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Tag: Advertising

Video Trends: Why Sponsored Content is the Future of Digital Advertising

Video Trends: Why Sponsored Content is the Future of Digital Advertising

Video content has never been more ubiquitous, or more popular with viewers, than it is in 2017. In Q1 2017 alone, we surpassed 2.3 trillion online video views across the main social video platforms! Millions of videos are being consumed via social platforms, owned and operated websites, and across multiple advertising channels, and the medium is one of the most effective ways of reaching a target audience.

However, the proliferation of ad-blocking software installed by users poses a real threat to brands, publishers, and video advertisers. The software threatens traditional interruption advertising, such as pre-roll video, especially as mobile ad blocking reaches mainstream penetration. TV advertising is not exempt from these trends either. Younger viewers watching less TV than ever, and when they are tuning in, it’s either post-broadcast via a catch-up service, or via second screen viewing—both of which make it harder to deliver effective campaign results.

Sponsored Video is the Future

So what can video marketers and advertisers do to ensure their message reach as much of their intended audience as possible? Well, sponsored video is the fastest growing vertical in digital advertising today. According to an eMarketer survey, 48% of marketers anticipated increasing their influencer marketing spends this year to shore up their sponsored footprint, contributing to a sector that is rapidly growing and is currently estimated at $1.3 billion annually. Sponsored video content can also help bypass ad-blocking software, and help brands and publishers reach new demographics by sponsoring content from trusted influencers, and other partners.

Sponsored Video Insights: 2017

Sponsored video content has the ability to have a greater persuasive impact on viewers than a straight sales pitch. Advertisers need to cut through the noise, find the content opportunities, grow their audience, and successfully partner with brands to monetize video content. In our exclusive new insights report on sponsored video , we took a look at videos uploaded to Facebook and YouTube up to and including the March 31st 2017. Videos were selected where we believe there was an exchange of payment included in the creative and/or publishing process, i.e. there was a transaction where a partner was paid by a sponsor, to benefit the sponsor. (We consider gifts, like free products, or free hotel stays, as payment).

Download Our New Sponsored Video Insights Report Today! Get All the Latest Data on Sponsored Video Trends

There was significant growth of sponsored video content on YouTube and Facebook between April 2016 and March 2017. On YouTube, views of sponsored video content grew by 242% compared to Q1 2016, with a 57% increasing in publishers and creators uploading that type of content. On Facebook the numbers are even higher – views grew by 7390% YOY, with uploads also increasing by 4864%.

Growth of Sponsored Video Content on YouTube and Facebook – April 2016 to March 2017 (All data via Tubular)

Those numbers are incredibly impressive, but which industry verticals are pulling in the viewing and engagement numbers on the video content that’s being sponsored?

Top Sponsored Content Industries on YouTube and Facebook April 2016 to March 2017 (All data via Tubular)

On Facebook we are seeing the highest ROI in terms of views from sponsored videos via food and drink, home and DIY, and TV and movie content. In the last year, food and drink videos created in partnership with brands and publishers have averaged around 621K views. Think of publishers like Tasty,  Tastemade, or The Food Network who often collaborate with other brands, and influencers to reach a wider audience.

BuzzFeed’s Tasty US property has worked with Hersheys, Halo Top Creamery, Chobanis, Del Monte, and M&Ms over the past year to create and publish content that leverages Tasty’s 89M followers on Facebook. This collaboration with Hershey’s on this walkthrough for Marshmallow Kiss cookies generated over 17M views, and 155K shares for Tasty via Facebook. That’s nearly 17M views for a Hershey product beyond its own media properties!

Create Winning Brand Content Partnerships with Tubular DealMaker

Tubular provides independent analytics for the entire video ecosystem, allowing publishers, agencies, and brands to succeed together – growing organic audience and branded content partnerships. With our new product, Dealmaker, monetizing the social video marketplace has never been easier. DealMaker is the most comprehensive database of sponsored content on the market today, tracking over 140K sponsored videos, 30K campaigns, 15K brand sponsors, and 15K content partners. Built by Tubular for all media companies & publishers, DealMaker arms you with the intelligence you need to sell more deals and grow revenue.

Download Our Sponsored Video Content Insights Report: You May Qualify a Free Trial of Dealmaker!

We’ll be taking a deep dive into the new Sponsored Video Insights Report over the next few weeks. If you want to get your hands on a copy right now – and find how you can use Tubular to determine which sponsors or partners to work with – just click the button below.

Download Our New Sponsored Video Insights Report Today! Get All the Latest Data on Sponsored Video Trends

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Why Paying Celebrity Influencers $500,000 for a #Sponsored Video Ad May Not Give You the Best ROI [Advertising Week 2017]

Why Paying Celebrity Influencers $500,000 for a #Sponsored Video Ad May Not Give You the Best ROI [Advertising Week 2017]

On Monday, I attended several sessions at Advertising Week, including #Sponsored and The Rise of Celebrity Influencers for Subscription & E-Commerce Marketing. If you want the read the top news stories from Advertising Week, I can recommend Adweek’s coverage of the event. But, you already know that Tubular Insights is no longer be reporting news. Instead, we are focusing on delivering strategic insights, critical data, tactical advice, and trends in the digital video marketing business. And the biggest epiphany that I experienced while listening to panelists talk about #Sponsored content and the value of celebrity influencer marketing for small businesses, subscription boxes and services, and e-commerce was the answer to this question: “Is it worth paying Kim Kardashian West $500,000 for a #sponsored #ad?”

Celebrity Influencers & Sponsored Content

Now, no one actually mentioned Kimberly Kardashian West during the sessions that I attended. But, none of the influencers on any of the panels that I attended disclosed how much they get paid by brands to create a sponsored video. But in the session moderated by Ashley Iaconetti, a reality TV personality who first appeared on ABC’s The Bachelor, it became clear why Paul Desisto, a senior talent agent at Central Entertainment Group (CEG), Jolie Jankowitz, the Director of Influencer Marketing for FabFitFun, and Caitlin McLarnon, the Growth Marketing Manager of the US division of HelloFresh, have all worked with Ashley before and would love to work with her again.

Yes, Iaconetti is a fan favorite because she is very open with her emotions. But, CEG’s clients, FabFitFun, and HelloFresh are all trying to leverage influencers to improve their company’s bottom line. And Iaconetti provides a better return on marketing investment (ROMI) than Kardashian West, who is also a reality television personality, would. Wait! How do I know that? Nobody even mentioned Kim Kardashian West during the session on The Rise of Celebrity Influencers for Subscription & E-Commerce Marketing. And nobody mentioned what they had paid or would pay Ashely Iaconetti, either. But, we do know what the Kardashians ask for.

According to “This Is How Much the Kardashians Get Paid for One Instagram Post,” by Sarah Karmali in Harper’s Bazaar UK, Michael Heller, the CEO of digital-marketing firm Talent Resources – the company that arranges many of the reality-TV family’s deals – told US Weekly that some companies have been known to pay up to $500,000 to get access to Kim Kardashian’s (103.3 million) Instagram followers, while sisters Khloé and Kourtney can earn up to $250,000 a post.” (They have 69.1 million and 58.7 million followers respectively).

So, there you have it: You could call it the Kardashian Standard. But, it should come with the following warning: This is what you’d have to pay if you measure influencers on only one dimension: Reach.

Engagement: The Influencer Metric That Matters

But, Desisto, Jankowitz, and McLarnon don’t use any of the Kardashians. But, they all use Iaconetti. Why? Because they measure more than reach; they also measure engagement. And based on my analysis of what they did and didn’t say during the session, they know how to calculate ROMI.

Now, return on marketing investment (ROMI) is calculated using a different formula than the typical return-on-investment (ROI) formulas that most chief financial officers (CFOs) use. It’s different because ROMI measures operational expenditures (OPEX), while ROI measures capital expenditures (CAPEX). But, the amount spent on marketing is typically expensed in the current period (quarter); it isn’t “tied up” in plants and inventory. So, when most CFOs ask their chief marketing officers (CMOs) to report the ROI of an influencer marketing campaign, they’re asking for the wrong measure of success.

Here’s the formula for calculating ROMI: / Marketing Spending ($).

So, Kim Kardashian West charges brands $500,000 for a single Instagram video post like this one. It appeared Aug. 22, 2016, and got more than 16 million views.

Instagram Photo

Well, SugarBearHair, the sponsor of Kim’s Instagram post, charges $79.99 for a 3-month supply of Gummy Hair Vitamins. And, let’s say that SugarBearHair’s contribution margin is 50%. This is a scientific wild ass guess (SWAG). So, Kim’s #ad needed to generate over 25,000 orders to deliver $2 million in incremental revenue – / $500,000 – for SugarBearHair to get an ROMI of 1. In plain English, Kim’s Instagram post needed to generate $2 million in orders for SugarBearHair to see $1 in profit for every $1 it spent on her sponsored content. Usually, marketing spending will be deemed as justified if the ROMI is positive.

But, what if Desisto, Jankowitz, and McLarnon had identified 10 micro-influencers who didn’t have Kim’s reach, but had an even greater impact on the purchase decisions of their followers. And let’s say they paid these micro-influencers an average of $25,000 apiece to generate $3 million in orders. Do the math and you’d get / $250,000 = an ROMI of 5. In other words, they got $5 in profit for every $1 they spent on sponsored content. Yes, it took more work to find 10 micro-influencers with above average engagement rates, but that effort resulted in more revenue and higher profits.

That’s the strategic insight that I had while listening to panelists talk about #Sponsored content and the value of celebrity influencer marketing for small businesses, subscription boxes and services, and e-commerce. That’s the biggest takeaway that I’ve had so far from Advertising Week. Let me know what you think about my big epiphany. Share your thoughts on Facebook or Twitter.


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Top 12 Sessions the Video Industry Needs to Take Notice of at Advertising Week 2017

Top 12 Sessions the Video Industry Needs to Take Notice of at Advertising Week 2017Advertising Week kicks off on September 25th in New York City, and we highlight the 12 sessions that video industry professionals shouldn't miss.

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3 Reasons Why Reddit’s Video Advertising Is a Big Deal

If you are a marketer who has resisted Reddit until now, this might be a good time to reconsider: The site recently added video advertising to the mix for select clients. Reddit is a real internet powerhouse and there’s probably no better platform for launching a would-be viral ad...


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It’s Not YouTube’s Fault: Blame the ‘Magazine Format’ for the State of Video Advertising

It’s Not YouTube’s Fault: Blame the ‘Magazine Format’ for the State of Video AdvertisingVideo advertising has its roots in the 'magazine format' used to sell ads in the early days of TV. YouTube is just making it work for the digital video marketing business.

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Super Bowl Commercials Are Just the Tip of the Iceberg in Video Advertising

Super Bowl Commercials Are Just the Tip of the Iceberg in Video AdvertisingSuper Bowl Sunday is a true marketing and advertising tent-pole event that starts right after the NFC and AFC Championship games and lasts around a fortnight. That also means that the Super Bowl commercials seen on TV are only the tip of the digital video advertising iceberg.

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Super Bowl Commercials Are Just the Tip of the Iceberg in Video Advertising

Super Bowl Commercials Are Just the Tip of the Iceberg in Video AdvertisingSuper Bowl Sunday is a true marketing and advertising tent-pole event that starts right after the NFC and AFC Championship games and lasts around a fortnight. That also means that the Super Bowl commercials seen on TV are only the tip of the digital video advertising iceberg.

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Playwire Video Player Launches Header Bidding Capabilities For Web Video Advertising

Playwire, an online video marketing player and platform, announced launched video header bidding capabilities, making it the first to market header bidding for web video advertising. Since an initial integration of header bidding the company’s publishing partners have seen an 85% lift in revenue, when comparing indirect campaigns to advertisers that use this technology.By letting multiple demand sources bid on the same inventory at the same time, publishers have the potential to increase...


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