within editorial. The IAB states that advertisers can effectively present their brand every time their words or phrases generate interest, offering a level of user-initiation and contextual targeting that other online video advertising mediums cannot match. Users can choose to view the ad by rolling their mouse over the underlined phrases, ultimately they are in control of their own advertising experience.
So, the question remains, is video advertising the next revolution in online advertising? The research above suggests that in 2008, innovative online brands will differentiate themselves from competitors by producing AVF or in-text video advertising content, but can video advertising really make as big an impact as search or affiliate advertising? Or will it simply be an advanced tool to support the strategies already employed by key brands when promoting their products and services online?

News: the economic downturn is beginning to impact on basket sizes, with the average spend per gift down 15% for Mother’s Day at, although total spend was up 77% year on year. Read press release here.
Job opportunities: our fast-growing agency is seeking freelance specialists in PPC, SEO, PR, email marketing and affiliate management. One of our clients, a stockmarket listed online marketing company, also has openings for full-time affiliate managers in London. Must have minimum two years experience. Please email results [at] with your CV and at least two examples of your work with results achieved.
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