It’s no surprise that video has taken the digital ad space by storm. It’s rare that you scroll your newsfeed or surf the web without being served an ad that is relevant to your specific interests. In 2019, 87% of marketing professionals were leveraging video in their media strategies and more than 80% of video marketers saw a stronger ROI than when they ran static banner ads or paid social image ads.
So, why are video ads so popular? And why should marketers continue to invest in video advertising in 2020?
Expanded Inventory
For starters, video inventory is incredibly robust. You can reach users across a variety of different platforms and sites – from social platforms to Connected TV devices. That’s right, you can now tailor ads to reach users while they’re streaming a show through their smart TVs. Marketers can also place video pre-roll ads across premium website inventory, along with video-specific platforms like YouTube, where ads play before or during video content that a user is viewing.
Video ad inventory has expanded across social platforms in the past few years as well, and the results have been significant. Platforms such as Instagram and Facebook see 49% higher interactions on video ads than with image ads. With such impressive engagement metrics, it makes sense that marketers are investing more of their media dollars into paid social video ads. In fact, paid social video ad spend accounted for 28.7% of all video ad spending in 2019 ($10.35 billion). This number is projected to grow to $12.48 billion in 2020.
Unique Ad Formats
The unique ad formats offered through video is another reason why marketers are investing more of their paid media budget into the medium. Sprout Social reports that marketers are increasing their digital video budget by 25% year-over-year due to the increase of new ad formats. For example, marketers are now leveraging Instagram stories to connect with users for :15 seconds through an immersive experience with a full-screen interactive video. In 2019, one-third of Instagram’s most-viewed stories came from businesses, and 20% of those stories drove users to directly message businesses.
Another evolving ad format that businesses are taking advantage of is YouTube’s 6-second bumper ad. YouTube bumper ads are non-skippable, and while quite short, marketers have been able to successfully story-tell through a sequence of these 6-second ads. Google Ads shares that “many large brands are using bumper ads to drive upper-funnel goals like ad recall and awareness…. [they] are a cost-effective way to reach your target audience, ensure your message is seen and heard, and keep you top of mind.”
As mentioned previously, the ability to target users through Connected TV (CTV) devices is a huge win for marketers. There is a shift happening between traditional TV and CTV; many households are ditching cable subscriptions and switching to subscriptions with streaming services such as Hulu, Amazon Prime and Apple TV to get their news and entertainment. By 2022, it’s projected that 35 million viewers will watch TV exclusively through streaming services. The result? Marketers are investing less in traditional TV commercials, and instead, putting those dollars behind non-skippable :15, :30 and :60 second CTV ads. The best part of CTV advertising is that you actually have access to ad data! With traditional TV, networks will provide projected impressions for running commercials during specific time slots; however, with CTV, you’ll know exactly how many users watched your ad, along with viewability metrics and insights into ad recall.
The Future of Video
While banner and image ads have seemingly run their respective courses, the future of video advertising looks promising. With new formats and campaign functions rolling out across platforms specifically for video, marketers should set aside a healthy media budget for testing new video opportunities in 2020.
One new practice that Google Ads recommends is to make your video and search ads work together. Google Ads states that marketers who run search and video together will experience a 45% higher lift in ad recall, and a 180% higher message retention. One brand, in particular, found that running video alongside paid search led to a 4x increase in branded search, and dropped their CPA by 70%.
Another new trend popping up across paid social is the use of live video. Marketers are investing in live video as a means of building trust and transparency with consumers. We’re used to seeing this trend across Instagram and Facebook Stories, and video-first platforms like Snapchat. However, some businesses are migrating live video to LinkedIn to help tell brand stories and to show followers the real people behind the company name. Live video is helping to break down walls and let users connect with businesses in a personal way.
Other new video opportunities coming our way are: shoppable video ads, augmented reality campaigns, new possibilities on IGTV and Facebook Watch, and so much more.
Bottom line: Invest in video advertising in 2020. You’ll be glad you did. Find out how Bluetext has leveraged video ads in successful go-to-market campaigns.