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Businesses can never build too much positive brand awareness, which is why more marketers are using video advertising to give brands a personality and a message through visual storytelling. But research shows that video interaction boosts other core of factors of brand lift, offering businesses a way to measure the return on investment from video advertising.
Video Advertising Triggers Consumer Action
With an average click-through rate of 1.84 percent, video ads perform better than any other digital format, according to a BI Intelligence study. TV ad revenue is estimated to decline roughly 3 percent each year, while online video ad revenue is expected to reach $5 billion in 2016 — a $2.2 billion increase since 2013. As business owners shift more resources toward video advertising, they want to know whether the cost of video media is recovered through brand loyalty and sales.
The short answer is yes. In a study by the Online Publishers Association, 80 percent of participants said they remembered watching video ads in the past 30 days, and 26 percent searched for more information about the video topic. About 22 percent visited a recommended website, 15 percent sought more information about the company, and 12 percent purchased the featured product.
Improving Brand Lift Throughout the Consumer Journey
Video ads launch a consumer journey that begins with consideration and ends with sales, and every interaction with the brand pushes consumers toward a purchasing decision. Of course, positive results depend on how well video ads grab and hold attention, making it essential to target the four phases of interaction: consideration, favorability, purchase intent and conversion.
In the OPA study, consumers made a memorable connection with the ad, and their brand consideration increased as they sought more information about the product and/or the company. For marketers, the challenge is giving consumers a reason not to skip video ads or mentally detach while watching them. According to Visible Measures, you lose 20 percent of viewers within 10 seconds and 33 percent within 30 seconds, regardless of video length.
One of the most common detachment points occurs when marketers display floating brand names at the beginning of ads, rather than drawing consumers in with an appealing product story. Studies show consumers are more accepting of brand logos if they are integrated into the product, so start strong with a relatable image that shows the benefit or appeal of using the product.
The good new is consumers are 64 percent more likely to buy products after watching videos, and consumers who watch videos browse the site an average of 2 minutes longer than nonviewers, according to comScore. By raising interest in the first five seconds and avoiding turn-offs, marketers have a better chance of swaying consumer opinions of the brand.
Brand favorability comes from the tone of video ads, which tells consumers whether companies are in sync or out of touch with their needs and concerns. Humor, sentimentality and curiosity/innovation are three effective approaches to tone that boost brand recall and emphasize the brand mission over an aggressive call to action. No matter what style marketers choose, the tone should be clear and purposeful and show consumers that the company is comfortable with having fun.
Purchase Intent and Conversion
Consumers who are convinced by the initial product story conduct further research or contact the company, and this holds true for both B2C and B2B interactions. Forbes Insight reported that 65 percent of senior executives who view a video ad continue to the vendor website, 45 percent contact the vendor, and 50 percent eventually make a business purchase. In a Forrester Marketing study, click-through rates increased by 200 to 300 percent when companies used video ads in emails to market or explain products.
Video ads should act as a pathway to the company's website and shopping cart, granting marketers influence over brand lift at every step of the consumer journey. Use short videos to answer a consumer's most pressing questions about the product upfront. Not only does this keep the momentum of brand favorability moving forward, but also gives consumers fewer reasons to click away or consider a competitor.
For advice on where and how to implement effective video advertising, contact the LA Times today.
Categories: Marketing Tips