Video advertising is no longer just something for advertisers to consider when engaging their users. It’s increasingly becoming a critical way for advertisers to increase mobile user acquisition and personalization for their audiences. And although the use of video has its challenges, advertisers can use several new technological advances to realize tremendous benefits from video ads – including enhanced direct response, higher engagement, and increased satisfaction with their users and audience.

As video spending rises and takes a bigger slice of the ad pie, advertisers must feel confident that they are spending wisely. And although engagement can be difficult to quantify at times, it’s also the key to determining what video ads are worth. Studies have shown that video ads far outperform that of traditional, or image banner ads. Video advertisements receive much higher CTR (click through ratios) than traditional banner ads, and when personalization methods are used to match the right content to the right users, the result is a dramatic increase in engagement rates and ROI.

In this article, we’ll discuss some of the perceived challenges of video advertising, and explain how advertisers can use new technologies to overcome those challenges, and stay one step ahead of the advertising game.

Current Market Challenges

The common complaints about video ads are that production costs are high, thus taking valuable time and resources from advertisers. For this reason, video ads are usually created as generic versions that fit a main target audience, but not all audiences.

A/B testing capabilities are also limited for this same reason; production costs are high, and few versions can be tested against one another.

Finally, direct response advertisers are often slow to adopt and take on video products, as they have the perception that video is primarily a brand play.

A World of Opportunity

Despite the challenges mentioned above, the opportunities for successful video marketing are endless. Video ads have a much higher degree of measurability in comparison with static image ads, meaning that there’s no more guesswork in determining which marketing activities are leading to increased sales and moving marketing efforts in the right direction. Current algorithm technologies also allow increased content quality on Facebook, where video can be used to better showcase a client’s product and the relevance of ads.

Enhanced remarketing and sequencing capabilities also exist, led by algorithmic-based analysis of people-based data and behaviors.

In addition, the costs of producing videos are becoming less of a concern. Marketers today can create personalized, high quality video content with easy-to-use, inexpensive video production tools. The result is increased relevant content and user engagement, resulting in higher ROI and other improved performance KPIs for advertisers.

The Trend to Video Is Here

While static images can still be an effective form of advertising for marketers, the trend towards video is growing stronger and stronger. Despite some perceived limitations of video advertising, marketers and advertisers today have access to highly sophisticated algorithms and other technologies that can learn and analyze any type of user, re-edit videos, add captions and filters, and do whatever else is needed to create unique and engaging ad versions based on users’ behaviors and interests.

The end result is personalized, relevant content for users, and more revenue in advertisers’ pockets.

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