Video: An essential tool for advertisers, agencies and media companies

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Once upon a time, the internet was an ocean of text. Companies’ websites consisted of text content and, if you were lucky, the occasional stock image.

Whether you’ve adapted or not, we are now in the video age. And it’s fair to say that competition for consumers’ attention has never been fiercer.

This is an opportunity, though, not a crisis. Video communicates ideas with greater efficiency and – if done right – panache than text. The right video content – creative, distinctive, audience-appropriate – produces higher engagement rates, profile, SEO results and dwell time than text.

Video is steadily overtaking text on mobile devices; and as a consequence, it is becoming the most ubiquitous and valuable communication tool for your company.

Is video becoming the most powerful online marketing channel?

Statistics say so…

 

According to the latest report from Cisco Visual Networking Index which was published on 27th May 2015:

“Globally, consumer internet video traffic will be 80% of all consumer Internet traffic in 2019, up from 64% in 2014. This percentage does not include video exchanged through peer-to-peer (P2P) file sharing. The sum of all forms of video (TV, video on demand [VoD], internet, and P2P) will be in the range of 80 to 90% of global consumer traffic by 2019.

Internet video to TV doubled in 2014. Internet video to TV will continue to grow at a rapid pace, increasing fourfold by 2019. Internet video to TV traffic will be 17% of consumer internet video traffic by 2019, up from 16% in 2014.

Consumer VoD traffic will double by 2019. HD will be 70% of IP VOD traffic in 2019, up from 59% in 2014.

Content delivery network traffic will deliver over half of all internet video traffic by 2019. By 2019, 72% of all Internet video traffic will cross content delivery networks, up from 57% in 2014”.

 

How do I target these potential customers online while they watch video content?

 

When it comes to video advertising there are certain challenges that ad agencies, advertisers directly and media companies face.

 

The scarcity of premium or quality content seems to be the key indicator for advertising agencies not allocating a greater budget to video marketing. Ad agencies find it challenging to purchase media across video due to the lack of supply of quality content.

 

Publishers that provide rich media and long tail video content benefit from this and can charge accordingly.

 

Ad agencies and advertisers are resorting to use “outstream” video formats that overcome the obstacle of poor quality content. Outstream ad formats allow advertisers deliver video advertising without requiring premium video content to appear against. This video ad type generally appears within the body of the published content, as a user scrolls down the page.

 

A study conducted by Forrester Consulting on behalf of Teads, May 2015 surveyed over 500 ad agencies and advertisers with over 100 publishers. The results provided some interesting insights.

 

Advertising agency

“What increase will your clients’ spend on digital video advertising change in the next two years?”

 

Significantly increase   31%

Moderately increase    39%

Stay the same             12%

Moderately decrease   8%

Significantly decrease  0%

 

Premium inventory isn’t enough, advertisers and agencies want better targeting and measurement of their video ads’ impact.

 

Advertiser

“Will your spend on digital video advertising will change in the next two years?”

 

Significantly increase   25%

Moderately increase    52%

Stay the same             15%

Moderately decrease   7%

Significantly decrease  1%

 

‘70% of agencies and 77% of advertisers expect video budgets to increase in the next few years’ ‘Media companies are driven by the unique enticing features’
Media companies

“What is the main benefit of video

advertising for your brand?”

Premium means higher CPMs    44%

To provide more engaging advertising content to our customers         29%

Allocation for budget from traditional

media budgets      19%

Reaching online audience that tv cannot reach    7%

 

Media brands face barriers:

 

➔     Costs of producing quality long form content puts pressure on the return on investment.

➔     Having video for specific content is resource and cost draining

➔     The lack of quality inventory in the market place

 

 

 

How can advertisers increase ad engagement levels? Is it choosing the right content or is it about having compelling creative?

It is certainly a combination of both. The advertising creative needs to be strong enough to capture the user’s attention, in their time.

With an industry that has become saturated with advertising and cluttered with competition, it is imperative that the creative is of quality content, served to the user at the right time within the relevant environment.

Advertisers must not forget that media consumption favours the customer; people have full control over what content they watch, when they watch it, and where. Technology facilitates that in every way.

We are at an era of multi-device watching, engaging on Twitter while watching TV is a perfect example. So the main challenge is getting the attention of a potential customer and retaining their attention long enough for them to get your message.

Video is an effective way of achieving high engagement levels with measurable performance measures; it is the most powerful advertising medium. Video needs to work hand in hand with technology and targeting to effectively deliver. The consumption levels of video have increased dramatically over the last few years, and the marketing industry is changing to reflect. The full potential of video has yet to be realised.

 

 

 

 

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