WHAT DRIVES DATA-INSPIRED BRANDED VIDEO?
By ICX Media - August 21, 2018
As the digital landscape shifts toward video, agencies, media execs, and marketers recognize that crafting compelling narratives requires not only deft creative skills but a foundation of smart data analytics. We call this coupling of story and insights Data Inspired Storytelling.™
With data enhancing the process every step of the way from the concept to the campaign measurement phase, branded video content not only resonates more with target audiences but becomes more efficient, optimizable, and measurable.
The Consumer Embrace of Video
Brands are drawn to video storytelling because consumers are, and increasingly so. According to Nielsen, U.S. consumers watched one hour and 57 minutes of video on a computer and 50 minutes of video via smartphone weekly in Q2 2017, up from an hour and 33 minutes on a computer and just 24 minutes through a smartphone during the same quarter the previous year. That’s nearly three hours of video viewing each week during that period in 2017 compared to less than two hours weekly in Q2 2016.
The dominance of digital and social platforms such as YouTube, Facebook, and Twitter, along with their own investments in video capabilities and offerings have inspired increased consumer video engagement. That, in turn, has fueled heightened interest among brands and media firms. And, as mobile data prices decrease, more people consume more video, particularly on their mobile devices.
But why branded video content? In addition to these factors, FTI Consulting pointed to three key reasons for the branded video content explosion in its September 2017 study:
One-to-one video data tracking and targeting
A video landscape focused on shorter-form content segments and smaller screens
The promise of interactivity and customization
There’s no question that brands see the value of video content and the proof is in their increased spending. According to Interactive Advertising Bureau research published in April 2018, spending by advertisers on original digital video programming rose by 68% since 2016, driven largely by advertising agencies. In 2018, 59% of digital budgets are allocated to mobile and desktop video according to the IAB study, up from 53% in 2016. And, Nielsen’s 2018 CMO Report found that 63% of CMOs said online video is a very or extremely important digital media channel, more than online display or mobile display.
Branded Video Delivers Brand Effectiveness
Marketers spend billions each year on content creation in general. Forrester last year estimated that $40 billion was spent on branded content globally in 2016, $10 billion in the U.S. alone. FTI Consulting predicted the market for branded video will be $20 billion by 2020, estimating a total addressable market size of approximately $20 to $25 billion by between 2019 and 2020.
Advertisers already recognize the strong brand connections that can only come through sight, sound and motion. Amid an array of content and entertainment options for consumers and the challenge of ad blocking, branded content has emerged as an effective alternative to traditional advertising formats.