Can Video Build the Digital Star?
If video killed the radio star, then it’s doing the exact opposite to digital. Many would agree that IP-based video is making a positive impact on digital media. Anecdotally, I’m hearing that video ad inventory on high quality content channels continue to be in heavy demand. CPMs are steady and healthy, and rate cards are remaining firm, almost to the point of being unreasonable. Viewership and impressions continue to grow and advertisers know it.
Today, a family of five could potentially watch different types of video on five different devices while all being in the same room (although I personally wouldn’t recommend that during your quality time with your family). Marketers who relied primarily on television to reach audiences are now shifting their strategy online, following viewership trends to efficiently and effectively drive awareness across multiple screens. The rapid increase in the number of video-enabled mobile and connected devices (over-the-top boxes, smart TVs, etc.) enables consumers to watch video on their device of choice, at their convenience.
Not Like Television
For advertisers, this presents new challenges. Reaching consumers using video now means that advertisers must better understand consumers who use multiple devices (on average of four devices per person for video viewing). It also means that traditional video daypart strategies such as targeting viewers during primetime have changed. Primetime has now become “wherever, whenever and however” time.
To adjust for these changes in consumption, many advertisers are shifting more of their TV dollars to online. Advertisers that have struck the right balance of offline-to-online media have seen a lift in campaign performance and audience reach. For example, according to a Nielsen and IAB study, shifting even 5% of video budgets from television to online formats has increased reach by 2.5%. Furthermore, from the same study, brands that augment their broadcast strategies with online video campaigns can increase brand metrics such as recall and likeability.
As online video continues to play a larger role within the marketing mix, advertisers and the agencies that represent them are exploring new benefits, such as the ability to measure performance and analytics, target high-value audiences, dynamically customize the creative specific to each user, and drive engagement through interactive experiences within ad units. However, with the abundance of new screens, formats and video asset options, where do advertisers start?
Advertisers can overcome multi-screen challenges by executing video-everywhere campaigns that run across different platforms such as mobile, tablet, desktop, place-based digital, connected TV and over-the-top boxes. With the ability to measure and track performance metrics across each platform, advertisers and agencies can launch complex, multi-pronged video campaigns that reach the consumer wherever and whenever they are the most engaged to produce superior campaign results.
Shifts in Consumption
While traditional TV viewing remains relatively flat, online video viewership continues to rise, particularly among younger audiences who are cutting the TV cord altogether. There are now nearly 2.5x more households considered ‘zero TV’ homes than there were in 2007, with almost half of them having viewers under 35 years of age, according to Nielsen.
As target consumers shift video consumption habits online, advertisers need to strategically and seamlessly expand their broadcast strategies into online formats. Video campaigns need scale across quality publishers to ensure that brands execute their video in the right content, and align online and offline video strategies to increase campaign and audience reach.
Personalization and Relevancy
With online video, advertisers have the ability to personalize the video experience for their consumer. Using dynamic creative, interactive video and other customizable elements, brands can create visually-driven campaigns that allow the consumer to directly engage with a brand.
Video is providing a powerful effect to digital advertising across platforms. Despite the challenge and complexity that comes with it, marketers are excited about how video is giving campaigns a strong boost.
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