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Video ads are picking up steam.

Case in point: Google did a recent study on YouTube users who viewed their ads for 30 seconds or more. For those who did (versus those who did not), their consideration was 45% higher, favorability was 14% higher, and purchase intent was 19% higher.

That’s encouraging information. But you do have to be skeptical because Google wants YouTube to be profitable. And right now, according to Business Insider, YouTube’s about break even.

However, it did increase revenue from $3 billion in 2013 to $4 billion in 2014. That’s a nice boost of about 33%.

And it’s likely video advertising is gaining steam. After all, in 2015, 72% of surveyed agencies said video ads were more effective than TV ads. And video ads get a 40% higher click-through rate than image ads. By 2017, video will account for 69% of all consumer internet traffic, Cisco ads.

So are ads becoming more effective? Looks like it. But we’re not sure exactly to what extent. And whatever that trend is, it appears as though it will grow going forward.

A Few Reasons Why This Might Be Happening

If you think about it logically, smartphone users now have more bandwidth available than ever before. Almost every store of any kind has free Wi-Fi.

So now smartphone users can easily whip out their phones anywhere and watch movies, without fear of incurring massive charges.

And the web as a whole has much higher speeds than 10-15 years ago.

Remember downloading a video for 5 hours on dial-up, and then a neighbor called and disconnected you? You started screaming in frustration as a result!

No need to deal with that anymore.

Plus, adults, and especially the younger generations, practically live on their smartphones nowadays.

And another reason this whole thing’s working is because TV’s becoming on-demand. No one wants to sit around and watch commercials anymore. And commercials are broadly targeted.

With video ads, you can target much more precisely to people’s interests. So you’ll get more revenue as a result.

So there’s many macroeconomic market forces working in your favor.

Definitely keep an eye on video ads going forward!



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