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The Future of Video Advertising: Why Video Advertising is Becoming Popular

Michael Arking

September 24, 2023

12 min read

Video advertising has emerged as a potent tool for businesses and brands alike. The future of video advertising looks promising for those who harness its potential. In this comprehensive guide, we'll explore what video advertising is, why you should include it in your marketing strategy, its incredible power, and the forecast for its future.

What is Video Advertising?

Video advertising refers to the practice of using video content to convey marketing messages to target audiences. It can take various forms, including pre-roll ads, in-stream ads, out-stream ads, social media video ads, and more.

The goal of video advertising is to capture the viewer's attention, engage them with compelling content, and ultimately persuade them to take a desired action, such as making a purchase or signing up for a service.

Why Should You Include Videos in Your Advertising?

1. Captivating Visual Storytelling

Videos are a dynamic form of visual storytelling that can convey your brand message, values, and product offerings more effectively than static content. They engage viewers emotionally, making your brand more memorable. In a world overwhelmed with information, compelling video content stands out and captures your audience's attention.

If you're intrigued by the idea of using captivating visual storytelling to boost your .product's impact and eventually increase conversion, you won't want to miss our latest blog post The Power of a Well-Crafted Product Story Video.

2. Enhanced Reach and Shareability

Videos have the power to go viral, spreading your message far and wide.  Video content on social media is shareable, which can greatly increase your reach. With a single click, viewers can share your video, leading to increased brand exposure and reach your target audience.

3. Improved Conversion Rates

The future of video advertising is all about driving conversions. Studies consistently proves that adding videos to your marketing boosts conversion rates. Whether you're aiming to increase website sign-ups, product purchases, or other actions, videos can influence viewer behavior and drive them to take the desired actions.

4. Building Trust and Credibility

Video content makes your brand more human. It lets viewers see the faces behind your products or services. By showcasing user story or testimonials, behind-the-scenes glimpses, or educational content, you can establish trust and credibility with your audience. People are more likely to do business with brands they trust.

5. Mobile-Friendly and On-the-Go Access

People use smartphones and tablets a lot now than ever before. Videos work well on mobile devices, so they're great for reaching a broad and diverse audience.  Make sure your video content looks good on different screen sizes with responsive design.

6. SEO Benefits

Search engines love video content. Including videos on your website can improve your search engine ranking. This means that your website is more likely to appear in search results, driving organic traffic and increasing your online visibility.

7. Tracking and Analytics

The future of video advertising involves more than creating and publishing content. It's also about understanding its performance. Video analytics tools provide valuable insights into how viewers behave. This helps you keep improving your ad strategy. You can track metrics like view time, engagement, and conversion rates to enhance your videos for better results.

8. Versatility and Creativity

Videos offer endless creative possibilities. You can create explainer videos, product videos, brand videos, and live streams. You're free to experiment and discover what connects with your audience. This versatility helps you to adjust your video marketing strategy for different platforms and goals.

9. Competitive Advantage

The future of video advertising is continuously changing. Being an early adopter can make your brand more competitive. You can stand out from competitors who are still using the old advertising methods and you can reach a wider audience.

10. Social Media Dominance

Social media platforms are heavily favoring video content. Whether it's Facebook, Instagram, YouTube, or Twitter, videos are more likely to be shared, increasing your brand's visibility and potential reach. Embracing video advertising ensures your content aligns with these platform trends.

If you want to explore how video content can benefit your marketing strategy, check out this blog post on the 16 Benefits of Video Marketing.

Why is Video Marketing So Powerful?

Video marketing's power lies in its ability to tell a compelling story and evoke emotions. It combines visuals, audio, and storytelling to create a memorable experience for the viewer. This emotional connection can lead to brand loyalty and increased sales.

Moreover, video marketing helps businesses display their products or services in action. This helps potential customers understand their value. It's a versatile tool usable for product videos, user stories, and behind-the-scenes looks at your business.

Kettle Chips Video Advertising

Why is Video Advertising Becoming So Popular?

The popularity of video advertising continues to soar, driven by several compelling factors. Let's delve deeper into why video advertising is increasing in popularity and how it's shaping the future of advertising.

1. Social Media

With the ever-expanding nature of social media platforms, it's becoming increasingly challenging for brands to stand out. Messages can easily get lost in the social media void. However, video content has emerged as a powerful solution to this problem. Videos speak louder than written words and do more to bring your product to life. They capture attention in the sea of content, making your brand more memorable and engaging on social media platforms like Facebook, Instagram, and TikTok.

2. Text vs. Videos

It's a well-known fact that we remember much more of what we hear and see than what we read. Video is not only more memorable but also more exciting than static images or text. Quick video clips, with their vivid and clear messages, have the potential to leave a lasting impression on your audience's minds, making your brand and products more memorable.

3. Interactive Quality

Connecting with your audience through video is not just effective; it's also a personal and effective way to promote a food product. Video content allows you to create immersive experiences that resonate with your audience on a deeper level.

For example, Social Motion Film's videos for Pop Bites and Kettle Chips engage viewers with fun scenes, vibrant colors, and captivating music. This level of interaction and emotional connection is hard to achieve with text or images alone.

4. Website Content

Your website is often the first point of contact between your brand and potential customers. To make a lasting impression, it's essential to "wow" your visitors. Many successful companies are using video content to draw in more website visitors and keep them engaged. Adding captivating videos to your website not only enhances user experience but also piques interest in your product or service.

5. A Demand for Product Creativity

In today's competitive market, a high-definition picture of your product isn't enough to capture consumer attention. Audiences crave engagement and entertainment like never before; they want to see your product in action.

A video production company like Social Motion Films can bring your business to life and specialize in making your product the star of the show, using video to tell a compelling story that resonates with your audience.

What is the Forecast for the Future of Video Advertising?

Looking ahead, the future of video advertising is incredibly promising, driven by compelling video marketing statistics:

  • A remarkable 91% of businesses have embraced video as a potent marketing tool in 2023.
  • An overwhelming 96% of marketers still emphasize the significance of video as a cornerstone of their marketing strategy.
  • 96% of individuals have engaged with explainer videos to gain deeper insights into products or services.
  • 91% of consumers have voiced their desire to witness an expansion of online video content from brands throughout 2023.
Future of Video Advertising - Video User Statistics from 2016 to 2023

Video User Statistics from 2016 to 2023 According to Wyzowl.

According to Wyzowl, these compelling statistics highlight the clear path ahead for video advertising. As businesses and brands tap into the immense potential of video content, its role in shaping the marketing landscape becomes increasingly prominent. The future looks promising for those who effectively utilize the power of video advertising.

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What is the Future of Video Advertising?

The future of video advertising holds immense promise for businesses and brands seeking to capture the attention of their target audiences. With the digital landscape constantly evolving, video advertising is set to become even more integral to marketing strategies. One of the key trends shaping the future of video advertising is personalization.

Brands are increasingly harnessing the power of data analytics and AI to deliver highly tailored video content to individual viewers. This level of personalization not only enhances engagement but also drives conversions, making it a crucial aspect of video advertising in the years to come.

Furthermore, the future of video advertising is deeply intertwined with the rise of immersive technologies such as virtual reality (VR) and augmented reality (AR). These technologies offer innovative ways to create immersive and interactive video ad experiences, allowing brands to forge deeper connections with their audience. As the adoption of VR and AR devices continues to grow, businesses that invest in creating captivating, immersive video content will likely gain a competitive edge.

In conclusion, the future of video advertising is marked by personalization and immersive technologies, and businesses and brands that adapt to these trends are poised to thrive in the evolving digital marketing landscape.

Why Video Ads are the Future of Digital Advertising?

1. Consumers Crave Video Content

As the saying goes, "a picture is worth a thousand words," and by extension, a video is worth a million. In our fast-paced lives, people prefer consuming content that is easy to digest and visually appealing. Video provides precisely that. Studies have shown that consumers are more likely to engage with video content compared to text or static images.

2. Mobile-First World

With the widespread adoption of smartphones, people are watching videos on their mobile devices more than ever. Video ads are inherently mobile-friendly, and this aligns perfectly with the way people consume content today. As businesses and brands adapt to this mobile-first world, video content becomes a crucial part of their strategy.

3. Growth of Video versus Text

The growth of video consumption compared to text is staggering. People are more likely to watch a video than read a long article. This shift in consumer behavior underscores the importance of video advertising in staying relevant and competitive.

4. Higher Engagement

One of the primary reasons video advertising is skyrocketing in popularity is its ability to capture and hold viewers' attention. In a fast-paced digital world, grabbing and maintaining engagement is a top priority. Videos, with their combination of visuals, audio, and storytelling, excel in this regard. They can convey complex messages in a concise and captivating manner, making it easier for businesses to connect with their audience.

5. Shareable

In the age of social media, shareability is a goldmine for marketers. Video ads are inherently shareable content. When viewers find a video interesting or emotionally resonating, they are more likely to share it with their networks, exponentially increasing its reach. This organic sharing creates a ripple effect that can make a video go viral, amplifying its impact.

6. Higher Click-Through Rate (CTR)

Video advertising isn't just about views; it's also about driving actions. Studies consistently show that video ads lead to higher click-through rates (CTR) compared to other forms of digital advertising. This means viewers are not only watching but also taking action, such as clicking on a link or making a purchase.

7. Social Media as an Integral Component of Video Advertising

Social media platforms have fully embraced video content. Algorithms on platforms like Facebook, Instagram, and TikTok prioritize video, giving businesses an advantage when they utilize video advertising. Additionally, social media provides advanced targeting options, ensuring your video ads reach the right audience.

8. Reaching a Larger Audience

The internet is a vast playground, and video advertising helps you reach a broader audience. With the potential to go global, businesses and brands can tap into new markets and demographics they may not have considered before.

9. Reaching the Right Audience

Thanks to advanced targeting options, video advertising allows you to pinpoint your ideal audience. You can target based on demographics, interests, behaviors, and even retarget previous website visitors. This precision ensures that your message reaches those most likely to convert.

10. Consumers are Receptive to Video Advertising like Never Before

Consumer preferences have shifted towards video content. People are more receptive to video ads, provided they are relevant and engaging. This receptiveness presents an opportunity for brands to connect with their audience on a personal and emotional level.

11. More Appealing to the User than TV and Print

Video ads offer an immersive and interactive experience compared to traditional forms of advertising. It allows for storytelling, interactivity, and immediate calls to action, making it a more appealing choice for modern consumers.

12. Directly Related to Purchase Decisions

Research has indicated that video content has a direct impact on influencing purchase choices. According to 90% of marketers, video content has played a crucial role in generating leads. When consumers watch a video that highlights the advantages or demonstrates the use of a product or service, they are more inclined to make a purchase.

13. SEO Benefits

Search engines, especially Google, value video content. Websites that include video are more likely to rank higher in search results. By incorporating video into your content strategy, you can enhance your website's SEO and visibility.

14. Personalization and Targeting

Video advertising allows for highly targeted and personalized campaigns. You can reach specific demographics, interests, and behaviors, ensuring that your message resonates with the right audience. This level of precision is unparalleled in traditional advertising methods.

The future of video advertising is bright and promising. Its ability to engage, resonate, and drive actions among viewers makes it an essential tool for businesses and brands in the digital age. As consumer preferences continue to evolve, embracing video content is not just a trend; it's a strategic imperative for businesses and brands looking to thrive in the years to come.

What are the Videos with the Highest Percentage of View Time?

Now that we've explored the future of video advertising, it's crucial to understand which types of videos tend to get a higher percentage of view time. Videos are a highly-circulated form of information consumption on social media. However, certain types of videos tend to get more circulation across different platforms than others. While the social media platform itself does play a role, studies have suggested that people tend to prefer specific types of content.

Below are types of videos with high percentages of videos watched per category.

1. Product Reviews

Impact places product reviews as one of the most-watched types of videos. Many influencers and popular vloggers reach their audiences by doing reviews of technological products, beauty products, and entertainment such as video games, popular television shows, and movies. It is found that 64% of consumer electronics shoppers use YouTube to review electronics before purchasing them.

2. Educational/How-To

Tutorials on how to do certain, multi-step tasks or teaching others about certain content areas are also a highly viewed form of video. Since learning how to perform a skill on your own is a good way to save money, people across various age groups and demographics seek these types of videos out for a wide variety of reasons. For young, "Gen Z" folks from ages 18-24, YouTube was the highest preferred tool for lesson learning.

3. Q&A

Videos that focus on question and answer, or "Q&A", can engage with video watchers more personally. These videos are beneficial to help viewers or potential consumers better understand a company, a product, or to get to know the people in the video better. Because these types of videos allow the viewers to choose their questions and interact directly with the video, they gain a lot of traffic.

While comedic, "haul" videos and vlogging videos gain massive amounts of views every day, they aren't as beneficial to conducting a business as the ones mentioned above. Using these types of videos to your advantage is sure to expand your consumer base and provide a good platform for running your business.

Are you curious about how to enhance your video marketing efforts and stay up-to-date with the latest strategies for success? We've got you covered! Dive deeper into these topics by checking out our insightful blog posts: 12 Tips for Successful Video Marketing That Drive Results and Video Marketing Strategy Guide 2023. These comprehensive guides are packed with valuable tips and strategies to help you harness the power of video marketing and elevate your brand's online presence.

Conclusion

The future of video advertising is not just a fleeting trend; it's a strategic imperative for businesses and brands targeting today's tech-savvy consumers. As we've explored in this guide, video advertising is a dynamic and powerful tool that captivates audiences, fosters engagement, and builds trust. Its unique ability to convey complex messages and evoke emotions makes it an indispensable component of any successful marketing strategy.

Looking ahead, the forecast for video advertising is exceptionally promising. As technology advances, so do the possibilities for creative and interactive video content. Businesses that invest in video advertising now position themselves for long-term success in an ever-evolving digital landscape.

To fully unlock the potential of video advertising, consider partnering with experts like Social Motion Films. We specialize in creating highly engaging, creative videos that not only scale brands but also drive product sales and service growth. With our expertise, you can navigate the exciting future of video advertising with confidence and achieve remarkable results in the digital era. Contact us today to harness the power of video content and solidify your brand’s position in the evolving realm of marketing.

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The Future of Video Advertising FAQs

Why is Video the Future of Content Marketing?

Video has already made significant inroads into content marketing, and the future only promises further dominance. One key reason is its ability to engage and resonate with audiences. Visual and auditory stimuli together create a memorable experience that's hard to replicate through text alone. In a world where consumers are overwhelmed with information, video offers a refreshing break from the mundane.

Moreover, platforms like YouTube and TikTok are witnessing explosive growth, and businesses and brands are utilizing this trend by creating innovative, short-form video content. This format is not only easily digestible but also highly shareable, extending your reach organically.

How is AI Impacting the Future of Video Advertising?

Artificial intelligence (AI) is revolutionizing the way businesses approach video advertising. AI-powered algorithms can analyze vast amounts of data to optimize ad targeting, personalize content, and even predict consumer behavior. This means that in the future, video ads will become more relevant and tailored to individual viewers, enhancing engagement and conversion rates.

AI also plays a crucial role in video analytics, helping businesses measure the impact of their campaigns more accurately and make data-driven decisions for future strategies.

Will Virtual Reality Change the Landscape of Video Advertising?

Virtual reality (VR) holds immense potential for video advertising. While it's still in the early stages of adoption, VR has the power to create immersive brand experiences like never before. Imagine consumers being able to step into a virtual store or interact with products in a virtual environment.

As VR technology becomes more accessible, it will likely open up new opportunities for creative and interactive video advertising campaigns, enabling businesses and brands to forge deeper connections with their audience.

Are Traditional TV Ads Still Relevant in the Future of Video Advertising?

While digital platforms have undoubtedly stolen the limelight, traditional TV ads aren't going extinct just yet. They still hold value for certain demographics and industries. However, the trend is clear: digital video advertising is on the rise, offering better targeting options, cost-effectiveness, and measurable results. The key is to strike a balance between traditional and digital channels, depending on your audience and objectives.

How are Social Media Platforms Influencing the Future of Video Advertising?

Social media platforms are undeniably at the forefront of the future of video advertising. They have fundamentally altered the way brands connect with their audiences. The interactive and shareable nature of social media makes it an ideal platform for video content.

Video ads on platforms like Facebook, Instagram, and TikTok offer businesses the chance to tap into highly targeted demographics. These platforms allow for precise ad targeting, ensuring that your video content reaches the right people at the right time. With the rise of short-form video content on social media platforms, brands can also create concise, engaging video ads that capture viewers' attention in seconds.

In essence, social media platforms are shaping the future of video advertising by providing a diverse range of options for brands to showcase their products or services, engage with customers, and build brand loyalty.

What is the Future of Video Advertising on Streaming Platforms?

Streaming platforms like Netflix, Hulu, and Amazon Prime are becoming the go-to entertainment sources for millions. This shift presents a golden opportunity for business and brands. As viewers binge-watch their favorite movies and series, your brand could seamlessly integrate into their experience, ensuring maximum visibility and impact.

These platforms offer ad placement opportunities, including pre-roll and mid-roll ads, as well as sponsored content. As streaming services evolve, so will the advertising options, providing businesses with innovative ways to reach their target demographics.

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