OLV advertising leads the way with expected growth of 12.8 percent in 2021
By Matthew Watson, CEO, SendtoNews
Online video (OLV) advertising is leading the way over other types of media advertising with expected growth of 12.8% in 2021, according to “Global Ad Trends: State of the Industry 2020/21” by WARC Data. Social media advertising came in second, with an expected growth of 12.2%, followed by online display ads at 10.4%.
Conversely, television advertising around the world is on the decline, with an expected year-over-year decrease of $5.1 billion, according to the recently released “TV Advertising Global Market Report 2020-30: COVID-19 Growth and Change” study by ReportLinker. With working from home being the new norm and pandemic lockdowns around the world, more people are watching online videos and marketers want a piece of that pie. At SendtoNews Video, we experienced this trend firsthand, seeing a 32% increase in views from 2019, with total views coming in at 13.3 billion for 2020.
Another important and positive trend in online video is contextual relevance and when done properly, users have a more favorable view of the page overall, leading to more content viewership and, subsequently, increased advertising revenue. Contextual relevance is even more important now as the cookie is on its way out. Without the ability to tailor ads to specific audiences with the help of third-party cookies, solutions that can promise contextual relevance will keep viewers engaged and ensure brands reach the consumers they are seeking.
Perhaps another reason why online video advertising is leading the way is due to the ability to access programmatic advertising. According to eMarketer, programmatic is going to account for 86.5% of all digital ad spend in the United States this year, and video will be driving that growth.
“The efficiencies of programmatic buying and the opportunities to apply data to reach specific audience segments are huge benefits that are accelerating the shift of traditional TV budgets to digital channels,” according to the “2021 Global Video Advertising Trends” report by SpotX.
As advertisers and marketers invest more heavily in online video, they should look for a partner that attempts to satisfy all the above. At SendtoNews, our video lives within audience expectations for advertising, which has helped us achieve an over 70% viewability and video completion rate platform-wide. Nobody is changing the channel or getting up to get a snack because they know that rich, engaging, and premium official content is just one pre-roll ad away.
This blog is an excerpt from the original version that first appeared here on the SpotX site.
ABOUT THE AUTHOR, MATTHEW WATSON
Matthew Watson is the CEO of SendtoNews, North America’s largest independent online video platform, helping digital publishers, content providers and advertisers thrive with online video. Watson first got involved with SendtoNews during the early years of the company. He helped with strategic planning and team development while also finding time to grow his own start-up, Armorlogic. He returned to SendtoNews in 2015 and has since led the company to over 14,000% revenue growth in the past 5 years. Under Watson’s leadership, SendtoNews has grown from a start-up to the largest sports online video platform in North America. Watson holds a BA and JD from the University of British Columbia. He lives in Victoria, B.C. with his family.