Has Video Ad-Marketing Become Critical for Your Business?
Video Ad-Marketing has been growing throughout 2016. From Twitter to Facebook to, most recently, Pinterest, promoted video ad-marketing has been exploding, but how critical is it to your business and is it worth the cost?
The answer is: it depends entirely on your budget and social platform choice. This week, for instance, Pinterest rolled out its promoted video option. “This is a focused effort from the company to make a much bigger bet on video,” states Jon Kaplan, head of global sales at Pinterest. “Things are going to change pretty dramatically in the coming quarters as we get more serious on the core user experience, ingest much more video content than we’ve ever done before and by making video much more discoverable on the platform.” While this is indeed the current trajectory of successfully capturing the promoted social media ad space, it comes at a price: a minimum of $500,000 with a cost per thousand impressions (CPM) ranging from $15 to $20.
Not the ideal path for a small-to-medium business but a worthy investment for larger companies whose demographics matches to Pinterest’s appeal (such as the fact that 44% of Internet users on Pinterest are female as opposed to 16% male). “Publishers are really anxious for us to ingest their content in a structured way and make it discoverable,” Mr. Kaplan adds. “It is not just good enough to have it be on the platform. It has to be discoverable to that individual’s interest and there are a variety of different ways that we’re thinking about evolving the discovery mechanism beyond what you are seeing today.”
Considering the higher cost of video ad-marketing, how does its reception compare to previous ad-campaigns? Twitter, who debuted their video ad Autoplay earlier this year, has experienced optimistic results thus far. “During the autoplay tests we ran, we saw people engaging with videos in this new format at a much higher rate, and our brand and publishing partners saw improved view rates,” David Regan, senior product manager at Twitter stated. “All of this resulted in lower cost-per-views for marketers and increased video recall by consumers.” To further ensure their client’s investments, Twitter has gone to bat guaranteeing a 100% view-ability promise. “If a video is not 100 percent in view, we don’t think an advertiser should be charged,” affirms Regan.
With Facebook Live also testing out promoted fifteen-second commercial breaks during live streams (as well as sparking a feud with Adblock), it looks like video ad-marketing is not only here to stay but is soon going to become the new norm. “Talking to advertisers, there’s an insatiable demand for video inventory,” Pinterest’s Jon Kaplan maintains. “The viewership of TV is something that’s of concern to them. That viewership is going down, ratings are going down, and they need to find places to accomplish their business objectives where people are spending their actual time.”
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