The US digital video advertising market is expected double by 2019. “This growth will be led by an ongoing shift toward mobile viewing, a host of digital platforms that now prioritize video and a growing assortment of content against which to advertise” (eMarketer,2016). There are many benefits to videos ads. These benefits include higher user engagements, ability to control bigger percentage of mobile devices across screen real estate, ability to use sound and image, and usually video demand is a mix of brand and performance (app download). Video ads provide certain opportunities for brands to engage with a certain audience.
Video ads present many opportunities. There are also challenges that arise working with video ads. Two commonly known challenges relate to fraud. These two types of fraud include advertiser and publisher fraud. It is estimated that video ad fraud costs the industry about $18.5 billion annually. A brand must have a well-developed strategy to address these challenges.
Evaluating a video ads performance can help a brand improve its efforts. There are certain metrics that help measure how successful a video ad is. These metrics include completion rate, click through rate, install rate, reach, cost per action, and cost per install. These metrics can help a brand understands its ROI.
Demand Side Platform (DSP) is an important element in the execution of a successful video ad. DSP allow advertisers to extend their reach to a larger supply pool. Also, DSPs usually have the ability to target on and individual basis using IDFA or Andriod AD ID. Also, DSP can target by country, lat/long (if provided by app), gender (if provided by app), age (if provided by app), OS, app name, etc. This system helps facilitate the buying of online advertising.
As the use of video ads continues to grow, so does the chances of fraud occurring. More procedures are being developed and implemented to help combat fraud. Opportunities for brands to engage with consumers through video ads. However, these brands will also face challenges.
Mobile Spearheads Digital Video Advertising’s Growth – eMarketer. (n.d.). Retrieved June 02, 2016, from http://www.emarketer.com/Article/Mobile-Spearheads-Digital-Video-Advertisings-Growth/1013611
Slefo, G. (2015, October 22). Report: For Every $3 Spent on Digital Ads, Fraud Takes $1. Retrieved June 02, 2016, from http://adage.com/article/digital/ad-fraud-eating-digital-advertising-revenue/301017/