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Online video advertising market witnessed growth rate of 200% year on year in 2016: Adomantra Digital report

30-December-2016
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Online video advertising market witnessed growth rate of 200% year on year in 2016: Adomantra Digital report

The online video advertising industry had a very impressive year in 2016 with growth of 200%. The increase in consumption of video content enabled a shift in gears and growing demand and the accelerating rollout of mobile network and easy availability of affordable internet access, suggest that 2017 will be the ‘Year for Online Video Advertising’.

Commenting on the growth trajectory, Vikas Katoch, CEO and Founder, Adomantra Digital, shared the key factors which will define the growth of online video advertising for the year 2017.

He said, “Amidst the different online video advertising durations/ formats, the key focus for 2017 would be on Long format video ads (45 to 90 seconds) for a stronger brand engagement with the audience. Video ads of 30 seconds and above allow communication of emotional benefits and deliver complex messages in an effortless way. Long format videos also have the highest likelihood of being shared online for viral impact.”

Highlighting the second most important ad format which will grab eye balls in 2017, Katoch added, “2017 will witness 100% surge in Rich Media Format ads. Rich media ad formats have witnessed higher click through rates compared to standard banner ads. Brands and publishers will reap huge benefits because of high viewability in rich media formats as users cannot avoid viewing these ads.”

3G and introduction of 4G was another huge contributing factor for increased video consumption.

“Due to easy and widespread availability of 3G/4G services, the on-going surge in internet penetration in the country will be on the rise in 2017, leading to an exponential increase in Video Consumption. With 220 million users, India is now world’s second-biggest smart phone market, internet users in India are estimated to grow by at least 50 million yearly till 2020,” said Katoch.

However he stressed on the importance of a Standardised Viewability Measurement and the rising popularity of programmatic advertising.

“The industry will continue to hunt for Standardised Viewability Measurement. There will also be an attempt to setup a cross referencing standard across differing players. Programmatic advertising will be a key route for brands due to its cost effectiveness and focused target audience reach. Large brands across industries like FMCG, IT, BFSI, Government will be the key buyers for programmatic advertising,” said Katoch.

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