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Live Streaming. The next generation of video for marketing?

12/21/2016

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If 2015 was the year that brands and advertisers embraced online video, then 2016 will see the medium take the next step as live streaming takes off.
Live streaming video refers to broadcasts in real time to an audience over the internet. While the concept of live streaming has been around for years, mobile-first video platforms with user-generated content have just recently begun to make serious waves thanks to improved video quality, faster broadband speeds, and enhanced mobile technology.

Online video has become a key part of the strategic business model for both brands and marketers as they seek more innovative ways to capture consumer attention. Creative live streaming video initiatives and campaigns are a way for companies to cut through the digital clutter and have emerged as the medium of choice not only for person-to-person sharing, but also for business-to-consumer (B2C) and business-to-business (B2B) communication. 

Brands are increasingly using live streaming to reach audiences. Its importance has grown significantly thanks to substantial investments by social platforms such as Facebook, YouTube, Snapchat, and Twitter to build and enhance their live-streaming platforms.

Advertising dollars are likely to follow. 88% of agency respondents stated that they “might” or “definitely will” invest in live stream video advertising over the next six months, according to a recent Trusted Media Brands survey.

Live streaming video will further accelerate streaming videos overall share of internet traffic. Streaming video accounts for over two-thirds of all internet traffic, and this share is expected to jump to 82% by 2020, according to Cisco’s June 2016 Visual Networking Index report.

Live video’s value comes from its unique ability to add an authentic human element to digital communications. As a result, brands are leveraging three main streaming methods to connect with their viewers: tutorials, product launches, and exclusive and behind-the-scene footage.

Advertisers will continue to invest heavily in online video, especially as live streaming video gains traction. Already in the US, digital video ad revenue reached $7.8 billion in 2015, up 55% from 2014, according to figures from the Internet Advertising Bureau.

While live streaming is still in its early stages, brands are leveraging micro- payments, mid-roll video ads and direct payments from social platforms, to monetize their live streaming videos.
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The success of live streaming video hinges on brands overcoming a lack of measurement standards in the space, as well as changes in social media sites' algorithms that affect what content users see. I encourage small businesses to seriously look into live streaming the next time you want to generate traffic to your next event!
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