What is Video Advertising?
Video ads, which may be shown before, during, or after a video broadcast, are rather self-explanatory. Some marketers, however, go farther, including social network video advertisements and native video ads offered on websites including news sites, entertainment sites, and e-commerce sites in their definition of video advertising. Please keep the larger concept in mind as you read on.
Vidyard’s annual ‘State of Video 2022’ survey has discovered that the value of video in the business world keeps growing. Over 80% of those in this poll said that video content is more crucial than ever before in 2022.
The Current State of Video Advertising
Video marketing has always been a popular approach to engage customers. The percentage of businesses employing video for marketing and communication with clients increased by 93% between 2019 and 2020. As a consequence, 2022’s research split up those channels even further to compare sales and customer service. In 2021, businesses were more likely to use video for sales purposes (43%) than for customer service or experience (38%).
Actually, over half of customers (54%) say they want to see more video content from brands and organizations they support. The converse is also true too. Around 67% of those surveyed found commercial videos with sound to be the most intrusive. At the same time, marketers regularly find positive outcomes from video commercials, with 89% reporting favorable ROI.
These numbers, good and bad, show how cautious marketers need to be to make video advertising that people really like and find useful. Since the objective is to make any commercial material as non-intrusive as possible, where a video ad is placed is equally important. Advertisements that air at logical commercial breaks, such as before a host transitions to a new subject, may pique viewers’ interest and encourage them to continue watching.
Digital Video Advertising Trends
The world of digital video is constantly evolving. Marketers with experience realize they need to keep up with the times to know what their target consumers want and need. This concept that brands require a video marketing strategy is not revolutionary. What has changed, though, is the significance of video across all channels and mediums.
Salespeople may use video for a wide variety of purposes across the board, from raising awareness and interest to closing deals. Additionally, statistics on the back-end help salespeople in prioritizing and qualifying leads that have not responded.
Consider these four current trends in video advertising while formulating your strategy.
Choosing Video Length According To Platform
The length of a video advertisement is not constrained by any universally accepted standard. Six-second commercials originally appeared on YouTube. Up until recently, the most common durations for commercials were 15 and 30 seconds. Video commercials nowadays may range in length from just a few seconds for B2C shorter form video to as much as two to five minutes for B2B longer form video; thanks to the popularity of platforms like TikTok and other “micro content” video sites. Keep the video ad’s intended purpose in mind while you develop the script and storyboard.
Catering For Mobile Consumption
Mobile devices are the preferred method of viewing among audiences.
Many consumers, especially in the business-to-consumer sector, are shifting their online activity to mobile devices in order to better engage with brands. A Lemonlight survey found that 62% of people said they favored mobile or tablet devices for video consumption. This accords with the widespread expectation that mobile video advertisements will comprise the bulk of all web video traffic in the near future.
Recognizing The Congruence Between Videos For Sales And Marketing
Video content should be optimized for mobile devices as a priority for marketers. If you want your video advertising to get seen, mobile is where you should focus first. Service teams also have a multitude of alternatives, including but not limited to: onboarding videos, knowledge-based videos, meet the team videos, support video calls, and customer stories.
However, consumers aren’t just picking up information from popular companies. Despite their differences, most Internet users from the Millennial and Gen Z generations are eager to gain knowledge from one another. Consumers and customers, according to HubSpot Research, prefer lower-quality, “genuine” video over high-quality video that seems manufactured and inauthentic.
It’s in part because of this that projections put the value of influencer marketing at $16.4 billion by 2022, up from $9.7 billion in 2020.
Moving Video Production In-House, Versus Outsourcing It
More and more businesses are employing in-house staff to develop video content as more and more internet video production tools become accessible and inexpensive. Companies of all sizes may benefit from this, but especially those with a smaller budget that may be hesitant to spend money on a professionally produced film. More than half (58%) of small firms report that they produce video content entirely or almost entirely in-house. It’s true that all a marketer needs are an iPhone and a clever concept to produce effective video advertising. However, it is more prudent in terms of labor, time, and quality if you hire a video production company to help you with your first few video ads, then you can take the work in-house.
What Type of Marketing KPIs Is Video Advertising Suited For?
Identify the most important metrics to monitor before settling on a strategy for video advertising. Key performance indicators allow you to evaluate the success of your work and make any required adjustments.
It’s important to track key performance indicators (KPIs) throughout all three stages of the marketing funnel to determine the efficacy of your video ads:
Target outcomes should inform your selection of key performance indicators. What you desire and how you may measure it are examples of key performance indicators that follow.
The percentage of people talking about the brand, a growth in the number of people who can remember or recognize it, and the number of people who see it for the first time.
To measure the number of people who visit your site or watch your video after clicking on a link, you may look at your “traffic,” which is the percentage of unique visitors and those who arrived at your site through the video.
Number of conversions, total conversion rate, and cost per lead from video channels against other channels are key measures of lead generation success.
The total number of purchases made and the average order value as a result of using a special offer or discount code shown in a video ad.
Of course, you’re not restricted to these targets and KPIs. However, using the aforementioned cases as inspiration, you can begin to build a plan for tracking the success of your video advertising. It’s important to remember that you can’t always rely on the same key performance indicators from one year to the next. Your KPIs should adapt as your marketing objectives evolve. Because of this, it’s a good idea to review the KPIs used for video advertising or other purposes at least once a year. Then you may check to see whether the KPIs are still in line with the larger objectives of your business.
Types of Video Ads
Marketers like video advertising because they may select from various sorts and formats. Let’s look at a few.
Both marketers and consumers are acquainted with in-stream ads. Before, during, and after videos. YouTube has in-stream advertising. Some ads encourage viewers to click a link or claim a deal.
Non-linear advertising occasionally plays over the primary video. When someone clicks on an ad, the main content stops. Non-linear adverts don’t link to content.
There are further variations within the broad categories of in-stream and non-linear. In-game ads are one example. A rewarded ad is a gaming-focused video advertisement. It rewards viewers with a game-related incentive for viewing a video, such as an additional life, health boost, or new gadget.
Native advertising is growing more sophisticated, allowing marketers to target prospective consumers on their favorite websites. 97% of study respondents chose Click-to-Watch over other native video formats.
This format allows viewers to opt in and manage their ad experience, proving its efficacy beyond regular in-stream video. When compared to YouTube, we’re talking about considerably improved completion rates and stay time.
Shoppable video ad
This e-commerce ad type stimulates online purchases via video ads. Once a person watches a product video, a link appears so they may buy it. Shopping occurs immediately in the app. TikTok Shopping and Instagram Shopping are extending their shoppable video ad functionalities to improve customer experience.
The most effective video advertisements give material that compliments what viewers are doing online. Google, Yahoo, Bing, and DuckDuckGo give video search results, as do Amazon and Ask.
Display vs. Video Advertising
Pay-per-view (PPC) display ads are sponsored content that may be seen on a variety of digital platforms, including websites, social media, and mobile apps. The first banner ads were the rectangular kinds that appeared at the top of web pages. The primary goals of display advertisements are to raise product interest and familiarity. Their overall CTR across channels is about 0.05%. In addition, some individuals exhibit “banner blindness,” or the inability to recognize an internet advertisement because of an excessive amount of stimulation.
Marketers needed to find a replacement for display advertisements due to their well-documented drawbacks. Video ads are one such option; they perform well in terms of generating interest, keeping people engaged, and ultimately leading to sales. To understand more about a product or service, 69% of consumers would rather watch a video than read text. Furthermore, an 86% boost in conversions has been seen when video is included on a well-designed landing page.
How Much Should You Invest in Video Advertising
Your video advertising budget should reflect your objectives and available resources. Begin with a small budget and increase spending on video advertisements over time. As mentioned, assistance from professionals should be considered for early effort direction. It’s not necessary, but those experts will know what’s happening in the world of online video marketing. In addition, they will be in a prime position to provide advice on how to create video content that is consistent with your brand and helps you reach your desired KPIs.
If you’d rather get things rolling on the cheap and fast, try making some promotional videos in-house. Put them through some split testing on your native or social networks to see what resonates with your target demographic. With time and practice under your belt, you can construct a comprehensive video advertising budget.
Keep in mind that spending on programmatic video ads is on the rise, with projections showing that the figure will approach $75 billion by 2023. Programmatic advertising, which uses automated bidding for premium video ad spots, is gaining popularity among marketers because it allows them to get better results at a lower cost and in less time.