12 Ways Video Will Connect Consumers and Brands in 2016As The Traditional TV Landscape Shifts, Digital Video Unlocks New Revenue Streams For Marketers

Here’s a big prediction for 2016:People are going to continue living connected lives. They’re

going to get even more connected in the coming year.

Shocking, right?

So, to start, in thinking about the year to come, we feel compelled to set as a baseline the most basic prediction of all: Connectivity is here to stay. The real trends and innovations in 2016 emerge from how fast everything is continuing to change—in a fast and furious way—as a result of this connectivity, and how quickly consumers are changing their behaviors in pace with this evolution.

We see countless new and exciting possibilities for video advertising in 2016, but we’ve narrowed our list down to our top 12 picks for the coming year that mark significant shifts in the way video is delivered, what that video looks like, and how advertisers will be able to measure and assess consumer reaction and engagement in video, once and for all.

Innovid’s 2016 Video Trends & Predictions:

1. OTT Content and Digital Content Combine Forces 7. Video ROI Gets a Facelift

2. Interactive Mobile Video Catches Fire 8. Social Video on the Rise

3. The 5-Second Spot Gets Its 15 Minutes of Fame 9. The Triumph of Good Video over Ad Blockers

4. Programmatic Video Gets Creative 10. Scaling Videos for Scaling Audiences

5. Video Gets Political 11. 360° Views Take Videos Towards Virtual Reality

6. Shoppable Video 12. Video Storytelling Through Retargeting

#1: OTT Content and Digital Video Combine ForcesSince 2010, five million people have cut the cable cord. But breaking up is never easy.

And in 2016, OTT devices will ultimately let consumers continue to take the TV driver’s

seat they always wanted thanks to content on their terms and their time. In fact, 20151

saw audiences streaming 37 million hours of video per week on Roku devices alone.

In 2016, it’s up to advertisers to leverage OTT possibilities that take advantage of all

the possibility digital TV has to offer. Nearly 80% of current ad buyers plan to invest

more in connect TV advertising in 20162, and 85% of marketers are using advanced TV

advertising3. It’s not surprising considering that interactive ads delivered on Roku have

an average completion rate of 99%4.

You Down With OTT?

Everything Is Over-the-Top. It’s not enough to think about the connected TV experience

alone. Think about creating strategies and campaigns that work together, and in

complement, across all devices.

3 IAB Advanced TV Study, August 2015 4 Innovid H1 2015 Interactive Video Benchmarks

1 NPD Group 2 Innovid State of Interactivity Report, Q3 2015

#2: Interactive Mobile Video Catches FireAccording to eMarketer, in July 2015, mobile finally reached its tipping point, with 51% of the

average adult’s total time spent on digital devices going to mobile screen time1. Despite

spending more than half our time on mobile devices, our attention is hardly undivided: we’re

distracted and inevitably multitasking as we check email, read CNN alerts, shop and, of

course, check Facebook. Which means that when it comes to mobile video, advertisers will

have to be incredibly savvy in order to make the most of their mobile ad dollars.

Fortunately, interactive video offers the antidote to all that distraction via very up-close-and

personal experiences that invite viewers to step into the video and take control. By offering

mobile users an engaging experience in conjunction with the strategic positioning of video

ads within the content of an app or site, advertisers can bypass the noise to reach viewers

and create a connection.

So why is 2016 the year for interactive mobile video?

Because it’s poised to capitalize on viewers who are already in a receptive state of mind:

nowhere are consumers more inclined to instantly interact and engage with content than on

their mobile devices. Viewer-friendly and the perfect complement to TV advertising, mobile

video promises to gain new cachet in the world of video advertising in the New Year.

1 eMarketer

#3: The 5-Second Spot Gets Its 15 Minutes of FameSnapchat and Vine have paved the way for short-form, visible content, and in 2016, the

5-second video spot will be yet another way consumers can grasp branded content

without the commitment. The tricky part for advertisers will be to ensure they are using

every video feature at their disposal to transform a 5-second view into a 60-second

engagement.

With the continued rise of interactive video, brands can use elements to draw in the

viewer, and ultimately put them in the driver’s seat. Inviting them to view more (longer!)

video content, connect on social, or even buy movie tickets right then and there. Clever,

interactive content ultimately leads viewers to spend 30, 60 or even 120 seconds with a

spot you only bought for five seconds.

2016 will be the year of “The 5-Second Rule”: where short video spots meet the long tail of

interaction.

#4: Programmatic Video Gets CreativeProgrammatic definitely has enjoyed being the buzzword of 2015, but as we look ahead

to 2016, it’s no longer enough to simply serve video more efficiently. It’s time to couple this

strategy with personalized, advanced creative—which customizes messages and content

to specific audience segments and behaviors—as a complement to programmatic buying

strategies already in place.

It’s hardly news that personal content yields better results. 56% of marketers cite higher

response and engagement rates as the top reason for personalizing ad content1 and two-

thirds of agencies now target ads based on individual behavior and geo-location data2.

But in 2015, only 34% of those who are responsible for programmatic buying at agencies

were actively applying tactics to personalize in-ad creative3. There’s huge opportunity in

upping your creative game to meet the possibility inherent in all that data.

This is one case where innovation is inevitable—as presaged by the same creative

changes we’ve watched unfold across other forms of digital advertising in recent years.

In 2016, digital marketers finally bring video into the personalization fold: The data they’re

already using to target and personalize content will be applied to video, making a powerful

visual execution even more relevant.

1 Poll, CMO Council, June 2015. 2 Poll, Strata, May 2015. 3 Innovid State of Interactivity Report, Q3 2015

#5: Video Gets Political

We all know 2016 is an election year. Which means political advertising—and lots of it, as

candidates and their backers are expected to spend a record $11.4 billion on ads, with $1

billion of that allocated to digital1. Video will play a crucial role in these digital strategies as

candidates use the sight, sound, motion and interaction to convey their brand and campaign

goals while connecting with voters on multiple levels. Millennials, ages 25-34, make up the

largest segment of digital video viewers of any age group2, so candidates will especially

ramp up their video efforts to engage this elusive generation of voters.

For instance, President Obama’s campaign broke new ground making major inroads with

younger voters—with its savvy use of social media, so candidates will be sure to integrate

social features within their videos. Whether it’s using live stream Twitter feed or “share now”

buttons, in 2016, interactive video will be the major innovation in political digital strategy.

Candidates will use compelling video overlaid with specific interactive features, served up

across all devices. It’s a strategy that’s more likely to capture Millennials’ attention and drive

the behaviors that allow campaigns to gather real-time, actionable data about voters.

The Engaged Voter

Look for smart campaigns to use interactive video as a key means of reaching younger voters.

Video will be used to conduct polls and surveys, to motivate individual grassroots get-out-the-

vote activities, and to drive specific online behaviors like social connection and sharing.

1 Political Ad Spending Online Is About to Explode”, Issie Lapowsky, WIRED. 2 eMarketer, Feb 2015

#6: Shoppable Video

Advertisers have always longed for ways to shorten the distance between searching and

buying for their shoppers. At the same time, 60% of consumers want real-time promotions

and offers1. Enter: shoppable video. No longer just an awareness vehicle, video can instantly

become a direct path to purchase—a hotbed of shopping opportunities, essentially bringing

the online shopping experience to the ad itself.

In the not-so-distant past, shoppable video was merely a novelty for most marketers. But as

interactive video capabilities have become more accessible and affordable, we see 2016 as

the year shoppable video becomes a must-have in the retail marketer’s toolbox. Even simple

executions such as “Buy It Now” buttons, product recommendations, or store locators can

quickly transform a once-passive medium into an in-the-moment e-commerce experience.

And while shoppable video still remains an under-utilized tool by most retailers, its early

results are proving fruitful. Click-thru rates alone (such as a “Buy Now” option) jump by 83%

using interactive units versus static pre-roll2.

Shoppable video: where desire meets instant gratification—and real results for retailers.

1 Accenture 2 Innovid H1 2015 Interactive Video Benchmarks

#7: Video ROI Gets a Facelift

Viewablity dominated the video airwaves in 2015. So much, that advertisers actually

began using it as a measurement of video success (43% of ad buyers stating is was an

ROI measurement1. But as TV goes digital, and ad budgets continue to shift to digital

video, establishing a true form of ROI measurement will become crucial for advertisers to

understand video’s role in their marketing model.

Engagement has long been used as catch-all term for signaling success with a viewer. But

the truth is, when video was (only) a passive medium, there was no such thing as direct

engagement—at least not in the sense that would allow an advertiser to attribute direct

ROI across key funnel metrics such as brand lift, purchase intent, social media followers or

even sales. With interactive video, viewers immediately signal engagement through specific

actions like clicking within an ad, viewing other content or adding items to their shopping

cart.

As interactive video increasingly becomes the norm, new metrics for video will arise that

will far outweigh a “view”. Metrics that help advertisers understand not only if their video

resonates with the viewer, but helps push that would-be consumer a bit further down the

funnel.

1 Innovid State of Interactivity Report, Q3 2015

#8: Social Video on the Rise

With the dominance of platforms and apps like YouTube, Vine, Snapchat, and the rise of

live video stream sites like Periscope, Meerkat and now Facebook Live Video, advertisers

are finally in a position to merge their social and video ad campaigns—and to do it with

interactive video that connects viewers to content across digital experiences and platforms.

In 2016, look for videos with in-stream social feeds that lets audiences see conversations

in real time and invite users to share then and there. This lets advertisers cut out the

middleman between exploring their content and joining the conversation on social media.

Creative content will naturally still need to be shareworthy, but the real sharing and

engagement will come from immersive content like a how-to video gallery or in-video

recipes that users can share with their friends and followers.

Advertisers should also take a cue from content sites like Buzzfeed, and offer in-video

quizzes that allow consumers to have fun at the same time that they are providing the

valuable insights that ultimately help the brand serve up better and more relevant content,

products and offers.

#9: The Triumph of Good Video over Ad BlockersAccording to Adobe and PageFair’s 2015 Ad Blocking Report, ad blocking will be

responsible for nearly $22 billion in lost advertising revenue this year alone1, hitting

publishers hard and causing advertisers to re-evaluate their digital video strategies.

But with this challenge also comes opportunity. With ad blockers being the reaction to bad

video ads that are scattershot, disruptive, or just plain boring, we see 2016 as the year that

digital technology, innovative strategy, and creativity all come together for the beginning of

a newly inspired era of creative, platform-relevant, user-specific, and excellent content that

audiences won’t want to opt out of.

Good video will be defined by better and more engaging content that is, from the start,

conceived for the integration of interactive and personalized elements. Advertisers will

monitor campaign data (What are consumers responding to? Games? Recipes? Product

galleries? And how are they responding?) for an optimize-as-you-go approach and for better

future planning.

1 The 2015 Ad Blocking Report, PageFair

#10: Scaling Videos for Scaling AudiencesWhile pre-roll videos can be great—audiences can find them stale after a few viewings. So

in 2016, video marketers will take matters into their own hands to keep their content fresh to

keep users on board and engaged with their brands.

Fortunately, digital video has so many opportunities to include all kinds of interactive

content as a complement to that centerpiece video. Now, brands can combine social media

and other digital content with the attention-grabbing power of video to create multiple

versions of the same campaign with different content options. The result is video that

can scale to reach all kinds of target audiences, and keep their interest piqued with more

opportunities to explore content within video.

Show off product galleries, share local special offers, or even create value out of the scenes

from your video that didn’t make the final cut to create an in-video gallery that leads viewers

to extended content or behind the scenes footage from the final commercial.

#11: 360° Views Take Videos Towards Virtual RealityVirtual reality gear and games are topping this season’s holiday gift guides. Guess what that

means? A whole lot of consumers are going to be hungry for good virtual reality content in

2016—and that means a significant opportunity for advertisers who can bring full immersion

and interaction to their video content.

Among the most immediate VR-friendly experiences that advertisers can easily create in

their videos is the 360° product feature video, which allows the viewer to get the full 3-D

effect of a product, and get close to view minute details from all angles and distances, for

an immersive experience that is far beyond a flat image—even one that rotates or presents

different product views—could ever capture.

The Next Frontier for Brands

Interactive video is already immersive, but 360° features within videos provide users with

more of an experience that they’ll remember, whether it’s getting a virtual test drive of

Jaguar’s latest model with 360° interior and exterior views and an engine-revving simulator,

or by stepping into Lara Croft’s world of ancient tombs. Give them an amazing experience

and audiences will remember your brand.

#12: Video Storytelling Through Retargeting Will Retargeting isn’t a new concept, but video marketers are going to leverage it more and

more to tell sequential brand stories in 2016. When audiences are exposed to ads in

sequence rather than at random, they are 87% more likely to visit the advertiser’s site1, so

keeping the brand’s story in tact, audiences are more likely get the message and engage.

Viewers no longer expect to see the same video again and again; they want to see an

evolving story of video ads offering new experiences and interaction. The advertiser’s job is

not only to offer the most targeted ads based on consumer-specific data, but to also ensure

that subsequent new ads are chronologically sequenced to trigger consumer awareness,

engagement, and ultimately drive specific desired behaviors and maximize ROI.

In 2016, retargeting will become more of a video marketing norm. With audiences now

consuming video across all connected devices advertisers will work to optimize their stories

to cater to cross-device behaviors from connected TV to smartphones. While total cross-

device tracking isn’t a complete reality yet, advertisers will still do what they can to ensure

they provide audiences with complementary experiences on the devices that they use.

1 The Science of Social Media Advertising

2016 will be the year of video. Are you ready?

In 2016, the number of online video viewers will amount to 209.8 million users, up from 186.2 million in 2013, according to Statista’s forecast. 2015 was a great year for video, but we know that the best is yet to come in terms of providing audiences with the best possible user experiences that truly engage and excite them.

Whether you’re looking to up your cross-device ante to connected TV, OTT devices and mobile or just create more engaging and personalized experiences to build a better brand story, we’re thrilled to help make your 2016 video strategy (and beyond!) a huge success.

Contact us to help you transform your videos into engaging, interactive experiences across all screens.

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