24/7 connectivity to consumers underpins and enables increasing digital revenues. However the attention span of the consumer is getting shorter day by day, and it can be a challenge to grab your audience: the content needs to be visually appealing and interactive. Smart marketers are turning to video marketing in order to drive brand awareness, lead generation, and engagement.
Video production, distribution and consumption patterns are changing rapidly and disrupting the TV industry and with little idea of the future, the only thing we know for sure is that the traditional linear TV business is phasing out to make way for multiple video business models. Each player in this arena will have to figure out what their strategy is going to be and then define and build key capabilities around that.
TV broadcasters were always very skilled at scheduling shows, in order to maximise cost versus viewer numbers. However, this is becoming largely redundant as more viewers watching content on-demand on their own device in their bedroom, gym or the train, a trend confirmed by a recent PWC report. The arrival of mobile devices connected to fast broadband has driven this change in viewing behaviour and has spurred innovative OTT players like Netflix, Hulu and HBO to deliver their content straight to the consumer. With this, we are also seeing loyalty to specific TV channels or platforms declining.
Social media platforms
Social media platforms in particular and are adapting quickly to the rise of video. However, because they already own and operate an online platform with millions of users, their main issue is how to monetise that platform with video whether that’s pure ad-based or user-paid, or anything in between – with either a subscription model or pay-per-view or premium model.
The key for social media platforms is integrating the social aspect into watching a video. Players like Facebook and Instagram are already doing this by letting people post user-generated videos on timelines. Moreover, Instagram and Facebook now allow viewers to post live videos – simply a live stream of your current situation. In addition, Facebook’s Watch Party is experimenting with providing a ‘shared viewing experience’ on non-user-generated videos. This feature enables group watching of recorded videos at the same time.
Advertisement market overview
The emergence of online video has created an opportunity for targeted advertising but undermines the opportunity for mass advertising. Targeted advertising is an efficient way to increase the effectiveness of advertisements by tailoring and then pushing them to specific audiences. Success, however, depends on knowing which audience to target and where to find them. On the traditional TV model, advertisers would spend a large sum on one TV channel and focus on negotiating the right commercial blocks around programming. In targeted advertising, however, the key is knowing which online video platforms your consumers are on.
Further, targeted advertising is not the Holy Grail for all advertisers. Big brands like Coca-Cola and Heineken still benefit from mass advertising because they can reach a huge audience without any overlap, whereas overlap is very likely and expensive when attempting to reach mass audiences across multiple platforms and channels. So far, they have remained loyal to linear TV.
As consumers continue to shift their attention towards digital and particularly mobile media, more advertising spend will migrate towards – or be set aside for – platforms that deliver ads to consumers in such an appealing context thus driving market growth. Google has developed a complete programmatic buying platform on the Google Marketing Platform namely Display & Video 360. Access video display inventory across 80 ad exchanges and 900 million websites were you accurately bid, precisely target, and effectively optimize your digital marketing campaigns. From open and private auctions to preferred deals and programmatic buying guarantee, the process is simple and ensures you reach the right audience.
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