US market predictions say businesses will invest considerably in Facebook video ads next year. With the American market setting the tone in the Western World, UK and Europe are expected to follow. These predictions don’t come as a surprise if we look at what is happening with online video across platforms.
Brands are already harnessing the power of video to reach and engage customers. And investment will continue to grow.
According to recent data, spending on video ads will grow in the US by nearly a third in the following year. Leading the trend, Facebook (together with Instagram) will rake in a quarter of the total. On another note, Twitter will also gain 55% of its overall revenue from video ads.
Advertising data reveals consumers’ preferences
Most importantly, video ads growth talks about consumers’ preferences. The media they prefer to learn about new products and services dictates how brands and businesses should reach them.
And with tech development continuously on the rise, internet users today can consume video on the go easier than ever. From their team’s football match to travel vlogs and how to videos, smartphone tech makes it possible for everybody to watch whatever they want, whenever they want.
Once again, looking at statics gives us more insight. Despite a lot of talk around YouTube as millenials’ first choice of media, data reveals more. It’s not only younger audiences who consume online video. With more data available from the US, we can see that most 18-34 American internet users watch YouTube (January 2018). But not only younger users show such an interest on the video platform. Half of senior internet users (71+) also access it regularly. And, most importantly, 90% of all Americans online, aged 34-44, also consume content on YouTube.
The number of people watching YouTube around the world is constantly increasing. Also, over half a billion people watch videos daily on Facebook. It doesn’t look like an insignificant number.
Why video? An answer in 4 major points
If we take a look at predictions, they use existing data and thus encompass existing development and growth. With existing statics, it doesn’t seem far fetched what experts say – that video will make 80% of all internet traffic by 2021.
We can easily list a few of the benefits of online video:
- It enhances information retention for learners. This boosts e-learning today. It also increases the popularity of how to videos, and makes it the favourite tool for new applications or software training.
- Users can view it anywhere they are, and according to available time. On their lunch break, watching a 2 minutes video feels easier than reading a 5 minutes written piece.
- Looking at a human face rather than dry information also helps our minds process and builds trust.
- It provides information and advertising in a dynamic, pleasant way. We must remember though the 10 seconds rule – catch the viewer, or they leave after this critical span of time. However, we will get into more detail with this in future pieces on our blog.