We live in a world in which the conversation around video marketing is particularly popular. Today’s culture embraces video as a form of social conversation and not just a broadcast medium. As a result, video personalization, creative iteration, and ROI rule the day, which is all reflected in the newfound popularity of digital video advertising.
There are new rules of engagement when it comes to digital video advertising and marketers cannot afford to ignore them. Those who do ignore them are missing out on the biggest marketing innovation since the invention of the internet and television combined.
A recent Magisto report, “From Main Street to Madison Ave.: Millennials Disrupting 50 Year Old Balance of Marketing Power,” reveals that TV advertising strategies are being retired and video marketing is taking its place. In fact, according to eMarketer, digital will overtake TV ad spending this year for the first time.
Before diving into specifics, it is important to note the driving force behind this change is millennial marketers. Here’s why:
Millennials are mobile first, which means the media they consume needs to be optimized for mobile viewing. Reading long articles on a mobile device isn’t practical. According to recent research from Coupofy, 52 percent of millennials say that checking the news and social media is the main benefit of owning a smartphone. Turns out short, hyper relevant video is perfect for mobile.
Millennials live in a video-centric world, and without the anchor of television they expect digital video to come in many shapes and sizes, across different platforms and formats. Video is no longer a broadcast medium. It’s a visual conversation, where each individual and every business is both a creator and consumer of content fighting for share of mind in the attention economy. The millennial worldview drives tremendous change in the marketing industry. For example, Magisto found that 88 percent of millennial marketers currently use or want to use video for digital advertising.
I was speaking with an employee of mine who recalls getting his Facebook account in middle school. I was well into my 30s when I got mine. Unlike me, he has been a digitally social creature his entire adult life and doesn’t have to learn the rules of engagement for a culture in which authenticity and transparency are the coin of the realm. This native understanding translates far beyond the 20,000-foot view and effects every detail of the digital economy. Millennials inherently understand that video marketing is a re-segmentation of traditional channels, combining properties of social culture, TV advertising, and digital performance marketing. Millennials understand the power of video advertising through the use of story and the efficiency of performance marketing.
Failing fast is a mantra embraced by every company in Silicon Valley. For millennials everywhere, it’s not a mantra but a way of being. To them, there is no other way to run a business. We see them carrying this point of view into the way they perceive marketing. In fact, 60 percent of millennials are willing to create multiple variations of digital ad creative to test and/or optimize ROI performance compared to only 40 percent of their baby boomer peers.
Not surprisingly, millennial marketers see video in the same light. Almost half (47 percent) are currently testing variations of multiple video ad creatives, but only 8 percent of baby boomers are doing so. Baby boomers—and anyone else not embracing video marketing—need to rethink their strategy and quickly.
Although millennials are the driving force behind the growing popularity of video marketing, the broader point is that for the first time in history video marketing is an activity that businesses of all sizes can and (more importantly) must embrace going forward. Those that don’t will be at a growing disadvantage. The good news is that video marketing strategies no longer require big budgets and long planning windows to be effective. There are a growing number of digital video creative solutions and an ever-increasing number of use cases across earned, owned, and paid marketing. Learning to use video marketing in a highly fragmented multi-channel world is not a singular event but a process where the learning is in the doing. The efficiency, effectiveness, and time to market that video marketing innovations provide puts the risk of learning virtually at zero—but the upside potential is limitless.
Guest post by Oren Boiman, CEO and co-founder of Magisto, a video storytelling platform with over 85 million users. OnlineVideo.net accepts guest posts based upon their usefulness to our readers.