Family time has gradually shifted over the past couple of decades, with families no longer gathering around the television set each evening to watch the latest episodes of network shows. Today, consumers are increasingly trading in cable subscriptions for Netflix memberships and free video streaming sites like YouTube, leading to a revolution in the way businesses sell products.
The shift has been especially noticeable in video advertising, with corporations no longer eager to spend big bucks for a prime time TV ad that will only be seen by hundreds of thousands of viewers. Online video advertising has emerged as a serious contender, offering businesses opportunities to reach consumers in ways they never have before.
Video Budgets Increasing
As advertising has moved away from television, online advertisers are benefiting. Businesses increased their video budgets 65 percent from 2012 to 2013, according to a study from video ad exchange Adap. The results, which appeared in the company’s State of the Video Industry report, found that 86 percent of brands and 91 percent of agencies had plans to further increase spending in 2014.
The survey echoed what many experts have predicted about video advertising. Businesses, like the advertising industry, are well aware of the customer shift and, as a result, providers have emerged to help businesses meet those needs. Shooting a personalized ad that will grab users’ attention is different from spending millions on an ad they’ll watch during a TV show.
In the competitive world of online advertising, however, simply shelling out a large chunk of money for a canned ad isn’t enough. Businesses have to be original, creating unique, fun campaigns that users want to share with all of their social media campaigns. If a video goes viral, it can be seen by millions of users, potentially appearing on newscasts and TV shows like Tosh.0.
A Clear Leader
One leader that has emerged in the viral video space is Virool, a marketing campaign that has worked with big names like Sony, Intel, GM, Pepsi, and Volvo to ensure videos get widespread online attention. Virool levels the playing field, allowing a small startup to compete with giant corporations, charging affordable rates.
The company made such a splash in its early days, it brought in $6.62 million in a seed round of investing. After only eight months, the company had seen 30,000 businesses use its self-service tools, deploying affordable video campaigns that reached customers. Using the Virool platform, businesses can start a campaign for as little as $10, using the company’s expertise to increase success rates.
Virool has been described as the “Google AdWords of video,” utilizing tested methods for viral marketing. Founders spent serious time analyzing the factors that leads a video to go viral and built each of those factors into its platform. Perhaps the biggest benefit for Virool users, however, is its price. Because it’s so affordable, businesses realize they can try the service out.
One of the biggest benefits of viral video marketing is its affordability. A quick perusal of videos that have gone viral reveals that even a low-budget video can gain widespread attention. Ads don’t require fancy Hollywood special effects or professional actors to earn hundreds of thousands of Facebook shares. In fact, social media users seem to connect most with videos featuring everyday people in everyday situations, such as the recent online sensation that featured parents lip syncing a song from the hit movie Frozen.
Advertising and marketing will never be the same, as the internet continues to shake up the industry. Companies are well aware of this trend and, as a result, are shifting their advertising budgets to include not only the cost of creating a video, but the purchase of tools that can ensure that video is seen by as many people as possible.