Consumer Driven Future

  • by September 29, 2011
One doesn't need to gaze to deeply into the crystal ball to see that the future of online video is consumer-driven. People don't like advertising, and they are increasingly empowered to avoid it. This reality will necessitate change and innovation. In fact, brands that engage consumers are already reaping the benefits.

According to a recent study by VivaKi, click-through rates (CTRs) for videos that do not interrupt users are 106 percent higher than standard pre-roll, while lift in ad recall is 290 percent higher.

The social video campaigns my company runs deliver 70-80 percent completion rates - for videos up to three minutes long - and average CTRs blow away pre-roll at an average of 5-7 percent.

Additionally, social video campaigns work on a cost-per-engagement basis. This performance-based model delivers significantly more value than the old-style reach- and-frequency stuff, providing further impetus for brands to move in this direction.

The lesson? When you respect consumers and meet them on their terms you get rich, measurable results. This doesn't mean that CPM-based awareness campaigns are going away. Traditional pre-roll is still an excellent value compared to television. Going forward, however, we see brands finally moving away from the 1940's-era interruption model, and embracing direct, two-way consumer communications.

Mitchell Reichgut is founder and CEO of Jun Group, a social video company.

2 comments about "Consumer Driven Future".
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  1. Evan Petty from Snowman Productions, LLC, September 30, 2011 at 1:33 p.m.

    I totally agree, and I see some smart Brands already creating engaging video content. They are still in the minority, though, and it's going to take some time to wean the majority of brands off the traditional interuptive advertising model. But the sooner it happens the better for everyone involved.

    I've been writing about the same shift in tactics on my blog:

  2. Rhonda Campbell from NA, September 30, 2011 at 2:33 p.m.

    Agree. Folks, even creative business leaders, are getting "fed up" with seeing ads everywhere they turn. Flip on the television -- ads. Open a magazine or newspaper -- ads. Turn on the radio - ads. Now you can't click on hardly any part of the Internet and not see ads. Over time, it's gonna come down to building authentic relationships which I thought life was about anyway.


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