If you're looking for a way to engage potential buyers and drive conversions, video advertising may be your best investment to date. But as a hardworking marketer striving to manage a tight budget, you're probably wondering: Will this trend continue? And is the ROI worth the investment?
As part of our series on video, we've highlighted video consumption trends, along with the growth of over-the-top (OTT) advertising as one of the most effective methods of reaching audiences across multiple devices.
Now, we're going to examine what video ad spend will look like in the near future, what kind of ROI you can expect and a few tips for getting the most from your ad dollars.
What Does Video Ad Spend Look Like?
Video advertising has grown exponentially over the past few years and shows no signs of slowing. Digital video ad spend in the U.S. is expected to top $22 billion by 2021, according to data from eMarketer, up from a projected $15 billion in 2018.
There are two primary reasons for this continued growth:
People want video content. More than 50 percent of internet users look for videos related to a product or service before visiting a store, according to a survey by Google.
Video ads drive sales. 81 percent of customers have been convinced to purchase a product or service after watching a brand's video, according to the HubSpot State of Video Marketing in 2018.
But what sort of ROI can your brand expect? And how can you increase revenue driven by video ads?
How to Drive Video Advertising ROI
Still unsure about the ability of video to drive measurable success? Consider this: More than three-fourths of marketers say videos helped increase sales, according to the same HubSpot report mentioned above. A report from Vidyard and the Aberdeen Group found that businesses using video as part of their marketing efforts grow revenue 49 percent faster than companies not using video content.
Of course, not all video ads are created equal. So, how can you make sure your efforts perform?
Capture attention early. If your audience is watching your video as a pre-roll ad, you may only have five seconds to hook them before they can click "skip." Get to the meat of your message as fast as possible.
Be relevant. Like any other form of marketing, it's important you focus on the audience more than yourself. Tailor your message specifically to their needs.
Use personality. You're more likely to make a connection with a potential customer if you can elicit an emotional response. Consider using humor, but only if it aligns with your brand image.
If you're not already using video, it's time to explore your options. By using these tips, you can make sure your video ad spend earns a healthy ROI.
Stay tuned for the final part of this series where we explore what the future holds for video and what strategies you can begin using now to get ahead of your competitors.