The future of video and its (un)exploited potential for advertising


By 2019 video will account for about 78% of world internet traffic and surpass 82% by 2022. It has already become the most-meaningful digital communication medium among all age groups. Digital video advertising has experienced similarly fast-paced growth, with marketers shifting budgets away from traditional television. However, the potential of video remains far from being fully exploited. Despite innovation that has led to stunning improvements in transmission and display on powerful user devices, most videos displayed are little different from those created during the broadcast era.

Only recently have some companies tried to exploit newer platforms with the aim of reinventing the video landscape, transforming video into a more-compelling, narrative tool. The entertainment and advertising sectors drive most of the initiatives that are changing the status quo.


Interactive Video is the format toppling the status quo, empowering viewers to make decisions about how the story develops at critical points of the video segment. Although formerly there have already been unsuccessful attempts in this field, companies that time is ripe to exploit the true potential of interactivity.
Netflix and Walmart are taking the lead. Netflix, founded on narrative video content, will soon launch interactivity in the Black Mirror drama series, with more to come. Walmart announced its W*E Interactive joint venture with Eko to create additional interactive formats.

While the entertainment industry lets users decide how the narrative will evolve, in advertising similar techniques allow personalizing the communication message. The ad industry calls this Creative AdTech. Creative AdTech provides the critical link to maximize the impact of marketing campaigns by creating personalized video ads through variation in time of delivery, creative content or message tone.

Besides hyper-personalization, adding layers of interactivity to dynamic video ads ensures the highest-possible level of engagement. Interactive calls to action (CTAs) range from clickable widgets revealing additional information a product, on to click-to-buy systems. The Interactive Advertising Bureau (IAB) carried out research on the effects of CTAs in mobile video shoppable ads, focusing on the three main interactive ad formats: Learn More, Shop Now and Sweepstakes. The research shows that the time spent by a consumer watching a video is twice as long if it contains a CTA. While Learn More evidenced itself to be the most engaging format, Shop Now video ads were proved as more memorable among people who previously expressed interest in that specific brand category. The last of these findings underlines the potential of deploying CTAs in dynamic videos; by exploiting the high level of targeting achieved with dynamic advertising, companies can reach consumers with specific interests and shopping behavior, fully leveraging the Shop Now interaction.

A number of solution providers enable the trend of Creative AdTech in video advertising, mainly by combining different video segments on-the-fly. Going even further, Connected-Stories has invented a completely new approach based on multi-layered video content.


HyperTV’s Connected-Stories platform was created to offer publishers and advertisers a solution to build personalized and interactive video ads, using artificial intelligence (AI) and machine-learning algorithms to collect, evaluate and leverage real-time behavioral data to deliver the most-suitable story to the user. Furthermore, Connected-Stories’ multi-layered technology permits adding interactive via numerous types of widgets as video overlays, creating a fully interactive experience.
One of the main elements that distinguishes this platform from standard interactive video is the Journey Designer, a codeless visual tool that allows clients to design their own Consumer Journey, implementing the entire marketing strategy in a single environment and taking control of every step of the user path-to-purchase.

According to a study from The FreeWheel Council for Premium Video, improving the video ad experience for consumers will be the most important challenge for the industry in the near future, and every stakeholder of the advertising value chain has an equal incentive achieve this goal.

Connected-Stories was built precisely to provide this combination of Consumer Journey ownership, highly personalized storytelling and effortless real-time campaign optimization. This brings the advertiser along the path of improving the video ad experience for the user, who becomes more-interested, thereby improving profitability for the advertiser.

3 Min. Read

"Creative AdTech provides the critical link to maximize the impact of marketing campaigns by creating personalized video ads through variation in time of delivery, creative content or message tone."


Stefano Calonghi

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