Gone is the set top box, and cable operators will meet a similar fate soon if they don’t align with current consumption trends. These days, users (especially Millennials) are turning to other screens to watch video content. This new fad is referred to in any number of ways: cord-cutters, streamers, et al. TV dollars are still taking up the lion’s share of advertising budgets, but digital video has been making its own case for a substantial piece of the ad budget pie, purely based on scale and demand.
According to eMarketer total Mobile ad spending already surpassed desktop in 2015, and it’s only a matter of time that this growth reaches levels of TV, at the sacrifice of spending ad dollars against the most traditional advertising medium in history. In short, one can think of it as the oft-coveted GRP is moving from Television to Smartphones.
According to Google, Nielsen recently found that its YouTube service reached more people between the ages of 18 and 49 on mobile devices alone than any TV network in December of last year, while comScore found that 44% of YouTube viewers in that age bracket don’t watch prime-time broadcast TV in an average week. In large part, social sharing functionality is driving this and eMarketer predicts that 71% of smartphone users will regularly be watching video on their devices during calendar year 2016.
Not only should content be tailored to viewing on other devices, in relation to screen size, time spent on site/app and other variables at play, but it’s crucial that marketers shift their advertisements to be video-centric in nature to fit the mold. This is a function of attention spans having decreased dramatically over time and to put it plainly, the thirst for more content. Perhaps its delivering additional B-roll footage to someone who just watched a show on Netflix, or teasing a movie trailer one might be interested in based on previous viewing habits.
Whatever it may be, the efficacy of banner advertising is starting to wane, while advertisers are more interested in delivering memorable and engaging user experiences that deliver positive results on brand health metrics. As it turns out, video seems to leave a lasting image a bit more so than a 300×50 banner ad.
Mainstream media outlets have noticed this change in how consumers consume and made necessary adjustments at their flagships. For some time now, when we visit www.cnn.com, the main headline is followed by a video, not an article. We’re in an age of instant gratification and most users would rather watch a :60s video clip (while being at the mercy of a :15s pre roll, hooray ads!) as opposed to spending an extra few minutes to read a full article.
The content space is growing rapidly, as providers are pushing out new on-demand original shows like never before, see: Amazon, Netflix, Hulu, etc…and any advertisers that fail to stake claim within this arena are going to fall by the wayside. The next step is figuring out how to truncate the messaging and turning that :30s or :15s into :10s or less…
By Craig Koestler – Director, Strategy & Media