Mark Melling, director of AOL video, Europe discusses how video is growing to become high in demand as brands realise its potential when combined with other emerging technologies.

Digital video truly came into its own in 2014 with the launch of the first UK Digital UpFronts following three years of successful New Fronts events in the USA. This was the year when one of the most commended pieces of creative at Cannes Lions was a digital only campaign. The Volvo Trucks Test Series picked up 20 awards, including the prestigious Grand Prix in both the Cyber and Film categories. We’re hearing from our agencies that online video is growing in appeal. In our state of the industry report we found that spending on digital video increased an average of 42 per cent in Europe.

According to ad buyers the gap between both TV and digital is closing. The video pot is getting bigger as brands learn how to create augmented experiences pulling together multiple screens, apps and other technologies, to help campaigns really stand out from the crowd.

Digital is no longer the second channel

On the one hand, both media owners and advertisers are starting to treat video content designed specifically for online as a key to success, and on the other hand audiences have come to expect it. Digital content has moved from being repurposed traditional TV programming, to original content. In some cases we’ve even seen the opposite happening, where VH1 picked up one of AOL’s originals, #CandidlyNicole this year. Moreover, digital has moved on from being just second channel, and instead the place for people to tell interesting stories that would not have been heard previously, helping drive innovative formats.

Advertisers are engaging in bespoke digital content more, with digital no longer the shiny object at the end of the media plan, but an essential part of targeting the right audience. At our New Fronts event this year we saw Group M Canada announce that they would be sponsoring all 14 of AOL’s new slate of original shows, while another four were picked up by VivaKi in the UK market at the Digital Upfronts in London. There is a real signal of the power of original video content online and its appeal to advertisers.

Disruption and engagement

There’s no doubt that Netflix has done a great job of disrupting the industry through original programming. They have blurred the lines between video content distributor and producer within the digital space. Original shows drive disruption and engagement – streamlining an otherwise messy world of content rights across different geographies. Netflix has certainly seen this challenge across the countries it operates in. What we are seeing is, players that have adapted to the idea of video becoming an open ecosystem, rather than the traditional TV model, are seeing the quickest returns on their investments.

Video is very important in driving engagement and scale, but success will still depend on how the message is delivered. With the persistence of non-premium video in the market, we are hearing from advertisers that there is demand for high quality and unique content to help deliver their message. As the current market is becoming saturated with adverts, it’s no longer acceptable to simply repurpose content from other mediums. As an industry we need to think creatively and strategically about how we can create engaging content and formats that speaks to the new digital consumer and help build brand stories. Unfortunately not every campaign can be an Epic Split, but if you want people to watch your ad it needs to be exceptional, particularly if you want them to invest in your brand emotionally.

Measurement and data

In the past decade we’ve seen video content grow from cats on skateboards to Emmy-winning programmes. However, because premium and unique digital content is still very scarce globally, there is still a certain stigma attached to any digital video content. Additionally, without question the world of measurement and standards in this space is particularly hard to navigate – partners like Nielsen are helping us target audiences and guarantee advertisers 100% that we’ve hit their target demographic. However, there still is not a true trusted industry standard. Our industry is becoming more and more targeted, and measurement and data will be key in encouraging more and more ad spend to shift to digital.

Trends in 2015

Our landscape, whether TV or online, is extremely fragmented, particularly across Europe. Distribution of content across multiple sites is key to addressing fragmentation and driving audience, and I believe there will be much more focus in 2015 to address this challenge. For example, content creators aligned with a large publishing network such as AOL On can achieve scale across all screens from the web to OTT devices. We also believe private marketplaces will continue to gain traction as publishers see these environments as a brand safe way to trade their inventory. In our State of the Industry Report Europe, video ad buyers said private marketplace buyers will jump by 25 per cent next year. Multi-touch attribution will also play a critical role as advertisers are striving to understand the consumer journey across devices, and when and where advertising is most effective.

For much more analysis of the biggest trends shaping global media and marketing, order your FREE copy of M&M Global presents: International Media 2015 here