The shift of ad dollars from TV to online video has been largely impeded by one factor: reach. Until now.
The coupling of YouTube’s intent-driven user behavior with Facebook’s “Super Bowl-sized” daily reach presents the largest threat to TV to date. The online video narrative has been fueled by the pitting of YouTube and Facebook against one another. Sure, drama makes for better ratings, but rather than succumb to this supposed conflict, we executed systematic A/B tests of identical creative and targeting on both platforms to set the story straight and provide deep insights into the respective strengths of video advertising on YouTube and Facebook.
The results prove that the two platforms serve different but very complementary roles. The combination of video advertising on both YouTube and Facebook is the key to dismantling TV’s media spend dominance.
YouTube’s TrueView ads on average deliver a much higher view rate and video completion rate (up to four times higher) than Facebook. The ability to target contextually for ad placements (e.g., by channel or video) has a measurable impact on video completion rates and audience retention—we’ve seen 1.5 times higher view rates when using placement targets (targeting specific channels) compared to standard affinity targets. YouTube also offers a lower cost per view in an apples-to-apples comparison of TrueView-style :30 plus (or whole ad) views. Sure, Facebook’s advertised :03 views are cheap, but most advertisers are rightfully skeptical about the impact of such a short exposure.
Facebook video ads, on the other hand, drive clicks and higher clickthrough rates than YouTube, and overall they lead to higher user engagement rates in simple interactions (likes, shares), given the social nature of the platform. While TrueView offers several interactive elements like info cards and companion banners, Facebook’s interactive elements are simpler and easier to understand, and take up significantly more screen real estate, making it easier for users to interact.
Google and Facebook offer near-perfect cross-device user data (and targeting capabilities), which is essential as mobile video viewing keeps growing. As marketers segment budget across platforms and devices, the cost efficiencies of each platform are important to understand. On Facebook, mobile ads tend to be cheaper than desktop (75 percent the cost in our tests). On YouTube, mobile ads are more expensive than desktop (130 percent the cost). Cost per view on mobile is comparable between Facebook and YouTube, and for clickthrough rate-driven campaigns, 30-second assets on mobile perform best across both platforms.
The reach of Facebook plus the long watch times driven by intent on YouTube equals better engagement and campaign performance when both platforms are used in combination. It’s an equation that will prove to even the most TV-loyal advertisers that they’re resisting budget allocation to a supremely effective medium.
Cross-platform online video campaigns—with the reach of TV and the engagement of digital—are the future of brand advertising.
According to AOL’s sixth annual State of the Video Industry report, marketers are finally re-prioritizing their traditional advertising budgets and adding dollars to digital video. The survey’s finding that TV budget growth is stagnating, with a sizable portion of those dollars being reallocated to video advertising, is long overdue.
Where is the money coming from? According to AOL’s survey of nearly 300 agencies, publishers, and brands, approximately half of the buyers who increased their digital video spending this year reported that the additional spend came from their TV budgets. And 39% of buyers said their increased digital spend is coming directly from broadcast TV, which is more than twice as many as the 18% that said this in 2012. And 31% said they were funding their digital video efforts with cable television dollars, up from 18% in 2012. Year-over-year, television remains the fastest growing source of digital video ad budgets, with display in second place.
Agencies are looking for “device-agnostic video consumption” as well as find viable alternatives to the cost of TV advertising, which, according to AOL, has increased by just under 30% since 2012. Heck, YouTube hit a billion monthly users in March 2012. If brands and agencies were really searching for “device-agnostic video consumption,” you’d think they would have discovered YouTube before now. For the past three-and-a-half years, YouTube’s viewership – month in and month out — has been roughly nine times larger than the largest Super Bowl audience in history.
Facebook is starting to become a must-buy for big brands, because it has the reach and the impact they want. Now, according to ad agency executives, they think Facebook is finally poised to capture more TV ad dollars.
“We see Facebook at a core pivot point,” says David Hewitt, VP and mobile lead at the digital agency SapientNitro. “It’s now a safe bet to put a lot of money into.”
In the last six to eight months, he says, brands have started to understand the reach Facebook has among smartphone users–some 844 million people each day. “It’s hard to get reach on mobile,” he says, but now “Facebook checks that box” in a way that few others online besides Google can.
Another reason is that Facebook mobile video ads can run in a lot of places besides just Facebook. Now that the company is operating a number of other distinct apps, such as Instagram, WhatsApp, and its own Messenger app, advertisers have a wider choice of places to reach a broader range of audiences in unique ways. It also can run Facebook ads on other sites that are part of its Audience Network.
Not least, advertisers like what Facebook is doing with video. In video ads that play automatically in people’s central news feeds, they have a format they know people watch (and that commands much higher prices for Facebook). “There’s an amazing amount of upside to Facebook mobile video ads,” says Hewitt, enough to overcome what he calls “muscle-memory media buying” by big brands.
What’s more, Facebook is pitching advertisers on the ability to buy ads using the same measures they use for TV ads, according to a recent report. Indeed, the ability to measure the impact of its ads on product sales is another big reason Facebook has attracted advertising’s biggest spenders. One example Sandberg cited: Acura used Facebook video to launch the TLX, then showed “retargeting” ads when people who saw the video went elsewhere online. Using a Facebook service called Conversion Lift, she said, Acura could prove the ads drove car sales.
Facebook isn’t alone in its pursuit of brand advertisers. “Google, for example, is rapidly building out audience targeting options, and has a ‘little’ video network of its own—YouTube—that is massively successful for advertisers and very effective on mobile,” says Craig Palli, chief strategy officer at the mobile marketing technology firm Fiksu.
So far, though, Facebook appears to be more than holding its own.
YOUTUBE STATS: MUST-KNOW FOR MARKETERS
Google recently announced it’s Q2 2015 results, and the report should convince any smart marketer that YouTube has a massive place in the now, and the future of online video consumption.
Here are some of the key highlights critical for businesses to understand:
YouTube Watch Time has increased by 60% year-over-year
The average YouTube session on mobile is now 40 minutes
.. which is the fastest growth rate in viewing time in 2 years
YouTube’s top advertising partners increased their ad spend by 60%
On mobile, YouTube attracted more viewers aged 18-49 than any cable network
Google confirms YouTube has more than 1 billion active users
Viewers who entered YouTube via its homepage tripled compared to 2014
Paying attention? Great. Online video is here to stay – there is no question. As a smart business owner, it only makes sense that you would put your brand exactly where your target market’s eyeballs are… and many of them are obviously glued to YouTube these days.
BizBOXTV Video Advertising clients have found success with both YouTube Video Ads & Facebook Video Advertising platforms, depending on their unique marketing & advertising goals… with unparalleled success when it comes to exposure, increased brand awareness and of course, sales.
How To Go Viral
Have you always wondered how some of those great brand videos rack up millions of views and shares and comments from all over the world?
Watch + learn to discover the secret that more often than not serves as the initial spark behind most branded viral videos.More on “How To Go Viral”:
FACEBOOK VIDEO ADS: a game changer
Facebook is stepping up it’s video ad game in a big way. The social media giant has announced advertisers will only be charged if a video is viewed for at least 10 seconds vs being charged after a video would auto-play in the newsfeed for at least 3 seconds.
This, compared to YouTube‘s 30-second rule has recently resulted in Facebook video ads getting way more views vs those published on YouTube.
Facebook insists its video ads provide value the moment they’re displayed, but the platform has opened up to the 10-second option because of feedback from advertising partners. Facebook notes Nielsen research proving that video ads have value even if consumers view Facebook video ads for less than 10 seconds — noting powerful brand awareness increases.
The massive potential for online video advertising growth has made competition more stiff among key players in recent months. Other social platforms are also starting to move heavily into video advertising too: Twitter recently announced its own video ad product, and will only charge advertisers if 100% of the video appears on a user’s screen for a minimum of 3 seconds.
BizBOXTV Video Advertising clients have found success on both Facebook & YouTube / Google Display Network platforms, depending on their advertising objectives and goals. As the digital world continues to evolve, we keep our fingers on the pulse to ensure our clients continue to stay ahead of the game & capture the market.
Videos on Facebook now get 4 billion daily views, almost four times the figure from a year ago, according to Fortune. And it’s working for online publishers too: Buzzfeed had 500 million video views on Facebook in April, while Mic saw 33 million views from 8 videos in just two months.
That kind of reach will increase Facebook video’s appeal to marketers. A recent survey by marketing firm Mixpo, charted for us by BI Intelligence, indicates Facebook is quickly becoming the choice of platform for video marketers. Of the 125 US marketing and media executives surveyed, 87% said they plan to run an ad campaign on Facebook’s video platform this year. That’s 24 percentage points up from the people who said they ran a video ad campaign on Facebook last year. Facebook’s video platform is also more popular than YouTube video now, according to the survey.
Since the survey only asked 125 people, the results should be taken with a grain of salt. And YouTube still owns a wider video creator base, a stronger copyright policy, and a more established revenue-sharing model than Facebook, BI Intelligence says. But it’s also proof that advertisers will only continue to spend more on social video, with Facebook video being a major recipient of their spending.
Agency Survey: Online Video Advertising On The Rise In Canada
Online Video Advertising is catching up with the levels of online video content consumed by Canadians, according to a new study from BrightRoll and IAB (Interactive Advertising Bureau of Canada).
A survey of 100+ marketing & advertising agency execs reveals that 1/3 of agency requests for proposals (RFPs) included an online video ad.
Digital video is becoming mainstream.
Online video advertising is effective.
Confidence in this digital ad medium is growing.
Targeting tops the list of video ad benefits.
Views, conversions & brand lift are the metrics that matter most.
Mobile and tablet video ad spending are poised for growth.
There’s no question, advertising dollars are now more in tune with recent trends showing that Canadians are voracious online video consumers. Canadians are also watching online videos on more platforms than ever; via smartphones, tablets, set-top boxes, video gaming consoles & PCs.
Is your Canadian business plugged into the growing trend of Online Video Advertising in Canada?
If not, we can help. BizBOXTV works with Canadian businesses of all sizes and in all industries with their online video advertising needs, with unparalleled results.
Whether you are looking Online Video Production, Online Video Marketing, YouTube Video Ads or Facebook Video Advertising, we’ve got you covered.
Automotive Advertising – win with video
More and more Dealerships are finally waking up to the power of digital Automotive Advertising. While many are still tied to the past, spending big bucks on traditional advertising – more and more Canadian dealerships are recognizing the power of BizBOXTV Video Advertising when it comes to their Automotive Advertising needs. In fact, most of our automotive advertising clients are shifting their ad dollars away from Print, Radio & TV and into digital, which online video marketing and advertising is obviously a critical part of. In turn, they are seeing unparalleled results and ROI.
Here’s a peek at some of our most recent Dealership video releases:
Glenmore Audi – Dealership Promo Sale Video
We’ve worked with Glenmore Audi for a couple of years, having produced nearly 100 videos for the forward-thinking Calgary Audi Dealership.
Lone Star Mercedes-Benz – Dealership Introduction
Village Honda – “Pilot Your Very Own Pilot”
Sunridge Nissan – “We Speak Your Language”
Country Hills Hyundai – Dealership Introduction
BizBOXTV creates custom solutions for every Automotive Advertising client we work with. Regardless of your unique advertising objectives, BizBOXTV offers an unparalleled approach to automotive advertising in the digital world we live in today. Contact us today to unlock the power of your dealership in 2015.
10 Years of YouTube. 10 Years of amazing ads.
Which are the best YouTube Ads?
YouTube Advertising has definitely come of age. In 2014, four of the top ten most-watched videos on YouTube were ads. As YouTube celebrates it’s 10th birthday, YouTube wants you help pay homage to the greatest brand advertising moments from the past decade in it’s #10YearsofYouTubeAds campaign.
Here are a few of our faves that are in the running for Best YouTube Ads of the past decade:
2010 – Old Spice “The Man Your Man Could Smell Like”
2011 – Volkswagen “The Force”
2012 – Dollar Shave Club “Our Blades are F***ing Great”
YouTube has become such a valuable medium for advertisers both big and small, with many brands shifting big ad budgets to the Google owned video platform. It’s no wonder – the numbers position YouTube as an obvious digital advertising powerhouse…