BIA Advisory Services reported that video advertising in local will continue to outpace local advertising in growth for the next five years. Mobile local video is growing at 14.4% compound annual growth rate (CAGR) as increased consumer mobile usage is making location targeting easier. Video for small businesses are usually produced on their own or with tools on social media. The ease of use and quality of mobile videos has attributed to the increase in small businesses using video. When it comes to advertising, nearly half of small businesses that use video in their advertising produced at least one video in 2017, according to data from BIA’s latest Local Commerce Monitor™ (LCM) survey report, Video Advertising and Small Businesses.
Video advertising can include TV/Cable, digital like Hulu and YouTube which are making it easier for small businesses to produce videos and advertisements with video. YouTube Directory helps small businesses with $1,000+ ad budget create and place video ads on their network. When it comes to video advertising, entertainment small businesses and home & trade services small businesses were the most likely to spend on video advertising, particularly videos on their websites or YouTube. Professional and financial services small businesses, while not spending much on video advertising in 2017, indicated they plan to increase their spend on video in 2018.
Traditional media players, particularly local TV and cable, have opportunities to take traditional TV ads on OTT and online and should ask advertisers “do you have videos on your website or YouTube?” As many local TV and cable companies already produce commercials for clients, they are in a good position to help with video advertising.