Should companies invest more dollars in online video advertising?

At one time families would gather around the television every evening to watch the nightly news and spend time together. Children would wake up on the weekend to watch Saturday morning cartoons. Teenagers would make it home by 7 o’clock to catch their favorite prime time drama. Due to new technologies such as TIVO, DVR and online TV—TV viewing habits have evolved over the years. In fact, according to study conducted by Nielsen, traditional TV viewing among 18-24-year-olds declined 19% in 2014 alone.

As traditional television viewing continues to head the downward slope, where are individuals going for TV viewing? The answer? Online. With the growth of online TV viewing, this opens the opportunity for a large expansion in online video advertising. Online video distributors, such as Hulu, YouTube, Spotify, Pandora and TV conglomerates are making online video advertising distribution easy with highly targeted videos.

Researchers from Business Insider, watching the online video trend, are predicting a three-year compound annual growth rate of 19.5% through 2016, with a 3% decline in traditional ad revenue. This is faster than nearly all advertising platforms, with the exception of mobile.

For those concerned about price, the report from Business Insider is predicting prices to decline as online videos continues to grow and more space becomes available. Advertisers are also getting their worth out of the dollars they are spending. Video views are continuing to expand more and more, with more full video completions than ever before.

As we look into the future, new platforms and tools are in the horizon for even bigger ways to expand the online video market. So if it doesn’t have what you are currently looking for, look again because it might be what is coming next.

With contributions by Megan Monsees


Brad is an expert in private label and challenger brand food marketing for Barkley, an integrated marketing and advertising agency. He specializes in working with manufacturing-driven food companies that have aspirations to develop a consumer insight-led strategies to help drive innovation and growth.

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