http://www.dockvisualmedia.com (604) 339-6044
Hi, it’s Mark Bossert from Top Local Lead Generation. We’re here today talking about online video advertising – will this work for your small business? We’re here with Justin Booth from Dock Visual Media. How’re you doing today Justin?
Justin: Good Mark, thank you. How are you doing?
Mark: I’m good. So this is a bit of a sticky wicket in a way, i’m sure it’s pretty new for most people – it’s been such a fast transition from tv to online video viewing actually being bigger than tv. So the commercials that you see at the start of YouTube or in other places online, on Facebook and Twitter now etc… the big question is do they work, how big is the market, what’s the story?
Justin: Yeah, it’s a pretty new thing that we’re starting to see more and more of. My clients are starting to experiment with them more and more. Video ad revenue from those types of online ads is going to be nearly 5 billion dollars by 2016. Last year they measured it at 2.8 billion dollars, that’s the value of the online video ad market. TV advertising revenue on the other hand is going to decline by almost 3% per year during that same peered. So, it’s the first time we’ve seen that where video advertising online is outstripping traditional television video advertising.
Mark: Okay, so that’s on the push side from companies buying ads. What about people actually watching them – are consumers actually participating in using these and do they drive business?
Justin: Statistics show that people are watching them, some staggering number like 35 billion times a video ads were viewed in December 2013 alone – one month period. Advertisers are having to be clever though to make sure the people watch videos all the way through, so they’re using new techniques to really target their core audiences and that’s one of the really powerful things with video advertising on the web is the ability to leverage the data that some of these advertising providers collect so that you, the advertiser, can home in your message on exactly who you want.
Mark: So, I guess once the people watch the ad are clicking through the website?
Justin: Yeah, click through rates can be a misleading stat at times, but the click through is the number of people who click on a link or click on the video to get more information from the company’s website. The click through rate for video advertising is some where around 2%, which is not a very impressive number until you consider that it is the highest number of all internet digital advertising. So it does have proven statistics that back up, the people are clicking through and getting more information from the businesses. One of our clients who distributes aesthetic and laser technology has started to experiment with this advertising medium and has had really good success. They’re targeting salon and spa owners and he’s getting his message to the exact people he wants to and now he can track the statistics behind his advertising. He can see who’s watching, he can see how long they’re watching for. More importantly, he’s got a greater engagement with his core customers because he can reach out to them through social media, actually speak with them and get their feedback. It’s a far more powerful tool for advertisers to use than television advertising because there are all those added degrees of measurability that are available to you.
Mark: Well, the truth of it is, having worked in the broadcast industry, a lot of the data that’s used in radio and tv is complete bullshit in all honesty.
Justin: It hard to measure and difficult to prove to advertisers that what they were promising you, an audience, was what they were delivering. The backend systems, through sites like YouTube and other hosting services, really give you hard numbers that you can look at as a business owner spending your hard earned money to make sure that you’re getting a valuable return on what you’re spending.
Mark: Alright, so we’ve been talking about video advertising, something that you probably need to be looking at for your small business. It’s working now, it’s probably something that you should be very seriously looking at because of the growth in mobile that’s taking place. Thanks a lot Justin – we’re here all week.
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