Content consumption has taken a wild spin over the years and stolen the spotlight in the conversations of industry leaders. With the mere click of a button or the sassy swipe of a finger, we are transported into a world where the type and medium of content consumption are as mind-boggling as a unicorn riding a unicycle. It’s a revolution that has left no screen untouched and redefined the very essence of how audiences and stakeholders devour their dose of entertainment.
This evolution has paved the way for advertisers to unleash their creativity, utilising targeted messaging and interactivity to captivate and conquer their desired audience. No longer confined to traditional television commercials, the realm of video ads has become a playground of innovation and engagement.
With modern targeted advertising using video and interactive tools, advertisers are now customising their campaigns, fostering meaningful connections and creating impact in the digital era. Empirical studies have unequivocally demonstrated that viewers exhibit an impressive 95% retention rate when exposed to video-based messages, underscoring the exceptional potency of video as a medium for capturing and retaining audience attention.
The power of video ads lies in their ability to create brand recall and drive better engagement compared to static or textual ads. Furthermore, video ads increase viewers’ intent to purchase the advertised product by a staggering 97% and enhance brand association by 139%.
Even in the analog era, after all, who can forget Lalitajiextolling the virtues of Surf, Karen Lunel below a waterfall using Liril (though we still don’t know why she was bathing there), or Jayant Kripalani coughing so he could take a Vicks kigoli? David Ogilvy liked to say the consumer isn’t a moron, she’s your wife. I’d like to amend that. The consumer isn’t a moron, he’s your husband. It’s a no brainer then. Video ads are the future of advertising.
India, being the sixth largest market for video ad consumption, has witnessed a significant surge in the popularity of video ads. With approximately 62% of mobile users in India regularly watching videos on their devices, in-app video ad engagement has experienced a remarkable 23% year-on-year growth in Click-Through Rate (CTR). In-app videos have also outperformed other ad formats, exhibiting a CTR that is 112% higher. This indicates the growing appetite for video content among Indian audiences.
While both TV and digital media offer advantages for advertisers, the latter provides unparalleled opportunities for data-driven advertising strategies. The digital landscape enables advertisers to collect data, enhance targeting precision, and personalise their campaigns in ways that traditional TV ads cannot compete with. Moreover, the exponential growth of India’s internet user base, projected to reach 900 million by 2025, further reinforces the significance of digital media in the coming years.
However, it is essential not to overlook the enduring influence of TV in the media and entertainment industry. With television expected to account for 40% of the Indian media market in 2024, it remains a dominant force. The advent of smart TVs and OTT platforms has fuelled the rise of India as the third-largest TV advertising market, with approximately 80% of traditional TV users expected to transition to smart TVs within the next year. Moreover, video advertising on smart and connected TVs is projected to grow at an impressive CAGR of 47% by 2027. As the number of connected smart TVs continues to rise, the content viewed on these screens, including gaming, social media, short videos, and exclusive content, is expected to expand significantly.
As the number of smart and connected TVs grow, targeted video advertising is gaining ground. Connected TVs provide valuable data and insights about viewers’ interests, preferences, and demographics. Advertisers can leverage this data to deliver more targeted and personalized video ads, increasing their relevance and effectiveness. Who knows what else AI can and will do in a world where science fiction is a reality?
The other TV platform is Subscribed Video on Demand or SVOD which though traditionally thriving on ad-free personalised content, has of late introduced ad-supported models. The explosion of mobile internet, especially with the impending rollout of 5G technology, will further revolutionize the advertising landscape. High-speed internet access on handheld devices will enable advertisers to deliver enhanced and captivating video content to mobile users. This shift presents a vast opportunity for advertisers to target this growing audience segment effectively.
The ability of video ads to engage viewers, deliver powerful messages, build brand awareness, target specific audiences, and provide measurable results sets them apart from other ad formats.
Now all we need to do is to tell better stories.