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New Orleans Internet Marketing and SEO - Infintech Designs Jan 19, 2016

New Orleans Internet Marketing and SEO on the Rise

A recent report done by AOL indicates that changes are occurring in how businesses prioritize video as a part of their advertising budgets. In fact, this study shows that businesses are increasingly investing in a digital video while advertising spends on traditional TV advertising is declining. While this may seem like an obvious move given today’s digital world, many companies are just starting to catch up.

This report, AOL’s 2015 US State of the Video Industry Report, provides concrete support for what has been rumored to have been the case for some time. However, it is surprising to also see just how quickly things are changing. In fact, the numbers show that:

  • In the United States, spending on digital video ads increased to $7.46 billion in 2015, an increase of 42%.
  • By 2019, it is expected that companies will spend more than $13 billion on digital ads.

The study also made several other important findings:

  • 91% of agencies are using programmatic advertising to buy video ads, 88% of publishers are selling video inventory programmatically. Since 2014, this figure has increased by 37%.
  • For businesses, over 30% of their budgets for video are dedicated to branded content.

However, these trends simply indicate a shift in priorities. In fact, companies are not spending more money. They are simply reallocating the money that would have otherwise been spent on traditional TV advertising to digital video.

What has also changed is that the majority of companies now purchase video inventory programmatically. This shows that programmatic advertising is trending with widespread adoption by ad buyers. Some resort to a professional video marketing company to have more edge in the business. 

Traditional TV Ad Budgets Are Declining

With 39% of advertising buyers reporting that their ad spends on digital video was coming from their budget for TV advertising, a whopping 31% reported that they were spending money that was previously spent on advertising on cable TV. These figures are double the 18% of companies that reported the same transitions back in 2012. As a result, TV continues to be the main source of funding for digital video ad budgets.

Part of this trend is the result of companies that are looking for solutions beyond TV ads. Companies are also increasingly interested in video ads that can be consumed on any device. The answer to this problem is YouTube, which has an audience of over a billion users with monthly views totaling in the billions.

Using Digital Video Advertising to Boost Your Business

With the knowledge that more and more companies are moving into the digital video ad space, what should your business do?

As far as how companies are spending their reallocated funds, 88% are investing in some type of video, including desktop, mobile and over-the-top (OTT). While 63% are spending more on desktop video, 55% are spending more on mobile video.

The worst thing that you is to continue to wait while your competitors take advantage of the engagement and higher conversion rates that digital video ads can offer. Whether you plan to invest in digital video ads for mobile or desktop, the bottom line is that digital video advertising should be a significant part of your online strategy.

Your business needs to establish a dedicated budget for digital video advertising in order to remain competitive. Advertising on YouTube is a must if you plan to enter the digital video arena. By adding digital video ads to your advertising budget, your business can benefit from these trends with higher sales and greater brand authority.

Want to have more edge for your brand through videos? Infintech Designs New Orleans is an internet marketing that helps businesses launch their products or services through various strategies such as SEO, content marketing, and PPC. 

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