Here Are the Most Effective Video Formats For End-Funnel Marketing

by | 2 minute read

With so many mar­keters increas­ing their spend­ing on video adver­tis­ing, it’s fair to won­der where the money’s com­ing from. Adver­tis­er Per­cep­tions recent­ly took a look at this top­ic. The company’s ana­lysts also out­lined which video for­mats are most effec­tive for var­i­ous stages in the sales fun­nel.

Of the 300 adver­tis­ers who respond­ed to Adver­tis­er Per­cep­tions’ 2019 Video Adver­tis­ing Con­ver­gence Report, 55% say they’ll spend more on mar­ket­ing this year. The aver­age increase will be about 14 per­cent. A sig­nif­i­cant per­cent­age of the high­er spend­ing will go to ‘sight-sound-motion video strate­gies.’ The esti­mat­ed 51% bump in sight-sound-motion spend­ing will be fueled by:

  • Over­all bud­get increase for paid adver­tis­ing 37%
  • Ded­i­cat­ed lin­ear TV bud­get 30%
  • Oth­er non-dig­i­tal (print, OOH) 17%
  • Oth­er dig­i­tal media (dis­play, search) 10%

Andy Sip­pel, exec­u­tive vice pres­i­dent at Adver­tis­er Per­cep­tions, cau­tions that “the video expan­sion is not an either-or propo­si­tion.” Instead, mar­keters use dif­fer­ent video for­mats to tar­get shop­pers in dif­fer­ent lev­els of the pur­chase fun­nel.

The Purchase Funnel and Video Formats

At the upper fun­nel lev­el, mar­keters want to make con­sumers aware of their brand and their prod­ucts or ser­vices. To accom­plish that goal, 33% use lin­ear TV. Once the aware­ness goal is achieved, mar­keters move on to mid-fun­nel activ­i­ties like con­ver­sion. Dig­i­tal mobile video serves as the favorite for­mat for 29% of busi­ness­es. Inter­est­ing­ly, dig­i­tal mobile video is also the top choice for 32% of mar­keters who focus on low fun­nel activ­i­ties like ensur­ing the pur­chase takes place.

The Video Formats Advertisers Favor

Adver­tis­ers show spe­cif­ic pref­er­ences for pre­mi­um dig­i­tal video adver­tis­ing. For exam­ple, 74% of adver­tis­ers want to pur­chase ads on video sites like Net­flix. They’re keen­ly inter­est­ed in reach­ing spe­cif­ic audi­ences and they believe these sites have more qual­i­ty con­tent than oth­er options. Sip­pel says, “The more [inven­to­ry] you have, the greater the reach and tar­get­ing you can pro­vide. And the more you can do for an advertiser’s media plan.” Cur­rent­ly the fol­low­ing per­cent­ages of adver­tis­ers use these for­mats for low­er fun­nel mar­ket­ing:

  • Pro­gram­mat­ic lin­ear TV 10%
  • OTT/Connected TV 5%
  • TV Net­work Full Episode Play­ers 8%
  • Data-enabled lin­ear TV 3%
  • Address­able TV 11%
  • Set-top box VOD 3%

While mar­keters appear to embrace new dig­i­tal video for­mats, they still have con­cerns. Brand safe­ty con­tin­ues to be an issue for 58% of mar­keters. They’re also strug­gling with the lack of stan­dard mea­sure­ment (57%) and the inabil­i­ty to buy media seam­less­ly (46%).

You can help your clients tar­get con­sumers who respond to TV adver­tis­ing by review­ing the Audi­enceS­CAN pro­files avail­able on AdMall from Sales​Fu​el​.com.

Kathy Crosett
Kathy is the Vice Pres­i­dent of Research for Sales­Fu­el. She holds a Mas­ters in Busi­ness Admin­is­tra­tion from the Uni­ver­si­ty of Ver­mont and over­sees a staff of researchers, writ­ers and con­tent providers for Sales­Fu­el. Pre­vi­ous­ly, she was co-own­er of sev­er­al small busi­ness­es in the health care ser­vices sec­tor.