Are Some Brands Too Sexy for Print? An Inside Look, Like Woah

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Online video advertising is gaining popularity faster than aviator sunglasses after Tom Cruise ignited the frenzy in Top Gun. According to eMarketer, the industry is expected to grow to $3.0 billion in 2012, up from $1.9 billion this year.

What’s really interesting though is to dig deeper into the details about what this trend means for consumers, distributors, video platforms and ultimately, advertiser revenues. How will the allocation of advertising or marketing budgets alter as more users continue to consume online and mobile media? How will advertisers capitalize on the tsunami of activity?

Throughout the next couple weeks, we’ll break this down into three posts, and discuss how this growth will impact the entire advertising ecosystem, including the impact on both consumers and advertisers:

1) Growth of online video: The Expansive Reach of Online Video Ads

2) Growth of mobile: Cross-Channel Media Consumption for Cross-Generational Adoption

3) Intersection of social and video: At the Intersection of Social and Video

The Expansive Reach of Online Video Ads

Online research and measurement leader comScore recently found that 84.6 percent of the U.S. Internet audience viewed online video throughout December 2010. When broken down, this equates to 172 million U.S. Internet users watching online video for an average of 14.6 hours, per viewer, totaling 5.2 billion views! . With a 32 percent year-over-year growth, we’re witnessing an era where new media platforms are reaching greater audiences than ever before.

Unlike past days of online and offline content, consumers are now playing a major role in the growth of video creation. YouTube users upload about 35 hours of video to the site every minute, or nearly 50,400 hours of video every day. As site traffic continues to increase, brand marketers are beginning to embrace self-made YouTube sensations – who themselves can make upward of $315k ­– in turn pouring money into tapping their stardom to promote or even rap about the brand.

We see no downward plunge in this line…

Image: YouTube

What this means for Consumers: Advertisers will increasingly produce ads that serve a more targeted, engaged and social audience, meaning that as a consumer, you’ll start to see targeted and personalized ads highlighting the products, and topics, you care about. Conversely, expect to see ads that are designed solely to leave you scratching your head, replaying the segment and sending a mass email recommending your friends tune in. The key throughout 2011 will be to balancing the art (or science) of viral videos, with the necessity of personalization.

What this means for Advertisers: While consumers drive purchasing decisions around ad personalization, they are also are curious creatures. The online marketing landscape is young and actively embraces innovative video and promotional activity to encourage consumers to talk about – or “share” – a brand, product or promotion. This may be the key to increasing the ever-minimal attention span.