Video Continues to Push Digital Advertising Forward

Companies are making big moves because they’re noticing how prevalent watching programs on devices like mobile phones and tablets has become. With an estimated growth of more than $4 billion by the end of the year, video advertising is seeing the biggest increase in spending as more ad agencies and brands push into the video space.

With all this increase in activity, companies are realizing the real potential by commanding higher prices for video ads than traditional online banner ads, which are becoming more and more unfavorable.

Tim Armstrong, AOL’s chief executive said in an interview, “Consumers are adopting video quickly: big investment in devices and networks, big investments by the most talented creative people to get involved in this medium; and big investment in measurement. So I think this industry is about to explode.”

Digital companies are also recognizing that producing online video programming is far cheaper than television production. Most of the new content being created is reality TV-esque, perhaps only needing one camera and much less production cost.

Another enticing factor for advertisers is making a product part of the show itself, a growing trend in the media business. This branded content or branded entertainment can be very profitable. “Little Women, Big Cars” just began its second season of a video show that has eight million views, partly due to one of its sponsors, Allstate.

According to comSore, more than 180 million Americans watched over 30 billion online clips including 13 billion video ads this past March. What are your predictions for April?

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