Online Video Marketing Explodes To $7 Billion!!
Forrester Research expects the online video marketing market to explode to $7 Billion by 2012, with a 72% compound annual growth rate! But measuring the effectiveness of online video campaigns is at the forefront of many a marketer’s mind.
Nearly 60% of marketers surveyed in Forrester’s recent study, Interactive Marketing Channels to Watch, 2008 cite “measuring effectiveness” as the greatest challenge to using online video as a marketing tool.
Well we don’t want to brag about our own vision, but we will make an exception for once… My agency LaComunidad saw the video trend coming in 2003, since we had launched a dozen of viral commercials. So we decided to solve the performance problem of online video measurement by launching video tracking technology ViralTracker.
The last 4 years tracked hundreds of online video campaigns and solved this effectiveness measurement problem of online video already in 2004. We gained a network of authorized ViralTracker resellers around the globe that drove our revenues and world leader WPP invested in our power technology in 2008.
Due to ViralTracker we gained many new marketing insights: we can i.e. discover for brands within 21 days (viral incubation period) if their online video will spread virally through natural seeding (earning attention) or if the videos need a paid seeding push (buying attention) to gain reach.
And we can can advice brands by the viral spread of online videos, what is great creativity at the development of online videos, trailers or viral commercials. Thus, with this information brands can now create new and powerful digital branding strategies.
And we can predict brands based on ViralTracker results, if they have hired the right creative agency that is or is not able to deliver powerful online video content. So CMO’s, we know what VSPOT is hot or not within in your target audiences. Why not try pulling your VSPOTS for a while…?
And due to ViralTracker we know that the Click Through Rates (CTR’s) of online videos and viral videos is 5% to 9%!!
Yes dear Chief Marketing Officers, the CTR’s of online videos are about 50 times higher than at your banners! So shift some more of your budget from display ads to online videos! That will generate you high reach at low costs per contact. This is what might convince your media agency too…
So this will finally enable CMO’s to lose their traditional advertising agency. The one that has been telling you: we will make a film, put it in YouTube and it will spread around the globe! Now you can prove it to all your stakeholders…
So can today’s marketers learn whether their video campaigns are truly effective? The answer, say industry experts, is yes and no.
While the growth of viral video campaigns is expected to explode in the coming years — 83% of marketers believe the effectiveness of online video will increase in the next three years, according to Forrester — the practice of measuring these campaigns still lacks some maturity for the complete picture, since consistent and standardized metrics or measurement strategies don’t yet exist.
Also social media ad spend will grow to $10 Billion by 2012 says Forrester.
Source: DMNews
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Great numbers about the Click Through Rates!
Its good that LaComunidad owns a tool that is able to measure these kind of results to make a solid statement about CTR’s and viral video’s.
These numbers are not supported by the CTR in YouTube. Lets figure….
According to Alexa YouTube is even more popular than Google so then with Adsense ads fitted on the videos and with the average CTR being so high, Googles Revenue should be through the roof.
Thats not happening and Google is yet to recover the cash they spent on Youtube with ads sold on Youtube only….
So Im not too sure those numbers pan out…..
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