Moving into online video as a business
Posted on Dec 6, 2013 by YuMe
Forbes contributor Steve Cooper made some goals for his business last year, one of which was to move into use of online videos. Now, he said this can finally be checked off the list because his organization is utilizing online video ads. This is especially helpful in the mobile landscape, as he said 50 percent of his company's clients are mobile.
Citing numbers from a recent eMarketer report titled "US Digital Media Usage: A Snapshot of 2014," Cooper said 35 percent of mobile users are expected to watch videos online. This shows that organizations that start creating mobile video ads now will likely have a greater edge over competitors. The advantage is especially apparent, as the report found all mobile video viewers will increase 20 percent in the next year, up to 88.7 million people. Cooper said two-thirds of the U.S. will likely be watching online videos of some kind in the next year.
His company, Hitched, partnered with an online video producer that seemed like a natural fit. This has worked to get video quality up and running quickly, allowing them to see results right away.
"To make sure we're as effective as possible rolling things out, we're testing two different methods of implementation and presentation," Cooper said. "The first is a thumbnail strip and the second is a full player. Both methods are being presented at the end of specific articles to determine which gets more engagement."
Testing like this is essential to see what will work best for each individual company. Cooper believes this launch is just the first step for online video in his company, as he expects to continue to bring forth many more ads in the next year. By creating content as a company, he said they are able to earn more revenue, something every business has a desire for.
Why is video growing so quickly?
Internet Retailer reported on a recent study by one provider which found 52 percent of customers who watch online video ads said it makes them more confident about purchases. Sixty-six percent of people will view videos with a lot of information will play them two or more times before buying. These are just a couple of the reasons why online video ads have spread so easily; even when companies make ads that seemingly don't work right away, customers may engage with the content more and reconsider purchasing from the brand.
"Up until now, retailers have had to make decisions about video without getting information from the most important stakeholder – their customers," the report said. "In looking at real feedback from our study, it is crystal clear that consumers expect video as part of their shopping experience, and rely on it when making purchase decisions."
These videos also get results for companies. Forrester recently found that the estimated growth per year for total ad spend is 4.49 percent, but video is at 22.39 percent per year until 2018. However, Forrester revealed most companies still are not reaching their potential in this medium. Many still end up taking their 30 second spot from TV and putting it online, but he said there are different methods that work for online.
Approaches to online video include:
- Linear video- static: This includes pre-recorded video that plays from beginning to end
- Linear video- dynamic: Video here is customized per user or segment and will interact with customer data to provide a personalized experience
- Interactive video: This interacts with users through voice, gestures, clicks and more, thereby creating a more vivid experience
How a company attacks online video ads will be different each time, but every organization needs to realize the potential of this medium and figure out what works for them.