Digital Video Ad Spending to Double from $4 billion to $8 Billion by  2016

Digital Video Ad Spending to Double from $4 billion to $8 Billion by 2016

Published in AutoSuccess Magazine 2013

Digital Video Ad Spending to Double from $4 billion to $8 Billion by 2016


Light speed. Thatâ??s how fast things change in the digital marketing universe. Yesterdayâ??s innovation is replaced or improved upon by the end of the month. There are, however, trends, shifts in thinking and spending that can signal a fundamental change in approach to how to reach consumers and collect their information.

This past June the Interactive Advertising Bureau (IAB) reported digital advertising revenues in the U.S. hit $9.6 billion in the first quarter of 2013, up nearly 16 percent over the same period in 2012. Make no mistake, consumers and therefore advertisers, are turning to interactive media in droves to look for news and information, connect to social networks and simply be entertained.

In an effort to bring clarity and consistency to the digital marketplace, the IAB, an association of 500 leading media and technology companies that are responsible for selling 86 percent of online advertising in the United States, has developed standards by which marketers deliver their message, track engagement and determine return on investment.

The decisions by these major advertising players and their ad agencies will affect all advertisers and marketing platforms as the standards become adopted and more widely recognized. Be ready. If your advertising agency, designers and media planners are not familiar with these coming standards, you should seek new partners.

The nearly $10 billion spent on digital advertising the Q1 2013 is a record and youâ??d have to be tuned into AM radio not to have noticed. Facebook has added ads (sponsored posts) to the usersâ?? news feeds. Advertisers and their agencies have developed more engaging banner and Web ads. Online video has become a key and critical channel for marketers seeking to attract the attention of the consumer.

Within that digital advertising spend, online video advertising has become the fastest-growing channel. The prevalence of faster Internet speeds, technological improvements in hardware and software and the burgeoning growth of mobile devices have made the online video the digital equivalent of broadcast and cable television, but at far lower cost both in terms of production and delivery.

Just this past spring eMarketer, the online digital marketing industry trade service, projected that U.S. digital video ad spending will nearly double in only four years, climbing from $4.14 billion this year to $8.04 billion in 2016.

While most of the major marketers will tie their TV ads to the online marketing message, much can be learned from their huge expenditures and tracking efforts and applied in the B2B sector of vendor to auto dealer and B2C from dealer to consumer.

At Cactus Sky, we have been closely following these sea changes in marketing efforts and to that end we have created a digital video studio, fully equipped with the latest hardware and software to provide a platform for our clients to create high-quality, low-cost video emulating the powerful marketing of these major players complete with sophisticated tracking to clearly report return on investment.

There is much to consider to when creating digital video for online marketing. You must look at how to purchase it, cost of production, and type of ads, pricing formats and where to buy time from online publications or buy audiences via ad networks. It can be a complicated process and takes some effort to understand the nuances of the blistering pace of change and innovation in the space.

Thereâ??s no question that online marketing including more-sophisticated Web banners and targeting, e-mail marketing, online video will become a larger part of your advertising and marketing spend in 2014 and beyond.

We at Cactus Sky remain convinced that there are a number of common sense basics to advertising and marketing on which to keep focused.

There is a lot of noise out there. We are constantly bombarded with messages and now those messages are coming at us in ever-increasing numbers and in new ways. To rise above those that noise you must know your audience and engage them with value.

Value is key. For instance, vendors marketing to auto retailers must provide them with one or more of the following: news, news analysis, expert advice, tips, ideas or proven methodologies for helping them make or save more money that ultimately adds to the bottom line. The rest is superfluous noise.

Clarity and brevity. Make sure your message is coherent, meaningful and short. Engaging a prospect occurs within seconds. Substandard, unattractive banners, poor quality video or audio or long, convoluted messaging will simply be ignored or worse, turn the prospect away from your message or lead to poor online reviews.

Target audience: You must have a keen understanding of the demographics of your current and potential customers. While TV and radio give you a shotgun to hit the target, online advertising is a laser. Media outlets you deal with must be able to produce demographics of their subscribers. Your message must match those demographics or you are simply wasting time and money.

Please feel free to contact me to discuss your digital marketing planning and implementation by calling (941) 756-1932 or visit

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A digital marketing expert nationally recognized as the â??webdoc,â? and is the technology correspondent for ABC 7 News and SNN6 where he provides technology advice, website reviews and product news.

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