Largely driven by advances in technology and at the expense of TV, the rise in mobile and digital video is making a mark among the advertising landscape with 55% of UK buyers and sellers considering 360-degree video formats to offer the best revenue streams over the coming 12 months. Branded video content is another top format considered by advertisers (57%) to offer excellent revenue returns.
Among the leading challenges for advertisers to buy branded video content are quality concerns (46%) as well as proof of ROI (38%) and a lack of standards measurement metrics (38%). Cost and video ad unit lengths are also of consideration (29%).
However, consumers aren’t sharing enthusiasm for these formats, with just 20% of them watching virtual reality (VR) videos once a week compared to a 28% global average. 68% of Brits said they never watched VR videos; and though 58% of advertisers are planning to buy VR or AR formats this year, just 9% of consumers expect to actually watch these formats in 2017.
Among the leading reasons for consumer caution in VR are a series of misconceptions such as computers not being powerful enough to cope with VR (39%), as well as VR headsets being only for gamers (38%).
The report also found that mobile is certainly to blame for 71% of consumers now viewing digital video on a daily basis. Indeed, consumers agree that their smartphones are invaluable, and 52% of them said they viewed videos on their mobile phones daily.
Live video appears to be an up and coming format with 73% of consumers having viewed live content and 68% of advertisers planning to invest more in live video this year.
More consumers are now also viewing short-form mobile videos with 64% of them saying they watched videos shorter than one minute each week.
The same goes for mobile and digital video ads – the shorter the better, according to consumers. Pre-roll video ads are well tolerated, but shouldn’t be longer than 15 seconds in a one-minute video. As video formats get longer, the length of ads tolerated increases.
Generally, 63% of consumers are happy to see a brand advertisers if the content is interesting. Similarly, most agree that quality matters (59%).
However, advertisers shouldn’t take this as a free pass to push ads to consumers as 71% of them also prefer to have the option to skip an ad before watching online video. Generally, 64% want more control over the ads they see.
Accordingly, advertisers are moving their budgets to mobile. Indeed, 61% of marketers are moving their TV advertising budgets to mobile video and 59% to desktop video.
For buyers, enhanced targeting and personalisation options for video are driving the increase in digital video growth (50%). Better quality of content (47%) and creative (43%) are also important features.
Perhaps unsurprisingly, 79% of advertisers foresee programmatic video spend to increase this year compared to 87% of publishers.
It seems the future of video is digital and mobile. Therefore, advertisers and publishers must prepare to make the necessary investments to boost consumer experience and confidence.