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Video Trends: Why Sponsored Content is the Future of Digital Advertising

Video Trends: Why Sponsored Content is the Future of Digital Advertising

Video content has never been more ubiquitous, or more popular with viewers, than it is in 2017. In Q1 2017 alone, we surpassed 2.3 trillion online video views across the main social video platforms! Millions of videos are being consumed via social platforms, owned and operated websites, and across multiple advertising channels, and the medium is one of the most effective ways of reaching a target audience.

However, the proliferation of ad-blocking software installed by users poses a real threat to brands, publishers, and video advertisers. The software threatens traditional interruption advertising, such as pre-roll video, especially as mobile ad blocking reaches mainstream penetration. TV advertising is not exempt from these trends either. Younger viewers watching less TV than ever, and when they are tuning in, it’s either post-broadcast via a catch-up service, or via second screen viewing—both of which make it harder to deliver effective campaign results.

Sponsored Video is the Future

So what can video marketers and advertisers do to ensure their message reach as much of their intended audience as possible? Well, sponsored video is the fastest growing vertical in digital advertising today. According to an eMarketer survey, 48% of marketers anticipated increasing their influencer marketing spends this year to shore up their sponsored footprint, contributing to a sector that is rapidly growing and is currently estimated at $ 1.3 billion annually. Sponsored video content can also help bypass ad-blocking software, and help brands and publishers reach new demographics by sponsoring content from trusted influencers, and other partners.

Sponsored Video Insights: 2017

Sponsored video content has the ability to have a greater persuasive impact on viewers than a straight sales pitch. Advertisers need to cut through the noise, find the content opportunities, grow their audience, and successfully partner with brands to monetize video content. In our exclusive new insights report on sponsored video , we took a look at videos uploaded to Facebook and YouTube up to and including the March 31st 2017. Videos were selected where we believe there was an exchange of payment included in the creative and/or publishing process, i.e. there was a transaction where a partner was paid by a sponsor, to benefit the sponsor. (We consider gifts, like free products, or free hotel stays, as payment).

Download Our New Sponsored Video Insights Report Today! Get All the Latest Data on Sponsored Video Trends

There was significant growth of sponsored video content on YouTube and Facebook between April 2016 and March 2017. On YouTube, views of sponsored video content grew by 242% compared to Q1 2016, with a 57% increasing in publishers and creators uploading that type of content. On Facebook the numbers are even higher – views grew by 7390% YOY, with uploads also increasing by 4864%.

Growth of Sponsored Video Content on YouTube and Facebook – April 2016 to March 2017 (All data via Tubular)

Those numbers are incredibly impressive, but which industry verticals are pulling in the viewing and engagement numbers on the video content that’s being sponsored?

Top Sponsored Content Industries on YouTube and Facebook April 2016 to March 2017 (All data via Tubular)

On Facebook we are seeing the highest ROI in terms of views from sponsored videos via food and drink, home and DIY, and TV and movie content. In the last year, food and drink videos created in partnership with brands and publishers have averaged around 621K views. Think of publishers like Tasty,  Tastemade, or The Food Network who often collaborate with other brands, and influencers to reach a wider audience.

BuzzFeed’s Tasty US property has worked with Hersheys, Halo Top Creamery, Chobanis, Del Monte, and M&Ms over the past year to create and publish content that leverages Tasty’s 89M followers on Facebook. This collaboration with Hershey’s on this walkthrough for Marshmallow Kiss cookies generated over 17M views, and 155K shares for Tasty via Facebook. That’s nearly 17M views for a Hershey product beyond its own media properties!

Create Winning Brand Content Partnerships with Tubular DealMaker

Tubular provides independent analytics for the entire video ecosystem, allowing publishers, agencies, and brands to succeed together – growing organic audience and branded content partnerships. With our new product, Dealmaker, monetizing the social video marketplace has never been easier. DealMaker is the most comprehensive database of sponsored content on the market today, tracking over 140K sponsored videos, 30K campaigns, 15K brand sponsors, and 15K content partners. Built by Tubular for all media companies & publishers, DealMaker arms you with the intelligence you need to sell more deals and grow revenue.

Download Our Sponsored Video Content Insights Report: You May Qualify a Free Trial of Dealmaker!

We’ll be taking a deep dive into the new Sponsored Video Insights Report over the next few weeks. If you want to get your hands on a copy right now – and find how you can use Tubular to determine which sponsors or partners to work with – just click the button below.

Download Our New Sponsored Video Insights Report Today! Get All the Latest Data on Sponsored Video Trends
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