How has video advertising fared in 2020?

The Drum 19 Nov 2020 08:55
By Dom Tillson-19 November 2020 08:55am

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Since the start of the first lockdown in March, it’s fair to say that it’s been a challenging year for the advertising industry - digital media included. With the pandemic causing a huge degree of economic turmoil, companies have had to adapt to uncertainty and embrace new ways of doing things. For advertisers, part of this has meant reviewing their media strategies to suit changing consumer habits.

As a whole, digital advertising has proved pretty resilient so far - IAB UK’s H1 2020 Adspend update shows that total digital advertising spend dipped by just 5% in the first six months of the year - with some sectors faring better than others. Significantly, video advertising has bucked the trend, reporting 5.7% growth to £1.35bn in the first half of 2020.

The results show that a third increased spend on online video advertising in lockdown 1.0, with larger, London based companies driving this trend. Outstream and video on demand were the formats most likely to attract increased investment. Significantly, those that increased video spend benefitted from an online audience increase, particularly on social media and video streaming platforms. Top benefits of increasing online video spend during lockdown including increased sales, greater reach and a boost to brand awareness.

However, it’s clear that video advertising is proving to be a successful solution for many marketers in 2020 as a highly engaging format that allows brands to merge the emotional and rational capabilities of digital via creative storytelling. As Jennifer Bunting, LinkedIn’s head of EMEA product marketing, puts it: “This research shows that video is a critical format for marketers in the UK to build and maintain connections between brands and audiences – especially when physical connections are not possible. ”With so many of us online - particularly at his time - video is allowing brands to stay visible and relevant.

“During H1, we’ve seen many of our clients leverage our real-time emotional insights to understand changes in audience behaviour and adapt the targeting strategy and creative to continue to reach their most engaged audiences”, Khan explains. “From a longer-term perspective, our CTV research revealed almost a quarter (21%) of UK consumers tried a new ad-supported streaming service between March and July, and, of those, 74% will continue to do so. This will create more opportunities for brands to reach consumers and will fuel a continued rise in video ad spend.”

With a second lockdown now in place throughout the country, our research shows that video is delivering for advertisers that are looking for reach, impact and to drive measurable results during this period of social distancing. There are numerous opportunities facing the video sector - not least how to evolve the rising star of Connected TV and merge digital specialists with traditional linear TV buyers. Negotiating this evolution, along with the pandemic fuelled change in consumer behaviour, leaves video poised to benefit from further growth and new opportunities in the coming months and years.

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IAB UKSteering GroupUKJennifer BuntingYouGov
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