According to eMarketer, video advertising in the US is currently a 19 billion dollar industry; a figure projected to rise to 22 billion in 2021. In fact, 92% of marketers now say video ads are an essential part of their marketing strategy, up from 78% in 2015. The vast majority of these marketers (88%) say video provides them with a positive ROI, up from 33% in 2015.
The above figures alone should convince you of the importance of in-stream video advertising as we start 2021. Whether you prefer shorter or longer videos, pre-roll, mid-roll, or post-roll, you stand to benefit immensely.
The following is a closer look at what exactly you can expect from your video ads;
Brand awareness is the first step in the marketing funnel and a crucial foundation to eventually acquiring customers. Video ads are currently one of the best tools to increase your brand awareness. Indeed, video ads can help improve both product and brand awareness. At least 97% of marketers say that videos have helped increase understanding of their products and services.
Consumers want to be 100% convinced about a product before they purchase. If they have just a slight doubt, they may hesitate to commit. Video ads can help inform and educate your customers about your products and how they can solve their problems. You can also use ads to educate the masses on how to use the product for the best outcome.
Consumers are now exposed to so much information online. This means it’s easy for brand messages to be lost in the noise. That’s where storytelling comes in handy. Storytelling maintains attention and increases understanding. It’s also a powerful avenue for humanizing the brand while transferring your values and beliefs to your audience. Videos offer an excellent platform for storytelling. Even short videos can tell powerful, compelling stories that instantly appeal to consumers.
Video ads have an average click-through rate of 1.84%, the highest of all digital ad formats. Some videos, especially shorter ones, have even higher CTAs. 15-second video ads, for instance, have an average CTA of 2.2%. This shows you can make a lot of money with video ads if they are done correctly. According to some reports, the likelihood of purchase increases by 35% after a consumer watches a product video.
Every owner understands the importance of brand positioning. If the consumer is spoilt for choice, how they think of you (i.e., your brand image) can make them choose your product over the competitor. Video ads can help you build a great brand image/identity to boost your positioning. This is especially true if your videos clearly demonstrate your business values, product quality, professionalism, and superior customer service.
Shorter videos have the highest return on investment. Recent research by IPG Media Lab, MAGNA, and Snap Inc., show that short-form ads, up to six seconds long, have almost the same impact as 15-second ads in brand preference and purchase intent – while costing you way less. Shorter videos are also less intrusive.
Short, pre-roll video guarantees even better returns than mid and post-roll videos. In one survey, skippable pre-roll ads (29%) were identified as the best performing video ads, with display ads (10%) at a distant second. For the best outcome, limit ads to six seconds. YouTube, Facebook, and Programmatic Buying Platforms are some of the best platforms to use for video advertising.
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Let's talk about your business. With over a decade of experience leading companies and transforming lives, and a Master's degree in Org. Development and Leadership, Mike can help you find the best way forward!