There are trends happening all over the online video market space and the signs are all pointing north.Financial numbers indicate investor confidence and intense interest with$180 million raised in Q4 of 2014 by video companies and an astonishing $477 million raised in Q1 of 2015 by private online/mobile video companies, according to VideoNuze.
Video consumption numbers have also increased with 144.2 million unique online video viewers who streamed 3 percent more video in March according to Nielsen Wire, showing a positive trend in consumer interest receiving this content. From the agency and/or sender perspective, digital content makes up a growing share of the revenue across agency disciplines, according to AdAge, with more focus on online or video advertising initiatives.
As important as it is to be aware of this increase in investor confidence and consumption rates, it is just as important to understand why these positive trends are happening. The increase in smartphone usage and additional connected devices providing easy access to the internet plays a part, but so does the way content is being provided. After years of filtering through advertising noise on the internet, brands have found a way to provide more interesting and relevant content that viewers are not only willing to watch, but share with their friends via social media networks.
“The relative value provided by branded content is driving the growth, particularly in instances where advertisers/brands have a multi-dimensional marketing message they want to effectively convey,” says Generate CEO, Jordan Levin who predicts 20% growth per year in branded entertainment through 2014.
Whether it is a pre-roll video ad before an entertaining piece of content, sponsorship of a favorite online program, or a product video on an ecommerce site, content is becoming more of a core strategy for brands online. The evolution of branded content will only increase in 2011 and drive a better balance between what consumers are willing to watch online in return for quality content provided via strategic distribution channels.
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