By Amitt Sharma
Video advertisements are becoming a major driving force for advertisers because of the way they have redefined storytelling for the new-age audience. Owing to the growing popularity of various social video platforms and video-sharing websites, demand for video content has increased by 54% in the last few years. This has resulted in the development of new video ad serving technology.
The rise of OTT and CTV viewing is giving advertisers new methods to reach their target audiences by combining the power of television with the accuracy of digital technology. According to Mordor Intelligence, the over-the-top (OTT) market is estimated to reach $223.07 billion by 2026.
In video advertising, AI technologies strive to assist in overcoming the difficulty of capturing the attention of potential customers. The AI solutions use clustering and pattern matching to identify new customers, customise communications using AI-powered hyper-personalisation, and use pattern identification to decide the best timing and methods for communicating. Conversational marketing is one such profitable personalised AI solution. This strategy can assist advertisers in maintaining personal relationships with their customers, improving their relationship with the brand, and generating a better purchasing experience.
Conversational AI-driven advertisements are distinct because they provide quick, real-time engagement, allowing marketers to efficiently navigate the narrative for superior targeting. Conversational AI benefits businesses in lead and demand generation and customer support, in addition to being a cost-effective option. Conversational advertising, also known as interactive advertising, provides for immediate, personal, and in-the-moment connections with customers at the start of the sales funnel. This enables advertisers to target specific leads, boosting the likelihood of conversion. According to an Ion Interactive survey, 93% of marketers believe interactive content is useful in educating buyers.
High-quality, dynamic product graphics improve trust, engagement, and eventually revenue, making 3D marketing appealing in e-commerce. According to Cappasity’s 3D imaging market research, 82% of product page visitors activate the 3D view, and 95% prefer an interactive 3D depiction to video playback. Coca Cola’s 3D ad, which was displayed on a robotic billboard in Times Square and used moving blocks to vary the billboard’s flatness and create dynamic movement, is a wonderful example of a 3D advertisement.
Benefits of Video Ads for Advertisers
Creates Branding and Consumer Trust
Consumers are prompted by video advertisements to visit a specific website and purchase a product. As a result, it’s critical to keep the video ad short, engaging, and direct. According to Statista, video has a 90% online usage reach, and as the number of digital video watchers continues to rise year after year, marketers are embracing video as a promotional tool more vividly than ever. Having the correct message and delivering it in an entertaining way will help to achieve the right balance between advertising business and fulfilling customers’ curiosity about it.
A minute of video is worth 1.8 million words of text, according to Forrester Research. Due to the high recall power and the variable strong pull of the audio and video combination in video marketing, consumers are more likely to remember it even after 30 days than, for instance, print advertising. According to some estimates, the digital video advertising market will increase at a compound annual growth rate of 20.89% from $41.132 billion in 2019 to $155.18 billion in 2026.
Boosts conversion rates
Advertisers can use video ads to better engage audiences and gain more ad clicks. Video marketing is a great approach to generate and convert sales leads. Consumers are prompted to visit a specific website and purchase a product as a result of video advertisements. Hence, it is critical to keep the video ad short, engaging, and straightforward. To keep the brand story going and turn an ad click into a transaction, it is advisable to link all of the video ads to relevant, customised post-click landing sites.
Video is both educational and entertaining, which is why it has easily surpassed other types of material in terms of consumer consumption. Video advertisements attract 20% more clicks than image ads, resulting in increased traffic due to a greater click through rate (CTR). When that traffic arrives on a website, visitors watch videos for 5X longer than they view static images. Therefore, adding videos to landing pages increases conversions by 86%.
Encourages precise targeting and social shares
Targeting combines engagement metrics with context relevance to focus on only the best-performing and most relevant content. Since relevant video commercials can be played to a clearly defined target group in real-time within the context of other videos or another setting, such as a related editorial context, programmatic video advertising combines the strengths of moving images in the form of multisensory commercials with the qualities of precise targeting, AI, machine learning, and real-time bidding.
Consumers that watch fascinating or relevant video advertisements like sharing the videos with their social media peers. The sheer volume of social media shares alone has the ability to drastically improve any company’s exposure. By matching customers’ expectations, shared video commercials create a more engaging atmosphere for them. It enables brands to swiftly inform and aesthetically entertain consumers and prospects, resulting in a powerful platform for conversion and precise targeting of consumers and prospects.
Integrated advertising solutions and audience mapping
As digital content continues to grow, video advertising has revolutionised the way by which target audiences are connected. Integrated video campaigns aid in connecting with users across websites, social networks, mobile devices, and connected TVs, as well as delivering content smoothly across many other touchpoints on a consumer’s journey. As a result, engaging with content-positioned brands for purchase in the competitive category enhances exposure.
Audience mapping for video marketing ensures that the video considers all of the direct and indirect aspects that could affect the success of the campaign. Whether it’s reaching a group of prominent policymakers, explaining impact to a contributor, or raising the profile of an issue, audience mapping aids in achieving the goals.
Video adverts remain visible in Google search results for a long time and are difficult to get rid of. If there is an engaging video content, it can be highly advantageous. Spending an initial sum of money to advertise the video across numerous platforms is a lucrative option. As a result, it is a very cost-effective means of promoting a brand or its products. Another point to consider is that video commercials are virtually limitless, as they are shared on multiple platforms and video ads stay in Google search results for a long time. These types of commercials are an excellent way for brands to share their values with the customers.
Advertisers need to keep looking forward as the internet changes and new technology develops, but at the heart of any campaign is still its creativity. Good, effective advertising will still drive the messaging home. There are numerous advantages of using video advertisements as videos have a higher impact due to the audio-visual aspect and can help boost visitors to a company’s website. Needless to say, an increase in website traffic equals an increase in sales. Thus, such advertisements are the most efficient way to reach a large number of consumers.
The author is founder and CEO at VDO.AI. Views expressed are personal.