Internet video viewers watched 105.4 billion online ads last year, according to The Social Times, surpassing traditional TV audiences.
I’m not surprised. People are getting addicted to the on-demand element of internet video.
While this boom in digital advertising has not hurt TV ad spending to-date, it has begun reshaping the visual advertising business. TV and video ads are becoming smarter, a trend likely to accelerate in the coming years.
Let’s look at 5 ways this trend is reshaping advertising.
1. More Affordable Advertising for Small Businesses
The average cost-per-view (CPV) for a YouTube ad ranges from $.10 for ads above search results to $.30 for suggested videos, according to marketing agency PPBH, making it an affordable route for small businesses.
As an example, an organization could use a $.20 CPV ad to reach 10,000 targeted viewers for $2,000. By comparison, a one-time 30-second TV ad spot aired during the local news might cost between $200 and $1,500, while local prime time spots run significantly higher. What’s more, TV advertising during national prime-time shows can exceed $100,000 for 30 seconds, according to AdAge.
The numbers don’t lie. Digital marketing gives you a new cost-effective way to generate outreach comparable to local TV advertising.
2. More Targeted Demographics
This new medium is more targeted, thanks to analytics technology.
DirectTV, for instance, recently began offering ad spots customized for the individual household’s viewing habits. Such ads can be aired during any show or time slot and played only when the TV is on and the viewer is watching.
The era of advertising sold in chunks of time for mass markets is giving way to an age of smart marketing and customized ads targeted at individual consumers and households.
3. Integration with Other Digital Marketing Channels
The differences between TV and online advertising may soon become a moot point, as TV technology is increasingly blurring the distinction between the two mediums.
For instance, the popularity of Vine advertising on Twitter prompted Dunkin’ Donuts and Trident to launch the first Vine-oriented TV ads this September. Meanwhile developers of Google’s new Chromecast device have found code snippets suggesting that the search advertising giant will be testing displays of banners ads on HDTV.
The boundary between online and TV advertising will continue to shrink as the integration of the Internet and HDTV grows.
4. Blurring of Programming with Advertising
The trend towards digital marketing is pushing ads in the direction of infomercials and reality TV, making programming less distinct from advertising.
For instance, this summer Hollywood producer Peter Chernin began experimenting with creating reality shows for distribution exclusively through social media. This represents a low-budget way to produce programming content that can easily be geared towards promotional purposes, providing a more powerful enhancement of traditional product placement.
5. Integration with Sales Mechanisms
The digital marketing age is ushering in new interactive response mechanisms to replace the old mail-in and call-in calls to action characteristic of classic TV ads.
For instance, some advertising agencies are now offering video banner ads that play while consumers are browsing online shopping sites. This strategy parallels Amazon’s proven tactic of recommending purchases to customers who just bought items, which can easily be imported to digital TV marketing.
The future of marketing
Marketing and digital are no longer two separate concepts. Marketing is digital. And that means it’s going to become smarter, more targeted, and easier to integrate into your other campaigns.
Now, more than ever, it’s important that you follow the trends—not necessarily the gurus. Some prinicples of marketing will never change. But new techniques are quickly replacing (and improving) on old methods.
Don’t be afraid to step into them.
