Top 5 Digital Video Consumer Trends Increasing Ad Spending

Top 5 Digital Video Consumer Trends Increasing Ad Spending

With multiple trends driving the increase in video ad spend it’s important to identify the impact it has on consumer consumption and device purchases. If one looks deeply enough into these trends, you’ll be able to find an actionable roadmap for the future and plan accordingly.

Take a look at the top 5 consumer trends we’ve identified below:

Trend 1: Increased Mobile Device Viewing

Consumers are no longer tied to watching video on TV sets, but TV is far from a dead issue. The major issue in consumption is increased device use. This covers cell phones (iOS & Android), laptops, iPads, tablets, and the expanding ultramobile market segment. There are apps capable of playing short video on the Apple Watch.

Trend 2: Monitor Demographic Changes

Advertisers should review demographic changes regularly. Recently a report by DIGIDAY reported  consumers aged 50 to 64 were watching 11 minutes of digital video a day in 2014, but this year the figures are closer to 19 minutes. Adults have cut back slightly on their typical 6 hour plus a day TV viewing. Identifying intelligence like this will help you know where consumer shifts are happening so you can plan accordingly.

Trend 3: The Importance of Mobile Viewing Options

According to Nielsen, the consumption in all demographic segments increases yearly. Video ad platform FreeWheel shows that more than 60 percent of ad views are for videos less than 20 minutes. Data from NPD group shows that the larger mobile screen is responsible for more video consumption. Adobe research shows 50% more viewing on desktops than smartphones.

If you’re involved in the build-out of client websites or minisites, make sure there’s a mobile version as well.

Trend 4: Ad Revenue Increase

Video ad revenue is expected to increase from $5.96 billion this year to $12.71 billion in 2016, according to eMarketer. Keep in mind that spending is still far behind TV ad spending. Ad start rate has decreased on all devices. Those on desktops are viewing the most ads per video view. Tablets had the largest decrease in ad-start to video-start ratio. While viewing frequency increased, fewer ads were started per video watched compared to last year. The decline is largest on tablets. Combining videos per visitor and ad starts per video results in smartphone users viewing about the same number of ads as last year, while tablet and desktop users are viewing fewer.

Trend 5: New FCC Ad Guidelines

With the tougher native ad guidelines issued by the FCC, some advertisers and publishers may have to make changes such as the words promoted, or promoted stories. According to the FCC, this can be misleading for consumers. The word “ad,” or “sponsored advertising content” is allowed. Additionally, “Promoted by [advertiser name here]” is also an option.

Only 30 percent of publishers are in compliance with the new regulations, so there’s a lot of work to be done. Advances in digital technology and the ad dollars associated with this rush have really only begun. As more and more consumers turn to new media and new ways of digesting that media, ad spending will also continue to evolve and grow. The trick will be capitalizing potential ad revenue while remaining compliant.

 

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