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Video Advertising Strategy

  • The protagonist of the IAB Seminar held on October 16th was video advertising

On October 16th was held the IAB Seminar, organized by IAB Italy which for this edition has promoted one of the most used tool of recent years: video advertising. Among the major sponsors we remember Facebook, Microsoft and Yahoo! And they held some of the speeches during the day thus giving an interpretation of the phenomenon that is increasingly used by the major players of the digital advertising industry.

According to the research of the Osservatorio New Media & New Internet of the Politecnico of Milan, videos are enjoyed using the major digital devices such as PCs, smartphones and tablets by the 87% of the Italian population. In 2013 the 35% of videos were viewed using Youtube, a percentage that drops to 25% today and this is partly due to the increase of Facebook (20%). Overall, 45% of online videos is viewed through social platforms or sharing communities such as Youtube and Facebook.

The average total time spent by the user in viewing videos online is about 2 hours for Youtube and less than 2 hours for Facebook; on the average day the user spends about 33 minutes on the Internet to watch videos. It is well to remember that user’s behavior on the Internet is not limited to the watching of videos on a single channel but on different websites and dedicated platforms: 86% of video views occurs on Youtube, 52% on Facebook, the 34% on information websites such as Rai.tv and Mediaset.it and 22% on apps on mobile devices. The main device used for the fruition of videos is the PC (66%), followed by smartphone (38%) and tablet (31%); the greater percentage of users that watches videos uses smartphone and that signifies the preference of them in viewing videos in mobility, thanks also to the possibility to share contents through social networks connected to smartphone. The majority of the contents regards music videos.

The spending of video advertising is growing: in 2011, the spending reached 80 million euro and in 2012 arrived to 170 million with an increase of +132% over the previous year and in 2013 there was an increase of +32% if compared to 2012, reaching a total of 225 million euro. The percentage related to the advertising for year 2014 is not yet official but it will be published by the Osservatorio New Media & New Internet of the Politecnico of Milan in occasion of the IAB Forum 2014; we can say that it will be registered a growth of +20% - 25%. In three years the spending of video advertising has tripled and for 2018 the amount will weigh around 25% on the total Internet advertising market.

Among the advantages of video advertising we can find the strong effectiveness of the tool, the reduction of costs, the increase of the publishing offer for this type of instrument and the possibility of selecting the bands audience to hit. Facebook will play an increasingly important role for the growth of video advertising.

E-Business Consulting, a Google Partner agency, is able to plan a video campaign on Youtube and to plan them on Adwords and by diffusion on the main Social Network. The agency will also be present at the IAB Forum 2014 with a workshop on Email Marketing.

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