How Online video advertising is engaging consumers

As consumers go online to watch their favourite TV show.. so do the marketers.

As you read this blog, there is a pretty strong chance the next tab to the right is titled “Watch Gossip Girl”, ” Weekend AFL Grand Final Highlights” or something similar, the point being here, as we as consumers have changed our viewing behaviours and will continue to do so, Yahoo and Channel 7’s product “Plus 7” can now not only be found online but also on consumers PS3 consoles (not to mention ABC iView also available). Therefore you like myself are now watching TV online either through streaming websites such as Plus 7 or Foxtel’s OnDemand system or downloading full episodes (legally..), the benefits of this are endless for the consumer less ad’s (for the time being) and freedom to watch at a time that suits us, so as marketers how do they respond to this? After all they have spent millions upon millions on traditional Television Commercials (TVC), read on to see how the marketers are adapting to and embracing this trend.

You may have noticed over the past 12 months or so when watching online videos, advertising on these videos is becoming more and more evident, the article in focus by Claire Kermond of The Age is Online video ad market surging’ , the article predicts that the ‘online TV advertising’ (as Kermond calls it) industry will grow by a massive 42% within the next few years, and will be worth an estimated $311 million by 2016, which is much greater than the $54 Million it is currently worth, so those Ad’s such as the McDonalds one below you see before you watch the next viral youtube clip, which is not skippable are here to stay.

The growth of the online video advertising is a direct result of our consumer trend of watching more and more TV and/or clips online, Kermond notes on average Australian’s watch 10.2 hours a month of online TV, driven by youtube, TV channel specific streaming sites, Foxtel’s OnDemand, PS3/Xbox TV applications and the increasing availably of internet enabled Televisions. It should also be noted that this is not the minority of us, as Kermond notes around 12 Million Australian’s watch online TV, talk about a huge market with even bigger growth.

These figures suggest it is time for marketers to adapt strategies like the above McDonald’s campaign or even the famous Old Spice youtube marketing, as it is predicted it the near future it will be the dominate form of online marketing surpasses banners, email and sponsorships.

It should come as no surprise than that many larger companies are in fact adopting similar strategies and integrating online TV/video advertising in to their marketing mix, think about it, when you want to watch a news clip on the heraldsun website, you will be watching an advertisement, often related to the story (e.g Fox Sports subscription special before an AFL video) before you see the video. Even more noticeable perhaps is the increasing number of 15 second commercial’s marketers are putting into the online streams of your favourite TV show you are catching up on.

The article notes that on average marketing budget at the moment only allows for about 2% toward online tv advertising, something which will obviously increase, hopefully as the budget increases so does the marketers creativity, as currently these ad’s can be a bit frustrating, eitherway it will be interesting to see how this reality new market unfolds over the coming years and how it affects our trend of watching TV online. I have no doubt in 5 years time, we will all be watching TV online, spelling the end of TVC, which will mean more ad’s online.

What do you think? Have you noticed these Ad’s appearing more and more? Do you agree with my view that we will all be watching TV online in 5 years time?

References

http://www.theage.com.au/business/media-and-marketing/online-video-ad-market-surging-20110929-1kzac.html

http://www.youtube.com/watch?v=kJPemtGATbs – Mcdonalds

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