With millions of people staying at home to slow the spread of COVID-19, consumption of online video has skyrocketed. For marketers seeking high impact, cost-effective, measurable ways to connect with targeted audiences, the time for digital video advertising is now.
According to data from Nielsen, Americans streamed 85% more minutes of online video in March 2020 compared to March 2019, through devices like smart TVs, Apple TV, Roku, or Amazon Fire Stick. In the last month of March alone, Americans watched a whopping 156 billion minutes of online video in total on platforms like Netflix, Hulu, Amazon Prime Video, and YouTube.
The Surprising Economics of Digital Media
This rapid spike in online video viewership is good news for advertisers looking for value. Unlike traditional broadcast TV advertising, which has a limited amount of ad inventory, digital ad inventory actually increases with the number of users. This means that as demand increases with more people consuming online video, the ad inventory goes up and prices actually go down. That’s exactly what’s been happening in recent weeks.
Since mid-March, the CPM (cost per thousand impressions) of online video advertising has dropped by 10-15%. With more ad inventory available, and at lower prices, the time is right to add online video advertising to your marketing mix!
What makes digital video advertising special?
There are several reasons why digital media is a powerful tool for building your brand and connecting with your target audiences.
Emotion in motion. Humans are emotional creatures, and we love stories. Like broadcast television before it, digital video advertising can tell a rich story that evokes deep emotions more effectively and more efficiently than other forms of media.
Less is more. With video, you can convey more information in a shorter amount of time compared to text. Online video ads range in length from short-form, 6-second ads to more traditional 30-second spots.
The price is right. Digital video advertising isn’t just for big brands. It’s easily accessible and has a relatively low entry point in terms of budget. Like other types of programmatic advertising, video advertising uses data insights and algorithms to ensure your ads are served to the right people, in the right place, at the right time, for the right price.
Bottom line: Online video is an excellent medium for establishing awareness and interest in your brand, and it’s the perfect complement to other digital media like paid search and social media ads.
Right now, every marketer is asking themselves the same question: “Can we still advertise during a pandemic? Should we?”
The short answer is yes, but make sure to do so thoughtfully. While you might need to adjust your messaging to be more sensitive to the times, it’s critical that you continue to communicate your value to the world, and digital video is a great option.
If you’re interested in how these tools, or other digital media tactics like paid search marketing, targeted display advertising, or paid social media content might benefit your brand, talk to us.
Our digital team is always happy to help you make sense of the ever-evolving digital landscape. We can create a marketing plan that will help you connect with customers in new and meaningful ways.