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Exclusive: Video Advertising surging ahead in the age on Internet
Exclusive: Video Advertising surging ahead in the age on Internet
By: Sneha Bokil-Paranjape

2011 was a breakout year for online videos. The growing reach of broadband and optimization in video delivery has led to a huge uptake in consumption of video content in India, with a study by ComScore released in March showing that 7 out of 10 Indian Internet users watch online video.

More video means more places to put ads and more chances to reach a potential customer.  And right now, video advertising is a bargain compared to 15 seconds on a primetime TV show.

According to some recent research estimates that places global internet advertising revenues close to $428 billion in 2011, a big jump from last year’s $220 billion revenues. 21 percent of global Internet users now consider online advertising to be more relevant than traditional media such as radio, television, newspapers and magazines.

This global trend is now sweeping across India and has become one of the more accepted and preferred advertising mediums by businesses and corporations. In a recent online performance study conducted, internet advertising jumped 70 percent in performance in 2010.

Many companies are also considering using online digital media for display advertising, as they are now seeing the potential of tapping into India’s Internet community as a viable market for products and services.

Talking about the current Indian scenario of advertising exclusively to iMedia Connection IndiaDebadutta Upadhyaya, VP, VdopiaIndia said, “Indian companies are now putting more confidence in internet advertising and many are ready to commit advertising dollars in this marketing channel for this year and in years to come. In this scenario, the adoption of video advertising online makes a lot of sense. Indian companies are now putting more confidence in internet advertising and many are ready to commit advertising dollars in this marketing channel for this year and in years to come. In this scenario, the adoption of video advertising online makes a lot of sense”.

She further added, “The biggest spenders for Internet advertising in India include the biggest industries in the country; namely, Banking, Financial Services and Insurance (BFSI); Fast Moving Consumer Goods (FMCG); and the retail industry. Other industries include education, telecommunication, travel and the auto industries which is projected to take up to 39 percent of the total market share”.

Vdopia Inc is a US and India-based company which runs online & mobile video advertising network and the company has sales and development centres setup globally – South East Asia, USA, Vietnam & India.

According to Upadhyaya, “One of the best channels for promoting brands, products is Internet advertising and it has evolved into one of the most explored new mediums available today. Brands have moved from experimentation to strategic use of digital media. With the top 100 brands, the percentage spends online sits comfortably between 8-10% though in a fragmented way”.

Mobile and Internet penetration also have a larger share in increasing video advertising. Talking about the same, Suresh Kabra, Founder and CEO, Clk2c.com, said, “Mobile internet presents several interesting options to brands for advertising. Some of the popular means are banner advertising on popular wap sites, streaming video on wap sites, in-app advertising on free apps on iPhone/Android platforms and a plethora of click-to-call, click-to-sms, click-to-download (app) options”.

He agrees with the fact that videos will play and increasing important role in mobile advertisements going forward. As per market research from Morgan & Stanley, more than 50% of mobile internet traffic in 2012 will be video centric. As is always the case with excess availability, consumers will become discerning on what kind of videos to download.

Clk2c.com is the newbie in the mobile video commercial (MVC) download platform, which is primarily enabling corporate and brands to easily reach out to their target audience by delivering the brand message as a video on consumer's handset. 

The company delivered lakhs of mobile videos in the last 3 months alone. On several days, more than 25,000 MVCs were downloaded by consumers for a single brand alone!