The latest figures from IAB shows strong growth in digital ad spend which is expected to grow to an all time high. Social media, mobile and video is leading the way and are making up an increasing portion of digital marketing budgets.
Everyone knows that video is becoming increasingly important in marketing. As a society, we consume more video than ever and moving images make up approximately 70 % of all internet traffic today. Video is clearly the go-to source for filling our information and entertainment needs. This has huge implications for advertising. The latest numbers from the IAB report on digital advertising trends offers interesting insights into how the video trend is affecting advertising investment.
Video is growing 4x faster
According to the IAB AdEx Benchmark, the overall spend on digital marketing in Europe reached an all time high last year. What’s more, the market is growing at 13.4% and is expected to surpass 50 billion euros in 2018. What is driving this growth? The answer is spelled “social”, “mobile” and “video”. Video currently make up 27.6 % of display ad spend and what is even more interesting is that video is growing 4 times as fast as the display category at large. This means that the video trend shows no signs of slowing down and is expected to drive the digital ad market for some time to come.
Need for automation
Video’s increasing share of marketing budgets leads to new demands on the technological tools used by marketing agencies and advertisers. Even though technology has enabled the rise of video and lowered production costs, it is still very resource intensive compared to static content. And honestly, not that much has changed in the video making process in the last decades. Today, the reality is that a select few, with video editing skills still have to manually update videos every time a video needs a small adaptation. There’s no wonder that a lot of people deem video to be too costly for their marketing budgets. But all of this is about to change. New tools within programmatic video and automation are disrupting they way video ads are made, lowering costs and opening up a wide range of creative possibilities for increased relevance and efficiency. Automation is not here to replace the truly creative side of advertising but it will enhance it.