Things Financial Marketers Must Know About Digital Video Now

In the coming years, video advertising in the United States will exceed $ 100 billion. Traditional TV is on the decline. Banks and credit unions will increasingly have to shift their advertising budgets from TV to digital video in order to get their message out to the public. And that means YouTube.

Digital technology has created dozens of video alternatives to traditional TV, making the medium broader, deeper, and even narrower at the same time.

“Viewing is now determined by our personal calendars, not by a network programmer,” said Google in an instructive online presentation. “The term” transfer “doesn’t even apply anymore.”

And if you spend a lot of time on YouTube, it’s almost impossible to find a video – be it a scene from your favorite movie or tips on how to fix your lawnmower – that doesn’t have video ads in front of it. Longer videos on YouTube may be interrupted multiple times by an “in-between” ad.

Forrester Research predicts spending on all types of video ads in the United States will increase from $ 91 billion in 2018 to $ 103 billion in 2023, just over 13%. Forrester says spending on TV commercials should continue, but the growth will be mostly online. The company plans to increase its share of online video from 21.2% of spending to 34.3% between 2018 and 2023.

  • Financial marketers look online

There is a tug of war between a developing traditional television industry and new forms of digital video. Forrester says the US audience for conventional TV is currently around 258 million. But online video is recovering quickly and is expected to be only 201 million times more in the United States.

“U.S. viewers are increasingly given options to view video content,” said Brandon Verblow, forecast analyst at Forrester. “With a limited population and a few hours a day, television control over viewers’ attention is beginning to wane.”

According to the IAB, 70% of consumers worldwide watch digital video content at least once a day and 53% broadcast it several times a day. Two-thirds of consumers worldwide have live video. More than half of them prefer free classifieds.

Verblow and his team recommend that “advertisers continue to diversify their video ad budgets to ensure that their message is delivered efficiently in this increasingly fragmented environment.”

In fact, banking service providers are already participating in this rapidly evolving digital video market. But this swirl of change has complicated marketing decisions for traditional financial institutions, starting with how and where to allocate their budgets.

Online digital video ads are not just for big brands and megabanks. There are many things on the Internet that financial marketers can search for. Even the smallest advertisers can experience YouTube video marketing. The site offers tips for those who still don’t have a video message to show. Video ads are generally scaled up and come in a variety of forms.

  • YouTube

According to Forrester, two-thirds of American adults would give ads access to free streaming and would rather stream with ads than wait for their ad-free programs to be made available online.

“Now that free streaming has become more popular, YouTube has also become popular,” says Verblow. “The implantation of the product helps to revitalize the market”.

The report concludes that, in addition to being free, the YouTube user experience is enhanced by the wide variety of content that is uploaded and the algorithm’s ability to recommend additional suggestions suitable for viewers.

Forrester compensates for social media videos on all other social media channels except YouTube. In 2017, says the company, 37 million people watched videos on social media where the content was posted in the hope of generating a profit, not to mention personal sharing of videos between friends and family. Although small in terms of widespread use of online video, Forrester notes that the prospects for social growth are high and its use is increasing, as well as advertisers’ knowledge of the channel.

The report distinguishes between ‘video display’ ads and ‘social video’ ads. The former is responsible for most of the spending on online video ads and is used to post generic ads and branding messages on websites, programs, or social media. Social video, on the other hand, is often used to address specific behaviors.

The digital video goes far beyond YouTube

New ways of presenting digital video mean a growing glossary to describe different channels, audiences, and formats. Here are some good financial marketing experts you should know:

In-stream video ad: played before (pre-roll), during (mid-roll), or after (post-roll) of a digital video stream. Normally, the playback of these ads cannot be stopped.

Dynamic video: Video ads that can be pre-customized and/or transformed after delivery to reach a relevant audience. Customization can include displaying a specific combination of ad content, such as text, background images, and the size and color of the call-to-action button.

Cost-per-view: A pricing model where the advertiser pays each time their video ad is played. Usually sold in blocks of 1,000 impressions.

Cost per completed version (CPCV): The price an advertiser pays each time a video ad is completed. Instead of paying for all impressions, some of which may have been stopped before completion, an advertiser pays only for completed ads. (CPCV = cost ÷ completed views.)

Video ad completion rate: The percentage of video ads played during the run to completion. Also known as playback speed (VTR) and video completion rate (VCR).

VMV – Distributors of virtual multichannel video programs are services like Sling and Hulu Live that redistribute programs produced for traditional TV over the Internet. Forrester considers this to be the greatest growth potential of all TVs.

Smart TV – A hybrid TV connected to the Internet and with interactive functions.

Advanced TV: technology developed over the Internet that allows advertisers to target their video ads so that three people watching the same show in the same house can see the ads based on their demographics, not an ad for everyone.

Addressable TV – one of many variants of enhanced TV, which “allows advertisers to buy audiences, unlike traditional program-based buying methods,” said the IAB. The organization says there are approximately 64 million addressable households in the United States.

Cord-Nevers – In addition to “cable cutters” – people who cancel their cable or satellite subscription – there are reports of “no cables”, consumers who have never had cable or satellite subscription, who always use streaming via a network.

TV Everywhere – An online business model in which television broadcasters, especially cable networks, provide their customers with access to live content and/or video on demand from their networks through Internet-based services.