Ad spending should migrate to video too
eMarketer published this year a chart on the ad spending behaviour and it’s interesting to observe how traditional channels are still scoring the big ad spendings despite the fact that the users are consuming less and less there.
It is the momentum when the audience potential is big, but there is no coordination with the investment in the video and audio distribution platforms, and that’s creating opportunities for the marketers and ad tech companies.
By 2018, online video will be the most highly penetrated residential service globally, with a projected 1.9 Billion users. It will outpace digital cable, time-delayed TV, video on demand, online music, online gaming and social networking. (Cisco)
The 2018 users of mobile video will be double compared to 2014 (1 billion).
The digital divide will grow, because people living out of the developed world with slower internet connections, will not be able to access the benefits of the new content type.
Ad blocking is not there yet because the technology to block the unskippable ads embedded in different video formats is not developed, therefore in the beginning the exposure will be to full audiences.
What is the impact on your content business?
Shifting your content business to mobile first, video ready is a must in the next quarters.
On the other hand, if you are a marketer, you should be able to build the knowledge for the new universal content format, which is video (and secondary audio).
Video as the new HTML will become the universal format for embedding content and ads. It will change the metrics matrix and the terminology too.
Let’s take for example a video ad.
A marketer should care if the ad placement was in stream video or in feed video or mobile, then what was the time spent on the video, then if the sound was on or off, then if the video was scrolled while playing or watched in full screen, then what was the resolution of the device it was watched, then if it was watched in VR. Then of course what was the number of views and if the ad was clicked or not.
What are the main learnings out of this shift?
If you are an ad tech company:
- Offer video and audio technologies. Keep in mind that the video (including GIFs) will be the universal content platform where your clients will need to embed their ads. Think the same about audio.
- Offer the right metrics palette to your business clients. Educate them to understand your metrics. In fact, make them get addicted to your metrics.
- Be prepared for sophisticated ad blocking software.
If you are a publisher:
- Make sure your content is on the right platform. HTML is going to an end, the video format can encapsulate pretty much any kind of content (also ads) so make sure your content is video and / or audio.
- If your content is video ready and audio ready, you might want to consider training yourself for understanding the relevant video and audio performance metrics.
If you are a marketer:
- Make sure you are not shooting in blind. Learn where your audience is and address the right platform with your campaigns.
- Learn, learn and again learn. The game is changing, so make sure you understand how to measure your video and audio campaigns performance.
- Identify the right partners for your campaigns, make sure they are video and audio ready.