Video Advertising: Your Essential Guide

The power of video advertising in the field of marketing is undeniably great. But everyone can’t seem to make it work form them, so what’s missing?

Well, there may be a knowledge gap.

In this post, we’ll cover everything you need to know about video advertising so you can dive in with confidence.


Video advertising in 2021

According to a 2021 video marketing survey, 33% of consumers chose video as the number one medium for keeping brands top of their minds. Moreover, 68% of consumers spent a quarter or more of their time on social media watching videos.

In terms of high-value content for businesses, 24% of marketers picked training videos, 24% chose promo videos, 14% went with demo/explainer videos, 14% selected live streams, 12% went with personalized videos, 10% opted for how-to videos, and 2% picked customer onboarding videos.



The recent trends in video advertising

With the onset of the digital age, programmatic video advertising picked up, and it’s what makes them so effective—marketers are no longer shooting in the dark.

But to create successful video ads, it is imminent that you stay on top of the latest trends of video marketing and understand what the audience is looking for.

Here are the four main trends you need to be aware of:


1. Longer video ads are in

Earlier, the average duration of ads used to be six seconds on YouTube. But after 2015, the most popular video ad length became 30 seconds.

This means that marketers started experimenting more with their video content, and the audience became more willing to watch longer ad forms.

An example is of Glossier, which started a series called “Get Ready with Me” based on the popular YouTube trend that follows the morning routine of influencers and creatives.

In Get Ready With Me: feat. Annahstasia + Glossier an influencer’s morning routine is shown in real-time.

Using this longer form of ad, they create intimacy with the way their videos are shot, creating a long-lasting impact on the customer compared to a typical ad.



Read more: An Introduction to Influencer Video Marketing for Businesses


2. High video ads consumption on mobile phones

In 2021, 66% of consumers watched video content on their mobile phones, while 68% of consumers spent a quarter or more of their time on social media watching videos.

Research also indicates that mobile phone users are more likely to watch long-form video ads. However, even the attention span of mobile users drops after 22 seconds.

Hence, marketers have to be cautious about the video ad length they are going for based on the kind of traffic they want to attract.



Read more: Mobile Video Advertising: Everything You Need To Know


3. Budget allocation for video ads has increased

In 2017, the video ad spending in the U.S. was $8.92 billion, which reached $10.18 billion in 2019. By 2024, this number is expected to reach as high as $12.66 billion.

Mobile is the primary driving force behind this growth.

In 2017, mobile made up about 35% of that $8.92 billion in ad spending, and the rest was dedicated to desktop. But the prediction for 2024 is that mobile will comprise about 73% of video ad spending.



Digital video advertising spending in the United States from 2017 to 2021 (in billion U.S. dollars).


4. The use of animation in video ads has gained more traction

To keep the viewers interested, many marketers are using animation in their ads.

Animation can help create video content that can be difficult to achieve, given the limited physical resources, while also making it livelier and fun.

Check out this animated ad we made for a client explaining their operations using a blend of animation techniques.



Like the video? Get one for your business!

Get in touch. We’ll be happy to help.

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Read more: How Animated Videos Are Helping Fight the COVID-19 Infodemic


Marketing goals you can achieve with video ads

According to 2021 video marketing statistics, the main business objectives marketers want to achieve with video are:



Types of video ads

One of the reasons why video is a popular marketing tool for businesses is that it provides them with various formats to choose from. Here are the most common ones:

Display ads: also known as banner video ads, appear on a website or social media platforms and encourage customers to take specific actions. After the users click on an ad, they are redirected to the corresponding landing page. They can be either images, text, or video forms.

Instream video ads: Instream video ads appear before (pre-roll), in the middle of (mid-roll), or after (post-roll) the video. These ads can be either linear or non-linear.

Linear video ads: take over the entire video player space and run sequentially with the content being watched.

On the other hand, non-linear video ads run simultaneously with the video content being watched. They may appear in the form of an interactive banner in an overlay.

Instream video ads can further be classified into skippable and non-skippable categories.

As the name suggests, skippable ads do not force users to watch the ad until the very end, as they can skip the ad after a few seconds.

Non-skippable ads give no such options and thus have to be watched till the end.

Outstream video ads: these show up in a non-video environment. You may see them scrolling down your social media feed or while reading an article.


outstream ads - video advertising


Bumper ads: In 2016, YouTube offered advertisers the new video type—bumper ads. These ads have six seconds of duration and play before a selected video content gets played.

Although it is the shortest video ad format, it can help advertise a new product launch or give short, memorable messages for maximized reach and awareness.


bumper ads-video advertising


Rewarded video ads: One of the users’ favorite is the rewarded video ads as they offer a value exchange.

Users receive a reward in return for watching the ad—they get more lives to play their mobile game while giving the advertisers an increase in viewability and click-through rates.

In-banner video ads: In-banner video ads are HTML5 video creatives embedded in a standard display banner ad slot on a webpage.

These ads are less disruptive to the user’s online experience as they appear subtly on the sidebar, allowing users to decide if they want to watch the ad or not.

Companion ads: A companion ad is a display ad shown alongside a video or audio ad. It offers the user a place to click and continues to be displayed even after the video or audio ad has finished playing.

Companion banner resolution should be 300px X 60px or greater.


Companion banner video advertising


YouTube Masthead ad: This is a native video-based ad format that appears at the top of the YouTube home feed.


video advertising


KPIs to keep track of for video advertising

The KPIs you’ll want to keep track of will depend on your campaign goals, which could be awareness, consideration or action.

Here’s what you could measure against each goal:

Awareness: impressions, views, shares, reach, view-through rate, ad recall lift

Consideration: View-through rate, watch time/average play time.

Action: clicks, calls, signups, purchases.

You can switch it up and look at other KPIs as well.

The idea is to gather valuable data that you can use to improve your current campaigns and make better decisions in the future. For that, keep an eye on industry benchmarks and monitor a different KPIs that you previously had not considered.


Advantages of video advertising

Video advertising is a fruitful investment. In 2021, 70% of marketers said that videos showed a positive ROI. This is one of the many advantages of video advertising. Here are the other notable ones:


High conversion rates

Including a video on your landing page can increase your conversion rate by 80% and greatly influence the visitor’s buying behavior. It can convert your visitor into a lead and lead into a customer. You can use those videos to create testimonials or tutorials depending upon your marketing plan.


Adds nicely to email marketing campaigns

Getting someone to open your email can be quite challenging. But according to Wistia, using video in email can lead to a 300% increase in email click-through rate than emails without video.

Read more: Complete Guide to Using Video in Email Marketing


Video content can improve your SEO

Search engines prefer video to engage viewers. After Google, YouTube comes second as the largest search engine platform.

If you’re planning to increase your website’s visibility, then add your video to it and then upload it on YouTube and other social media platforms.


Builds credibility and brand image

Video is an effective tool to create your brand persona in the eyes of customers.

It can educate or inform the audience, which further helps establish the brand credibility. In fact, 90% of users say that product videos prove helpful in their decision-making process.


More social shares for your business

As 92% of mobile video consumers share videos with others, it is a great strategy for your business to make your product or content go viral.

An example is Dietz Nuts – “the first-ever meat nut” launched by the deli brand Dietz & Watson surrounding the 2019 Super Bowl.

Instead of investing in a high-priced Super Bowl TV ad, Dietz & Watson ran this shareable video on digital and social channels.

The campaign not only got the Super Bowl hype but also greatly engaged consumers on social media.



How much should you invest in video advertising

The budget you should allocate for video advertising depends on your marketing goals and your finances.

You have to keep in mind your KPIs and go for professionals who can help you achieve those goals by crafting relevant video content. If you have just started your business, then budget optimization is crucial.

Budget optimization is about spending strategically rather than simply spending more. If you’re going for advertising on YouTube or planning to work with the Google AdWords system, you will need to make some calculations.

In order to learn the relationship between cost-per-view (CPV) and the quality of views your video receives, you will have to experiment with your budget and use performance data to find out what is working.

Read more: How Is the Pricing of Animated Videos Calculated? [Complete Guide]


How to use video advertising to sell products

If you’re now considering using video advertising to sell products, you will first have to choose your marketing goals, look for an experienced digital agency for your video or simply create it yourself.

Here is a list of video production equipment you may need in order to create your own video.

You will also have to consider the type of video that will best suit your company’s needs, the kind of message you want to put across, your targeted audience, and the video distribution platform.


That’s all, folks!

With all this been said, if you’re looking for a cutting-edge explainer video production company to create some killer video content for your business, then you are at the right place.

Want a video for your business?


Posted by Tuba Waseem

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