It's no secret that ad agencies, along with the world's biggest consumer brands, are shifting budgets from TV to video ads. But according to a new e-book from digital marketing firm Adknowledge, this transition is happening much too slowly.
Over the past year, ad buying firm Starcom MediaVest moved more than $500 million to digital from TV. MasterCard, Mondelēz International and Verizon Wireless, aware of the digital media landscape's seismic shifts, are all ramping up their video advertising spends.
Yet Adknowledge CEO Ben Legg says CMOs frequently tell him they'd like to shift budget to digital video even faster than industry predictions. This is where Adknowledge comes in, by helping brands and agencies achieve targeted digital video ad views, at scale, for $0.10 to $0.20 per view.
At first glance, this price point seems on par with a television media buy. But as the e-book explains, digital ads generate exponentially higher value because of the "5 Ts":
1. Targetable: Through interest based targeting, demographic targeting, personalization and retargeting, it's possible to reach precise audiences at the right time.
2. Tailorable: Advertisers can align and adapt messages based on specific demographics, purchase intents and browser behaviors.
3. Tolerable: Many digital video campaigns are click-to-play, meaning that the consumer actually wants to watch them. Others are pre-roll, so they're slightly less welcome, but normally showing before some form of free content (e.g., YouTube videos) with which the consumer is keen to engage.
4. Trackable: Advertisers can test campaigns to identify successful initiatives, rapidly integrate these findings into new or adapted marketing programs and quickly scale successful initiatives based on direct audience feedback. They can also track the subsequent actions taken by a consumer, giving a much better understanding of ROI.
5. Tweetable: When shared through social media, videos generate an echo effect, which is earned media for every unit of paid spend. This socially driven marketing activity is impossible with TV-based advertising.
Online video ads can be strategically positioned throughout the conversion funnel to help guide audiences towards sales. TV ads, on the other hand, will always remain a step removed, lacking the robust analytics, targeting and tracking capabilities of their digital marketing counterparts.
To learn more about how to improve your digital video advertising strategy, get the free eBook here: