Video advertising[2] is a dynamic and crucial element of digital marketing[1] that involves the use of video content to promote products or services. It utilizes various ad formats, notably linear, non-linear, and companion ads, as recognized by the Interactive Advertising Bureau (IAB). These formats parallel TV commercial placements and can appear before, during, or after a video stream. They are distributed through a range of platforms like AdSense, Innovid, BrightRoll, and others, which offer diverse solutions for video ad distribution and significantly contribute to the growth of video advertising. The rise of video ads started in the early 1990s, with companies leveraging websites to showcase their offerings. By 2010, video ads made up 12.8% of all videos viewed online. Today, a vast majority of internet[3] users in the U.S. engage with web video content, underscoring the impact and reach of video advertising.
Video advertising encompasses online display advertisements that have video within them, but it is generally accepted that it refers to advertising that occurs before, during and/or after a video stream on the internet, as well as within programmatic placements on publisher sites.
The advertising units used in this instance are pre-roll, mid-roll, and post-roll and all of these ad units are like the traditional spot advertising you see on television, although often they are "cut-down" to be a shorter version than their TV counterparts if they are run online.
The Dawn of the Internet Age: The roots of digital marketing can be traced back to the early 1990s when the internet started becoming accessible to the public. At this stage, digital marketing primarily involved basic online presence through websites. Companies embraced the potential of this new platform to showcase their products and service.
Broadcast websites such as Sky.com and itv.com have such advertising on their sites, as do newspaper websites such as The Telegraph, and The Guardian. In 2010, video ads accounted for 12.8% of all videos viewed and 1.2% of all minutes spent viewing video online.
In July 2014, Facebook paid an estimated $400 million to acquire LiveRail, a video advertising distributor which uses Real-time bidding to place more than 7 billion video ads a month.