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Online video advertising is going viral

Patricia Garner

An investor's guide to the online advertising industry (Part 11 of 14)

(Continued from Part 10)

Online video advertising

Earlier in this series, we saw the growth and importance of various advertising formats. Today, the world is driven by technology. Online video advertising is also an essential advertising method. It’s gaining traction in today’s digital environment.

Online or digital video advertising is a type of online display that has video in the advertisements. Online video ads may appear before, during, and after a video stream. Other methods for placing an online video ad include in-banner video ads and in-text video ads. In-banner ads are simple web banners. The banners have videos embedded in them. In-text video ads are delivered when a user clicks on the highlighted words or phrases within the text of the web content.

The online video ad market is expanding. Video ads have a viral reach. They’re also the most effective of all the digital formats. They increase the views. Also, video ads’ prices are decreasing. Now, publishers push advertisers more for video ads through programmatic buying. As a result, the supply is more than the demand.

Facebook acquired LiveRail 

Facebook acquired LiveRail in 2014. LiveRail is an online video advertising platform. Facebook acquired LiveRail to monetize video inventory efficiently. Facebook wants to leverage the fast-growing video ad market. During its quarterly reports earnings call, Facebook explained that it plans to use LiveRail to expand its video ads to marketers and publishers outside of Facebook. This move will spread Facebook’s reach even further.

ComScore is a leader in measuring the digital world. In a report, it stated that 191.5 million Americans watched online content videos through a desktop computer in October 2014. Users are going online more to access content. Previously, the content was only available to them through cable or broadcast television.

Google Sites (GOOG) (GOOGL) was mainly driven by video viewing at YouTube.com. It was the top online video content property in October. It had 162.3 million unique viewers. Facebook (FB) was ranked second. It had 93.8 million viewers. It was followed by AOL (AOL) with 86.3 million viewers, Yahoo (YHOO) with 57.1 million viewers, and VEVO with 48.2 million viewers.

Continue to Part 12

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