BY Kathy Crosett
Marketers love the ROI they’re getting from their video advertising investment. The latest Video Advertising Convergence Report from Advertiser Perceptions reveals that 50% of marketers state video is better than other formats when it comes to helping them meet key performance objectives. The survey was based on input from 250 advertising professionals sourced from agencies and marketers. Here’s what your clients need to know.
The Value of Video
While 50% of advertisers say that video advertising outperforms other formats, it’s worth looking into the specific types of available video ads. Advertiser Perceptions broke out their findings into the following categories (the value of investment in terms of meeting KPI appear in percentages below):
- Linear, addressable, CTV/OTT 47%
- Digital video (online/mobile) 46%
- Out-of-home (video) 5%
- Cinema 2%
Marketers are eager to invest in specific video formats: digital video and other forms of TV advertising. What do they say about other advertising formats in comparison? They give search (16%), social (13%) and display (10%) double-digit scores for the value received when they invest in promotional or branding campaigns using these formats. Print (4%), audio (4%) and traditional out-of-home (3%) score much lower on the list.
Marketers feel so strongly about the value that video delivers that 75% will increase the funds allocated to the format in 2022. On average, 40% of businesses that use video will increase their investment in OTT streaming services by about 16%. And 29% will boost their addressable linear TV spending by 17%. Even traditional linear TV ad buying will increase for 24% of businesses; on average, they’ll spend 19% more. It’s important to remember that some of the increased spending will be driven by what is expected to be a contentious election cycle as Republicans strive to increase their numbers in the House of Representatives and the Senate.
Measuring Video Investment Outcomes
What are the KPIs that marketers use for measuring outcomes from their video investment? The State of Video Marketing Survey produced this year by Wyzowl indicates the format helped 86% of businesses generate new leads. In addition, 94% say the format has helped them increase user understanding of their brand and their product or service. Businesses like your clients are using the following metrics to measure video advertising’s impact:
- Video engagement 62%
- Video views 61%
- Leads/clicks 60%
- Brand awareness 44%
- Customer engagement/retention 41%
- Bottom line sales 27%
The Wyzowl survey drilled down into the platforms marketers will use for the digital video advertising this year. The top three outlets will be YouTube (88%), LinkedIn Video (68%) and Instagram Video (68%). The types of video to be produced vary widely. While 74% of businesses will use explainer videos, 50% will opt for presentation videos. Marketers understand the importance of testimonials, so 46% will create video testimonials. And 42% will create video ads.
Types of Video Advertising
Marketers have their pick of the type of digital video to use. At least 61% of businesses say short-term professional videos, those under 2.5 minutes, deliver the best chances of meeting KPIs, according Advertiser Perceptions analysts. On the other hand, 39% like user-generated video, while 36% find great success in advertising during sporting events. With so many marketers jumping into video advertising and consumers spending hours every day watching, it will be increasingly challenging to stand out.
Remind your clients that they should target consumers who report being influenced by video advertising. To learn more about these consumers, check the AudienceSCAN profiles available in AdMall by SalesFuel. It’s key to develop professional videos, whether they are ads or tutorials. Your clients can make a great impression on consumers, marking the first step on the selling journey.
Photo by SHVETS production from Pexels