Over the past few decades, advertising agencies have expanded into new media as part of the packages they offer to clients. At one time, businesses were happy to be promoted through traditional media such as television, radio, print and outdoor billboards. But in the new century the internet has provided cost savings while online video has opened the door to more creative and personal advertising that is now being taken seriously by businesses of all industries.
Evolution of Ad Agencies
The history of ad agencies since the 1990s has included many buyouts that have led to global giants dominating the industry. At one time J. Walter Thompson and Young & Rubicam dominated the industry, accounting for many famous television commercials and national media campaigns. This advertising, of course, was much too expensive for small or even medium businesses, which usually had to settle for local radio or newspaper advertising to reach target markets.
In 2000 Google introduced AdWords, making it possible for companies of every size to compete for national or even international business. Then broadband became widespread and Google bought YouTube, opening the door to even more possibilities for all marketers. In 2016 Google and YouTube are both ranked in the top 3 for global internet traffic, according to Alexa. Making videos has become essential to business marketing.
Why Businesses are Embracing Video Production
The biggest reason why businesses of all sizes now include video production as part of their marketing is that it is an effective way to generate leads and get conversions. A study by Ascend2 in 2015 revealed that 85 percent of 280 business professionals said that video marketing has brought them success. The top objective for making videos has been to increase brand awareness. Other goals have been to increase online engagement and improve customer education, as well as increase leads, conversions and revenue. The most effective type of videos are customer testimonials, tutorials and demonstrations.
Another survey earlier in 2015 by BrightRoll found that 72 percent of 120 surveyed agencies believed that online video ads were just as effective or better than television. Furthermore, the survey found that the most important metric for gauging video success was completed views, followed by conversions. Mobile video was the ad category that got the highest response for expectation of largest increase in digital media spending for the year.
The world's largest multi-billion dollar ad agencies, according to Advertising Age, include WPP Group in London, Omincom Group in New York, Publicis Group in Paris, Interpublic Group in New York and Dentsu in Tokyo. Other big names include J. Walter Thompson Company, Young & Rubicam Group and Omnicom Media Group.
Strata provides customized enterprise software for the media buying/selling industry. They help clients buy various types of media, from television, to radio, to outdoor, to print, along with advanced interactive solutions. The company conducted a survey in 2015 that found that nearly 70 percent of American ad agency professionals surveyed identified video as the main advertising focus for clients.
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