How to keep your online video ad revenue strong
In the years before social media, online video ads made up about half of advertising revenue.
Now, the industry is expected to top $1 trillion by 2020.
But that’s a lot of money, said Craig Moffett, chief executive of Adtech Partners, an online advertising agency in San Francisco.
Adtech offers a simple formula to help online video marketers keep their online ad revenue flowing.
First, Moffett said, the video business is growing fast.
Second, there’s a growing need for ad-free video content.
And third, there is a growing demand for video ads that deliver personalized and relevant ads.
Video ad revenue for online video platforms will likely reach $1.3 trillion by 2021, according to Moffett.
That’s a 40% increase over 2021 revenues of $1 billion.
Video is the fastest-growing revenue segment of the ad business, with revenue expected to grow 70% to $1,857 billion by 2021.
Online video is also expected to see a 50% jump in 2021, to $878 billion.
With the industry’s growth, online ad revenues will continue to grow rapidly.
However, Moffeter noted that there are still challenges to keep that growth sustainable.
In the short term, he said, online content can be expensive to create and maintain.
For the next few years, he believes that will only grow.
He said there are two areas that will continue rising online video costs: Content creation and delivery.
In 2019, Moffitt expects video ads to be more expensive than online video, but he said it’s possible that video delivery could rise as well.
Video delivery costs will increase as well, Moffet said.
For now, he expects online video to be the dominant video delivery channel, but said it could change.
He believes there will be a lot more competition in the next five to 10 years.
“I think we’re going to see an increase in content, particularly for videos, and there will definitely be a price increase,” Moffett told CNNMoney.
Video content is often used for targeted advertising.
This year, Moffit predicted that online video will account for more than half of the revenue in the digital ad space.
The rise of video as the dominant ad delivery channel is expected, along with the increase in digital video content costs, is one reason online video is expected a key driver of future revenue growth for online ad networks.
“Online video is a great opportunity for advertisers, but they have to do a better job of building their campaigns and making sure they are creating quality videos and delivering that content,” Moffitt said.
“The ad space is the most important part of any company.”
But with a growing number of ad networks competing for ad dollars, Moffick said he believes there’s room for growth in the video space as well if companies are focused on creating the right content and delivering it to their audiences.
He pointed to a couple of ways video could help online ad growth: The first is that it could help increase the number of viewers watching online video.
Moffett predicts that there will continue be growth in viewership for online videos as the number and quality of online videos grows.
The second way that video could make online video more profitable is by increasing the amount of content that is shared across platforms, including Facebook.
“Video will become a dominant way to reach and engage audiences,” Moffeter said.
This could make video content more valuable as a marketing tool, Moffer said.
While online video has the potential to be a lucrative channel for advertisers if it can attract enough audiences to make it a profitable business, Moffott said it also will have an impact on ad revenue.
The more content that can be shared on social platforms, the more revenue it can generate.
“If you have the right mix of content and content that resonates with the audiences, then you can create a better value proposition for a company,” Moffatt said.