Video advertising revenue is increasing faster than any other medium other than mobile, with no signs of slowing down. As users increasingly shift their attention away from desktops and toward smartphone and tablets, ad dollars are starting to follow. Long-form videos continue to grab the most online advertising. But creators who want to build big audiences also need short content.
Long-form video, defined as more than 20 minutes in length, attracted more than half of the entire ad spend on online video. Views of online videos grew 27% in the first quarter compared with the same period last year, while views of online video ads grew. Online video ads are getting three times more clicks on average than other digital ad formats, including mobile, display, and rich media ads.
"Video does capture the imagination of big brands, and big brands are looking to follow audiences," Mane added, pointing out the growth of Web-native video content. And search ad revenue continues to be strong, growing 7 percent in the first half of the year to $8.1 billion. Online video is growing faster than most other advertising formats and mediums.
Video ad revenue will increase at a three-year compound annual growth rate (CAGR) of 19.5% through 2016, according to estimates. That’s faster than any other medium other than mobile. And much faster than traditional online display advertising, which will only grow at a 3% annual rate. There’s also a lively business in music videos, trailers and other short clips syndicated via aggregators such as YouTube, AOL and Yahoo. There was 23% growth year over year for short-form, like music videos and short clips,” excerpted from longer show.
What reports says…
Online video ad revenue will reach nearly $5 billion in 2016, up from $2.8 billion in 2013, while TV ad revenue will decline by nearly 3% per year during the same time period.
Video ad views exploded in 2013, topping over 35 billion views in December, averaging over 100% year-over-year monthly growth during the year.
Online video ads are significantly more expensive than other formats, but prices are steadily declining as more publishers rush into video, and placements open up.
Video ads have an average click-through rate (CTR) of 1.84%, the highest click-through rate of all digital ad formats.
Streaming devices and connected TV accounted for just 2% of online video ad views in the fourth quarter of 2013.
In the first half of 2013, online advertising revenue totaled $20.1 billion, an 18-percent increase from the same period in the previous year,
The growth of mobile and digital video advertising has been paralleled by fundamental changes in the online advertising industry.
Another area of growth is Web video. Advertising revenue from digital video reached $1.3 billion in the first half of this year, according to the report, a 24-percent increase from the previous year.
Mobile ad revenue reached $3 billion in the first six months of 2013, a whopping 145 percent increase from the previous year.
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