Modern marketers know that digital video channels are the best way to reach your audience. The difficulty for advertisers however, is prompting consumers to take action.
A report focusing on video advertising, sponsored by Adweek, identifies the pain points for marketers and viewers. The crux of the matter is that viewers hate intrusive ads that have no relevance.
For marketers, video marketing platforms have limited options for reaching your audience. It’s too easy for viewers to flick the skip button.
The number of online advertisers paying for mid-roll and outstream ad units has declined. Thirty second autoplay ads have largely been replaced by 6-second pre-roll ads because advertisers think that is the best option.
Yet viewers are really annoyed by pre-roll ads; and it’s very difficult to sell something in six seconds. However, snappy pre-roll ads are good for raising awareness and around 86% of marketers use this format – though they are looking for alternative solutions.
The solution is not only the quality of the content, but the relevance. Consumers want relevant content.
Viewers don’t like pre-roll ads because they typically lack context or depth. Internet users expect personalised experiences when using online platforms; it’s one of the reasons people are switching to digital channels over traditional TV.
The growth of digital video channels
Although there is still some lag in the UK, more people are using Smart TV and smartphones to tune into video channels. Mary Meeker’s annual Internet Trends Report provides fascinating industry insights that show how consumers are using online platforms.
In addition, Over-The-Top (OTT) channels are becoming more popular with younger viewers in the UK. There are more gen Z viewers tuning into Netflix and YouTube than the BBC.
Furthermore, 56% of OTT viewers in the US revealed they talk about brands or products they see on digital channels.
The new eMarketer report also reveals that interest in digital video channels is gaining traction in Europe. So can advertisers in Britain expect trends in France, Germany and the US to pick up on home soil?
We think so, and here’s why.
Digital video channels on social platforms
Social media is a key driver for video. Over 15 billion videos are watched every single day on social networks – and by the largest pool of users. YouTube, Facebook, Twitter and Snapchat get the most video views, and other video marketing platforms are introducing features that can help advertisers.
Instagram recently announced a long-format video feature to rival YouTube and Snapchat Discover. The space will be dedicated to feature length videos and will cover scripted shows and music videos in full-length 4K resolution.
A spokesman for Instagram said that viewers should not expect the polished and scripted shows you find in Netflix and HBO. Content will be more closely related to low-budget content creators you find on YouTube.
And there are some excellent channels on YouTube which is why 500 million people tune in on a daily basis. There is no reason why brands cannot make your own shows.
YouTube is also adding a new service to its inventory that will allow marketers to improve ad targeting. It is the lack of ad targeting on YouTube that contributes to the pain points of marketers and viewers we mentioned at the top of this article.
We also expect to see more video marketing platforms emerge before the end of the year. Experts estimate the global market for digital video channels will grow rapidly in 2019. Revenues of $800 million have been mooted.
The video marketing platforms are there. We already know which trends consumers are going to adopt. All advertisers have to do is create relevant content viewers want to watch.