This year, 2017, is almost over and looking back, it has been THE year of digital video advertising. Why? Many factors such as personalization, big data and social media growth have made this an epic year for online advertising.
Here are a few key points:
- Total advertising spend is almost flat (+3.8%), but digital advertising is setting the bar with growth measured at +15%. For the first time in history, it is higher than TV ad spend.
- The major leap was in digital video advertising at +24% for the year!
- Trends show growing importance in big data, personalization and dynamic retargeting.
- The two major players account for most of the advertising spend (Google and Facebook).
- This jump in digital video is reinforced by another established trend: The younger the viewer, the more likely he or she is to favor digital video viewing over traditional TV.
- 2018 will surpass 2017 mainly because of the FIFA World Cup and the Winter Olympics
- Digital advertising is now the #1 channel taking 37% of the market, and will generate the most advertising dollars than any other medium by 2021.
Digital Advertising Growth
The appeal of digital ads goes hand-in-hand with the engaging nature of video in general. Video ads provide entertainment in addition to any relevant product information that is conveyed. This is what has helped video grow exponentially. The power of video has caused companies to really study how video affects advertising, sales and the future of the internet. It was expected that 74% of all internet traffic in 2017 would be video and 52% of all marketing professionals worldwide classify video as the most successful tool to reach the highest ROI. The demand for video continues to grow, and at a rapid speed, which speaks volumes about the future of digital advertising and its influence on future trends. Video consumption online continues to rise. It turns out that for 2017 87% of online marketers use video content and millennials watch the most online videos of all age groups. Social video generates 1200% more shares than static content, which highlights the engaging, and personal aspects of video in general that inspire video sharing. This creates huge opportunities for digital advertising.
Personalization and Data are Key
As one source wisely put it: “The Big Three of Marketing in 2017: Data, Personalization and Content.”
Data driven marketing, content and personalization are becoming best practices, rather than suggestions. When combined with video, those three key areas are winning tools in targeting each specific person inside key demographics. Traditional brands are making drastic changes and the world is waking up to the idea of personalization becoming an intrinsic part of any marketing strategy. Big data is also necessary to achieve all of these goals. There are countless articles online on the relevance of data-driven, personalized marketing, since many are only realizing now that the future of digital advertising is already here. It is becoming the new normal for advertising.
Treepodia has been successfully integrating personalization, data and video by using strategies that the advertising world is not only embracing, but racing to implement. The demand for video ads and video content continues to soar.
The Turning Point for Digital Advertising
This past year has been characterized as the major turning point for digital advertising. Marketers were anticipating this massive leap and now advertising companies and businesses around the world have shifted their attention to digital. This exciting trend has piqued global attention—from all of the major decision makers—as they watch the stats roll in for 2017 and witness for themselves the year of digital advertising.