Video ads emerging as most effective online form

Durgesh Gupta - Televisionpoint.com | Mumbai
Video advertisements are seen to be emerging as one of the most effective online advertising mediums. Experts say click through rates in video ads are between 20 and 40 times higher than the click through rates of other forms of display advertisements.

Also, creating video ads online is fast catching up amongst youngsters as creating these products is cheaper than before. Some websites provide the facility where users can create their own videos in less than 30 minutes. Televisionpoint.com tries to find out more, as to what is stored in the Indian online video advertisements market.

"Video ads can do wonders when customers want to show the emotional appeal of a brand," Naren Nachiappan, managing director, Jivox India, said on the sidelines of the Internet & Mobile Association of India (IAMAI) conference on digital marketing recently.

"It even allows for the call for action to be easily embedded in the video itself. For FMCG products, real estate deals and mobile phones, video ads can have a much better consumer-centric ad campaign online." Nachiappan says.

One issue with online advertising is that when clicking on banner ads, the individual has to move away from his/her page. This dissuades users from viewing video ads.

"But there is a rise in gadgets (video players) that allow users to see all the information on a single screen, just by clicking links. Also, with the content tracker tool one can measure the full path of an ad and actually see whether it has generated sales or not." said Parminder Singh, business head, technology and media, Google.

But for the nascent online ad market to grow, the ads have to be designed and placed in a particular position for them to reach the target audience.

"The ads need to be located depending on what purpose they are marketed for. Video ads can be used for creating awareness, getting responses or feedback,'' said Pearl Uppal, director, advertising sales, Yahoo!.

"When companies are looking for branding opportunities they should first check out the active users and ratings of a site to actually consider if it is effective,'' added Chetan Marwah, CEO, ISHIR Digital.

The overall online ad revenue in India is a miniscule Rs 450-500 crore, compared to the total advertising revenue of Rs 60,000 crore. But it's growing at 100 per cent per annum. Of the online ad revenue, video ads constitute less than 10 per cent.

In the US, the online ad market is $ 22 billion (Rs 87,000 crore). And market research firm Parks Associates forecasts that the premium online video market (global) will be about $6 billion by 2013.

"Most online video ads are successful based on viral marketing. These videos have to be original and eye catching for users to share them online," says Thomas Xavier, national creative director, Orchard Advertising.

"Most companies look at internet advertising as a cost effective medium, comparatively cheaper than the TV and print ads. The reach with the online medium may be limited. In many cases it is also not easy to figure out the impact of an online video ad campaign, as there are no guidelines." Xavier says.

But with broadband penetration rapidly increasing, many expect online video ads to take off. There have already been some successful campaigns, especially with new movie trailers from production houses like Rajshree, Yash Raj Productions and the ADAG Group.