Advertising6 Reasons Why Video Advertising is moving from TV to Digital

TV is not dead, but Online is the new TV. In the last few years, there has been a clear and rapid shift from TV and traditional advertising to digital advertising. And it’s pretty safe to say that the trend will continue in the years to come. To substantiate this claim, sample this incredible stat – Nearly a fifth of younger people in the US don’t subscribe to cable and are happy to rely on internet streaming.

Online video streaming is just the tip of the iceberg. Live video streaming capabilities of platforms like Periscope and YouTube (even Facebook now!), growing number of varied video platforms like Vine, hybrid models like Snapchat – all of these have had their fair share of influence in turning today’s generation away from TV to the internet. Unsurprisingly, advertisers are bound to lose out on this huge demographic if they focus on the Television format.


A recent industry insight into the advertising industry reported that roughly $1 billion of advertisers’ dollars has moved from TV to digital from October 2014 to June 2015!

Also, the recently concluded ‘2016 Reuters Institute Digital Leaders survey’ revealed that 79% of the digital leaders polled were planning to invest more in online video in 2016 than they did in 2015.

Publishers are turning to partnerships and acquisitions to fill voids in content, audience growth, financing, and distribution. For example, NBCUniversal has invested in both Vox and BuzzFeed in the last year.

1. Mobile Video consumption comes first

YouTube recently launched “six-second ads” which are essentially mini advertisements which are unskippable and will appear only on smartphones. These new “snackable” formats on smaller screens will help them differentiate their ad segment on their desktop advertisements which is 30 seconds, and increase the user’s attention on smartphone devices.

While television serves as the primary screen currently, we are entering an era where all screens will work seamlessly together — they will just come in a wide range of sizes. According to YouTube, 90% of its 18-to-49-year-old audience said they use a smartphone, tablet or computer while watching TV. conducted a study on attention span and found that- nearly a fifth of viewers clicked out of a video in the first ten seconds for a 15-30 second video format.

From $720 million in 2013 to $1.5 billion in 2015, the video market continues to grow rapidly. It remains a strong area to invest in, considering there is a higher chance that your millennial customers are looking at video as their go-to medium to educate and inform. The last three-quarters of 2015 saw a 30% increase in ad spending.

Also, Smartphone penetration in developing economies like India is expected to grow to a whopping 520 million by 2020! This use of smaller screens on personal devices will fuel ‘personal escapism’ or watching content individually, with 45% of all content consumed expected to be on the small screen by 2020.

2. Social Media as an Integral Component of Video Advertising

Millennials consume news and information through their social media feeds now. They’re news junkies who prefer not only visual content but up-to-the-minute, shareable videos, that one-dimensional print publications or TV ads can’t offer.  For brands, there are multiple channels to reach their target customers now and the audience also has a chance to decide what they want to watch and what they don’t.

  • YouTube Ads:
    ~Call-to-Action Overlays – Advertisers are charged on a cost per click basis.
    ~TrueView Ads – Advertisers are charged on a cost per view basis, with a view counting on the completion of the ad or 30s, whichever is less.
    ~In-stream ads (unskippable) – Advertisers are charged on a cost per view basis.
  • Facebook has seen a 50% increase in video views from May to July 2014
  • Vine helps you focus on a particular niche for a lesser span of time
  • Instagram video gives you 15 seconds per clip + the option to apply unique filters
  • Snapchat plans to introduce ads between stories and has launched a new advertising API
  • Twitter Amplify lets everyone monetize their content with six-second pre-roll ads

3. Even Adults are spending more time on digital video

Content consumption habits of the older generation are different from millennials and young adults in notable ways. They want to be a part of the content creation experience, in addition to just absorbing it. And contrary to what many might think, adults spend quite a lot of their time online too!

4. Increase in regional language video content viewership

One of the reasons that more and more Indians have started consuming online videos more is the availability of regional content. And with them, they’ve brought in a lot of brands and their advertising units, from TV to online.

For example, bilingual Indians who prefer watching more Bollywood movies, and Hindi TV shows like MTV Roadies, prefer watching that kind of online Hindi content. Like a popular Indian YouTube channel, TVF made a parody of Roadies and reached millions of viewers of that TV show when the word was spreading about the parody going viral. That one good video made the viewers watch other videos on their channel. Soon the channel gained a lot of subscribers and started putting display and video ads on their videos.

So related channels, Hindi or bilingual web series better than old school TV shows for the young Indian, is what hooks them onto YouTube and Facebook rather than TV.

Similarly, there’s a big Tamil speaking audience in India. And there are videos in Tamil and Tanglish for the south Indian audience. So this way online video content viewership is rapidly increasing because of the vast reach of viewers via their regional languages.

5. Rising fame of Internet Celebrities

I remember reading an article on Variety explaining how digital superstars were eclipsing traditional celebrities in the US. The situation is the same in many other developed economies and looking at the way things are shaping up, I believe that it’s going to happen in India soon.

Think about the most popular Indian stand-up comedians. Almost all of them are on YouTube aren’t they? When their rising popularity is reaching more people than television comedians, we know something has changed a lot. Sure there’s still a huge TV viewing audience like the older generation and the not-so-online millennials. But teens, young adults, and even a lot of adults want to keep up with all the trending and new things.

Also, many Bollywood celebrities are seeking more originality and popularity on the internet by posting videos on Instagram, Twitter, Snapchat, and even going to YouTube for movie promotions. So the already famous stars are collaborating with the famous internet stars and its win-win for all.

6. Booming digital gaming marketleague-of-legends-image-2-802466931

With the increase in the number of mobile internet users, smartphones and tablets in India, mobiles will be among the most important platforms in gaming, garnering a 54% share of the total Indian gaming market by 2020.

One industry has found a new way to use video ads that provide a big win for all those involved. This would be the mobile gaming industry.

Unsurprisingly, gamers often adopt technology before the rest of us. This industry is moving completely to utilise mobile video ads as their way to produce revenue and still provide free games to their users.

Advertisers interact with gamers when they aren’t holding a controller. While the average gamer spends seven hours a week playing games, they also spend time researching games, looking for additional game content, sharing tips with friends, and talking about games in general.

As video games continue to influence popular culture, opportunities for advertisers extend outside of the actual game environment. Advertisers have begun to leverage video-game content outside the actual gameplay.

Toyota’s use of “World of Warcraft” (“WOW”) imagery and game mechanics in its latest commercial for the Tundra is a great example of out-of-game advertising. Toyota would have struggled to reach the more than 2.5 million “WOW” subscribers in the U.S. (10 million worldwide) via any type of in-game advertising, but it was able to reach those same game enthusiasts and make the general population aware of the popular title via an engaging commercial.

The sight, sound, motion and the high-quality experience of watching video creates a positive viewer response to videos. With more video applications appearing in the online space, there is even more intense competition to gain consumer attention and keep viewers hooked.

Kritika Bansal

Kritika is a sleep deprived Vidooly content writer based in New Delhi with an inexplicable weakness for pre-loved books, Tumblr, YouTube, TV shows, Pop music, and the sultry voice of Benedict Cumberbatch. Kritika is also currently on a road to become a creative.


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