Online Video Advertising Spends On The Rise
The year saw many more brands spending marketing & advertising dollars on online video advertising platforms. The research firm L2 found brands increased their ad spend last year on online video platforms by 43%.
L2 studied nine markets across the world, including the U.S., UK, Brazil, Germany, Canada, France, Japan, Russia, and South Korea. These markets, which upped their ad spend 43% on video platforms, also spent 42.5% more on social media and 12.5% more on search, but only 2.6% more on television advertising. Brands that increased their ad spend on online video platforms collectively preferred to advertise on YouTube, which claimed 59% of all brand interactions. Instagram came in second with 35% brand interactions, while Facebook claimed 6%.
This seemingly small increase in online video advertising demand on Facebook won’t stay that way, according to predictions. The firm cited the social networking site’s ad spend appeal, which already grew 9.6% in ad spend in (an increase of 1.6% over 2014’s 8% stat). L2 also believes, that despite YouTube’s “superior search advantages,” Facebook offers brands lower cost-per-million rates and therefore a greater opportunity to reach a larger audience with its marketing budget.
Regardless, L2 found brands aren’t as confident in creating their own online video advertising as they may seem. The firm discovered 46% of brands claimed compelling content was their primary obstacle in video marketing. Another 41% of brands say they have no budget for video marketing. Brands will have to get past these hurdles if they want to create their online video marketing content for distribution on social platforms.