Well, it was most likely just porn at one point and then people realized they could make money off of it as a vehicle for advertising. Now it's everywhere and from what Paul Verna, Senior Analyst at eMarketer says, it's not all about advertising anymore. The eMarketer article talks about how companies are still pouring resources into online video but not just in the way of traditional in-video advertising. They're using it in a variety of ways. Of course, they're all aimed at promoting a brand, increase sales, revenue or traffic in one way or another, even if they're not all classic advertising campaigns.
Retailers have been getting into the swing of things with video for sometime now. Selling just about everything from shoes to high end electronics and even realty. So it's no surprise that 46% of multichannel retailers are using video to market products. The extremely surprising thing is that 54% aren't. I'm astonished by the fact that 38% aren't using any sort of rich media...even Amazon uses it to sell books and those are just full of words! Any product that has a front and back or an inside and outside should be marketed via some sort of rich media, right?
42.3% of respondents to this survey said that they would be implementing video within the next 12 months. so it's continuing to grow. In fact, companies in general are expanding their use of online video and the budgets to support it.Forrester Research, said that 50% of online retailers in the US added video in some form to their sites last year bringing the total to 68%. But that's not the only use of video. The Society for New Communications Research did some research on other uses. They found that 31% of Fortune 500 companies have public blogs that incorporate videoblogging and that was a 10% increase from the previous year.
In regards to marketing budgets for online video, Ad-ology found that 27% of US marketing executives they talked to are ready to increase their spending for online video including viral video and podcasts. 41% said it would remain the same and only 27% said they don't use it at all. Online video even topped mobile marketing and SEO in regards to priority in those budgets.
Considering the fact that some 177 million Americans watch some form of video online each month and that they saw some 4.3 billion video ads in June, is it at all surprising that budgets are on the rise for all manner of online video, ads or not?