Consumers continue to increase the time spent streaming online video, which represents a huge local media opportunity to increase campaign effectiveness.
The amount of time consumers are spending in the online space is continuing to increase, as more compelling content moves onto digital platforms –including social networks with mass appeal and an expanding selection of online video content.
Smart advertisers recognize this continued shift in time spent online represents an opportunity for them to capture this audience with online video ads.
1. Digital video ad spending is expected to double in the next four years
According to an article in eMarketer, “US digital video ad spending will nearly double in four years, climbing from $4.14 billion this year to $8.04 billion in 2016.”
Smart advertisers are spending more money on digital video ads because they are having success in reaching a large number of people who are difficult to reach with other mediums.
2. Digital video ads reach the lightest TV viewers
According to a recent study published by the iab, digital video viewing is growing at a rate of 10% per year among TV viewers. The viewing is greatest among the lightest TV viewers, with online video being streamed twice as much as for heavy TV viewers. This allows advertisers to reach audiences that can’t be reached effectively on TV alone.
Online video viewership continues to grow and can be a great way to target the “hard to reach” demos like Adults 18-34 and light TV viewers.
3. Reach is incremental and more effective when video ads are combined with TV campaigns
This same study shows by shifting up to 15% of your ad spend to online, it provides both incremental AND effective reach as compared to TV alone.
In looking at 18 different schedules within the study, budget shifts resulted in an average of 4.2% incremental reach when reallocation of 15% of the budget was shifted to online.
While this research definitely makes a case for online, it is also important to note the combined reach of online + TV is more effective than either platform alone.
4. Digital video ads beat out TV ads in achieving engagement goals
Most importantly, many advertisers find digital video ads can be used as a direct-response vehicle that beats out TV ads for achieving engagement goals. According eMarketer, “58% of marketers thought digital video ads performed better than TV ads,” when measuring engagement.
A smaller percentage – 47% also thought digital video ads were better at driving awareness than TV ads, but this percentage was still more than the 31% of marketers who said TV ads got better awareness results.
When looking at video ads overall, targeting seems to be the key ingredient behind digital video ad success. With the ability to target your customers as well as reach hard-to-reach demos, video ads might make sense for your next local media campaign.