U.K. digital video advertising is rapidly catching up with TV and is projected to become a £1.9 billion industry by 2020. As the major social platforms vie for dominance with new video ad products, brands face tough choices about where to invest. L2’s recent briefings in London, Geneva, and Paris provided insight into the pros and cons of those platforms, which are summed up in the event recap.
YouTube: Scale at cost
With over a billion users, YouTube continues to offer unparalleled scale. However, to reach a significant portion of those viewers, brands need to back videos with substantial spend. The average video with more than 47,000 views receives 62% of those views from advertising, according to L2 research. And while celebrity influencers and YouTube vloggers help brands amplify their reach by tapping into larger, more engaged communities, these partnerships also come at a cost.
Facebook: Sugar rush
Unlike YouTube, where videos have long shelf lives, video advertising on Facebook provides a short-term boost. For example, Kate Spade garnered eight times more views on Facebook than YouTube for the season premiere of its Miss Adventure Series. Meanwhile, Luxury brands have excelled organically, often focusing on product details.
Instagram: Risky trend
Video content does not perform as well as static photo content. Top-performing Instagram videos tend to be either slightly animated shorts or montages of static photos, rather than repurposed television collateral as on YouTube or Facebook. However, since Instagram increased video length to 30 seconds, brands have jumped on the bandwagon. Uploads of videos from Luxury brands have grown 172%, Activewear uploads have grown 154%, and Retail brand uploads have grown 129%.
Snapchat & Instagram Stories: Alternative platforms
Large video advertisers, traditionally dominant on television, have transitioned that dominance to Snapchat. For example, L’Oréal Group has invested heavily in video ads on the platform, accounting for 16% of all Snapchat videos. However, Instagram’s launch of Stories could represent a serious threat. A recent Nike campaign received just 66,000 views on Snapchat, compared to 800,000 on Instagram Stories.