Video Advertising Hits Record Breaking Revenue in H1 2016
Digital or video marketing is all the rage these days. In the past few years, this way of advertising has taken the world by storm everywhere. Ads streaming during or after videos on YouTube or other streaming websites have managed to generate billions in revenue. The numbers indicating the surge in digital and video marketing have been on a record breaking high. In fact, the growth in video advertising is so positive that various organizations and corporations are turning towards this as a primary mode of marketing their products and services.
Broadcasting and newspaper websites have been using digital or video advertising on their forums since last four or five years. Research indicated that in 2011-2012, video ads made up about 14% of all the videos viewed online, and people were spending around 2 to 3 % of their time watching advertising videos.
In 2014, Facebook acquired LiveRail, a video ad distributing service, for nearly $400 million. This has led experts to believe that the cause of the growth on video advertising revenue is mainly from social media. Interestingly enough, they are not wrong. Social media websites such as Twitter, Facebook and Instagram have been integral to promoting video ads online.
Looking over the numbers from the last two years, one can easily see the upward trend in video advertising revenue. In 2014, the double digit billion dollar profit from video ads broke worldwide records. The following year, revenue increased by almost 20%, bringing the total amount earned from video ads to $59.6 billion. 2015 was the sixth consecutive year of growth for this mode of advertising.
Social media and mobile advertising are the main highlights in this rising trend. Revenue from mobile and social media increased 66% and 55% respectively.
In 2016, this upswing trend has continued, and numbers coming in show no sign of slowing down. It has been predicted that by the end of this year, the revenue from video advertising will reach record highs and surpass all the previous years.