The YouTube ad platform continues to grow exponentially. Here are several trends in YouTube advertising that you should be following this year.
Online video is growing faster than other advertising channels and formats. YouTube is by far the biggest and most influential platform in the online advertising market.
YouTube Advertising Trends
As the YouTube ad platform continues to grow at an exponential rate it can be difficult to follow all of the new developments that contribute to its expansion. Here are several trends in YouTube advertising that we are following in 2015.
An Expanding Audience.
There are over 1 billion unique visits to YouTube each month with the average user watching 16 minutes and 49 seconds [CT1] of online video ads every month. Video ad views continue to explode. In December 2013 video ads topped over 35 billion views and continues to average over 100% year-over-year monthly growth during the year.
Online video ad revenue is increasing.
According to a 2014 Business Insider report, video ad revenue is increasing at a growth rate (CAGR) of 19.5% over three years, through to 2016. While video ad revenue is expected to reach nearly $5 billion in 2016, TV ad revenue is projected to decline by nearly 3% each year during the same time period.
High click-through rates.
Of all the digital ad formats, video ads have the highest click-through rates (CTR) with an average of 1.84%. As video ads become more popular that rate is expected to increase.
Wireless Internet networks are becoming more reliable and are now fast enough to stream uninterrupted video to mobile devices. According to StatCounter (a web tracking firm), nearly 30% of all web traffic is coming from smartphones and tablets. As a result video ads are becoming a more widespread alternative to the deplorable mobile banner ad. Video ads do a better job of capturing a viewer's attention compared to static ad formats.
One of the major concerns online advertisers have is if their ad will be placed where Internet users will see them. About half of all online ads are currently set in obscure places where users do not see them. However, Google AdWords for video only offers online video ad space where YouTube users can see them. Not only does Google AdWords ensure that your video will be placed in a location with optimum visibility, it further empowers business to take control of their ad campaigns. Businesses can decide the video format they want to use for YouTube advertising, as well as specify the target audience they are trying to reach. The question of whether or not video ads are seen by online viewers who are multitasking has emerged. Nevertheless, the high demand for online video is enough to ensure that multitasking is not putting a damper on the video ad market.
In today’s online market, real-time bidding for video ad space, placement, and positioning takes place in a fraction of a second. When using Google AdWords for video to create a YouTube advertising campaign, media buyers have the option of setting a weekly budget as well as set their max cost-per-view (CPV) bid. Instead of going in and manually entering bids, buyers can rely on automatic bidding that will ensure they remain within their marketing budget. U.S. buyers will spend 29% of their digital display budgets programmatically by 2017, according to an eMarketer report.
These 2015 trends tell us that we can expect greater efficiency in advertising on YouTube as online marketers continue to adopt video marketing and the quality of video ads and streaming improves.
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