Top marketers know that digital video is one of the most powerful tools to increase consumer engagement and brand loyalty. In fact, according to a new study from Clinch, a creative technology company that powers dynamic, personalised video advertising, brand marketers are ramping up their production of digital videos with an emphasis on creating campaigns specifically for Facebook and YouTube. However, their lack of investment on personalised creative for each platform may put them at a disadvantage.
The study, How Leading Brand Marketers are Using Personalized Video to Drive Sales, found that 78 per cent of marketers plan to increase their production of video ads in 2018, while only 43 per cent of marketers plan to increase their production of static banner ads this year.
When it comes to digital video campaigns, Facebook reigns supreme, representing 46 per cent of all video ads produced. When adding Facebook-owned Instagram into the mix, this number leaps to 74 per cent. YouTube comes in a close second at 41 per cent.
“It’s no secret that Facebook and YouTube dominate the digital media landscape and we don’t expect this to slow down, particularly with the Facebook algorithm change which requires brands to pay in order to be seen said,” advised Oz Etzioni, co-founder and CEO of Clinch. “In 2018 brands will increase spend and leverage the rich data that these platforms provide. However, the data and platform are just two pieces of the puzzle. Creative is the critical third piece. If brands aren’t uniquely tailoring their creative specifically for each platform and by audience, opportunities will be missed and ROI will be lowered.”
While digital video continues to grow, nearly three quarters of marketers adopt online video from their TV commercials with 44 per cent indicating that they don’t shorten commercials for each platform’s suggested length. While TV ads remain a critical source of video content, the user experience of each social platform is very different than traditional TV. For example, TV ads are 15 to 30 seconds long but Facebook and YouTube recommend six second videos.
“We were really surprised to learn that marketers were taking a one sise fits all approach to video,” reported Etzioni. In 2018, marketers will awaken to the fact that investment in creative will increase ROI and personalisation at scale will become the norm for digital video as it has become for static ads.”
While 50 per cent of respondents say they personalise their video campaigns, brands can be doing a lot more. Those that are personalising their creatives based on data are seeing big results. Nearly 90 per cent of respondents who have customised Facebook or YouTube video ads reported seeing benefits. Furthermore, 70 per cent of those who customise said that they have seen improvements in their key performance indicators (KPIs).
“In the next few months, the definition of personalisation will change. Rather than creating a handful of versions – one for men, one for women, one for the East Coast and one for the West Coast, we expect brands to be using data insights to personalise at scale. This means hundreds if not thousands of versions of videos where the message and creative is tailored to their specific needs and interests. This will create a more meaningful experience for the consumer and transform video campaigns from simply brand awareness to direct response opportunities,” Etzioni concluded.