Digital Video Advertising Outshines TV

Digital Video Advertising Outshines TV

Video

Digital video is hotter than ever for brands. According to the Interactive Advertising Bureau Video Ad Spending Study, advertisers are spending on average more than $9 million annually on digital video advertising (a 67-percent increase from two years ago), and video represents more than 50 percent of their digital/mobile ad spending.

The IAB report is based on a survey of brands and agencies across a wide spectrum of industries ranging from automotive to telecom. Most of the respondents plan to invest more into both digital and mobile video over the next 12 months. Many will fund their investments into video by reallocating their television budgets, and most respondents believe that original digital video content reaches an audience that TV cannot reach. They also prefer video because of the quality of the environment and overall effectiveness of reaching an audience.

These findings don’t surprise me. My own client experiences suggest that advertisers are also drawn to the measurability and audience segmentation possible with digital video compared to TV advertising. As I wrote on the KeywordFirst blog, not only can you target customer segments with online video, but you can see how many of them interacted with your site, subscribed to your YouTube channel, made a purchase, or watched another of your YouTube videos (other than the ad you just showed them). Not only can advertisers see the different interactions of an audience, but they can also see how much of the video ad that they watched.

To maximize the value of online video, I suggest that advertisers:

  • Develop an interactive video strategy tied to your branding goals and aligned with the behavior of your customers. Map out your customers’ journeys throughout the digital world and figure out how interactive video will best move your customers from the awareness to consideration to purchase and retention. In the healthcare profession, for instance, medical providers use interactive video to educate potential patients on topics such as wellness care, which raises awareness for providers when customers are researching topics such as proper dieting or exercising.
  • Understand the nuances of using video — both paid and organic — across different platforms. “Video” can mean many things to different brands, ranging from a bumper ad on YouTube to a Facebook Livestream. According to a recently released report from think tank L2, video formats provide different advantages depending on what platform you use. Instagram content provides higher levels of engagement compared to other platforms, Facebook provides incredible reach, and YouTube is better for longer-form video content that lends itself to episodic storytelling.

In addition, it’s important to stay on top of this fast-changing format. The different platforms are constantly introducing new features as they attempt to gain an advantage on each other, and advertisers that stay in the know will seize a first-mover advantage. On the KeywordFirst blog, we regularly discuss how to succeed with video (as shown by this example about livestreaming). Other useful resources include the blogs from platforms such as YouTube and third-party content from institutes such as the IAB. How are you capitalizing on interactive video?

Image source: Marketing Land

Mobile Advertising: Let Your Customer Be Your Guide

Mobile Advertising: Let Your Customer Be Your Guide

Mobile

Mobile is a shining star of performance marketing. According to the Interactive Advertising Bureau (IAB), for the first time, mobile ads account for the majority of digital ad spend. The IAB 2016 Internet Advertising Revenue report says that mobile ad revenues increased 77 percent to $36.6 billion in 2016, or 51 percent of total digital ad spend. Desktop search, the next biggest category, accounted for 24 percent of the total.

The IAB also says that the $36.6 billion spent on mobile ads included $17.2 billion for mobile search and $18.1 billion for mobile display.

I’m not surprised by the growth in mobile ad revenue. The ad spend reflects changing consumer behavior and the power of major publishers such as Google. The number of mobile searches on Google surpassed desktop searches two years ago. And Google has been changing its algorithms to force brands to respect the power of mobile. For instance, Google’s 2015 “mobilegeddon” algorithm rewarded mobile-friendly web pages with higher rankings for searches done on Google.

And yet, as important as mobile has become, mobile is still a contextual experience. To me, the real excitement and long-lasting value for advertisers comes from creating meaningful online advertising that appeals to omnichannel consumers.

Omnichannel consumers interact with brands through a variety of devices and channels, including social media, your website, display ads on other sites, and search results – on mobile phones, desktops, tablets, in games, on television, and through voice-activated assistants, to cite just a few of the proliferating channels and devices that shape the consumer-brand experience.

You get a better picture of how complex the advertising landscape really is when you dig into the IAB report and sift through the variety of ad formats that account for digital spend. (The report’s appendix alone, which details the pricing models and ad formats, is instructive.)

It’s important that businesses understand the nuances of advertising through different channels and devices. For instance, Tim Colucci at KeywordFirst has been blogging lately about the distinct challenges and opportunities of video advertising. (Here is an example.) At the same time, I believe it’s more important to coordinate mobile in context of the understanding your consumers’ journeys from awareness to purchase to loyalty. Yes, mobile advertising is probably going to be important to just about any brand, but how and when you spend on mobile advertising may differ dramatically by channel (e.g., Facebook, Snapchat, Instagram) and device depending factors such as what stage a customer is in the buying decision and the time of day they’re interacting with your brand.

So let’s celebrate and appreciate the rise of mobile ad spending. But even more importantly, let’s keep our focus on the broader consumer journey and invest into experiences that create and retain customer relationships throughout the journey, one impression, channel, and device at a time.

Image source: Startup Stock Photos