The use of video in digital marketing is exploding. ComScore estimates that 84% of the US population now consumes video content online. Video viewing on PCs alone has grown by 60% since 2011, and mobile consumption has increased by around 30% on both smartphones and tablets, with no sign of slowing down.
The combination of heavy growth in video consumption and an ever-evolving sophistication in online targeting is the foundation for why Evercore Partners projects that the online video advertising industry will grow to $8.1 billion by 2016.
Companies are taking notice of these trends and developing new technologies for advertisers. Over the past few weeks alone, both Google and Facebook have announced new product launches and acquisitions to bolster their video offerings.
Google recently announced their ‘programmatic premium video marketplace’, Partner Select, as well as their purchase of the video advertising company mDialog, to join their DoubleClick team. Similarly, last week Facebook announced the acquisition of online video ad platform LiveRail, which offers real-time bidding and it pairs video ads with video content for over 200 companies. It also launched a new video carousel in an effort to increase video views across the platform.
So with all these advancements, the question remains, what does this video evolution really mean for advertisers? Well, it solidifies the fact that video should be a key component of a brand’s media mix. However, it is important to understand how and where video fits within a programme.
Video is often viewed as a top-of-the-funnel branding tactic; however, video can do more than just build brand awareness. A smart video strategy can help drive mid- and lower-funnel tactics. A survey produced by Animoto showed that 73% of respondents were more likely to buy a product or a service after watching a video. The reason? People develop confidence in a product or service when they are able to see it in action.
Whether a campaign’s objective is upper-funnel awareness or lower-funnel sales, when looking to incorporate video into the media mix, a solid, cohesive strategy should be developed across a brand’s display, social and search marketing channels. And it is not enough to simply repurpose current TV spots. Think about the business challenge and develop messaging to speak specifically to that issue. If budget is limited, consider user-generated content, as consumption of user-generated videos is also on the rise.
Running video content in a vacuum will not produce the best results. Consider adding sequential messaging – allowing the user to navigate through the narrative based on previous interactions – into the mix. Plus, with the evolution of RLSA and the advent of iCrossing’s Search Audience Intelligence, paid search can be tailored to fit within the full narrative.
As video ad offerings expand, and online video consumption continues to increase, brands should determine how video can best fit into their creative vision and marketing program, and use this powerful tool to drive awareness and conversion for their brand.
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