When the PVR first dropped it was the best thing that could happen. We got so used to commercials growing up it wasn’t even a thought on how much time we were spending getting marketed to.
The ability to fast forward through commercials when the PVR dropped changed the game. Then once streaming started it was another step up: no commercials at all. There’s been predictions for the last 5 years that video will dominate the internet by 2020. On demand video is what younger demographics are interested in.
According to studies, 55% of teens (one of the primary demographics we target in our work here at Splash Effect) said they didn’t see a need for a cable subscription. In fact, according to this report they are watching about twice as much Netflix as live TV and they watch even more Youtube. On average, they’re spending 34% of their video time watching Youtube compared to 27% watching Netflix.
So naturally, marketers followed them to where they are. It started with optional Youtube Ads and then it moved to ads you can’t skip.
The latest venture into this space is Facebook Video Ads right smack dab in the middle of videos in your news feed (and they always seem to start right before the most important part of the video!).
Advertisers are concerned now about the effectiveness of their videos, specifically getting at least 2 seconds of view time on their videos so they can officially register an impression.
If you consider the fact that users scroll through their feeds 41% faster on mobile than on desktop it will be a tough sell, but the fact they can’t be skipped and that they’re super short form (5-15 seconds) they are going to start seeing some return on investment.
The fact that most of their revenue comes from ads and that 85% of ad revenue comes from mobile, they’ve cornered the market and have made it a mandatory view. What’s really interesting about this is how they leveraged traditional TV data to make this play.
Facebook tracked usage of a sample of users during a premiere of a major TV show. Here are the results:
See those spikes? Those are the commercial breaks. Now those potential customers will be spending their commercial breaks now … watching similar ads on Facebook.
We spent the last 10 years getting away from commercials only to have it right back in front of us. We might as well embrace the fact that marketing will always find its way back to us.