Video is the hot item right now in the digital ad world and it doesn't appear that it will be cooling off any time soon. Big companies like Comcast, Verizon, Yahoo and Google are snatching up video content producers and video ad technology like Black Friday at Walmart.
The metrics seem to support the hype. In a just released report from ComScore and Opera Mediaworks, participants seeing native mobile video advertising delivered significantly higher metrics both at the top of the sales funnel and at the bottom of the sales funnel: indicators such as purchase intent, recall and likelihood to recommend.
70% of marketing professionals report that video converts better than any other medium.
64% of consumers are more likely to buy a product after watching a video about it.
Using videos on landing pages can increase conversions by 80%.
59% of viewers will watch a video to completion that is less than 1 minute.
Despite all of this, only 24% of brands are using online video to market to consumers.
Clearly there is a huge opportunity to get in and stake out real estate in the world of digital video advertising channels. And if you have existing content, research shows that your repurposed content can deliver superior brand recall.
What about available video inventory?? It is a hot topic when it comes to video. Many in the business write off the shortage of inventory tales as a lot of hokum; supply side PR that only serves to drive up pricing; and that, aside from chokepoints that appear in swing or rural battleground states during election cycles, there is actually plenty of video inventory to go around. In some instances you should be to accept some skippable video inventory along with your non-skippable. The pricing on average is around $16-$20 CPM, although more typical pricing is now based on a Cost Per View (CPV) model.
Video pricing will only come down as video inventory increases….and there is plenty out there currently. Best practice is to plan as far ahead as is practicable to ensure availability and pricing.
Repurposed video contributes to elevated recall, so don't be afraid to use an existing TV spot.
The field is wide open…only 24% of advertisers are using video.