Digital advertising has grown manifolds over the last couple of years. Search advertising still controls the major chunk of digital advertising revenue, but other forms of digital advertising are slowly catching up. Google recently introduced Google AdWords for video advertising, which will allow advertisers exploring the digital space to advertise on multimedia platforms. At the Ad Age Digital Conference, last week, Google had introduced Brand Activate Solutions, a brand metrics tool.
During the Google AdWords for video advertising announcement, Google revealed that they will be giving away USD 50 million in free Google AdWords advertising in order to help 500,000 businesses enter the video advertising space.
This new addition is analogous to Google search advertising. Advertisers will be able to create and manage video campaigns from the same control panel as search and display ads. An advertiser will have to pay only when someone chooses to watch their ads.
Google Campaign Insights 2011 revealed that on an average YouTube video ads result in a 20% increase in traffic to the brand’s website and 5% increase in number of searches for the brand. YouTube’s Group Product Manager, Baljeet Singh, informed that if an advertisers signs up for AdWords for the first time they can get a USD 75 credit, with which they can run video campaigns for a month and reach out to more than 1500 potential consumers.
The AdWords for videos option can be directly integrated with existing YouTube accounts and advertisers can promote the videos using keywords in YouTube results. YouTube boasts of over 800 million unique visits every month and more than 60 hours of videos are upload every minute. More than 25 million Indians are YouTube users.
A recent Edelweiss report revealed that online advertising in India will be worth USD 800 million by 2016 and will account for 8.5% of the total ad pie. The online ad market has grown at a CAGR of 44% between 2007 and 2011. Google still rules the roost and controls nearly 90% share of search advertising.
Video advertising is still at a nascent stage in the online advertising space and this move by Google will surely provide some momentum, but more advertisers will start exploring this format if ROI is attractive enough. Mobile video advertising is another area advertisers should take a serious look at, especially in the Indian context where number of mobile connections greatly outnumber internet connections.