Why All Marketers Should Love Online Video

Written by Igor Beuker on December 7th, 2008 | 4 comments

Recently Forrester reported that online video marketing will grow from $2 BLN to $7 BLN by 2012. But I think the credit crunch will drive online video marketing even further…

First of all, online video brings the back the power to the consumers. That’s why consumers love online video so much. Consumers have been terrorized by TV broadcasters and advertisers for decades, and now consumers are in control.

Online video empowers consumers to watch the content they love, whenever they feel the need to see it (24/7). This shift from push to pull is loved by digital consumers. So broadcasters and advertisers must try and understand this consumer need much better. In the social space advertisers should learn to behave as facilitators…

And brands already believed in the power of TVC’s for decades. So to switch from TVC’s to online commercials with measurable impact and effectiveness is just a small step for brands.

Due to the credit crunch more CMO’s will shift their TV, Print and Outdoor budgets towards online video marketing. Simply because online video offers them many benefits.

Let’s take a look at the online video trend and the benefits online video marketing offers chief marketing officers.

Online video ingredient 1:
The worldwide penetration of broadband keeps growing fast. So online video will keep growing the coming 5-10 years.

Online video ingredient 2:
Online video is getting a much larger chunk of consumers’ daily media consumption each year.

Online video ingredient 3:
The impact of audio visual content is far more effective than Print or Radio or Outdoor as a medium.

Online video ingredient 4:
The production costs of online commercials are much lower compared to TVC production costs. Although most traditional advertising agencies hate online video: their revenue model is based on producing expensive TVC’s. Small brands can optimize on this and produce several ads in a year to communicate fresh message to its viewers. Brands can even create large opt-in databases when they launch a new webisode each 2 months.

Online video ingredient 5:
The airing costs (cost per contact) of online commercials are much lower than buying GRP’s. And due to the large chunk of unsold inventory online (social sites) the costs per contact of online commercials will even drop further coming years. So costs per contact of airing online commercials will even get lower!

Online video ingredient 6:
Online video and online commercials can grow reach fast due to the viral and long tail effect. A TVC will stop immediately if the GRP’s are burned. The presence of an online commercials is forever thanks to the long tail effect. Unlike a TVC, the brand video once uploaded on Internet stays forever.

Online video ingredient 7:
Online video marketing is measurable and accountable. Due to the credit crunch, CMO’s suddenly feel the need for proof of performance. With tools like ViralTracker CMO’s are suddenly behind the steering wheel.

Online video ingredient 8:
Consumers can rate and review online commercials and give their comments under the video. These are great learnings to CMO’s and they can immediately hire or fire their creative agency based on the number of views, score at the ratings or feedback in the comments.

Online video ingredient 9:
Online video has tremendous impact at awareness and engagement. With external brand tracking companies CMO’s will learn that online works great for branding, and internet can do much more than generate direct response and clicks.

Online video ingredient 10:
The response of online video and internet commercials is extremely high. Average CTR’s (click through rates) of online commercials are 4-9%. That is 25-75 higher than CTR’s at banners and other display ads.

So what’s next to CMO’s?
Well I hope this was useful to CMO’s. And will help them to change their thoughts and behaviour. Most of all, I hope this item sets you as a CMO free from all the wrong assumptions your traditional agencies are feeding you.

Please do remember, these traditional agencies don’t always do inform your wrong intentionally. They suffer from major lack of knowledge and experience, so they can only give you their assumptions.

But keep in mind with assumptions, they are dangerous. You would make me very happy to remind this rule about “To Assume”: ASS-U-ME!! You will not only limit yourself, but also your target group which will leave you for making the wrong choices, based on assumptions.

Source: Windchimes

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4 Comments

• Nimesh Shah says:

  December 9, 2008 at 12:18

  Thanks Igor for posting in the link to my site. Do subscribe to our feeds for regular updates on social media

  Reply
• Igor Beuker says:

  December 9, 2008 at 12:51

  Hi Nimesh

  This is how we work my friend, credit to whom it deserves
  I’m a rss subscriber at your feeds!

  Cheers

  Igor

  Reply
• Joachim says:

  December 11, 2008 at 14:24

  Thanks Igor for this great post. I also believe that online video is the future.

  Reply
• Igor Beuker says:

  December 11, 2008 at 15:48

  Hi Joachim

  Happy you liked it and thanks for sharing. Stay tuned, more to come

  Cheers

  Igor

  Reply