How businesses can prepare for the rise of online video ads
VIDEO ADS have been growing quickly for the past few years, with more businesses using platforms such as Facebook and YouTube to showcase their products and services.
Initially, businesses struggled to see the value of investing in creating high-quality, professional video content.
However, with customers and prospects spending so much time watching short and long-format video content, ROIs have been getting clearer and much more attractive.
As a result, more organizations in the APAC (and globally) are expected to invest in video ads over the next five years. Forrester’s latest forecasts suggest that video ad spending will increase from US$21.3 billion in 2018 to US$53.7 billion in 2023, growing at a compounded annual growth rate (CAGR) of 20.3 percent.
Naturally, the share of video as a format, in the overall digital marketing mix in the APAC, is expected to increase from 25 percent in 2018 to 38 percent in 2023, according to the think tank.
The growth of video ads and its success on social media platforms such as Facebook and YouTube, of course, means that the display share of online video ad spending is expected to decline from 68 percent in 2018 to 54 percent in 2023.
Given the strong growth and dominance of smartphones in the APAC, Forrester’s findings highlight that mobile will dominate the market and account for up to 69 percent of overall video ad spends.
Finally, Forrester highlights that although video ads are growing in popularity across the APC, China will account for 75 percent of the total online video ad spending in the region.
Although video ads are growing quickly, many businesses seem to be struggling with creating videos that resonate with their audience and can serve as meaningful and engaging ads — especially on popular platforms such as YouTube and Facebook.
To help businesses new to the world of video ads, here are some tips from Tech Wire Asia:
# 1 | Inform, don’t sell
Customers can tell when businesses are trying to sell to them. Don’t use your video to sell to customers and prospects, especially on social media — because they’ll scroll up and you’ll lose your chance.
Numerous studies have shown that the kind of video content that grabs people’s attention might not be uniform for all age groups but they have one common element: they aim to inform.
When videos inform audiences about how products can help overcome a challenge or why it’s better than alternatives in the market, in a genuine and non-intrusive fashion, they get more traction.
The Philips video below educates customers about the cleaning and maintenance required by its air fryer — and if targeted towards customers in the market for an air fryer, is bound to get their attention.
# 2 | Keep it short and simple
When creating videos, it’s important for companies to keep it short and simple.
Video is a very powerful format and is designed to make an impression quickly. When companies create interesting videos that are short and convey the message quickly, they delight customers and connect with them more effortlessly.
In the video below, for example, 30 seconds is all that the ADT needed to not only convey what the product does but also showcase how it can be used.
The fact that the video also shows a bit of emotion (which we elaborate about later in this article) makes it all the more effective.
# 3 | Make it share-worthy
Customers go to social media platforms such as YouTube and Facebook and watch videos (and video ads) because they want to escape boredom and either entertain themselves or learn something new.
This is why businesses that want their video ads to be impactful must look at creating content that is share-worthy.
Although the definition of “share-worthy” depends on the industry and product, companies tend to find that video ad content is most effective when it informs the audience, is short as well as simple to understand, and evokes some sort of positive emotion.
Videos in the F&B space tend to do this really well. KFC Malaysia, for example, produced a 15-second ad that serves as the perfect example of “share-worthy” — informing customers, quickly, effortlessly, and with emotion.