YouTube: The Streaming Ad Giant

YouTube: The Streaming Ad Giant

YouTube

Who knew? YouTube is an advertising giant in the streaming industry. And YouTube is becoming increasingly vital as more people stay at home and stream content in light of recent news events.

According to App Annie, in 2019, YouTube made a whopping $15 billion on ads alone. The news comes courtesy of Alphabet (the parent company of Google): for the first time since Google acquired YouTube in 2006, Alphabet has released YouTube’s ad revenue. And the figures are staggering, accounting for almost 10 percent of Google’s overall $161 billion revenue in 2019.

Why This Matters

The news is important because it underlines YouTube’s dominance in an increasingly crowded arena. As App Annie points out, on Android phones, about 70 percent of time spent on the top five video streaming apps worldwide was on YouTube. The platform, a pioneer in the world of video streaming, continues to hold its own. That’s telling. As Forbes notes, “In a market where new streaming video services seem to spring up overnight, YouTube isn’t losing viewers or ad money.”

Also notable: while many of the top apps are Chinese brands, enjoying strong support in China, YouTube isn’t active in the Chinese market—and yet it is still number one in rankings measuring time spent on the top streaming platforms. By a significant margin.

How YouTube Does It

So how is YouTube achieving this cash cow status?

  • For one, YouTube delivers an audience, and you need an audience to attract advertisers. As Lifewire points out, YouTube is one of the most popular sites in the world. It’s arguably the favorite video-sharing and viewing site on the web today, offering a range of long- and short-form free content. And as Lifewire notes, “Youtube.com is the second most popular website in both the global market and in the U.S for 2020, even though a huge portion of YouTube views are from outside the U.S.”
  • But YouTube also does something else: it continuously offers advertisers attractive products. As we’ve blogged in the past, YouTube’s Masthead ad format for TV allows brands to connect with consumers the instant users access the YouTube app on their televisions. The Masthead format is a response to the fact that while consumers aren’t watching as much linear TV, they are still using their televisions as a tool for experiencing streaming platforms like YouTube. In other words, YouTube understands viewing trends, and is staying nimble in its bid to connect with advertisers in an informed way.

What Can Be Learned from YouTube’s Success?

We can draw two conclusions from YouTube’s enduring popularity:

  • First, streaming platforms, especially Netflix, cannot help but notice how well an ad-supported format on YouTube has been working. Netflix—and other competing platforms—certainly must be feeling more pressure to create advertising products. And that’s good news for brands. (I blogged about Netflix’s potential adoption of advertising in this post, “Why Netflix Might Embrace Advertising.”)
  • Second, YouTube’s growth likely bodes well for apps like Quibi (another destination for streaming video that relies on ads). Quibi is endeavoring to carve a niche in a crowded field; YouTube shows them what’s possible, and arguably creates an environment ripe for inspiration.

Clearly, streaming platforms offer an attractive opportunity to advertisers. Note also that in light of recent events, it is expected that more people will turn to streaming platforms such as YouTube. Per a blog post from PMG, “Popular media platforms such as YouTube and Tik Tok will also likely see a monumental boost as kids and teens spend more time online and at home” during temporary school closures caused by the COVID-19 pandemic. YouTube, with its combination of innovation and reliability, is proving to be a model for succeeding with ad-supported shorter-form streaming. In its quiet bid for dominance, YouTube has become a leader.

Contact True Interactive

Want to learn more about YouTube, and the opportunities that exist for advertisers in the streaming community? Contact us.

Quibi, the Newest Disruptor: Advertiser Q&A

Quibi, the Newest Disruptor: Advertiser Q&A

Advertising Video

Just when you thought you had a handle on content streaming (Netflix: check, Disney+: check), a new player has emerged with the potential to shake things up all over again. Backed by a boatload of cash and the imprimatur of Hollywood royalty like Steven Spielberg, Quibi is poised to carve a unique niche in a crowded field. Read on to learn more.

What Is Quibi?

 

Quibi is a new premium streaming service that imposes a cap on programming time: the name Quibi, in fact, is shorthand for “quick bites” of video. Quibi aims to showcase stories of 10 minutes or less; content is meant to be viewed specifically on one’s mobile phone. The platform, founded by chairman Jeffrey Katzenberg, has installed tech vet Meg Whitman as the CEO, and investors include studios like Walt Disney Co. and WarnerMedia.

What Kind of Content Will Be on Quibi?

Given the unique mobile phone focus, Quibi will be generating all new content. As Whitman tells Marketplace, “We will be the first streaming service that launches without a library.” As Whitman sees it, starting from ground zero means an opportunity to create something truly fresh: “We have . . . invested significantly in content. This is all about finding the great stories, attaching the great actors and actresses to it and getting them excited about doing something entirely new.”

Quibi expects to deliver 175 shows and 8,500 episodes in its first year. The content promises to be a diverse mix, from long-form narratives to reality programming, documentaries, food shows, and daily news programs. Given Quibi’s format, the long-form narratives will be delivered in bite-sized chunks, serial fashion (think Dickens and the serial way he delivered novels like Pickwick Papers). Whitman is quick to stress that short format doesn’t mean inferior quality. “Nothing’s lesser about the movies [we’re developing] other than the chapterized way we deliver them,” Whitman says.

Content can be downloaded, so users won’t need an active Internet connection to view programming. And quality of the viewing experience is a prime mandate. As Whitman told Marketplace, “[P]eople are watching a lot of videos on their mobile phone today, but it’s an uneven experience. Sometimes, if you’re holding the phone in portrait, it’s a little postage-stamp size, then you turn it horizontally, it’s got big black lines. Some content is only available in portrait, some is only available in landscape . . . we have to be able to have seamless portrait-to-landscape rotation with full-screen video.” To that end, the company is employing what Whitman calls “compression technology,” and reportedly working with Google to ensure flawless video streams. Whitman also notes, “[W]e shot, obviously, to the aspect ratio of the phone.”

How Is Quibi Different from YouTube and Other Platforms?

As noted, story lengths on Quibi are capped at 10 minutes. And Quibi content has specifically been created for viewing on a mobile phone.

There is a distinction between what Quibi promises and the content made for mobile phones on free platforms like, say, TikTok. Services like TikTok offer user-generated content. By contrast, filmmakers like Steven Spielberg and Catherine Hardwicke are collaborating with Quibi to create programs designed specifically for viewing via Quibi, sometimes even at certain times: “Spielberg’s After Dark” series will only appear on the service at night, for example. An untitled show devoted to zombies is reportedly being discussed with Guillermo del Toro. User experience will also be informed by how customers hold their phones: changing from vertical to horizon orientation will change what the viewer sees.

Who Is the Target Audience for Quibi?

The target audience is Millennials—ages 18 to 44. The idea is that the platform will especially appeal to consumers on the go: someone waiting in line at the bank, say, or taking a quick bus ride during which 10 minutes of content might be the perfect diversion.

When Does Quibi Launch?

The platform is due to launch in the United States on April 6, 2020, but as Whitman notes, “you don’t have to wait till then to get involved.” On Quibi.com, you can learn about new shows, the technology, and any milestones before launch date. Whitman adds, “We’ll let you know on April 6 when you can download the app from either the Apple App Store or Google Play Store.”

What Advertising Opportunities Exist on Quibi?

There will indeed be opportunities for advertisers, as users will be invited to choose between Quibi with or without ads. The service will launch, for viewers in the United States, at $4.99 a month with ads, $7.99 a month without. Whitman shares with Marketplace, “We think that most [consumers] will pick the ad-supported version because it’s a very light ad load. It’s only 2.5 minutes per hour of watching, which is much less than prime time TV, which is 17.5 minutes of advertising for every hour that you watch.” Ads will appear before a Quibi show begins and last six, 10, or 15 seconds. They will be unskippable. Advertisers already onboard include Discover, General Mills, Taco Bell, Walmart, and PepsiCo.

Quibi programming will also come with ratings to help advertisers determine whether a show is geared to mature audiences. At the WSJ Tech Live conference in October 2019, Whitman said, “[Marketers] can feel safe that their brand shows up next to content that they’re OK with.”

And because Quibi programming is structured around serialized chapters, the platform is looking into an alternative where advertisers could serialize their ads, too.

What Kind of Reception Has Quibi Received?

It’s a mixed one. Naysayers insist the endeavor is a gamble, and that the subscription fee will discourage consumers used to video content that can be viewed for free on platforms like YouTube. Katzenberg, however, is confident. “I think we are doing something that is now such a well established consumer habit,” he told NewsDio. “There are 2.5 billion people walking with these televisions in their pocket. They are already watching a billion hours of content every day. I just know that it will work.”

Quibi has tried to get out in front of its critics by building visibility through some (presumably expensive) ads during the 2020 Super Bowls and Oscars.

Not all watchers have been impressed, as this Verge article discusses.

There’s no denying Quibi has attracted some heavyweights to create content. Will consumers be willing to pay for that content? Only time will tell.

Contact True Interactive

Curious about Quibi and the opportunities this new platform affords? Contact us.

How the Streaming Wars Benefit Brands

How the Streaming Wars Benefit Brands

Advertising

How will the streaming wars affect the way businesses market themselves in 2020?

This question looms large. A growing number of streaming services, including Apple TV+ and Disney+, now compete with already established players Amazon Prime, Hulu, and Netflix. More services, including one coming from AT&T, are on the way. All of them cater to a younger audience that is notoriously indifferent to ads, which helps explain why most – but not all — streaming services remain ad-free. But that doesn’t mean it’s impossible for businesses to market themselves through streaming services.

Ad-Supported Tiers

So far, Hulu remains the only major streaming company that offers an ad-supported tier, which costs $5.99 a month. (To watch content ad-free on Hulu, viewers need to shell out $11.99 per month.) Hulu tightly controls ad formats to prevent them from being too intrusive, keeping commercial breaks short. In addition, Hulu is said to be experimenting with different types of ads, such as banner ads that appear when viewers pause their content – making Hulu resemble YouTube as a content-watching option. An ad-supported tier apparently works for Hulu. A recent New York Times article reported that the $5.99 tier is Hulu’s most lucrative one:

Even though it charges $6, the service generates more than $15 in revenue per subscriber each month, because of the high-cost advertising sold against those customers, according to two people familiar with the business.

Advertising grew by 45-percent for Hulu in 2018.

In addition, pressure is mounting for Netflix to provide an ad-supported tier, which Netflix does not offer at the moment. But Netflix might cave in because of rising content creation costs and increased competition. A recent stock downgrade by a prominent financial analyst ratcheted up the pressure.

I believe that Netflix will eventually provide advertising (more about that here). For now, here’s a good rule of thumb: if you’re the type of brand that understands how to capitalize on YouTube ad formats (such as YouTube Masthead), consider the ad tools that Hulu is developing. For instance, Hulu offers “binge watch ads,” which, as the name implies, target people who like to watch multiple programs in one sitting. As reported in TechCrunch,

These “binge watch ads” utilize machine learning techniques to predict when a viewer has begun to binge watch a show, then serves up contextually relevant ads that acknowledge a binge is underway. This culminates when the viewer reaches the third episode, at which point they’re informed the next episode is ad-free or presents a personalized offer from the brand partner.

Expect Hulu to provide more creative ways for brands to attract eyeballs.

Watch Hulu closely. The company’s development of an ad tier may point a way forward for Netflix and other competitors.

Co-Branding

Businesses can brand themselves in other ways beyond traditional advertising, such as having their products placed on shows. Here again, Hulu provides an example of how to do it. According to The New York Times, Hulu has a team dedicated to working with businesses to have their products appear on Hulu programming, with the number of paid arrangements increasing 200 percent from 2018 to 2019.

But Netflix is also cozying up to brands (although it is not monetizing those arrangements as aggressively as Hulu has done). For the Netflix hit show Stranger Things, Netflix has struck 75 co-branding deals, which typically provide Netflix exposure and licensing fees (although they are not product placements, per se). Recently, Netflix and sandwich chain Subway made it possible for Subway to offer a Green Eggs and Ham Sub, an homage to a new Netflix series “Green Eggs and Ham,” which is based on the Dr. Seuss book. The sandwich, in effect, acted as an advertising play for both Netflix and Subway. The awareness included strong digital branding, examples being promotions on Subway’s Instagram and Twitter.

Many other examples abound. For instance, clothing company Diesel paid a licensing fee to Netflix in order to manufacture outfits inspired by the popular Netflix show, La Casa de Papel. Diesel capitalized on the power of digital to run online ads that connected the brand to the show:

 

The Netflix-Diesel relationship is a win-win, generating licensing revenue for Netflix and culturally relevant branding for Diesel.

Amazon Prime Video, meanwhile, is no stranger to co-brands. The service, like Hulu, courts product placement opportunities. For example, snack brand Too Yumm! Recently struck a deal with Amazon Prime Video to have its products integrated into a sports drama thriller Inside Edge 2. Amazon recently struck a deal to have Cheerios placed in episodes of The Marvelous Mrs. Maisel, as well.

As these examples show, the growth of streaming services does not mean the demise of advertising and branding – far from it. In fact, as the Diesel and Subway examples demonstrate, streaming services create online advertising and organic branding through platforms ranging from Instagram to YouTube. In addition, a new survey from the Trade Desk and YouGov indicates that consumers of streaming services are open to advertising in exchange for lower prices.

In 2020, expect streaming services to generate more advertising and marketing opportunities as businesses look for creative ways to court audiences online.

Contact True Interactive

To make online advertising work for you, contact True Interactive. We’re an independent agency that optimizes branded interactions to drive traffic and increase sales.

 

Facebook’s Growth Highlights Importance of Messenger

Facebook’s Growth Highlights Importance of Messenger

Advertising Facebook

Facebook is having a good year financially. In its recent third-quarter 2019 earnings announcement, the company bested analyst expectations for growth in not only revenue but also membership: monthly active users now number 2.45 billion. Facebook isn’t going anywhere even though its problems have brought upon itself the threat of government regulation and even break-up.

What is Facebook doing right? Well, here’s one answer: Messenger.

What Is Facebook Messenger?

Facebook Messenger is an app that people and businesses use to communicate with each other. Users can send messages, react to messages from others, and exchange photos, videos, and audio files. Facebook operates Messenger as a separate app. And it’s an extremely useful tool for brands, which can share all sorts of things, including ads. Through Facebook Messenger Ads, companies and users enjoy real-time text conversations—with the click of a button.

Currently, Facebook offers a number of different types of Messenger Ads:

  • Destination ads, which employ a lighter touch to engage customers. Rather than the usual “Shop Now” call to action, a “Send Message” button allows users to “get their feet wet,” as it were, and grow acquainted with a brand.
  • Sponsored messages, which deliver specially created messages (a sale coupon, for example) directly to a consumer’s inbox.
  • Home section ads, which crop up in the home dashboard of the messaging application and allow users and brands to engage in organic conversations.

Brands embracing tools like Messenger Ads stand to benefit: according to Facebook, 53 percent of users are more likely to make a purchase if they can message you. And because Facebook Messenger Ads don’t target non-brand-aware users, companies connect with people who have already interacted with their ads previously—an audience that is likely to be receptive (brands also gain points for not invasively reaching out to . . . everyone). Finally, it’s worth noting that Messenger Ads offer local targeting options, allowing brands to touch base with a specific audience based on where the business is located.

What Does Facebook Have to Say About Messenger?

During a recent conference call with investors, CEO Mark Zuckerberg and COO Sheryl Sandberg returned to the topic of Messenger, and its importance, several times. Some key points stand out:

  • Businesses are already using Messenger to drive sales. According to Sheryl Sandberg: “Messaging is one of the fastest growing areas for online communication–especially between businesses and people. We’ve seen businesses use Messenger to reach customers, generate new leads and even sell cars. For example, French auto manufacturer Renault used a combination of Instagram Stories and Click-to Messenger ads to drive sales of a limited-edition vehicle, the Captur Tokyo. Facebook was their only advertising channel, and over the span of 30 days, they sold 100 cars—20 directly through Messenger. This quarter we added a Click-to-Messenger feature in Stories so businesses can grab someone’s attention in Stories and then continue the conversation.”
  • Messenger and Stories Deliver a 1-2 Punch. As noted above, Renault is using Messenger in conjunction with Stories. In the investor earnings call, Zuckerberg and Sandberg underline how businesses can maximize the value of features like Messenger through this type of imaginative pairing. To make it easier for more brands to create ads for the Stories format, Facebook has launched customizable templates for Facebook, Instagram, and Messenger. Advertisers can upload existing photos and videos, then augment them with different layout, color, and text options. The end result? More engaging Stories. And the Click-to-Messenger feature Sandberg references makes it possible for businesses to capture a user’s attention on Stories and then continue the conversation via Messenger.

What You Should Do

 When using Messenger as part of outreach:

  • Consider how Messenger will serve your brand in the context of the entire customer journey. Messenger Ads can spark interest, for example, and the Messenger the app can be a brilliant customer service tool.
  • Combine Messenger with Stories for an engaging and ultimately personal customer experience.

Contact True Interactive

Want to learn more about Messenger and how it will elevate your outreach? Contact us.

 

How Brands Are Making Sweet Music on Spotify

How Brands Are Making Sweet Music on Spotify

Advertising

Spotify is more than a popular, iconic streaming service. It’s a platform for businesses to reach an audience—specifically Millennials and Generation Z—through advertising. And there’s much to be learned from the brands that know how to do it right. Read on for some examples of companies who have advertised on Spotify in smart, creative ways that push the envelope and speak directly to their target audience:

Pepsi “Maxes” Summer Fun

Armed with the knowledge that customers are more likely to crave a cold drink in hot weather, PepsiCo turned up the heat by promoting Pepsi Max, a low-calorie, sugar-free cola. As part of their “Max Your Summer” campaign, which reached out to Australian consumers aged 18 to 49, the beverage giant used dynamic advertising on Spotify, including audio spots focusing on events co-sponsored by Pepsi. The campaign, which ran during the Australian summer, November 2017 to February 2018, was meant to keep listeners up to speed on summer fun in their area, with ads tailored to day of the week and consumer location. The localized approach yielded tangible benefits for Pepsi. According to Power Digital Marketing, “Users who saw the campaign were 34% more likely to agree that ‘Pepsi Max is the #1 tasting no-sugar cola.’”

Hungry? Have a Snickers

In 2018, Spotify ads for the Snickers candy bar operated under a unique premise: that consumers who listen to music outside their typical tastes or comfort zones are in fact . . . hungrier. In creating its campaign, Snickers drew from Spotify data suggesting that a consumer who makes an unexpected switch to a different musical genre or artist is in a different mood, and that mood changes can correlate with hunger. The resulting ad, which targeted listeners who changed things up, featured faux musician “Aneta Snickers” rapping about how when you are hungry, “you’re not you.” The answer for the presumably hungry listener? A Snickers bar, natch.

Jose Cuervo Wants Your Favorite Playlist

In a Spotify campaign targeting United Kingdom college students, Spotify and Jose Cuervo tequila partnered with 50 student radio stations in the UK to collect playlists curated by students from 50 universities. The lists were subjected to a public vote; student consumers could vote for their uni playlist and the chance to win a concert. The campaign was a success for Jose Cuervo and Spotify: votes far exceeded campaign predictions. And it was a success for students at the winning University of Portsmouth, who enjoyed a concert headlined by Alexis Taylor (Hot Chip) and Orlando Weeks (The Maccabees).

Chuze Fitness Reaches Out When You Work Out

Chuze Fitness has also made the most of the Spotify platform. The gym chain, which has been growing nationally, wanted to create brand awareness for their new locations. Of course, when people work out, they listen to music. So Chuze Fitness worked with Spotify to deliver their message. The resulting advertising campaign geo-targeted the city where the new Chuze Fitness gyms were located, even as it specifically targeted people listening to “fitness” playlists. The strategy proved profitable: according to Power Digital Marketing, Chuze Fitness “saw an uptick in their brand interest on Google through Google trends within the city [where] they were advertising.”

Why Spotify?

Companies who work with Spotify can benefit from the platform’s strong brand. They also can maximize their reach thanks to Spotify’s exceptional targeting tools, such as:

  • Interest targeting, which helps brands understand consumers’ passions via their listening preferences, and subsequently connect with a specific audience in a meaningful—and effective—way.
  • Real-time context targeting, which allows brands to target people based on their habits—and tendencies—at specific times of day. Someone waking up is typically in a different frame of mind than someone studying, or to use the Snickers example, someone who is hungry. Understanding the psychology of users at different times, and when might be the best time to share a branded message with that user, is a powerful tool.

Of course, Spotify isn’t the only game in town. The platform faces stiff competition from Apple Music, Amazon, and other streaming services. But in a crowded market for music streaming, Spotify still stands out.

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How to Advertise to Gen Z

How to Advertise to Gen Z

Advertising

Generation Z is a fast-growing demographic, and savvy businesses are getting to know them and how to connect with them, as good marketers have done with generations that precede Gen Z, such as Millennials and Baby Boomers. Who makes up Gen Z, and why are they important? Read on for a thumbnail sketch of the generation that has grown up in an “always on” technological environment.

Who Is Gen Z?

Pew Research defines Generation Z as anyone born from 1997 onward. Bloomberg research indicates that in 2019, Gen Z will comprise about 32 percent of the population, making it the most populous generation — larger even than the Millennial generation, which, for years, has dominated the imagination and attention of advertisers.

Gen Z is different from any other generation because of one simple fact: they are true digital natives. They don’t know life without smart phones. In addition, they are growing up in an economy where ownership isn’t mandatory or even preferable: Older Gen Zers are comfortable renting someone else’s belongings to get from Point A to Point B (think Uber) or spending time in a new city (Airbnb), a pattern that will probably persist once they come of age and have real spending power. And this is a generation invested in meaningful social connection and expression, where “friend” count, or quantity, is less important than the quality and personal nature of one’s connections.

5 Way to Connect with Gen Z

It’s important that your business understand how to communicate with Gen Z. What are the keys to a meaningful connection with a tech-savvy generation that values just that — connection?

1 Lead with Digital

Use online advertising as the cornerstone for all your advertising. Remember, this is the generation that is growing up digital. As Jonah Stillman, the co-author of “Gen Z @ Work” and a 2018 panelist at Advertising Week in New York City, has noted, “[Generation Z] sees no difference between the physical and digital worlds. This is a generation that is native to technology and has complete comfortability with [their] phones.” This is also a multi-screen generation: if Millennials are known to use three screens at once, you can plan on Gen Z using five. Make sure your ads are present across multiple platforms in order to optimize views and clicks.

2 Be Visual

Gen Z is growing up in the age of YouTube and Instagram. For example, online videos are a key brand discovery platform: Marketing Dive reports that 56 percent of the group has indicated “they want video to reflect the products and services they already own or are specifically interested in.” As we have blogged, creating great visual content is no longer a nice to do – it’s a must-do.

3 Look beyond Facebook

In 2018, eMarketer senior forecasting analyst Oscar Orozco told Business Insider that “[o]utside of those who have already left, teens and tweens remaining on Facebook seem to be less engaged—logging in less frequently and spending less time on the platform.” A 2017 Piper Jaffray survey, in which only nine percent of teens designated Facebook as their preferred social-media platform, confirms this trend. As nineteen-year-old Ishan Goel, a marketing strategist with the Mark Cuban Companies, observes, being on Facebook is “not cool.”

So where is Gen Z spending its digital time? According to Ishan Goel, “Because Gen Zers are individualistic and value their privacy, they prefer anonymous social media like Snapchat, Secret, and Whisper rather than Facebook,” An Hodgson, an income and expenditure manager at Euromonitor International, notes that Instagram is also a go-to.

4 Be Authentic

This isn’t necessarily a generation invested in status. Piper Jaffrey reports that “refined-classic” brands like Ralph Lauren or Vineyard Vines are suffering record lows in the Gen Z market, dropping from a 14 percent average to a 5 percent market share among teens. (That said, according to a recent report from consultancy Irregular Labs, 25 percent of the 1,000 13- to 24-year-old females surveyed indicated that they are saving up to buy a luxury product.)

Gen Zers also value ads with everyday people in them, as opposed to celebrities. Look to retailers like Target for a sense of how to get it right when it comes to authenticity: in Target’s online as well as in-store advertising for women’s fashions, for example, models come in all shapes. And in the store itself, even the mannequins showcasing the clothing are different sizes.

5 Tread Carefully with Cause Marketing

Gen Zers value social issues. In a new study from the consulting firm DoSomething Strategic, two-thirds of Gen Z consumers indicate that there is a correlation between a brand’s association with a social cause and positive impressions of that brand. That said, authenticity (see above) must be established: any whiff of a disconnect between the cause marketing and a company’s values, and Gen Z will not be impressed. Furthermore, a study published in the Journal of Advertising Research suggests that businesses should avoid relying on guilt in any cause-related marketing they pursue.

Contact True Interactive

Looking for more insight into how to reach Gen Z with your digital advertising? Contact us.

Photo by JodyHongFilms on Unsplash

3D for Brands: No Longer a Novelty

3D for Brands: No Longer a Novelty

Advertising

3D is no longer a novelty. It’s becoming a way for businesses to share both advertisements and organic content. Case in point: Bing Ads recently teamed with Samsung to create 3D advertisements that display when consumers search for Samsung Galaxy devices on the Bing search engine.

Here’s how it works: an option for a 3D ad appears when an individual (using Bing) searches for the Samsung Galaxy S10 or S9 on their desktop. The ad, which expands to full screen size, can be manipulated by rotating the image, or zooming in on it. But it’s more than a zoom. Consumers see every aspect of the Samsung device plainly, from multiple angles, and can click on an image to access product details.

As Ravleen Beeston, UK head of sales for Microsoft Search Advertising, said in a statement to Netimperative, “These new 3D ads, unique to Bing, herald a new era of search advertising when it comes to displaying products through desktop search since they complement and enhance the experience for consumers looking to engage with a product.”

3D on Facebook

In addition, Facebook has made it possible for both businesses and consumers to post 3D photos, which makes organic content really pop. As discussed in this Digiday article, the 3D photos are “inherently thumb stopping.” If long-form video is showing a decline in effectiveness as attention spans likewise decline, 3D photos promise to be the next frontier. And brands are jumping at the chance to engage consumers in a fresh way. 3D can be especially useful for retailers trying to showcase products that require close inspection—expensive cellphones, for example, or even food. Food delivery service Bite Squad, for one, has capitalized on the opportunity by posting 3D photos, including one of BBQ from Famous Dave’s. “My goal is to catch your eyes as you [are] scrolling your feed,” Craig Key, CMO of Bite Squad, said, adding that just the sudden movement of an image can be a reason for users to scroll back up.

What You Should Do

At True Interactive, we recommend that you constantly look for ways to incorporate technology such as 3D if they are appropriate for your business:

  • Understand how 3D might add value to your paid and organic content. Don’t be gimmicky about using 3D. Have a specific goal in mind, such as increasing engagement with your ads, especially for products that require high levels of consideration.
  • Be aware of companies such as ThreeKit that provide technologies to help you design advertisements in 3D.
  • Work with an agency partner such as True Interactive that knows how to incorporate formats such as 3D into a larger advertising campaign.

Interested in exploring the opportunities inherent in 3D? Call us.