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Video, mobile, and interactivity: The new trifecta driving ROI
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Video, mobile, and interactivity: The new trifecta driving ROI

Steve Callanan

Posted on August 25, 2015

It seems that every year we hear that this is the year that both video and mobile will reach a tipping point and disrupt the industry, but what does that mean exactly? While change isn't always seismic overnight, it doesn't mean it's not happening. Although not as obvious as Instagram disrupting photography or Uber and the taxi industry, video and mobile have indeed been on the rise for some time, and their impact on how we behave and interact with content has changed the game for advertisers.

Research from comScore reveals that mobile uptake is on the rise and overtaking desktop. Smartphone penetration is now at 75 percent of the US market and changing consumption habits. As mobile uptake grows, more people than ever are watching video via their mobile devices. A smartphone is inherently connected to the internet, so it's only natural that we're starting to see more interaction there than we do on desktop in terms of viewing, clicking, and sharing video content.

It seems that every year we hear that this is the year that both video and mobile will reach a tipping point and disrupt the industry, but what does that mean exactly? While change isn't always seismic overnight, it doesn't mean it's not happening. Although not as obvious as Instagram disrupting photography or Uber and the taxi industry, video and mobile have indeed been on the rise for some time, and their impact on how we behave and interact with content has changed the game for advertisers.

Research from comScore reveals that mobile uptake is on the rise and overtaking desktop. Smartphone penetration is now at 75 percent of the US market and changing consumption habits. As mobile uptake grows, more people than ever are watching video via their mobile devices. A smartphone is inherently connected to the internet, so it's only natural that we're starting to see more interaction there than we do on desktop in terms of viewing, clicking, and sharing video content.

As a response to this trend, recent research from the IAB supports the importance of video as an advertising channel, revealing that more than two-thirds of digital marketers and agency execs expect to increase their digital video ad budgets within the next twelve months.

While these findings present a clear opportunity for advertisers, it's not enough to just throw budget at video without considering how to maximize its potential. Video content can be visually and creatively compelling but if it doesn't offer engagement with the viewer beyond passive viewing, then it's simply disconnected, without any insight into whether it's driving conversion.

Rather than forcing views via pre-roll, advertisers need to integrate brand engagement within content and make it something that viewers want to engage with as part of their experience with the content. Depending on the situation, that might be a shoppable video showing the season's latest fashions, or a trailer for a leading television show where the viewer is able to unlock additional content features and special plot points. In today's era of brand interaction, advertising can no longer simply show ads at viewers -- that's the outdated "top-down" view of advertising. Today, advertisers must earn their viewers' engagement via every interaction.

Mobile devices, in particular, are always connected and inherently conducive to interactivity. To really make an impact, mobile-optimized video advertising should allow viewers to connect with the content in a more intuitive, engaging way. As such, advertisers must think about the creative differently when creating video content for mobile. Think about creating an experience. The endgame shouldn't be just about a re-purposing a TV ad for mobile -- advertisers also have to think about the how to optimize the content itself to make it impactful on mobile.

Whether it's taking an ad and making products within it shoppable at a touch or providing interesting content features that viewers can unlock by clicking right into the video, making content engaging through interactions not only creates a bond between the consumer and the brand, but also makes measuring ROI more likely.

For example, when car brand Peugeot launched an interactive "test drive" page, it found that viewers were spending one minute, 48 seconds on average interacting with the test drive functionality, whereas viewers of the rest of Peugeot's media campaign (ads, banners, etc.), were spending only 32 seconds engaging with the brand. In other words, by making its advertising creative interactive, Peugeot saw a 237 percent increase in brand engagement. What this tells us is that essentially, video content that is not interactive is a massively missed opportunity.

Consider this: an interactive, motion-tracked video containing clickable "hotspots" creates a tangible emotional link between viewer and the object they click on. That tangible link alone generates nine times more engagement than a static link in bottom of a video frame. Diving even deeper into the numbers, we've found that 67 percent of the audience will engage with interactive videos, with an average of three interactions per viewer. Those numbers alone obliterate any traditional ads that brands rely on so much where 0 percent to 3 percent would be the best case CTR. They also demonstrate that audiences are keen to lean-forward and engage; interacting, not just once but three times on average. What other attempt to converse with consumers can match those numbers?

More than a billion videos are uploaded online every year. If even a small portion of those were interactive, it presents a massive opportunity in terms of ROI. In a market worth billions of dollars, advertisers who are able to create video experiences that are interactive have nothing to lose, and everything to gain.

ADTM