“When it comes to video, many online advertisers still perceive it as the Wild West because it continues to evolve and grow, but without giving publishers and advertisers enough control.” This from Casale Media CEO, Joe Casale. Video is an incredibly powerful tool for businesses and marketing but few know how to harness its potential. Nonetheless, Casale Media released the results of a study indicating that advertisers plan on increasing their digital video budget by 25 percent over the next year, accounting for about a quarter of the total budget. To make good use of that money, though, they will have to work to tame the Wild West.
The Casale research, as well as other studies (including one from eMarketer), find that:
- 83 percent of ad buyers and advertisers would make more use of video ads if they were easier to plan, create, and execute.
- 33 percent said that planning was the most difficult part; 40 percent found the creative aspect to be most challenging, while another third found execution to be a barrier.
- 80 percent of respondents use video ads currently. They are used primarily to increase awareness of brands, products, and services.
- 40 percent of those surveyed indicated that they found the ROI too difficult to measure so they opted out of video ads.
- 38 percent said the ROI was not enough to justify the cost.
In fact, though, video ads are one of the most effective forms of advertising. A study from Nielsen found that online video ads are even more effective than their TV counterparts. General recall is stronger, brand recall is better, and likability is higher. This is a medium that businesses need to explore more as budgets tighten and the consumer becomes more difficult to engage.