Transforming Marketing: The Rise of Digital Video Advertising

Did you know that 90% of users say that video helps them make purchase decisions? This statistic is backed up by Forbes. The effectiveness of motion picture advertising is due to the fact that the video format allows you to show the product in action, making it understandable to the target audience. By demonstrating the benefits of the product, the video clearly justifies the reasons for choosing it. But visual advertising goes even further: it evokes an emotional response that helps build trust and loyalty to the advertised product. These are just some of the factors that make video a powerful tool in the marketing campaign arsenal.

Another impressive figure: 85% of all internet users in the US watch online media content on platforms such as YouTube, Netflix, TikTok and other streaming services. This can range from entertainment videos to educational, news and other types of content. Video ad accounts for more than 25% of this online visual content. In 2024, digital video ad spending in the US will total around $77 billion, and it’s estimated that this figure will exceed $100 billion by 2027, according to Statista. The numbers speak for themselves: ignoring video advertising could leave your business behind. That’s why it’s important for businesses to embrace digital advertising in video format — to stay competitive in the marketplace. Below, we take a closer look at what is video advertising and how you can take advantage of these future trends with practical tips. 

Current trends in digital video advertising

Modern technologies in video advertising have proven their effectiveness and gained a significant share of the advertising market. This trend is driven by social media shaping and engaging user interests.

Already established trends include:

  1. Short format. This format allows you to get your message across quickly without overwhelming your audience. 
  2. Vertical video. Takes into account the fact that more than 80% of video ad viewers use mobile devices — smartphones and tablets — that have vertically oriented screens.
  3. Personalization. Access to large volumes of (non-personalized) data allows the creation of personalized videos that take into account the interests and even the behavior of the target audience. This approach helps to increase the relevance of advertising.

SmartyAds experts look 2-3 years ahead. They stress that visual content is not just a trend, but a necessity for modern business. In order to stay afloat, companies will need to master future trends such as interactive video and video with augmented reality (AR). The former uses interactive elements — polls, buttons, links and QR codes — to increase engagement, collect data and drive conversion. In the second case, AR technologies make it possible to create unique and memorable advertising campaigns that interact with the user’s real world and significantly increase brand awareness. The above is cool, but what really makes video advertising great is simplicity while supporting complex technology like AI. Let’s talk it about.

Practical tips for implementing digital video advertising

A sign of ineffective advertising is when users ignore generic advertising messages — this is a common problem with traditional marketing campaigns. It’s also known as ad blindness. Companies waste up to 50% of their budget on blind ads. Digital video advertising is designed to solve this problem. The effect of visibility, moreover — the memory of the subject of performance thanks to creative content and the optimization of messages for different platforms — from video hosting and social platforms to mobile devices and outdoor billboards. Effectiveness is reinforced by frequency of exposure — regularity helps ads stay in viewers’ minds; and targeting — pinpointing the audience based on their behavior. 

Behind all this is AI, which analyzes huge amounts of data to identify patterns of consumer behavior. This approach makes it possible not only to show personalized content, but also to predict the solution to the consumer’s next need, for example by offering a product or service that may interest them in the near future.

The following practices will help you reach your target audience and optimize your advertising campaigns — key aspects of SmartyAds:

  1. Data-driven, personalized targeting: Machine learning for audience segmentation and ad personalization predicts users’ interests, behaviors and preferences, enabling more precise targeting and higher levels of engagement.
  2. Cross-platform approach: To reach all potential audiences, it is important to adapt visual ads to different devices: smartphones, tablets, computers, smart TVs and outdoor digital billboards. 
  3. Interactive video and shoppable formats: Interactive video and shoppable formats encourage users to interact with the content, significantly increasing conversions.
  4. Brevity and content: Short videos (6-15 seconds), such as bumper ads on YouTube, are growing in popularity in the US.
  5. Programmatic video ad serving: DSP is a tool that automates the buying and placement of video across platforms. It reduces the time and cost of campaign management while improving targeting and return on investment (ROI).

As part of this strategy, AI is used by default to analyze the success of the video in real time. At each iteration, the results are filtered through the lens of A/B testing. Systems to track KPIs such as view-through enable cost optimization and efficiency. Leading the way are creative messages and original spots that tell stories in a way that evokes emotion. The right approach is to adapt the story to the cultural specifics of your target audience. If your target is the U.S., stories about overcoming hardship or reflecting diversity and inclusion are good. Humor, socially relevant themes and anti-heroes will also help.

Bottom line

Video advertising is a powerful tool that is opening up new business opportunities as it evolves. AI-enabled interactivity and adaptability is why video has become a must-have for advertising strategies, helping to effectively engage and retain audiences. The introduction of personalization and new technologies further enhances the impact. Armed with knowledge on what smart media ads are, you need experience. Follow best practices and start innovating your visual advertising strategy today to stay ahead of the curve tomorrow!

Answers to objections:

  • “It’s expensive” — You can start with low budget campaigns.
  • “We lack specialists” — Automation and available tools can help solve this problem.
  • “I’m not sure of the results” — Success stories show a high return on investment.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *