Marketers today see online video as an effective tool for growing brand awareness, and that’s typically how they use it. But hold on, says a just-released report: It’s also successful at driving product sales at brick-and-mortar stores.
Created by brand consultancy Sequent Partners and underwritten by video advertising platform Eyeview, the report questioned over 200 senior brand marketers about their experiences. Over half see online video as a branding tool, useful for growing brand awareness and favorability, as well as making an emotional bond with viewers. However, the report’s main finding is that video marketing campaigns lead to real return-on-investment (ROI), so marketers should change how they think about it.
- 65 percent believe that online video is growing in importance
- 42 percent see online video as more effective than other media
- 87 percent say online video advertising led to strong ROIs
- 40 percent see online video as a sales-driver
- 28 percent say that online video is superior for both branding and driving sales.
For marketers to see online video’s value as a sales tool they need ROI measurements, the report notes. The current lack of measurement is a major reason why many don’t understand online video’s value.
“Digital video usage as a way to drive sales hasn’t yet caught up yet with its own generally positive ROI, but the inflection point is here,” says Eyeview CEO and co-founder Owen Harnevo. “Almost 100 percent of marketers have seen digital video working, but only 42 percent think digital video is better than other mediums. This is intriguing as it appears marketers are still cautious about digital video as a sales driver. A majority of marketers say they will be using ROI as the key metric for evaluating digital video in the next year or two. This will motivate a major shift in advertiser attitudes toward digital video.”
The report explores the gap between the perception of online video advertising and the results it delivers, noting that the medium’s upfront expense and the cost of advertising on premium content make it less attractive to some.
“The challenge with online video right now is that the costs are still more expensive than TV. Online is not as efficient—it is effective but more expensive, but the CPMs creep up, so ROI is not that attractive,” said one CPG marketer.
The report also says many ignore online video’s strengths: Only a minority of those surveyed say online video is better than other media at offering personalization, localization, and targeting.
For more results, including case studies proving online video advertising ROI, download the full 30-page report Digital Video at the Inflection Point for free (registration required).