Marketers have spent a higher percentage of their media budget on television than any other media for many decades. The reason being that television advertising works. Video is a strong medium for communicating marketing messages. It can both build awareness and drive action.
Video advertising is no longer relegated to a box in the living room. The Internet is providing many different ways for consumers to enjoy video and that has opened up many opportunities for marketers. While television is still an extremely important piece of an advertiser’s overall media approach, video advertising using the internet has some distinct advantages:
- Targeting capabilities – the emergence of big data and real-time bidding (RTB) platforms has changed the way marketers reach their target audience. Instead of reaching a target audience by buying programs they’re more likely to watch, marketers can reach audiences based on contextual relevancy, demographic and psychographic data, physical location, device targeting, past buying behavior, first-party data and more.
- Cost efficiencies – the increase in time spent viewing videos online has led to the increase in the supply of video advertising opportunities. In the US, YouTube.com is the second largest search engine after Google. But it’s not just video Web sites that offer these opportunities. More and more local and national media sites are producing high-quality video for the Web. Purchasing inventory in an RTB environment provides the ability to buy ads cost efficiently as well as effectively.
- Ability to interact – digital video provides many opportunities for consumers to interact with advertising. While the traditional “click” is still a widely used metric used to track interaction, there are many ways brands are now engaging with viewers. Many ads and platforms offer opportunities to share content with friends, customize their experience, or choose which ad is most relevant to them. The proliferation of touch screen devices has only increased consumers’ ability and willingness to interact with marketing messages.
- Reach an increasingly elusive audience – it’s been highly publicized that Millennials are spending less time watching television than previous generations and are largely abandoning other traditional media outlets such as terrestrial radio, newspaper, and magazines. This generation has embraced digital video more than any other. Advertisers can have great success engaging a younger audience when they develop compelling video that targets the channels and devices used by Millennials.
- Reach an engaged audience – online video viewers are not passively viewing video or multi-tasking, they’re searching for specific content and choosing videos to watch. Ads that run before video content or within a longer form video reach an audience that is leaning forward and highly engaged.
- Tracking capabilities – one of the key advantages to advertising using the Internet is the ability to track, test, measure, and analyze results. Measuring response rate, video completion rate, post-click / post-view site engagement, and other metrics provides an opportunity to assess the campaign’s impact and ROI. Marketers can also test different creative messaging and calls to action in order to determine which is most effective.
Many of our clients have used pre-roll and in-stream digital video advertising to supplement their media campaigns with great success. Compared to television, the cost of entry for both production and media is more affordable, making digital video an attractive option for building brand awareness.
If you’re interested in learning more about the many options for digital video advertising, please contact us for a free consultation.