Last year alone, spending on digital video increased by over 50%, and is forecasted to grow by almost as much again by the end of this year. With US online video adspend estimated to top $3.1 billon by end of 2012, digital video advertising remains by far the most effective and fastest growing online ad format. Its explosive growth continues to trigger a substantial shift of traditional ad dollars from TV to digital video due to its ability to outperform all other major digital and traditional advertising formats.
Carpe diem advertisers!
Almost 3 in 10 advertisers spent more than they planned last year on online video and 68% plan to increase their online video ad budget this year. With Pre-roll ahead, digital video outperformed broadcast by double digits according to Nielsen.
So what's stopping video domination?
Fragmentation across devices is still a big challenge for both advertisers and publishers as video streaming devices require specific video formats for smooth delivery of video. This challenge requires creative agencies to create mobile-specific creatives. Other challenges include: managing the social aspect, distribution mechanism, determining the most relevant metrics, lack of control on SocNets, and customization of creative to suit a wide audience. However, ROI oriented marketers at the forefront in the digital advertising evolution are taking smart steps by employing strategies that work for them while using the right combination of technologies and expert knowledge.
Viral is an outcome not a strategy. Social video is long-term focused, and goes beyond viral.
As opposed to viral video that basically creates a huge short term impact, social video is predominantly content based with a long term focus on engagement and branding that drives valuable traffic to an advertiser's website.
Despite the 'buzz factor' surrounding viral videos, they should not been seen as a strategy or plan but rather as an outcome.
A sophisticated social video is one that is well thought out; it informs and entertains, it has a target audience, a clear objective, and it is embedded with sharing options. Despite the lack of control, a brand can still measure impacts using pre-defined social media metrics. Social videos produce far more engaging content that build relationships between users and brands. Additionally, data acquired from video views, clicks, and sharing help brands obtain valuable insight into their target audience. Research has shown that users are more engaged with content endorsed by their friends, and video engagement drives purchase intent.
Nevertheless, social video is not all about the number of times your video get shared; it's about the degree to which users trust and feel connected with your message that motivates them to share your video content.
Since creating a long lasting and meaningful bond is at work here, advertisers should focus more on the quality of the creative, message, distribution mechanism, and needed experticism to manage and measure the impact throughout the journey.
The numbers for online video add up to a success in the making
- More than 200 billion videos viewed worldwide every month
- The average internet user watches 186 videos every month
- 4 billion videos watched each day on YouTube, up by 25% from May last year
- Per day, 2.5 billion videos viewed on Facebook, according to comScore.
- Each month, 30 billion pieces of content get shared on Facebook alone
- 233 million Tweets sent each day
- Web pages with video are 50% more likely to show up on the first page in Google search result, according to a ForresterResearch.
So, just how powerful will the Queen be?
It means digital video advertising is Queen, the strategically, more powerful partner to content that is always king. Video has a valuable role in helping online marketers build profitable and long-lasting relationships with their customers. ROI oriented marketers should build powerful creatives that are capable of attracting prospects, creatives that can spur interaction and transform passive consumers to evangelists eager to share your video content and keep the ball rolling and the dollars rolling in.
