Video ads are on the rise. Worldwide, spending on video ads reached $91 billion (Statista) in 2022, and it is expected to reach $120 billion by 2024. This means that not only are brands in love with video ads, but consumers are also more likely to click and convert.
The world of marketing moves quickly, and it can be challenging to identify which trends will dominate the market. Just as programmatic advertising took the marketing world by storm, performance video is poised to follow the same path.
Digital video content is already booming, but it's not too late to jump on the performance video trend. A fundamental tool that will help achieve better results, as Google indicates: "Video advertising has changed. It's no longer just about brand awareness and reach. It has become an effective and easy-to-use tool for performance campaigns."
Let's explore its key features.
Like any other area of marketing, performance video results are measured through data analysis and adjustments. Companies producing performance videos start with an idea they believe will engage their audience, then measure what works and what doesn't in the ad. If an ad has a good click-through rate but a low conversion rate, marketers simply make adjustments to see if simple changes can make a difference.
Higher Conversion Rates
Performance video ads generate much higher conversion rates compared to other ads. This is because the ads are tailored to the target audience. As such, ads not only fully address the needs of the target audience but also speak directly to the target customers.
Additionally, in performance videos, even the delivery tone and CTAs are optimized for the audience. Depending on the target demographic, advertisers can ask viewers to click for more information or buy now. This is different from traditional ads that rely primarily on brand recall; performance videos allow viewers to truly interact with the brand.
Reaching New Audiences
One reason traditional video ads sometimes fail is that they try to appeal to everyone. Brands use generic language and send "one-size-fits-all" messages in an attempt to reach as many people as possible. It's not easy to penetrate new markets and reach new audiences with generalized messages, especially in the digital age.
Performance ads are different. Instead of trying to catch everyone, the video will target a very specific audience. If it's a product video, the advertiser can focus on how the product would benefit that specific audience. It's easier to address key pain points this way, which also makes it easier to enter new markets.
Adaptable to New Platforms
Finally, performance video ads are more adaptable to new platforms as they emerge. The digital marketing space continues to expand every day. There are over 200 medium to large-sized social networks, for example. Then there are other content platforms like webinars, forums, websites, blogs, and more.
Compared to traditional videos, performance video ads are much easier to adapt to these marketing platforms. Whether you're looking to establish a presence on Pinterest or TikTok, you can target narrower audiences using performance ads.
For various reasons, performance videos are gaining popularity on TikTok. TikTok clips are 15 to 60 seconds long, which fits perfectly with quick video advertising. And because many videos on the site are intentionally low quality, brands can keep production costs low by minimizing editing, working with amateur actors and actresses, and creating an organic and DIY aesthetic.
Performance video may be new to the marketing world, but it's about to become one of the most important tools. Personalization will only become more important in marketing, and brands need to create videos that appeal to smaller audiences to stay ahead. By presenting more relevant content in an easily packageable format, performance video is perfect for the current market.