Tag Archives: smartphone

Why Marketers Are Bullish on Video

In 2004, the widespread destruction of the Asian tsunami and the US presidential election were the first events to really find exposure through the emerging medium of online video. Almost nine years have passed and video has not only become one of the most popular formats for content sharing online, but has evolved to accommodate various markets, including advertising.

More recently, advertisers have been leveraging engaging and interactive content in this layout, fueling awareness and branding efforts and gaining momentum within marketing mixes. Over the last couple of years, the shift from PC to mobile has ushered a surge in video, which is impacting the way advertisers allocate their budgets. Mobile and tablet shoppers are three times as likely to watch a video as laptop or desktop users and video accounts for more than half of all Internet traffic on mobile devices, with tablet users three times more likely to watch a video than their smartphone counterparts.

With such providers of streaming media as Hulu and YouTube, television and movies are easily accessible online, giving advertisers premium pre-roll and in-stream video inventory to promote their brand or products. As consumers are widely turning to these providers to watch their preferred programs over television, marketers are able to harness more effective video spots. And with the predicted growth of mobile surging over the next several years, it is evident that video will continue to gain display advertising spend.

Social media is also an incredible catalyst for video growth. Mobile video ads that include social media buttons drive 36% higher engagement and 92% of mobile video viewers share videos with others. Combine the incredible development of social (accounting for 1 in 6 minutes spent online) with the power of mobile and the vast potential in video is clear.

Advantages

  • Video is far more engaging than traditional forms of display advertising, and is becoming increasingly more interactive. The IAB published “Digital Video Rising Star Ad Units,” which delves into the “in-stream and linear interactive digital video ad product concepts,” exemplifying the creative ways brands are able to extend the customer experience beyond the video in unique and captivating ways.
  • Video generates excitement. This year, brands launched their Super Bowl campaigns before game night, and found that preview footage generated 600% more views than when their videos debuted during the event. People get excited about good commercials and are going out of their way to watch these ads on-demand and on-line. Where back-to-back ads on TV are dreaded, glimpses at these shorter online videos are actually sought after.
  • Video allows ample room for creative freedom. Interactivity aside, video provides the opportunity for marketers to think beyond the constraints of the traditional video spot (read: a couple of ingenious automotive brands within the last decade). Original branded content masks the video’s promotional undertones with entertainment value.

Disadvantages

  • Video is disruptive. Like all advertising, video can be a nuisance when all you are interested in is the content beyond the ad. Unlike most display advertising, which can be ignored, video content cannot be skipped over (in some cases, before 10 seconds of play time).
  • Video can be time consuming. Unlike display ads, you cannot skim over video content.
  •  There is a lack of standard metrics for measuring the actual success of video. The same is argued for social, and slowly but surely, we are more able to appropriately attribute credit to the medium.

Where are we headed?

Some brands are shifting 10-20% of their budgets out of TV and into digital video and online video users are expected to double to 1.5 billion by 2016. In 2012, advertisers spent $2.3 billion on digital video advertising, an increase of 29% over 2011. 76% of marketers plan to add video to their sites, making it a higher priority than Facebook, Twitter and blog integration and online video production will account for more than one-third of all online advertising spending within the next five years. Inventory for video ads is becoming available in new places, such as a recent addition of LinkedIn, with more publishers to come.

As consumers become more integrated in technology and the Internet, we can only expect video to continue to grow.

Tablets: Disrupting the Way we Consume Media Since 2010

Tablet related statistics and predictions have tremendous implications for marketers, such as “20% of tablet owners claim to have shopped less in brick-and-mortars since purchasing their tablet,” and “tablet makers are on track to sell 110 million units in 2012 alone.” If, as a marketer, you believe that you must reach your audience in the places they populate, consider adding the tablet to your collection of canvases.

How? You ask.

Revamp your search strategy. Tablets are expected to reach 670 million in number by 2017, helping to generate over $12 billion in mobile search advertising spend within the same year.

Users have unique search habits and expect different results when they are on various mobile devices. If I Google “gas” on my smartphone, I’m probably driving on empty, looking for a nearby gas station and am minimally interested in a Wikipedia page, gastrointestinal advice or articles on gas price surges in the results that I might see on my laptop. This mindset must be reflected in an online marketer’s strategy. The same applies for tablets; we need to consider where and when people are using these devices and define our marketing strategy around what the user needs at those points in time.

For example, like most tablet users, I wouldn’t be caught dead without my tablet at the airport. And I travel a lot. Just a few weeks ago, I was at an unfamiliar airport and learned that my flight was delayed by two hours. I wanted to know what kind of options I had for food, so I Googled the airport name. The first thing to come up was a search ad (with promotion) for a restaurant in my terminal. As a proponent of digital marketing, I rewarded the restaurant for its crafty paid search efforts by eating there. As an average search engine user, the immediate connection coupled with the promotion prompted me to bypass two other restaurants en route to my destination. The power of digital advertising!

Establish cross-device marketing campaigns. More than 50% of media interactions span two or more screens. Research indicates that tablet users are feeding information absorbed from television into their search queries onto tablets in real-time. Also, users are continuing to read the results from their computers’ and smartphones’ search queries on their tablets, adding to their shopping baskets while using a tablet and then making the actual purchase on their PC.

So many factors affect this process. I might browse LOFT.com during my lunch break at work and then convert from a device at home. I also might prefer to recline on the couch that evening rather than sit upright, thus influencing my choice of device at the time of purchase. Marketers must consider these and many other factors when developing their strategy.

Engage with your customers. Our Q3 report found that consumers are spending 30% more time surfing the Internet on their tablet than their PC and are 20% more engaged online than PC users. Marketers: it’s time to get creative! Consider the best ways to really connect with your audience. Whether that translates to personalization, enhanced content, pop-ins, etc is really determined by your business needs and the product or service you are marketing.

It took years for companies to recognize the business potential in e-commerce and developing an online brand presence, and a little less time to recognize the importance of creating sites that make sense for mobile. Marketers today don’t have the luxury of time. If they want to be competitive, they must adapt with this shift in technology.

Think it’s just a fad? The industry is telling you it’s not. 37% of tablet users say that they will be purchasing a new device in the next 12 months and tablet prices are falling, making them more readily available to more groups of people. Three years ago, only techies and high-income households had tablets, much like the demographics of smartphone users in their infancy – and look at them now! Next year, we are going to see a lot more people on trains, planes, and buses (as well as cars, living rooms, bedrooms – the list goes on!) with tablets. Make sure you are maximizing your online marketing presence on these devices in order to stay ahead of the curve.

14 Things You Didn’t Know about Mobile

  1. The number of social network users accessing the Internet via mobile phones is increasing. In France, users grew this year by 53.8% and will count for nearly half of total social network users next year (eMarketer)
  2. One in five respondents has made an online purchase on a mobile phone – Harris Interactive (eMarketer)
  3. The number of shoppers interested in receiving promotional texts has climbed. “As of February 2012, 31% of US mobile phone owners who did not already receive SMS message-based marketing said they were at least somewhat interested in such messages, and 10% said they were extremely interested in SMS messages.”– Harris Interactive (eMarketer)
  4. The most popular activity of mobile phone users in actual stores is collecting vouchers for use at the cash register. Mobile couponing (either using or requesting a coupon) is most popular at grocery stores. The more considered the purchase, the more shoppers rely on their smartphones. At electronics stores, users mostly use their phones to read reviews – Nielsen (emerce)
  5. Mobile wallets (for example the Wallet app) are mostly used for small, quick purchases – Google (emerce)
  6. Nearly one-quarter of B2B ecommerce professionals around the world think that the mobile web is one of the most influential touchpoints for their customers – Oracle and Endeca (eMarketer)
  7. Mobile device usage is additive, and marketers should look to build experiences that can easily transition across screens. Each activity should allow a seamless movement from mobile to desktop (eMarketer)
  8. 43% of smartphone owners have used their device to search in response to television ads at least monthly. 40% have searched in response to ads they saw in stores – research from Google, conducted by Ipsos MediaCT and TNS Infratest, March 2012)
  9. Retail locations are the number one single out-of-home place for smartphone owners to take action. Smartphone users mostly research products on their smartphone while either at home (58%) or “on the go” (43%), followed by in a store (31%) – research from Google, conducted by Ipsos MediaCT and TNS Infratest, March 2012)
  10. Android phones and tablets are the largest group of mobile devices of online users (IgnitionOne)
  11. In one year, from 2011 to 2012, the amount of mobile videos viewed worldwide has more than doubled to 280 billion views (Strategy Analytics)
  12. Mobile advertising spend reached about $5.3 billion in 2011 (according to estimates published by IAB and Strategy Analytics)
  13. By 2016, smartphones users are expected to account for 74% of all US mobile phone users (eMarketer)
  14. The screen size of smart devices has little effect on click through rates (CTRs) – Jumptap (eMarketer)