The online video world is evolving rapidly, and we’re only now at the start of it. For companies turning to online video for marketing and advertising, staying on top of the trends is crucial. One excellent resource is the Video Monetization Report recently put out by online video advertising company FreeWheel, which examines how the online video world changed in 2012 and where it will go from here.
Here are the top five trends currently taking place, according to FreeWheel:
1. Premium video is exploding online.
There are two types of content videos online — user-generated and premium — and advertisers are typically more comfortable with premium. After all, it’s more likely to reflect well on your brand. According to FreeWheel, agencies aren’t the only ones who like premium online video — viewers do, too. Views for professional, rights-managed online video surged in 2012, rising 23 percent year-over-year.
2. Video ad volume is also way up.
Advertisers are getting over their reluctance to advertise with online video. FreeWheel found that the rise in ad volume was far greater than the rise in premium video viewing. In 2012, ad volume rose 47 percent year-over-year. Consider that long-form online videos averaged 6.9 ads in 2011, but 9.4 ads in 2013. Pre-roll use rose 45 percent, while mid-roll use rose 60 percent.
3. Completion rates continue to grow.
While there must be a saturation point for online video ads, we haven’t found it yet. As proof of that, consider FreeWheel’s finding that video ad completion rates are better than ever: 93 percent of ads in long-form content (over 20 minutes), 81 percent of ads in mid-form content (5 to 20 minutes), and 68 percent of ads in short-form content (under 5 minutes) are completed.
4. Ads are getting longer.
If you’re a viewer, you probably prefer 15-second online video ads. If you’re an advertiser, you probably want a little more time to spread your message. Well, the advertisers are winning out (sorry viewers). Use of 15-second ads declined in 2012, says FreeWheel, while 30-second ad use grew: 34 percent of ads were 15 seconds, while 42 percent were 30 seconds.
5. Mobile video is on the rise.
It’s still a small percentage, but it’s growing. In the fourth quarter, 2 percent of video views were from mobile devices and game consoles. By the end of 2012, that rose to 12 percent. Make sure your content displays properly on all the major mobile platforms.
Download the full report from FreeWheel for more trends (registration required).