What Is Video Advertising and Why Do You Need It? + Infographics

Unless you’ve been living under a rock for the past few years, you’ve almost certainly heard about the growing need for brands to “pivot to video.” Not only have businesses of all kinds been increasing their video advertising output, but even the marketing platforms themselves are bending over backward to accommodate and incorporate more video content.

To wit, social media juggernaut Meta rolled out Reels first for Instagram in 2020, then for Facebook in 2021. LSEO’s own Anne Stramara name-checked in a recent blog about the most important Facebook tricks for marketers, but the gist is this: TikTok, YouTube, Snapchat, and Twitch are among the most popular, effective, and fast-growing content delivery platforms today. Even Mark Zuckerberg can see that, and he knows what it means.

Any company that wants to remain relevant going forward needs to make advertising videos a major component, if not the main component, of their marketing campaigns. If you’re still not convinced, though, keep reading; I’m about to give you a crash course on why video advertising matters, the biggest benefits of video advertising, and the future of digital video advertising.

What Is Video Advertising?

Video advertising takes many different forms today, from corporate YouTube channels to Facebook and Instagram Reels. Live-streaming events, vlogs, explainer videos, how-to tutorials, seminars, etc. Computer animation, stock footage, in-house productions, etc. The list goes on and on.

Video advertising comprises not just paid media marketing, but also videos posted via a company’s own social media pages. That said, it’s important to note that when we talk about the past, present, and future of digital video advertising, we’re not talking about traditional TV commercials. Online video advertising and broadcast video advertising are two different formats that target two different audiences.

That’s not to say that content produced first for TV or for online can’t also be used as an advertising video for the other format, but it’s important to factor in the nuances of each platform and to make adjustments accordingly. Longer-form content that works well on television often needs to be shortened when adapted for online video.

Online video ads often benefit from being shorter, punchier, and more direct-to-the-point. At the same time, however, you have more freedom to create in-depth content online. In other words, you can create material that doubles both as informative or entertaining content and as an advertising video.

Before I go into discussing the specific strategies and benefits of video advertising, let’s take a look at some important facts and figures. In the infographic below, I’ve collected some key statistics that can help you understand exactly why video advertising is such a crucial, powerful, and effective tool.

The Benefits of Online Video Advertising

Now you know what video advertising is and some statistics about how widespread it has become. But what are the actual advantages of using video advertising? How does it benefit your business to incorporate video advertising into a marketing campaign?

Here are three fundamental benefits of online video advertising to keep in mind…

1. Video Advertising Provides Versatility

I mentioned in the section above that advertising videos come in a wide variety of shapes and sizes. To really hammer home how versatile the format is, though, let’s take a look at just one platform: YouTube. 

What does YouTube video advertising look like? Well, if the first place your mind goes is to the short commercials that play at the beginning of most YouTube videos, you’re right… but you’re also wrong. Those commercials are just one type of YouTube video advertising, but here’s the amazing truth of the matter: all YouTube videos are a form of YouTube video advertising!

While it’s true that you can get a lot of results just from paying to run ads on other people’s YouTube videos, that’s just the tip of the iceberg. If you start your own corporate YouTube channel, every video that you produce for it acts as a form of advertising, from live-streamed panels and Q&A sessions to animated explainer videos and how-to tutorials. It all contributes to your brand identity, and it all contributes to building customer loyalty.

You’re not limited to your own channel either. Other people’s YouTube channels can also feed into your marketing efforts. In addition to paid media ads, you can collaborate with other channels to create new content, sponsor certain kinds of content, offer promotions and giveaways, and even solicit reviews and testimonials.

If this all seems like a lot to take in, keep one more thing in mind: I’m only talking about YouTube right now. You can do the exact same things on a dozen other platforms, including Facebook, Instagram, TikTok, and more. Simply put, the potential that advertising videos represent is virtually limitless.

2. Video Advertising Drives Conversions

Think that versatility and reach are the only things that make video advertising special? Think again. In the business world, we all know that the bottom line… well, it’s the bottom line. All the marketing campaign strategies, social media followers, and cross-platform promotions in the world don’t amount to anything if you’re not getting demonstrable, measurable, real-world results. 

Fortunately, if there’s one thing video advertisers know it’s how to get results.

What kind of results? Well, a recent study by Smaato and Liftoff found that the average CTR for video ads on mobile apps is approximately 7.5 times higher than the CTR for display ads. What’s more, software company Vidyard’s State of Video Report for 2022 found that video advertising continued to be a top performer when it comes to driving conversions, getting results equal to or greater than other formats for 98% of study participants.

That said, how do those conversions measure up when you take into account the cost of creating video content? What’s the balance between CTR and ROI here?

According to research by Biteable, 74% of video advertisers have found that video content ROI is superior to that of static image ads, 68% found video content ROI superior to Google Ads, and 30% even found video content ROI to be more important than their own brand websites! All in all, video advertising translates to a lot of conversions at relatively little cost, making it one of the most significant marketing investments a company today can make.

3. Video Advertising Boosts Engagement

It might sound a little silly or glib to say, but one of the reasons that video advertising is popular with consumers is simply because… they don’t have to read anything. Let’s face it; it’s easy to ignore text ads. When you’re scrolling through a website or social media feed, a lot of text just blurs together. If you’re not able to catch the consumer’s eye, you could lose them forever.

Videos, by contrast, demand attention. They’re even more effective than static images because videos have the advantage of employing not just visuals, but motion and sound as well. The result is that video advertising stimulates more user engagement.

Videos hit the sweet spot between passive and active engagement. Users who prefer to engage passively can simply hit the “play” button and get all the information they need without having to actively scour a text article for critical details.

At the same time, users who prefer active engagement can feel like they’re taking part in a conversation. This is doubly true for interactive content videos, such as live streams where viewers are able to participate via online chat.

That’s not all! Studies show that there are many, many people who process information better when it’s presented in a video format. This means that putting your brand messaging into video form enables that messaging to be more easily understood and retained.

People remember video ads more than text ads. They also share them a lot more, which allows you to turn your own audience into its own self-perpetuating form of marketing. Word of mouth is still one of the most powerful tools when it comes to self-promotion; video is a great way to leverage that.

Looking at the Future of Digital Video Advertising

If current trends are anything to go by, the future of video advertising is itself the future of digital marketing. The rising popularity of Reels on Instagram and Facebook, of live streaming platforms like Twitch and Periscope, and of micro-video content apps like Snapchat and TikTok is proof positive that the public has a growing appetite for video content.

According to a recently updated Hubspot Digital Consumer Trends Report, 53% of people surveyed want to see more video content from online brands and businesses. Although video advertising is most popular with users in the 18-24 age range, demand for video content is up across all age demographics.

Last but not least, a majority of survey respondents (approximately 43%) said that of all the advertising content they consumed in a month, the material that was most memorable to them was video. In other words, the benefits of online video advertising aren’t just that the format is increasingly ubiquitous and in demand; advertising videos are also crucial in keeping your brand vibrant in the minds of your target audience.

Level Up Your Advertising Video Campaign with LSEO

Do you need help creating, refining, or optimizing your video advertising efforts? The LSEO pay-per-click marketing team has the experience and knowledge necessary to effectively and efficiently manage your YouTube, Instagram, Facebook, and other online ad campaigns. Likewise, our social media team can help you identify which platforms are best suited to building your brand and what kinds of advertising videos you should employ.

Additionally, our in-house content marketing team has all the resources required to provide you with expert advice and professional editing services for your original video content. We can even produce original advertising videos utilizing animation, pre-existing footage, or newly shot footage to meet your needs. Your satisfaction is our highest priority.

Here at LSEO, we pride ourselves on going above and beyond to satisfy our clients and provide meaningful, demonstrable results. Let us take your advertising video campaign to the next level. Contact LSEO today!