It’s no surprise that video ad spending continues to climb. eMarketer, for one, predicts double-digit growth rates through 2020. But despite this increase, advertiser spending on TV continues to dwarf spend on video. Why do ad budgets not yet mirror consumer consumption habits? A recent article in AdNews provides some interesting insights gathered from a panel of global media executives speaking at the 2016 Cannes Lions Festival. The executives shared a number of lessons they believe the video industry would do well to learn from the TV industry as the two formats move toward convergence. Here are the main takeaways:
1. Reduce friction by standardizing metrics
Each of the panelists emphasized the importance of video publishers and buyers agreeing on a standardized measure of success. Much like the TV industry relies on metrics like GRPs to gauge success, a similar widely agreed-upon metric is needed for video. Doing so, the executives believe, will allow more advertisers to invest with increasing confidence in video campaigns.
2. Align ad buying systems and infrastructure
According to the executive panel, too much of the current marketplace for buying and selling video is siloed in different systems. In this case, creating a more standardized system for brands to buy all types of inventory, from premium placements to programmatic, will help video scale to the levels of ad spending and audience long enjoyed by TV.
3. Focus on creating quality, engaging, content–not just price
Another key refrain from media executives on the Cannes panel was their interest in making sure to produce relevant, quality ad content that fits the context of different video environments on different screens. Though programmatic buying is growing in popularity–and tends to be less expensive, many of the executives emphasized that strategic buying of video ads, along with premium placements, could help ensure more compelling ad experiences for consumers.
In an industry flush with shiny new objects, it’s important for marketers to remember that it really all comes back to the ad creative. Does the video asset you’ve spent months perfecting have the ability to meet people wherever THEY are, engage consumers, and tell a compelling story? If so, it’s ready for primetime, whether it be found via the TV set on the wall or on the screens we all carry in our pockets.