Three Trends Shaping the Future of Video in 2017
We’re increasingly living in a video first world. Cisco reported in June that more than 80% of all internet traffic will be video by 2021, and YouTube users are watching hundreds of millions of hours of video content every day. The consumer demand for video is staggering. But beyond simply investing in more video ad buys, what formats and strategies should advertisers be watching to make sure they maximize the returns on their campaigns? This round-up from Forbes highlights some video trends that may help us predict where video advertising is heading in the future.
Video is getting more social
One of the biggest conclusions from Forbes’ roundup of video ad stats is that social platforms and advertisers are increasingly moving their ad buys toward social video. Just consider the words of Facebook CEO Mark Zuckerberg, who told investors earlier this year that his company was moving rapidly to expand its video products and advertising opportunities. “We see a world that is video-first with video at the heart of all of our apps and services,” said Zuckerberg. Facebook’s pivot toward video comes on the heels of recent research suggesting more advertisers were planning to increase their investment on social video ads offered by companies like Twitter and YouTube.
Video is getting more mobile
By now, it’s probably no surprise that video is increasingly being consumed on mobile devices. In fact, as Forbes noted in its trend round-up, “social video is mobile video,” referring to the growing volume of mobile-focused ad inventory offered by major social media companies with popular apps like Facebook, Snapchat and Twitter. We’ve also talked about the growing popularity of mobile video for consumers and advertisers in several blog posts over the past few months. Much like the growing popularity of social video, all signs suggest more video ad spending will also shift toward mobile devices.
Video is moving down the “purchase funnel”
The long-held assumption among advertisers was that TV and video were primarily meant to build brand awareness. Consumers might learn about a brand or a new product from a TV or video ad, but they wouldn’t necessarily buy those products without further persuasion. But thanks to new types of video formats, new measurement tools and new ad strategies, more advertisers are seeing success using video to drive sales. MediaPost, for example, found that 90% of consumers in a recent study were influenced to make a purchase by a video they saw on social media. Meanwhile, other brands like home goods firm Wayfair have seen a 3x increase in ecommerce sales thanks to video products like YouTube’s TrueView.
Video is already an important component of advertisers’ media plans. But as the industry continues to evolve, new video ad formats in mobile and social will play an increasingly important role, forcing a potential shift in spending. And thanks to new measurement tools and video ad products, video is even getting more effective at driving online and offline sales, helping marketers look at the format with fresh eyes. Each of these shifts represent an exciting evolution in video that’s sure to impact advertisers’ decision-making in the months to come.