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Video advertising landscape for 2020 – 2023

Video advertising landscape for 2020 – 2023

Why Video over Display unit

A video conveys more information in a short time thus video content is more engaging compared to the text. This format plays a vital role in sharing information and educating the audience by incorporating audio to the visuals. 

According to the survey results conducted over the past years, we see immense growth in video viewers and about one-third of the shoppers purchase the product after watching a video.


The primary video sites like Youtube, Facebook includes the features enabling marketers to see the performance of their content based on views, shares, likes, etc. The ad completion rates on premium sites are extremely high maintaining 85% as an average. 


1.      Social Media

·        Every Brand needs a presence on social media.

·        Platform like Facebook, Instagram, TikTok, etc are focusing more on video in the form of stories and full screen live streaming. 

·        Most of the Social Media platform enabled the feature to share videos across the network as well as across different platforms. 

·        With the use of Influencer marketing, Live video streaming is becoming an important part of social media. 

·        Youtube confirms 100% increase in the video consumption every year.

·        Advertiser will spend 25% more on video ads than they did last year, nearly 3 out of 4 buyers are planning to increase their digital video ad spend in the next 12 months

2.      Advanced TV/OTT:

·        According to Comscore, over 50 M users watch video over smart TV across the globe and user watch them in the same pattern.

·        The landscape of video media is being reshaped with the streaming platforms. Top players like Netflix are trying to reduce the subscription plan to acquire more user because of competitions like Amazon, Disney, Roku, Apple TV etc are rapidly growing.

·        Monetization models are increasing to make more money. 

·        Ad-supported video on Demand(AVoD): Platform like Youtube which has a larger users base tend to wait for the ad to complete to watch their requested video. The revenue is generated based on the ad slots

·         Subscription based Video on Demand(SVoD) – Netflix, Amazon etc provide the services with subscriptions plans which is the base of the revenue generation.

3.      Native and Programmatic:

·        Advertisers are allocating more than 70% of their budget out of the social media

·        According to IAB survey, 13% of the budget goes to Music sites, 14% to Original digital video sites, 14% to User-generated sites, 14% New sites, 18% to TV shows and 25% to Social media. 

·        Captive user base helps to drive better conversions.

·        The ad purchase through programmatic is on the rise so leading with the programmatic approach will be the best strategy while creating a campaign planner.          

4.      Formats:

·        Video ads on mobile apps: Viewability add completion rate is much higher while placing the ads in the in-app and the apps generate revenue from pay per scale, subscription, download etc. 

·        Out-stream video ads: Ads playable outside a video player, this makes any publisher generate revenue. The user has less intrusive experience. Thus advertiser can serve on non-video environments. The growth is slow because of the lack of data to measure and the possibility of ad fraud.

·        In-stream video ads: The content helps to reach the right audience where the advertisers are able to run the ads at different timeline(Pre-roll, mid-roll and Post-roll) which makes it flexible.  They are cost-effective compared to other formats.


Video Ad spend:

 The top giant in an online marketplace like Amazon, eBay etc report the buying increase up to 35%  while adding a video ad. 

Advertiser will spend 25% more on video ads than they did last year, nearly 3 out of 4 buyers are planning to increase their digital video ad spend in 2020

Video purchase on different ad formats are rapidly growing, A survey from IAB on video ad spend is given below. 


Thus the video ad spend will be growing significantly in the upcoming years. Programmatic approach, Connected TV and Social media will take over the traditional TV within the timeframe of 2020 to 2023.

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