We would like to take this opportunity to welcome you to the realm of digital video advertising, where the laws are always shifting quicker than you can say, “streaming revolution.” For those who have been in the marketing industry for a sufficient amount of time, they are aware that the days of just striving for the greatest reach have come to an end. At this point, the focus is entirely on the outcomes. Advertisers are looking for measurable returns on their investments, and digital video is stepping up to the plate to meet this demand.
Let’s see the reasons for this trend and why performance-driven digital advertising is becoming an absolute must for companies that want to maintain their competitive edge.
Digital Advertising: The New Focal Point
Beginning with the banner era in the middle of the 1990s, when AT&T debuted the first banner ad, the history of digital advertising has seen notable change. Search engine services like GoTo and Google AdWords emerged after the channel era. Major social media sites like Facebook and Twitter emerged from the social era, therefore influencing new directions for advertising. The natural era brought about a change to native advertising for a more flawless user experience.
In today’s world, marketers are abandoning traditional measures like reach and frequency in favor of a singular concentration on the results of their commercial endeavors. According to the Interactive Advertising Bureau (IAB), the emphasis is changing to key performance measures (KPIs) that directly affect company objectives. Some examples of these KPIs are sales and shop visits at retail locations. It is a revolution that represents the beginning of a larger trend towards performance-driven initiatives that are aligned with what really counts, which is the effect on the bottom line.
Business Outcomes Stealing Spotlight
Regarding the present state of affairs in the realm of digital advertising, the IAB study provides us with an intriguing narrative:
Social Video:
At this point, a staggering 64% of marketers place a higher priority on business results than they do on conventional measurements. When it comes to increasing sales, engagement and conversions are the most important factors.
Online Video:
58% of advertisers are keenly focused on performance-driven key performance indicators (KPIs) for online video. They are looking for opinions and contributions.
Connected TV:
54% of Connected TV (CTV) users are emphasizing business outcomes. The television industry has long since caught up with the digital world!
Numbers don’t lie. With the advent of digital video, it is no longer only a medium for spreading awareness; rather, it has evolved into a potent instrument for motivating meaningful actions and accomplishing tangible corporate goals.
Overcoming Obstacles in Digital Advertisement
It goes without saying that with great power comes great responsibility and great hurdles to overcome. The transition to performance-driven advertising is quite exciting; however, it is not without its challenges. According to the International Advertising Bureau (IAB), two-thirds of marketers have difficulty with measurement.
What exactly is the issue? Obtaining the amount of specificity required to estimate performance. Smaller advertisers face particularly difficult challenges when it comes to targeting specific audiences, dealing with viewability issues, and gaining access to sell-side data.
David Cohen, the Chief Executive Officer of the International Advertising Bureau, explains it perfectly:
“With the continued impressive growth of digital video comes demands for better measurement, viewability, standardized data, and placement transparency. The video ecosystem must fully commit to innovation, especially in measurement.”
Incorporating New Solutions
As marketers attempt to go over the measurement path, they are increasingly adopting creative solutions in order to monitor success more efficiently. The IAB report highlights some key trends in this space, including the following:
Alternate Currencies:
89% of marketers are looking at new measurement providers, and other currencies are being considered. These alternative currencies provide new viewpoints and more accurate measures, the latter of which are linked with today’s performance-driven aims.
Multiscreen Attribution:
Currently, 28% of purchasers are already using alternative currencies for purchasing transactions because these currencies provide multiscreen attribution and real-time reporting. The objective is to have a comprehensive picture of the interactions that customers have across all platforms.
Programmatic Advertising:
Real-time bidding and private marketplaces are examples of programmatic advertising methods currently used to purchase almost three-quarters of all commercial television advertisements. Because of this shift, advertisers are now able to reach their target audience with greater precision without sacrificing flexibility.
Advertisers are able to measure their success with greater precision and optimize their strategies in accordance with these trends, which demonstrates a strong commitment to innovation and experimentation.
Opportunities Ahead
The future of digital video advertising is bright, and there is enormous potential for firms that are prepared to accept change. Marketers are investing more and more money in digital video channels as the trend of cutting the cord is gaining momentum, and connected television is becoming more widespread. According to predictions, the Interactive Advertising Bureau (IAB), an astounding $63 billion is expected to be spent on advertisements across internet, social media, and cable television in 2024.
This expansion may be attributed to several factors, one of which is the proliferation of vertical and short-form video formats, which platforms such as TikTok have made popular. These formats are becoming more popular among advertisers as a means of engaging people in novel and interactive ways.
Conclusion
As a consequence of the transition towards performance-driven digital advertising, businesses have a tremendous opportunity to accomplish their objectives and provide relevant results. Marketers can develop effective campaigns that engage with customers and generate concrete advantages if they prioritize business results and use new measuring technologies.
It is essential to stay one step ahead of the competition in your industry. Businesses that adopt a performance-driven mentality and are able to adapt to the ever-changing dynamics of digital video advertising will be in a strong position to achieve success. The potential for expansion and achievement in digital video advertising is almost infinite as the sector continues to engage in innovative and evolving practices.
Are you prepared to use the power of performance-driven digital video advertising and unleash your campaigns’ full potential? It is time to make the most of the future, which has arrived!
