Consumers are now viewing 47.4 minutes of online video daily – an increase of 20% from 2016. Mobile devices are at the forefront of this growth (35%) with average viewing times now at 28.8 minutes daily. Unsurprisingly, the advertising industry has followed this shift.
A new report by BI Intelligence examines this shift to video advertising and in particular toward social video advertising more closely. The report found that overall digital video advertising is likely to grow 23% this year to $27.2 billion (up from $22.2 billion in 2016).
Much of that growth is being led by social media platforms such as Facebook, Instagram, YouTube and Snapchat. Indeed, the platforms have begun to increasingly focus on video formats including live video feeds, but also more high quality formats which aim to mimic television. Television is a global industry worth a whopping $181 billion annually. Unsurprisingly, the big advertisers and social groups would like a slice of the pie.
Facebook, for one, has long been rumoured to be working on its own video streaming platform a la Netflix. Similarly, Google helped ad firm Interpublic move $250 million in TV advertising expenditure toward YouTube.
For marketers, it pays off to examine the difference between each social media platform to find the one that suits them best.
Across Facebook, for example, 30 to 60 second video ads performed the best in a benchmark test by Kinetic Social.
Meanwhile, Snapchat ads may be capturing more than twice the visual attention compared to Facebook, Instagram or YouTube, according to a MediaScience report.
Twitter, on the other hand, prides itself in featuring video ads that are twice as memorable compared to skippable pre-roll video formats.
According to logic, too many ads may spoil the relationship between consumers and social platform. However, Forrester Research has shown that on YouTube this is not the case. Whilst 39% of teens agree that YouTube videos feature too many ads, 77% of them continue to use the platform daily – regardless of ads.
Whilst it’s not yet entirely clear how Instagram video ads are faring in terms of consumer reception, one thing is for sure: video is here to stay.