The Trends of Video Consumption As We Head Into Q2 2017

Online video has played a huge part of the Advertising efforts in the past few years. In fact in countries like the US where the proliferation of video platforms like Netflix and YouTube has increased manifold, we see that the spending on video ads have increased by leaps and bounds.

US spending on online video ads stands at a whopping $13.23 billion as we head into the latter half of 2017. And that spending is not going to slow down in the near future. In fact according to latest reports from E-Marketer, we find that the growth figures are at a double digit annual rate and will look to hit the $22.18 billion mark by 2021.

video ads

US spending on online video ads stands at a $13.23 billion.

So if these numbers have piqued your interest you must be wondering where do I invest my money in if I want to reap the same rewards out of this burgeoning media revolution. Well that may depend squarely on you audience. In fact the younger the audience the more likely that they are not interested in traditional video platforms like TV and are spending more of their time on online video consumption.

Among the online video platforms who are the forerunners? Well most results show that as far as paid subscriptions are concerned, Netflix holds a clear lead ahead of its competitors with a proliferation rate among both desktop and mobile users that is rivalled by no other. Turning onto the other big competitor in the free to watch segment, YouTube remains king especially when ad campaigns and Influencer Marketing is taken into consideration.

Online video has managed to grab the lion’s share of online traffic accounting for nearly 74% of all traffic in 2017. But as we have discussed many times in the past, getting views on a product doesn’t exactly translate to money in the bag. So how are the conversion metrics? Well, including videos on the landing page of a product can increase the conversion rate by as much as 80%. In fact, you don’t always have to even include a video in the literal sense, just including the word ‘video’ somewhere in the subject line has been found to make subscription email opening rates jump up by 19%.

But what about the downsides to video marketing? There are indeed a fair few of them and 43% of marketers have identified that money, time and resources are a constraint in the field of producing more video content. However, despite that, the overall perspective on video advertisements as a whole are changing as marketers see a revenue growth rate of 49% among users who consume video content. This has led to a change of thought where 52% of marketers believe that videos are the best method to increase their brand awareness.

With a userbase of over a billion users, platforms like YouTube have the eyeballs of over one-third of the entire audience on the Internet. And even newer platforms like Snapchat have immense potential with viewers watching over 10 billion videos daily! If online advertising is your niche, then there is no better moment than now to make the jump to video content!

The Top 3 Secrets to Influencer Marketing

We are now the denizens of a world where the Internet is the connecting fabric of all of us. It influences us every decision and in fact most of our purchases begin here as well. While it has been decades since online marketers have been trying to harness the collective buying power of the Internet.

Recently though their efforts have been met with some strong opposition as traditional methods of advertising like banner ads or even media ads like rich text content or self promotional videos have been tanking. The people on the Internet do not trust brands anymore and traditional forms of digital marketing are being affected by Ad Blockers.

Influencer Marketing

So what is the way forward? Well a new form of disruptive marketing is taking the world by storm. Influencers are the new age celebrities and while traditional celebrities like footballers and film stars have a sizeable influence, there is a new crop of social media celebrities on the rise.

The young audience especially 70% of the teen demographic trust YouTube stars and are willing to base their purchase decisions off their recommendations. And 86% of women count on social media for their buying choices as well. So now that you understand how powerful influencer Marketing can be for you, let me just let you in on a few industry secrets so that you too can reap the rewards from this new powerful tool!

Celebrities are not always the best choice

Influencer Marketing scares many people away because they assume that he brand will have to spend big bucks and rope in a huge celebrity to endorse their product. However that is something that rarely works out in reality. Sure for a giant brand like Nike with a colossal marketing budget, it may be a good idea but for a brand that can afford something like 10,000$, spending it all on just one Instagram post may not be the best decision.

Microniche Influencers Get the Best Conversions

In fact, while getting a million eyeballs on your product is a good start, it doesn’t turn into profits unless you have a good conversion rates. This is specifically where micro niche influencers shine! Although their social media following may only reach into the thousands, they have through their content and interaction built up a devoted community around them which if tapped into wisely can provide a lot of value for the brand. Also working with smaller influencers is easier on the wallet as well.

Influencer Marketing is Highly Scalable

Once you get some traction with Influencer Marketing most brands are scared that they will not get much more returns even if they invest into acquiring more influencers. At the same time working out individual contracts with several influencers can be tedious and disrupt scalability. However just for this express purpose are several platforms like Viral Nation and Ninja Outreach that act as the medium between brand and influencer and helps scale brand influence and popularity way more easily.

If you had been afraid or on the edge about Influencer Marketing till now, after reading this, you have the inside edge to go out there and get your brand the publicity it deserves!

New Report Shows Digital Ad Spend Continues to Climb

ad spend climbThe latest update to the Advertising Intelligence Index has officially been released from Turn , covering January 1st – April 30th.   In this report they focus largely on the continued growth across virtually all types of digital advertising.  Some specific markets seem to be starting to stabilize in terms of their digital ad spend, but many new markets are really starting to push forward with their move into the online realm.

One concern some marketers have is that, as more and more major brands begin to invest heavily into digital advertising, it will start to drive up the overall prices for online advertising.  Over the past year, there has been a huge jump in the amount of ads being purchased, but the inventory has also skyrocketed due to updates and innovations from major ad networks including Facebook and Twitter.  At some point in the near future, the competition for ad spots will likely begin to heat up.

For now, however, the research published by Turn seems to show that the amount companies are willing to spend on digital advertising continues to rise across most platforms.  The following are some interesting highlights from the recently released report:

  • Mobile ad spend is up 109% year over year.
  • Brands are spending 65% more during the first four quarters of 2014 than they did during the same time in 2013
  • Display ad spend went up 20% – This is significant, since display ads have been around for quite some time, yet are still showing healthy growth.
  • Social advertising has climbed by 20%.  This is strong growth, but some experts expected bigger numbers given the popularity of social networks.  This lower than expected number could be due, in part, to the fact that buying ad space on these sites is still relatively inexpensive.

Not only are brands spending more on advertising across platforms, they are also seeing their effective CPM rates go up in all areas, except video, which dropped by 1% overall.  The above numbers are from the United States statistics.  Interestingly enough, the European markets are not seeing the same numbers.  Some points that were made about the data from the European market include:

  • Display ads are less competitive in 2014 than they were in 2013
  • Social advertising saw big increases in competition, reflecting the maturing of this category.
  • Video ads in the European market continue to be volatile.
  • Display ads are beginning to become more volatile, especially when compared to years past

Pierre Naggar, the managing director EMEA at Turn said of the report, “Spend and competition are increasing in mature markets, leading to smarter data-drive budget allocation this year.  Brands and agencies are using sophisticated audience-first strategies to drive planning for programmatic advertising, turning insights into an advantage against the competition.”

What may be interesting through the remainder of this year is how these data-driven strategies will play out over the long term.  There have been a number of different acquisitions and new companies coming out that offer real time data services for ad purchases, which means a growing number of marketers will have access to these effective strategies.  This will likely increase competition for the top ad spots on the net.

The report from Turn was based on an analysis of the traffic on their platform.  According to Turn, this platform makes over 100 billion data-driven advertising decisions.  They also analyze over 1.5 billion anonymous customer attributes, and provide instant access to billions of digital ad impressions, making them a leader gathering and analyzing digital ad information.  You can see the full report HERE.