Digital video is hotter than ever for brands. According to the Interactive Advertising Bureau Video Ad Spending Study, advertisers are spending on average more than $9 million annually on digital video advertising (a 67-percent increase from two years ago), and video represents more than 50 percent of their digital/mobile ad spending.
The IAB report is based on a survey of brands and agencies across a wide spectrum of industries ranging from automotive to telecom. Most of the respondents plan to invest more into both digital and mobile video over the next 12 months. Many will fund their investments into video by reallocating their television budgets, and most respondents believe that original digital video content reaches an audience that TV cannot reach. They also prefer video because of the quality of the environment and overall effectiveness of reaching an audience.
These findings don’t surprise me. My own client experiences suggest that advertisers are also drawn to the measurability and audience segmentation possible with digital video compared to TV advertising. As I wrote on the True Interactive blog, not only can you target customer segments with online video, but you can see how many of them interacted with your site, subscribed to your YouTube channel, made a purchase, or watched another of your YouTube videos (other than the ad you just showed them). Not only can advertisers see the different interactions of an audience, but they can also see how much of the video ad that they watched.
To maximize the value of online video, I suggest that advertisers:
- Develop an interactive video strategy tied to your branding goals and aligned with the behavior of your customers. Map out your customers’ journeys throughout the digital world and figure out how interactive video will best move your customers from the awareness to consideration to purchase and retention. In the healthcare profession, for instance, medical providers use interactive video to educate potential patients on topics such as wellness care, which raises awareness for providers when customers are researching topics such as proper dieting or exercising.
- Understand the nuances of using video — both paid and organic — across different platforms. “Video” can mean many things to different brands, ranging from a bumper ad on YouTube to a Facebook Livestream. According to a recently released report from think tank L2, video formats provide different advantages depending on what platform you use. Instagram content provides higher levels of engagement compared to other platforms, Facebook provides incredible reach, and YouTube is better for longer-form video content that lends itself to episodic storytelling.
In addition, it’s important to stay on top of this fast-changing format. The different platforms are constantly introducing new features as they attempt to gain an advantage on each other, and advertisers that stay in the know will seize a first-mover advantage. On the True Interactive blog, we regularly discuss how to succeed with video (as shown by this example about livestreaming). Other useful resources include the blogs from platforms such as YouTube and third-party content from institutes such as the IAB. How are you capitalizing on interactive video?
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