The future of video and its (un)exploited potential for advertising
Posted On December 6, 2018
“Creative AdTech provides the critical link to maximize the impact of marketing campaigns by creating personalized video ads through variation in time of delivery, creative content or message tone.”
3 Min. Read
ABOUT THE VIDEO LANDSCAPE
By 2019 video will account for about 78% of world internet traffic and surpass 82% by 2022. It has already become the most-meaningful digital communication medium among all age groups. Digital video advertising has experienced similarly fast-paced growth, with marketers shifting budgets away from traditional television. However, the potential of video remains far from being fully exploited. Despite innovation that has led to stunning improvements in transmission and display on powerful user devices, most videos displayed are little different from those created during the broadcast era.
Only recently have some companies tried to exploit newer platforms with the aim of reinventing the video landscape, transforming video into a more-compelling, narrative tool. The entertainment and advertising sectors drive most of the initiatives that are changing the status quo.
WHO IS CHANGING THE GAME, AND HOW?
Interactive Video is the format toppling the status quo, empowering viewers to make decisions about how the story develops at critical points of the video segment. Although formerly there have already been unsuccessful attempts in this field, companies that time is ripe to exploit the true potential of interactivity. Netflix and Walmart are taking the lead. Netflix, founded on narrative video content, will soon launch interactivity in the Black Mirror drama series, with more to come. Walmart announced its W*E Interactivejoint venture with Eko to create additional interactive formats.
While the entertainment industry lets users decide how the narrative will evolve, in advertising similar techniques allow personalizing the communication message. The ad industry calls this Creative AdTech. Creative AdTech provides the critical link to maximize the impact of marketing campaigns by creating personalized video ads through variation in time of delivery, creative content or message tone.
Besides hyper-personalization, adding layers of interactivity to dynamic video ads ensures the highest-possible level of engagement. Interactive calls to action (CTAs) range from clickable widgets revealing additional information a product, on to click-to-buy systems. The Interactive Advertising Bureau (IAB) carried out research on the effects of CTAs in mobile video shoppable ads, focusing on the three main interactive ad formats: Learn More, Shop Now and Sweepstakes. The research shows that the time spent by a consumer watching a video is twice as long if it contains a CTA. While Learn More evidenced itself to be the most engaging format, Shop Now video ads were proved as more memorable among people who previously expressed interest in that specific brand category. The last of these findings underlines the potential of deploying CTAs in dynamic videos; by exploiting the high level of targeting achieved with dynamic advertising, companies can reach consumers with specific interests and shopping behavior, fully leveraging the Shop Now interaction.
A number of solution providers enable the trend of Creative AdTech in video advertising, mainly by combining different video segments on-the-fly. Going even further, Connected-Stories has invented a completely new approach based on multi-layered video content.