Video Ads Show Concerning Decline
On sites like YouTube, video ads have long been seen as the most important advertising content, both now and in the future. This isn’t necessarily a new model, but it’s easy to apply to many different types of content. Videos range from unboxing toys to repairing pickup trucks to showcasing songs from the biggest bands in the world. All of these videos could be presented with ads so that they would generate a constant stream of new potential customers as people searched for that content. With some videos getting tens of millions of views, the potential audience is vast.
All of these benefits do still exist, but statistics show a trend that is fairly concerning for companies dedicated to advertising online. It appears that Google’s ad revenue fell short of predictions. Growth still was seen, but the rate of that growth declined. The same was true for Alphabet as a whole, the company behind both Google and YouTube. The growth rate last year was 41%, but it dropped to just 6%.
Why are Video Ads Declining?
There are many who believe that the United States is heading for a recession, and it does appear that financial concerns were the reason for YouTube missing those projections. When asked, officials for the company said that the types of advertisers who were spending less on ads included crypto industries, mortgage companies and other lenders, insurance companies, and financial services companies. This could indicate that they think the economy is going to decline and so there won’t be as much need for their services. It could also indicate that these services are already in lower demand as people anticipate a difficult financial future, and so companies are reducing their ad budgets to match.
What Should You Consider?
One important thing to remember is that video ads are not the only ones to use. For many companies, other alternatives are more successful. Pay-per-click ads work well in many industries, driving conversions, and social media marketing is bigger than ever, giving you a chance to put content in front of millions of people. And all of that doesn’t even consider the actual content on your site, which can be optimized for higher search rankings, or the fresh content you regularly want to add to the site to keep drawing in new traffic.
If anything, what this shows is that you always need to be able to react to a changing environment with online advertising. Markets shift, technologies change, tactics evolve. Since we offer such a wide range of helpful online advertising services here at Content Customs, we can help you determine what will be most successful for your business. We can do SEO, site building, reputation management, social media marketing and more. Call now to get started!