Maithya Kitonyi Blog | How Businesses Are Adapting To Changes In Video Advertising | TalkMarkets
Creator of CAGRValue.com and Individual/Private investor
Mr. Kitonyi is the founder of CAGRValue.com, a stock investing blog that focuses on growth investing and business value creation. Given the nature and the efficiency levels of the modern stock markets, it's highly unlikely many stocks will be undervalued. Many, though, could be overvalued due ...more

How Businesses Are Adapting To Changes In Video Advertising

Date: Friday, July 13, 2018 7:20 PM EDT

The digital transformation has taken the world by storm. It is almost impossible to come across a business that has totally ignored to explore opportunities online by launching a website, a YouTube Channel or a social media page to drive its video advertising campaigns.

In today’s markets, people are spending more time online than they do during face-to-face conversations. As such, it is imperative for businesses to adapt to the changing business environment to remain profitable and crucially, competitive. This is one of the reasons why video advertising has become the cornerstone of every company’s marketing strategy.

Yet, even as most businesses, small and large, troop online to launch their brands in a bid to extending their footprint in different marketplaces, many continue to struggle. Technology is transformative in nature and over the last few years, it has been changing very rapidly. As such, by the time some businesses launch their brands online, they tend to find that a lot has already changed.

Alphabet Inc.’s (GOOG) Google, plays a crucial role in this respect as it continues to update its algorithm and the way in which it crawls websites, prioritizes ads, and lately, rates the security levels of a website.

Video advertising too has evolved and now, video creators and editors are tasked with embracing AI in executing their craft. As for businesses that opt to do the work in-house, getting the right software can be as crucial. But as experts point out, given the number of providers out there it is even hard to determine how good a video editing website is without reading a few credible reviews.

Video adverts are not just rated in terms of the message sent. Features such as video resolution can be as crucial while cloud storage ensures that when the audience tries to view the video, load time and buffering are shorter, which in turn reduces the bounce rate and increases engagement period. The longer the audience is engaged, the more they are likely to be converted into a lead and eventually a customer.

Nonetheless, advertisers have also been facing another recent challenge that started with the emergence of ad blockers. Over the last few years, internet users have been utilizing ad blockers to prevent ads from showing when they are online. According to data, more than 40% of internet users in the U.S. have ad blockers installed on their devices to block ads showing in some or all websites they visit.

This has made it very complicated for content creators prompting some to introduce premium services in a bid to covering losses incurred due to ad blocking. In most platforms today, users are asked to either disable ad-blocking or subscribe to a premium service that includes no ads. However, with premium services, advertisers suffer because their adverts do not reach their target audience.

As such, utilizing alternative platforms like social messaging apps and social media platforms through dedicated groups and pages has become a priority. Unlike using search engines where adverts are competitively selected for display in various websites according to quality, targeting and pricing, business pages on social media and messaging apps are not subjected to that type of competition as all members of a given group can be reached by an ad posted on the content stream.

Other advertisers have also taken advantage of online streaming platforms like YouTube, which require users to view ads inserted in a video before the stream starts. Therefore, it is correct to say that even as online content creators find solutions for ad-blocking by introducing premium services, advertisers too are repurposing their budgets for alternative video advertising channels and a lot of these seem to be working.

Conclusion

In summary, the video advertising market has evolved over the last few years leaving some businesses hard-done by the rapid change in the trend. Now, video creators and editors are using AI as are creative cloud companies like Adobe (ADBE), whose Adobe Sensei has been a revolution for content creators. Certainly, there are interesting times ahead in this space.

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