Marketers are Getting Smarter about Spending their Video Budgets
Tuesday January 31st || by Yoav Naveh
Most industry forecasts, including eMarketer’s analysis of a survey from Demand Metric and Vidyard, predict that spending on video content marketing will continue to grow in 2017 but at a slower rate than last year.
This year’s survey respondents were slightly less likely to anticipate big increases in video spend, and the total number of marketers predicting any increase in video marketing budget dropped by 10 percent vs. 2015 data.
With video’s costs high and performance measurement sometimes tricky, it would be easy to chalk up slowed growth to falling confidence in the format—but that’s not what we’re seeing here at Taboola. For our advertisers and publishers, interest in video is only growing.
Other industry trends don’t signal anything but a continued hunger for video—a key one being consumption patterns.
Consumers respond to video
According to eMarketer, adults are spending more of their screen time on digital video every year—video consumption is expected to rise steadily through 2018, while TV viewing continues to fall.
At the same time, companies like Syndacast foresee a significant increase in live video content marketing on channels like Facebook and Twitter, where 82 percent of users report watching video—the growth is still expected, even with the recent news that Facebook might not be incentivizing publishers to make live videos in the future. They advise, in fact, that: “…capitalizing on video in 2017 is a definite must.”
Most important is the strong evidence that when produced, targeted and executed right, video gets results. Before you interpret slowed growth as a signal to curtail your video content marketing, consider a few metrics aggregated by Hubspot:
- Including video on a landing page can increase conversion rates by 80 percent
- 92 percent of mobile video consumers share videos with others
- Almost 50 percent of internet users look for videos related to a product or service before visiting a store. (Google, 2016)
- Shoppers who view video are 1.81X more likely to purchase than non-viewers. (Animoto, 2015)
The fact is, growth of video content marketing is slowing not because video content marketing isn’t working, but because it’s expensive, so marketers are getting more selective and sophisticated about how and when they invest. In addition, video spend grew faster than the supply of video content grew. Now, the marketing world is catching up.
Digital video advertising is still expected to be the fastest growing format in 2017, with growth much higher than overall digital ad growth, according to eMarketer. Mobile video ad spend is predicted to reach $8 billion by 2019.
Innovation is still happening, with more interactive and dynamic video ads reaching consumer screens and formats such as mobile native video ads gaining momentum.
Getting value from your video budget
As marketers learn what works and what doesn’t, they are focusing their video marketing budgets on better quality executions and consumer-focused storylines. That begs the question: what makes for a good quality, consumer-focused video?
Below are three tips for video ROI from the Digital Marketing Institute:
- Concentrate on the value you’re providing, not on a hard sell. “Make the most of the emotive power of video by appealing to your consumers’ needs and hidden desires.”
- Get to the gist of the matter within the first 5 or 10 seconds. Hook the audience with an intriguing question or teaser—and if you can, do it without the need for audio. As video marketing rapidly approaches a “no audio” world, this will be key.
- Lighten Up. Even in B2B, overly serious, staid videos won’t get watched, let alone shared. “…don’t try to emulate your competitor’s stiff tone and yawnsome script. Stand out and take a chance on being funny.”
Clearly, creativity matters, but so does strategic targeting and distribution. Promote your video to interested audiences in the right context, and ROI will follow.
Taboola is the world’s leading content discovery platform, serving 360B recommendations to over 1B unique visitors each month on the web’s most innovative publisher sites. To find out how we can support your video marketing strategy, contact us or start your campaign now.