fbpx

Video ads and dynamic content are going to explode in 2015, so expect to see major changes in the advertising industry.

Limiting factors that have held back video ads – such as technology, bandwidth, production cost, and targeting – are all fading away. And as these limitations disappear, we’ll start to see a flood of video ads hitting the market.

There are several emerging trends that will only continue to evolve in 2015 and the coming years:

Dynamic Carousel Ads

Recently we’ve seen both Facebook and Instagram debut dynamic product ads and carousel ads, respectively.

Each ad type has a slightly different focus. As the name suggests, Facebook’s product ads are specifically intended for retail and ecommerce merchants. These ads allow merchants to display multiple products in a dynamic carousel that appears in news feeds.

Similarly, Instagram is also debuting dynamic carousel ads that allow users to scroll through photos. These ads introduce several new features, such as the ability to link to external websites from within the ads.

The key feature that both ad formats share is the carousel-style display. This multi-image format gives users the ability to interact with the ads, cycle through them, and – perhaps more importantly – digest more information about the advertiser’s product or service.

Video ads, like these carousel ads, also allow users to digest more information than a standard display ad.

Video Ads

Consumers demand video, so it’s only natural that video ads will increase along with increases in bandwidth and technology.

When we look at the rising popularity of new, budding social networks, it becomes obvious that consumers demand video and dynamic image-based content:

These social, video-sharing networks are only part of the picture: Netflix, YouTube, Amazon, and Yahoo are jumping on board the video train. Each of these major tech companies has begun funding their own original TV programming, such as House of Cards and Community.

So it’s quite clear that the demand for video is there. And that tech giants are ready to meet that demand.

Mark Zuckerberg has long been a proponent of video and video advertising. And he has been guiding Facebook towards dynamic content and video content for some time.

In fact, he predicts that Facebook will be mostly video in 5 years. And in 10 years or so, he predicts that most of our sharing will be photo and video – via augmented reality mobile devices.

When we look at Facebook’s video strategy, we can see clear trends in this direction.

The social network introduced autoplay videos and autoplay video ads last year. And Twitter is on the same path towards autoplay video and video ads.

In 2015 and beyond, expect to see these trends continue to evolve.

So how will all these demands and trends shape the advertising industry?

Video and dynamic image-based content growth will obviously continue to accelerate. And, with it, video ads and dynamic image-based ads. Video content is already beginning to dominate online bandwidth.

As the above data clearly shows, people are just more interested in video and images than they are in text. So, in the place of text-based ads, we’ll see video ads and dynamic display advertising begin to rule online channels.

 

Expect to see variations on ad formats for the rest of this year and much of next year. These ad formats are still new, and social networks are playing it safe. Facebook is treating its recent NFL video ads, for instance, as an experiment. The company will test the waters before allowing mainstream publishers to dive into this new format.

So expect to see a few variations and experimentations before the video ads go all the way. Twitter will test its own format, Facebook will test another, Instagram another, and so on. Perhaps by the summer or the end of the year we’ll see the networks settle on the formats that best suit them.

Due to the massive growth of video industry, video ad adoption and revenue will also grow. Business Insider predicts that video ad revenue will reach $5 billion in 2016, up from $2.8 billion in 2013. Despite the fact that video ads are more expensive than other ad formats, video is still expected to outstrip other ad markets due to the high rates of click-throughs and conversions.

When video ads become more mainstream, programmatic video will also become more mainstream. And become more necessary. Humans simply can’t keep up with the fragmenting, ever-changing online ad industry. Algorithms are simply more efficient and make it possible to purchase ads efficiently and at cost.