The Ultimate Guide to Video Advertising

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This is a comprehensive guide for you on how video advertising works! Video advertising seems simple enough, but it requires a lot of effort. After all, a lot goes into developing this type of marketing strategy.

You’ll see later that this is truly worth it due to the numerous benefits it could bring. For example, your video ads may go viral on the internet as more people share your work. You wouldn’t have to lift a finger to boost your online traffic. That’s just one of the many benefits of video advertising we’ll tackle later!

First, I will discuss why small businesses and major brands need video advertising campaigns. Then, I’ll discuss the types of video advertisements, their other benefits, and the statistics that prove it works. After that, I’ll show the steps on how you can start video advertising, from planning to creating content.

Who needs video advertising?

Who needs video advertising?

As the name suggests, it involves promoting brands by using video content on various online channels. You’ll often find them on the major video streaming site YouTube.

This is because more people want to see video content from brands nowadays. According to Hubspot’s 2017 survey, 54% of consumers show interest in this type of content.

Most brands have YouTube channels where they place their promo vids. On top of that, you’ll see their ads playing either before, in the middle of, or after other videos.

Moreover, their online video content shows up on their homepage. Small and large businesses employ this strategy nowadays, but why? I’ve listed their reasons below:

  • As I said earlier, videos are shareable, meaning people can easily pass them around the internet. If they love your content a lot, there is a chance it can “go viral” or gain a lot of online views. In other words, it’s a great way to increase organic traffic.
  • Unlike other ads, videos show movement, produce sound, and even tell stories. They are more engaging, just like what I said in the earlier statistic.
  • Videos can serve various purposes to improve your overall marketing campaign in many ways. For example, you could publish a step-by-step guide to serve as sponsored content.

Related Article: 7 Best Lead Generation Tools

What’s the biggest reason for adopting this strategy?

What’s the biggest reason for adopting this strategy?

Photo Credit: Statista.com

Aside from the reasons I’ve discussed, there’s a long-term purpose for video advertising. You see, it’s just one part of the overarching trend of digital transformation around the globe.

For example, did you know that over 37% of businesses have adopted AI over four years? We even have AI marketing nowadays!

Even small businesses know that they need digital transformation to compete. That’s why even mom-and-pop stores allow online payment options nowadays.

Similarly, you need video advertising and other digital marketing methods to stay top of the game. Here are the other reasons why you will need such strategies:

  • Nowadays, people use the internet more often, and the stats back it up. For example, 2018 findings from Statista found that 85% of Americans watch online videos. As a result, people expect brands like yours to provide online content.
  • Adopting new tech could reduce your spending. For example, a viral video ad can spread faster than traditional billboards. You may even spend less on this strategy since you won’t have to pay for ad space in certain areas.
  • Digital transformation methods like video advertising open new avenues for marketing. If you can’t pay for billboards, releasing online video content can be more affordable and effective. They usually cost less to publish on certain sites, but you may reach more customers.

What are the formats of video ads?

What are the formats of video ads?

As I said, video ads are quite versatile, so they appear on the internet in various forms. You may classify them according to the video ad formats and sources.

When I say format, I mean the way they appear on websites. For example, they may come out at the beginning and end of videos on other sites.

On the other hand, you may divide them according to the online video platforms where they appear. Aside from YouTube, Facebook, LinkedIn, and Instagram also host video ads.

I will start by discussing formats because they appear on these websites. Read below to learn more about the forms of video advertising at the time of writing:

In-stream video ads

This is the type of video advertising that I mentioned earlier. In-stream video ads are also called linear video ads or bumper ads, and they are the most common. It comes in these forms:

  • Pre-roll ads run before video content starts.
  • Mid-roll ads pause videos, run for a few seconds, and resume them.
  • Post-roll ads play once a video stops playing.

Non-linear video ads

These don’t get in the way of other video content. Still, clicking on them often pauses the main video. Let’s look at the non-linear video ad formats below:

  • Overlay ads often appear at the bottom of a video. They often stay there for 5-15 seconds before shrinking. Also, viewers don’t have to watch the ad before playing the content they want.
  • Non-overlay ads play alongside the main video, but they don’t block it.
  • Companion ads often appear as a small window below a larger video or beside it. They usually appear with a call-to-action to buy a certain product shown in the main video.
  • In-banner video ads appear in non-video content, such as blogs. They look like banner ads, but they play video while someone views the site.
  • In-page video ads show on an embedded video player. Unlike in-banner ads, these often appear much larger on a page.
  • In-text video ads pop up when a reader scrolls to a certain part of a blog. It will usually appear on top of the article, but it will pause if the user scrolls further.
  • Sponsorship graphics play around the main video, often looking like it’s the website’s background. Sometimes, users may control these video ad formats.
  • In-game video ads show up on video game loading screens. Sometimes, players may watch them earn free stuff in their game.

What are the types of video ads?

What are the types of video ads?

You may also divide the types of video advertising according to where they appear. The location of your ads can make or break your strategy, so you should know your options.

The most common ones are on the biggest websites like YouTube, LinkedIn, and Facebook. These platforms allow different ads, but they’re accessible even to small businesses.

Of course, you could place your video ad content on lesser-known websites. Those could be video platforms or other types of websites. Here are your options:

YouTube ads

We now have various websites, but YouTube remains king of online video platforms. It has been quite a cost-effective way of promoting products and services for marketers.

That’s no surprise because each view for YouTube video ads costs $0.01 – $0.03. What’s more, you can choose several types of YouTube ads:

  • TrueView ads are similar to bumper ads from other websites, appearing in YouTube search results.
  • Bumper ads on YouTube will pause a larger video until it has finished its runtime. It’s often used to inform more people about a brand or make its image stick in peoples’ minds. This ad format often lasts for six seconds.
  • Pre-roll ads are like bumper ads, but they run for 15 seconds instead of six.

Facebook and Instagram video ads

I lumped them together because they’re both owned by Meta. You could choose several ways of placing them on these platforms, such as:

  • Putting them on the news feeds for both platforms
  • Adding skippable in-stream ads on Facebook and Twitter
  • Displaying ads on paid Instagram and Facebook stories

Both types of video ads count video views for every 3 seconds that it plays. Fortunately, you could spend less on Facebook ads with the help of ThruPlay.

LinkedIn Video Ads

These are often more expensive than video ads from social media. LinkedIn video ads may set you back by $3,650 every year, so it might not be the best choice for small businesses.

What’s more, starting ads on this site involves more steps. You’ll need to join an auction for LinkedIn video ads, so it’s a far cry from the simpler sites.

If your target audience is made up of professionals, then this might be the format for you. After all, the website is a popular platform for businesses.

OTT or Streaming Media Services

A 2019 Statista survey says that 74% of US households subscribe to one video streaming service, while 69% use more than one! That’s why video ads appear on them too.

The OTT stands for “over-the-top,” It refers to the video streaming sites that people use “on top of” their TV cable packages. Examples include Youtube TV and Netflix.

These services gathered a billion subscribers due to the coronavirus pandemic. They’re likely to expand further, making them a good place for online video ads.

What are the benefits of video advertising?

What are the benefits of video advertising?

We’ve tackled a few of what video advertisements can do for your business. Now that you know more about them, we can talk about the rest of those benefits, such as:

  • Video ads can help you introduce your brand in the best way possible. Do it right, and potential customers will learn the basics of your brand in a couple of minutes.
  • Imagine if people loved watching your ads. The best ones tug at people’s heartstrings, leaving people wanting for more! With the right video advertising, folks will be looking forward to your next promos.
  • Video adverts are a great way to turn leads into sales. They’re just a click away from turning up a sale! People can choose to buy your products as they’re watching your video ad.
  • The best video ads leave a great impression that people can’t help sharing them with friends. As more people share your content, they’re more likely to bring new customers to your brand.
  • As your online videos gain online clout, you’re bound to top search results. Google and other search engines rank them based on how many clicks a related content has. A video ad can give you more online traffic, which tells search sites that you’re likely a reliable source for a certain query.
  • Video ads enable you to promote your brand as if you’re just speaking to your viewers. People are more likely to relate to your brand, so you’ll have an easier time gaining their trust. Remember that all marketing is built on relationships and trust.
  • Sometimes, you need to explain products and services, or customers may have trouble using them. You could use a video ad to give the steps so that people can understand. They can watch someone follow the instructions on the screen to follow along.

Related Article: Why Content Marketing is So Important

How do we know video advertising works?

How do we know video advertising works?

The info I’ve shared so far talks about video ads in a broad sense. Yet, it would be better to know its current status in real life. That is why I will cover statistics related to video advertising.

If you’re still not convinced that you need to have video ads, this section may change your mind. Of course, I won’t just dump all the numbers and let you sort them yourself.

I organized the stats into three sections, each referring to an important part of video advertising. Take a closer look at them below:

General video advertising stats

  1. By 2022, 82% of consumer internet traffic will be online videos. (Cisco)
  2. 78% of people watch videos every week in the US, while 55% do it every day. (Social Media Week)
  3. In 2021, 84% of people said they bought a product or service because of a video. (Optinmonster)
  4. Having a video on your landing page could increase your conversion rate by 80%. (WordStream)
  5. In 2020, the watch time for video ads worldwide went up by 800%. (Think With Google)

Video consumption

  1. People watch 16 hours of online videos every week. (WordStream)
  2. More than 75% of online videos are played on mobile devices. (eMarketer)
  3. People spend time watching videos on mobile devices increase by 100% every year. (Social Media Week)
  4. In 2019, people watched business-related videos more on desktop than on mobile. (VidYard)
  5. People spend 88% more time on websites that show videos. (Social Media Week)

Video ads and marketing

  1. LinkedIn users share videos 20 times more than other content. (LinkedIn)
  2. In 2020, 88% of marketers said they wanted to have video adverts on YouTube. Also, 76% wanted Facebook video adverts, 66% chose LinkedIn, and 65% picked Instagram. (Oberlo)
  3. In 2020, 65% of people in a survey said they often go to YouTube to watch user-generated content. (Limelight)
  4. Also, Instagram has more than 200 million business accounts. (Instagram)
  5. It says 70% of shoppers look to its platform when looking to buy things. (Instagram)

How can I start a video ad campaign?

How can I start a video ad campaign?

It seems like we’ve talked enough about video advertising, right? Now, you should learn how to start using it for your brand. Believe it or not, it’s like a regular marketing campaign.

You have to start with what you want video adverts to do for your company. From there, you’ll have to figure out the finer details like the tools, skills, and funds you’ll need.

Of course, it has the extra step of creating a video. Later, you’ll see that it’s not as easy as it seems. Let’s take a closer look at these steps:

  1. Set your video objectives.
  2. Determine your target audience.
  3. Find out the story you want to tell.
  4. Plan how you’ll create the video ad.
  5. Apply post-production details.
  6. Distribute your video.

#1. Set your video objectives.

Ask yourself why you need video advertising in the first place. Look to your sales funnel and see which part needs the help of video ads.

The common model has four parts: Awareness, Interest, Decision, and Action. Your brand may not follow this pattern, but your videos should still be useful for your funnel.

For example, if you need customers, you might need video adverts at the Awareness stage. Figuring this out will help you plan your strategy later.

Related Article: Instagram is Taking Over the World

#2. Determine your target audience.

Determine your target audience.

If you’re trying to learn video adverts, you probably have a marketing campaign already. That means you’ve made a buyer’s persona for it.

Otherwise, let me explain what a buyer’s persona is. It’s a made-up person that has the set of traits found in your target audience. You’ll need this when planning your video ads.

After all, those clips should appeal to the types of people you see as potential customers. This means you’ll make your videos based on these folks.

#3. Find out the story you want to tell

Keep in mind that your video should say something about your company. Even for your new promos and products, you will have to make sure it aligns with your brand image.

At the same time, your video adverts should be about things that click with your target audience. For example, you might want heart-warming stories if you’re marketing to children.

If you don’t know how to start, look again at your buyer’s persona. That should tell you the kinds of stories that they like. Again, don’t forget your brand image!

#4. Plan how you’ll create the video ad.

Now, we go to the nitty-gritty of making your video ads. You’ll have to ask yourself the budget, skills, and equipment you’ll need to make them.

Remember that you must put quality above all else. If you can’t release a good-looking video on your preferred channels, your brand may end up looking bad.

Instead, make top-notch video adverts on the key platforms that your audience uses. Once you gain enough online clout, you can expand into other sites.

Related Article: How to Run a Successful Google Ad Strategy

#5. Apply post-production details.

You don’t release your video fresh off your camera! Video content needs a lot of edits before it even shows up on the internet. Here are just some of the things you have to consider:

  • The foley or the music you’ll add after recording
  • Closed captions
  • Call-to-action screens
  • Filters
  • Scenes you should cut out

After that, you will have to add more details when publishing it on other websites. For example, you could add closed captions or tags.

#6. Distribute your video.

Distribute your video.

Once you’ve made your video, it’s time to release it as an online ad. You will have to pick where it’s best to share that video ad. You can choose owned or paid distribution.

The former involves channels that belong to your brand, such as its homepage. It might cost less than paid methods, but it often reaches the least people.

On the other hand, you should pay for ads on other sites to extend your video advertising reach. Also, you may place sponsored content with your mobile video adverts in them.

Final Thoughts

That concludes my ultimate video ads guide. I only tackled the basics, so you should look to other resources for more details. You shouldn’t have eyes on this part of marketing, though.

As I said, a video ad strategy is just a part of a much bigger digital marketing campaign. If you want to succeed, you will have to improve your search engine optimization.

Fortunately, LeadAdvisors can take care of those factors for you. It has experts who could build your landing pages and rank your brand higher on search results.

 

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