As technology has changed the way consumers view media, it's also changed the way many companies advertise themselves. According to a survey from market research company Perks Associates, more individuals are watching television on the internet than before, causing many companies to start putting more emphasis on pre-roll advertisements than they have in the past.
"The percentage of smart TV owners connecting the device to the internet has steadily increased from approximately 40 percent in 2010 to 56 percent today," said Pietro Macchiarella, research analyst at Perks Associates. "This device, when connected, offers a toehold to a variety of players, including broadcasters, over-the-top providers, and pay-TV providers."
According to Perks Associates, 75 percent of U.S. smart TV owners who connect their sets to the internet watch on-demand movies at least monthly while online, which is an 18 percent increase over the last year. In addition, the amount of viewers who watch online TV shows at least monthly has gone up from 51 percent to 71 percent.
This may explain why online video advertising before the beginning of an online video has skyrocketed as one of the most popular targeted internet marketing campaign strategies for digital video.
According to AdAge, 30-second pre-roll advertisements are only tuned out by roughly 16 percent of of viewers, leaving roughly 84 percent of all viewers to watch an entire advertisement before getting to their video.
YouTube, one of the most popular media providers on the web, has begun putting pre-roll advertisements at the beginning of its most popular videos. And Hulu, another popular source for online TV and movies, allows viewers to rate whether an advertisement is relevant to them or not, increasing an advertising company's chance of connecting with its core audience through digital video advertising.
Clearly, as more major platforms and companies continue to produce and run pre-roll advertisements, small businesses may want to grab some space and work with an online advertising agency to produce digital video advertisements that engage their audience.