Online Advertising Trends: From Video to Virtual Reality


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    The most daring experts in the field of Internet marketing predict a quick death for banners: supposedly they should be replaced by video advertising. One of the arguments that they give, paraphrasing a well-known statement, may sound like this: "It is better to see once than read a hundred times."

    Many products really look great on the video. If we talk, for example, about applications, then in a short time you will demonstrate all of its best qualities. Well, with the shortcomings can be found after the purchase, or by reading the reviews.

    Of course, in most cases, a video will help a potential customer make an informed decision and click the “Install” button, or refuse a purchase.

    One of the posts on Geektimes already talked about possible options for promoting applications using video ads: videos on the Google Play Store, videos on the App Store (App Previews), alternative App Stores, videos on a personal website, YouTube, Facebook Video ads, Instagram video ads, Twitter video ads, TrueView (Google video ads).

    Video ads are growing rapidly, but the popularity of more modern technologies is growing even faster. But about them - a little later.

    Forecasts




    According to the forecast of Strategy Analytics, by the end of the year 2022 the number of mobile video audience will grow to 2 billion people.

    In an attempt to “conquer the world”, advertisers will invest even more in mobile video advertising, trying to reach as many users of smartphones and tablets as possible.

    Wei Shi, a Strategy Analytics analyst, points out that the largest revenue growth is expected in the brand-sponsored content segment. Budgets in this segment will grow by 28% per year over the next 5 years.

    By 2021, global revenue in the mobile video sector will reach $ 25 billion (€ 22.5 billion).

    As you can see from the graph, North America and Western Europe stand out in terms of revenue growth in the mobile video industry. In the Asia-Pacific region, growth dynamics are more saturated.

    Intermediaries in the process of advertising monetization are increasingly Facebook, Twitter, WeChat and other social networks.

    Scientists nevertheless note that while the trend is developing so fast that not all advertisers will be able to timely increase their budgets for promotion. But, as we will see later, in the near future other methods of promotion will also gain popularity, which will allow advertisers who have not yet managed to part with their money.

    Nuances


    It turns out that the visual range for users is incomparably more important than sound. At least this is the conclusion the researchers make.

    Facebook generates over 8 billion views daily. According to the sites of LittleThings and Mic, each of which generates 150 million views on Facebook, for 30-second videos, 85% of views occur without sound. Representatives of PopSugar similarly confirm this information, clarifying that in their case this value is in the range of 50-80%.

    The creators of video ads here have found a way out: just in case, they also place the text of the announcement on the video. They believe that users turn off the sound “for a good reason,” not because the ad is bothering them.

    Representatives of advertising agencies note that the price of YouTube views is cheaper than Facebook in 9 out of 10 cases. However, sometimes advertisers prefer Facebook because of the presence of the target audience. They believe that it will be easier to sell services or products to such users through their channels.

    But not everything is as safe as advertisers would like to see.



    According to the latest PageFair report, the number of smartphone owners using ad blocking software has grown by 90% over the past year. In total, advertising on smartphones blocks nearly 420 million users worldwide. According to statistics, this is every fifth mobile device on the planet.

    Residents of the Asia-Pacific region are actively blocking ads - there blockers are installed on 36% of devices. In India and Indonesia, two-thirds of all smartphone owners use adblock applications. In China, blockers are installed on 159 million devices.

    Periscope and Facebook Live


    Another trend that cannot be ignored is services using Periscope, Facebook Live, and so on. They allow you to conduct online broadcasts. They quickly became popular among media companies and celebrities, which means they are of interest to advertisers.

    “The popularity can be explained by several trends, but the main thing is the penetration of smartphones and high-speed mobile Internet, which was not five or six years ago. Livestreaming occupies its niche in communications, closing those segments that were not available before photography, ” Karen Ghazaryan, chief analyst of the Russian Association of Electronic Communications (RAEC) , told Gazeta.Ru.
    Twitter microblogging service bought Periscope in 2015. After that, to conduct online broadcasts, the user just had his own smartphone, connected to the Internet, and an account on Twitter.

    The new trend was quickly picked up by the social network Facebook, which introduced the Facebook Live function in August last year. Try to keep up with the Russian services VKontakte and Odnoklassniki.

    The Periscope service was adopted by the media: broadcasts from various events were organized by CNN, Bild, The Guardian, The Verge and others. But while Twitter does not have a clear understanding of how to make money on the new service.

    Facebook also makes a bet on media content, which has ensured that video is on the user's pages and sends notifications to subscribed users about the start of broadcasting on a particular page.

    Currently, social networks have launched live video streaming as a mechanism to increase the number of users and the time they spend on social networks.

    According to Syndacast, video provides the highest conversion rate compared to other types of content. An Internet Retailer survey shows that 96% of users are guided by watching commercials before making a purchasing decision.

    While large Internet companies are only thinking about acceptable forms of monetization, marketers have already found ways to promote and make money based on the new features of social networks.

    The statistics that Facebook Live and Periscope provide at the end of the broadcasts help in this. In particular, the presence of this feature was a key moment in the confrontation with Meerkat, which started earlier than its competitors, but could not provide a full-fledged feedback on the basis of live broadcasts. Negative impact on the application and disconnection from Twitter.

    The most obvious way to make money, offered in RuNet, is to advertise a product directly in the Periscope-air. To do this, you will need an already promoted account in social networks with a considerable audience.

    It is also proposed to make a profit by broadcasting lectures or business trainings if the user has knowledge that is interesting to the public. In this case, you will also need an already popular profile in social networks. In addition, it must be closed, and subscription to it - paid.

    VR technology


    VR technology and 360-degree video became the main technology trend this year. Users are ready to play specific computer games, take 3D selfies for online shopping, go on virtual dates, but this is not limited to the use of these technologies.

    The use of VR for advertising purposes has moved advertising to a different plane - in the literal and figurative sense. And at the same time, the idea of ​​advertising among consumers turned upside down.

    Analysts argue that the effectiveness of this format is now far superior to conventional videos. And this means that the traditional consumption of advertising video content on the Internet (and ordinary video) will eventually give way to virtual reality.
    It was the purchase of Oculus by Facebook in 2014 that became the main indicator of the growth of the VR market. Facebook is also developing touch controllers that should complement existing VR technology that is planned to be used in a virtual reality helmet. Facebook CEO Zuckerberg described the development as "a whole new level of immersion."

    In March 2015, the largest video hosting service, Youtube, introduced support for 360-degree video that will allow viewing videos from different angles. Subsequently, the Zuckerberg company launched a similar function in its social network.

    The first for marketing purposes, VR technology was used by the creators of entertainment content - movies and television shows. 360-degree videos as promotional blockbusters began to be massively created right after the success of the new Star Wars promo video, which was posted on Facebook and Youtube last September.



    To date, this has become very common among entertainment content producers. For example, HBO announced the launch of a new season of the most popular series, Game of Thrones, using a 360-degree screen saver.



    Further, traditional brands became interested in VR technologies: in this format, the new IKEA catalog was released, and Etihad Airways made an advertising film starring Nicole Kidman, a Hollywood star. The Reimagine video, created by The Barbarian Group, allows viewers to fully immerse themselves in the unique atmosphere of travel aboard the Airbus A380.



    VR advertising technology is ideal for the travel industry.

    The Teleporter, a booth similar to traditional British telephone booths, transported residents of foggy Albion to the warm shores of the Hawaiian islands or to bustling New York. The imitation was created using Oculus Rift glasses, a temperature sensor that heated air and a fan simulating wind.



    VR has been actively used for advertising for less than a year, but analysts have already calculated the effect of its use on brands. Newswhip analytic company found out that video content provides the popularity of posts on social networks. Among this content, the most popular are 360-degree videos.

    NewsWhip analyzed Facebook’s public data from 10 leading publishers over the past year. This group includes new media - such as the BuzzFeed and Huffington Post, as well as more traditional ones - The New York Times, Fox News, Air Force, Guardian and so on. According to researchers, 360-degree videos are viewed 55% more than usual, and shared by 57% more often.

    Today, VR and 360-degree videos are just the practice of marketers, but analysts say that the development of this segment will inevitably lead to the replacement of conventional videos and a complete change in the model for consuming video content on the Internet.

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