Facebook Video Ads: What’s the ROI?

With the variety of common products available, often customers want to learn how a product or service works before purchasing. With more and more buyers using mobile devices to shop, 4 out of 5 shoppers say a video showing how a product or service works is important in their decision to purchase or not purchase a product or service. In fact, shoppers report research on mobile devices with visual content helps inform their product selection. As a result, Marketers who use video grow revenue ~49% faster than non-video users. But if a brand is going to use video, understand that shoppers of shoppers expect a consistent set of visual content across desktop and mobile devices.

Where does Facebook come into this equation? Over 100 million hours of video per day are watched on Facebook. (Techcrunch) It is reported that shoppers who view video are 1.81 times more likely to purchase than non-viewers and more than half of the marketing professionals worldwide name video as the type of content with the best ROI.

With over 1.5 billion users, ~1 billion users visit Facebook on their mobile device, so brands considering must think mobile first. What sets Facebook apart from its competitors is its unique ability to harvest vast amounts of customer information to create custom audiences, generate leads and build brands. The advantage is that it’s all within a platform that is already known for its engagement opportunity.

Facebook also  rewards advertisers for shares with cheaper views, cheaper clicks, and more impressions. This combination leads to an overall better ROI. The net-net is that retailers & brands should be seriously considering video advertising because advertisers cite a 40 percent increase in purchases as a result of video – specifically in the categories of apparel, home goods, and electronics.

While there seem to be many advantages, some businesses are holding back on video advertising because they feel video is too hard to make, or doesn’t produce conversions the way other ads do. But video content does not need to be difficult to create. There are vendors that make it easy, like Animoto. And attribution to video ads is easier often than TV ads because of the digital footprint.

Brands should also use the analytics Facebook provides and make sure to not waste budget by not segmenting your audience. Segmenting audiences can be done by looking at jobs, life events, relationship status, purchasing behaviors and additional segmenting can be done beyond this, for example geo-location targeting. Without segmenting an audience, marketing risk wasting their ad budget on the wrong audience and not generate the conversions expected.

In addition, as in any advertising, it’s important to include a call-to-action. A call-to-action can be as simple as Book Now for travel, Learn More for addition features on a product, Contact us for more information or Shop Now to be taken to the actual online store or landing page or a click-to-call button. But be careful – a call-to-action without engagement can result in consumers feeling “pushed” vs “pulled” into taking action. Include special offers and time sensitive, last minute deal to motivate consumer to come to a store, call or click.

If Marketers use a click to call button, make sure the contact center is ready to take the calls and knows what the special offers are. Consumers seem to prefer to call than fill out a web form and call convert to revenue 10X more than web leads. That is only true if there is someone at the other end of the phone to take the call intelligently. This means Marketers must ensure the ad copy and landing pages are optimized to drive calls and that they can attribute calls and the outcome to the right ad campaign so you can do more of the right thing and optimize the video marketing.

Dr. Natalie Petouhoff, VP and Principal Analyst, Constellation Research

Covering Customer Facing Applications

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Video Advertising: Key to Getting Customers Attention As Ad Blocking is Increasing

Searches for Influencer Marketing have grown 5x in 2015 according to a study from Google Trends from January 2016. Nearly 40% of Millennials are using ad block applications and their use is growing fast according to a study by PageFair & Adobe. So how does a company get their target customer’s attention? And with content marketing a #1 priority for most CMOs as more and more sales are decided upon before even talking to a sales person. And sometimes a salesperson is never contacted, so getting the customer’s undivided attention has never been so important. Perhaps the answer is video marketing. Video consumption has exploded across all devices and is one of the fastest growing advertising category.

Adobe, a the leader in video content creation and delivery, announced it’s acquisition of TubeMogul which will enable brands to capitalize on the huge shift to online video. The acquisition of TubeMogul  strengthens Adobe’s leadership in digital marketing and advertising technology. The addition of TubeMogul will enable Adobe’s customers to maximize their video advertising investments across desktop, mobile, streaming devices and TV. TubeMogul’s video advertising platform. In addition, this allows their customers to build upon their capabilities in search, display and social advertising planning and delivery using Adobe Media Optimizer with Adobe Marketing Cloud. This combination will give customers access to first-party data and measurement capabilities from Adobe Audience Manager (Adobe’s data management platform) and by using Adobe Analytics.

Why is video advertising so important? Brad Rencher, executive vice president and general manager, digital marketing, Adobe gave this statement, “Whether it’s episodic TV, indie films or Hollywood blockbusters, video consumption is exploding across every device and brands are following those eyeballs.” Adobe feels the acquisition of TubeMogul, will give customers a ‘one-stop shop’ for video advertising, providing even more strategic value for the use of the Adobe Marketing Cloud.

TubeMogul is a video demand-side platform (DSP) leader. Brett Wilson, CEO and co-founder, TubeMogul said, “The combination of Adobe Marketing Cloud with TubeMogul’s software creates a uniquely comprehensive platform that will help marketers always know what’s working — and act on it.” And what’s key is measurement – to know what is working and not working, and obviously do more of what is getting a result.

There are so many choices for Marketers today, as far as software and it is only getting more confusing with all the choices. When a software company can show you how to get results, you know you are going in the right direction. Education and learning to use all the features and functions of what the various software platforms provide is of growing concern for most companies to obtain the highest ROI possible for the investment they have made.

It’s key that Marketers are clear on what their strategy, goals, objectives and tactics are and have a strong measurement program to be able to show that the software purchase enhanced the brands ability to drive more awareness, increase customer acquisition and turn more leads into sales. And with ad blocking increasing, there’s got to be another way to get customer’s attention. Video seems to be a prime candidate. This is just one example of how early adopters and innovators are taking hold of the market place and making their competition irrelevant. And like the BlueOcean authors said, that’s the key to financial success in today’s marketplace. Cross the chasm, join the digital transformation and digital disruption evolution or expect to be disrupted. Disrupt or be disrupted. Those are the choices to being innovative leaders and using design thinking to transform your business revenue model.

@DrNatalie, VP and Principal Analyst, www.ConstellationResearch.com

Covering Customer-facing Applications to Create Great Customer Experiences

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