Tracking ROI (Return on Investment): Digital Video Advertisement vs. Video Marketing

At Skillman Video Group we always try to stay on top of the latest trends in online video and media.  One of the trends we have seen many advertisers and major players in the digital video arena use is a term called “Digital Video Advertising” or DVA.  DVA is an industry term for traditional “TV” advertisements/commercials tacked onto the beginning of web videos.  With the emergence of websites like Hulu, which allows audiences to watch television shows for free, advertisers realize that they must try and reach those online audiences.   Most recently, Break Media and Advertiser Perceptions inc. teamed up and conducted a study focusing on the use of Digital Video Advertising (DVA). However the overall finding of this study shows that ad agencies and their clients have had very little success with using DVA and have cut their budgets drastically in 2011.

An important section to pay attention to in the study is the part highlighting the reasons why advertisers are weary to spend more of their budget on DVA. The number one identified problem is that it is difficult for advertisers to track ROI (Return on Investment). Although their commercials may air during an online video, they have no way of knowing if people are watching or paying attention and the impact it is having. Overall 41% of advertisers claim bad ROI measurement as the biggest issue with DVA and the reason why they are reluctant to utilize the practice more often.  Why is this?  Because traditional TV and radio methodologies for advertising do not work as well in this new world of online video marketing.

At Skillman Video Group the focus is online video marketing as opposed to creating a traditional “TV” commercial using DVA. The use of video on the web has blown open the world of possibilities for marketing and advertising and traditional TV and radio ads are no longer giving businesses the return on investment they once did.  For one, online video marketing allows businesses and service providers an opportunity to express who they are and what they do over a 2 – 3  minutes as opposed to 15-30 seconds.  Another big difference between DVA and video marketing is that with Google Analytics, we can track almost immediately how well an online video is doing. We can know important statistics such as how many people are viewing a video and how long they are watching it for.   Another important distinction is that people willingly choose to watch these marketing videos as opposed to DVA where they are forced to sit through a commercial and may or may not pay attention. So in this regard ROI can be analyzed and companies can know that they are getting results and people are viewing these videos to learn about their product/service!  Give Skillman Video Group today to learn how video marketing can help your business grow in 2011!