Out-stream Video Advertising Is a Better Form to Meet Brand Image Building Demand in China

Source:iResearch April 16,20181:23 PM
The main profit sources of video industry are advertising revenue, paid contents  and distribution of copyright. Take online video sector as an example, in order to expand their single business mode, online video companies increase their high-quality content supply to improve users’ paying willingness, and viewers’ spending is expected to take up around 30% in the total revenue of online video sector in 2021. With the further development of out-stream video advertising, video websites will attract more advertisers and have richer advertisements, and at the meantime its advertising business is assumed to keep a relatively high growth rate. As a result, online video sector will develop a more healthy and balanced profit model. 
Importance of technology and content becomes more significant in out-stream video advertising sector and brand advertisers pay more attention to users’ demand and experience

Most of out-stream video advertisement demands are from brand advertisers. The main reasons for brand advertising were “high brand exposure” and “improvement of brand reputation”, taking up 85.7% and 65.7% among all the reasons for brand advertising.

iResearch holds the opinion that the larger demand for brand image building than advertising effect, which can be attribute to two factors. Firstly, content out-stream video advertising forms such as verbal broadcasting and title sponsorship has developed for relatively a long period of time, and advertisers are more familiar with these two advertising forms. Given the technological limitation of follow-up researches about the advertising effect, monitoring of advertisements’ real transformation effect is currently weak, and thus advertisers now have weak demand for out-stream video advertising effect. Also, the highly native advertisements cast very small influence on viewers’ watching experience. Therefore, they seldom lead to viewers’ adverse attitudes towards the brand adverting. This greatly facilitates brand building and has obvious advantage in meeting brand building demand. 

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