It has been clear that audiences from around the country and around the world are watching less television and spending more time watching videos on their computers, tablets, and smart phones. But many have been wondering how quickly advertisers would make the move from TV commercials to online video ads. Now, new research from eMarketer has found that advertising on online videos will likely double in just the next three years, rising from $4 billion this year to $8 billion in 2016.
Researchers note, however, that advertisers will continue to advertise on television—and that money spent on TV commercials will also likely rise, from $66 billion today to $76 billion in three years. But experts aren’t sure how long this slow-but-steady upward trend of television ad spending will last. Not only are more television viewers skipping television commercials by recording shows on DVRs, the younger generation is watching less television altogether.
Another reason that researchers are predicting even more spending on online video advertising? Many believe that online video ads can better target likely consumers. Even now, some online companies are allowing viewers to pick their own ads to watch for products that they believe they may be interested in, instead of forcing viewers to all watch the same commercials.
One of the biggest roadblocks to online video advertising growing even faster is the simple fact that companies are not quite sure how to engage the new and young online audience—or the best way to enter into the new world of advertising on online videos.
If you need help breaking into the world of quality online video advertising, contact us today for more information on how we can help.