As viewers have become increasingly untethered from traditional television viewing, and increasingly watching content online and on mobile devices, we’re starting to see dramatic shifts in marketing budgets towards online video. According to a recent report from Vidyard, 71 percent of marketers have found that their conversion performance for online video content was either somewhat or much better compared to other types of marketing content.
Increased engagement, a mobile audience and shifting budgets, have all led many to speculate whether online video marketing will come to dominate television in the coming years. These seismic shifts are likely to have a widespread impact on where and how companies will implement their future marketing strategies, so let’s explore how the numbers stack up.
Online Video Marketing Reveals Improved ROI and Conversions
Most savvy marketers have come to understand that a proactive video campaign is an essential component to their efforts, but the Vidyard report reveals just how significantly higher conversion rates and increased ROI can be with online video. Respondents of the Vidyard survey revealed that both basic metrics (views and shares) and advanced metrics (viewing duration, location, drop-rates and sales) have indicated that online video is well worth the investment and markedly increasing engagement.
The study shows that video converts much better than other forms of marketing. But, of course, it takes more than just a clever YouTube video to engage viewers who are inundated with content all day long. Understanding who is watching your content, why they’re watching and what techniques you can use to convert them to engaged customers requires a comprehensive strategy.
Marketers and Advertisers Shift Spending From Television To Online Video
As marketers are beginning to see the strength of online video over traditional marketing approaches, budgets have begun to reflect this impact as Internet ad spending increases year after year. According to a recent data from the Internet Advertising Revenue (IAB) Report, Internet ad spend has increased 19% over last year to a record setting $11.6 billion. While the numbers might vary from year to year, it’s clear that there is an upward trend in spending towards online video, leaving many in the industry to predict online spending to outstrip TV in only a few years.
As the money continues to flow towards online content, the dollars have to come from somewhere and reports are indicating that media buyers are shifting budgets away from television and towards digital video. According to the IAB, ad dollars went from a 42/58 spilt in favor of television in 2012, to a projected near even split with online creeping to 51/49, and many surveyed indicated that they’ll increase online video spending even more in the coming year.
Will Online Video Marketing Dominate Television?
With online video marketing showing higher conversion rates and ROI, there’s no question that marketers are going to continue exploring ways to engage audiences online. As more marketers begin to see these dramatic results, they’re bound to increasingly shift budgets in favor of online content over television, as they already seem to be doing in large numbers.
A recent survey of 200 senior-level marketers indicated that digital has already surpassed traditional media for one-quarter of the respondents and an additional 31% believe their digital spending will exceed traditional media in the coming year. This survey combined with the others, indicate that the era of online video marketing is upon us. And while we may be several years away from online video marketing completely dominating the television behemoth, we definitely seem to be heading in that direction at an accelerated pace. Even if this shift takes place as anticipated, we’re not likely to see a complete collapse of television marketing efforts, which means that we’re going to see further efforts to bridge the divide between television and online viewing. From interactive ads and content on smart TVs to dual screen marketing strategies, the two worlds are likely to lead an intertwined path in the years to come.
Do you think online video marketing will soon dominate television? Share your thoughts with us in the comment section below.
“Video Marketing Survey: 71% Say Video Conversion Rates Outperform Other Marketing Content” (Marketing Land)
“Video Marketing Metrics Research Report” (VidYard)
“Most Marketers Believe Digital Spend Will Overtake Traditional Media” (Marketing Charts)
“When Will Internet Advertising Overtake TV” (Impact Radius)
“Digital Video Set To Overtake Television For Media Buyers” (Folio Magazine)