According to PubMatic's Global Digital Advertising Trends Report, nearly three-quarters of advertisers plan to increase their digital video advertising budgets between 2019 and 2020 and only 1% of those Advertising plans to cut costs:  

Video advertising in the future of global spending data 

Traditionally, the type of advertising was broadcast on television, but it has changed to digital media. So not only are brands increasing their video ad budgets, they're using modern channels instead of traditional delivery methods.

Digital video advertising offers advertisers greater opportunities for data collection, brand exposure, enhanced targeting and customized targeting – strengths that traditional TV advertising cannot compete with. 

Digital video advertising is the future because they allow advertisers to connect with their audience in the way they want.

Video advertising has gone from being part of your overall digital marketing strategy to playing a vital role in engaging potential customers. In fact, research from HubSpot shows that more than 50% of consumers want to see video from brands, more than any other type of content:  

The future of video ad brand data 

Additionally, Amazon and eBay report that adding an explainer video ad to a product description increases a customer's chance of purchasing the item by 35%.

Because of their format, video ads offer advertisers a unique opportunity to engage and convert better than standard image ads, making them the future of digital advertising. Let's take a closer look at the different capabilities of video ads that make them so important to advertisers.

Why video advertising is the future of digital advertising 

1. Video ads have high engagement 

Video ads combine two things that grab users' attention: motion and sound. Both of these play an important role in effective communication, leading to better engagement. When MediaMind analyzed more than three billion ads worldwide over a six-month period, they found that the leading players were: 

27.4 times more clickable in online video streaming than standard media 

Almost 12x more than rich media 

While image or text ads rely on text, punctuation and symbols to convey the desired tone, video ads use motion and sound to capture visitors' attention. The most effective advertising strategy is using structured information that is easy for your target audience to understand. A video ad that appeals to users and is followed by a final call to action will be successful in keeping the audience engaged.

Video ads provide more detail on how Asana helps customers keep their activities on track and on schedule, increasing their chances of hitting the signup CTA button. 

2. Video ads can be shared 

Users are very fond of sharing videos since Twitter users share more than 700 videos per minute.

Video ads are short, relevant and have a story to tell, making them shareable. Video advertising is a great way for brands to express themselves and why many people find them worth watching.

3. Video ads have a higher number of click-throughs 

The fact that video advertising tells a story better than traditional banner advertising makes the former not only attractive to the audience, but also in getting more clicks. According to research conducted by Smaato, the average CTR of video ads on mobile apps is 7.5 times higher than that of display ads.

Facebook video ads also have a higher CTR than image ads. ClearPivot, a digital marketing company, found that video ads drove more clicks than image ads for their clients, up to 20-30% more clicks.

When Cardinal Digital Marketing A/B tested video against image ads for a travel and tourism brand, they found that, all other things being equal, video ads led to a 47% higher CTR despite Facebook driving influence. Although video ads take longer and cost more to create, their ability to tell your story better helps you get more engagement.

Convert video ad clicks into conversions from landing page clicks 

Video advertising allows advertisers to better engage the audience and get more click-throughs; You can use social media platforms like Facebook and YouTube to create different video ads.

However, to continue your brand story and turn ad clicks into conversions, you need to link all of your video ads to a customized click-through landing page.

Author's Bio: 

Andre Oentoro is the founder of Breadnbeyond, an award winning explainer video company. He helps businesses increase conversion rates, close more sales, and get positive ROI from explainer videos (in that order).