Going “viral” starts with the right video advertising strategy

As video streaming continues to grow in popularity in APAC and more brands spend more advertising dollars on video advertising, it is increasingly crucial for brands to invest their resources in the right video advertising approach – or they risk being overcrowded and neglected, warns Kenneth Pao, Executive Managing Director, Asia-Pacific at Criteo.

Most of us have watched a new series or re-watched blockbuster movies more than ever in the past couple of years via streaming services like Netflix or Amazon Prime Video, given how the pandemic has accelerated our usage. online streaming services as we seek to stay entertained from the comfort and safety of home.

The data has spoken: global consumption of online content has rapidly doubled since the pandemic, from an average of around three hours to seven hours a day. If you watch shows through streaming services rather than those on your TV, your video consumption habits resemble the majority of consumers (two out of three) in Australia, Japan, India and South Korea.

Now that video streaming is becoming the preferred mode of entertainment in the Asia-Pacific region, brands can now reach the same audience, if not more, through online videos and video advertising.

However, with the proliferation of videos being uploaded to the Internet every day, it’s not a surefire way to successfully engage your target audience unless the proper strategy is in place. This is particularly the case in Asia-Pacific, home to a growing pool of diverse online users – for example, 40 million people in Southeast Asia went online for the first time in 2020.

Brands looking to get into video advertising may have more questions than answers, and I hope to cover a few key topics in this article. Specifically, what streaming services and video content are consumers in APAC interested in, what type of video ads do consumers prefer, does timing matter, and how can marketers encourage converting sales with relevant ads?

What are APAC consumers watching?

To formulate a winning video advertising strategy, it’s essential that brands first take a step back and focus on understanding the streaming services and content that appeal to APAC consumers.

For example, while there has been an acceleration in video viewing of all types among APAC audiences, from live video streams to on-demand videos, the State of Video and Connected TV survey from Criteo revealed that paid video streaming has seen the biggest increase in viewing – with two in three consumers saying they are watching more paid streaming services such as Netflix, Amazon Prime Video, Disney+ and Apple TV.

Major video streaming channels in Asia-Pacific include YouTube (64%), Netflix (55%) and Amazon Prime Video (30%), with one key driver being the flexibility it offers consumers to watch anytime and anywhere. More importantly, three out of four viewers in APAC use the same email to log in across all video streaming platforms, websites, and apps.

This implies that for brands to effectively reach target audiences via video streaming platforms, it will be beneficial for them to seek out the right advertising partner who can help connect viewing habits across all channels and devices to ad activities. specific online purchase using additional commercial data.

Sequence, entertainment, interaction – the qualities of a “viral” video ad

Given the growing popularity of video streaming, it’s no surprise that video advertising is the most preferred online advertising format in the APAC region. What’s surprising though is that the sequence of an ad placement can matter a lot more than you think. For example, APAC consumers prefer video ads to run after the video content (26%) rather than before (19%) or in the middle of the video content they watch (14%).

Keeping this in mind, brands need to ensure that video ads run at the right time, otherwise they risk having their video ads skipped.

Besides timing, consumers also expect their video ads to be entertaining and engaging, with two in five saying they would prefer interactive ads. To break up the ad clutter, brands should invest in interactive video ads. Take the example of Hong Kong Airlines’ virtual cabin 360-degree video advertisement, where viewers could not only learn more about cabin features by tapping on hotspots in the video, but also make reservations. flight through advertising, allowing Hong Kong Airlines to educate consumers about their services in an interactive way.

Another impressive and successful example is The Other Side campaign by Honda, a Japanese car company, where a two-stage video ad was created to allow viewers to switch between scenarios by pressing and swiping different buttons on the screen. now sunk. Given its novelty and highly interactive nature, it’s no surprise that the video ad has been very well received.

Overcome the Final Barrier to Conversion

While prior knowledge on understanding consumer preferences and best practices for creating video ads is crucial, brands often face the final hurdle: turning consumer engagement into sales conversion.

This is where personalization comes in. Did you know that if consumers understood the value of data sharing, such as the ability to receive more personalized video ads based on their recent shopping behaviors, 1 in 3 would share gladly data with advertisers? Consumers are often motivated to obtain useful and relevant information or to take advantage of an exclusive offer, based on the information they share.

The implication for brands? Make ads relevant and useful with first-party data. This way, brands can deliver relevant advertisements to addressable audiences while enhancing their first-party database with additional business data, thus having the ability to have a 360-degree view of consumers, including insights on consumer purchase intention.

Additionally, most consumers watch video ads with a “buy” mindset and are ready to browse and buy from a brand they may have just discovered. Our survey found that more than half of consumers will buy the products they see in video ads, while 3 in 5 consumers will research the products and services they see in ads.

Brands need to use a platform to engage new customers globally by enabling first-party data using privacy-by-design measures, which means creating personalized engagement for their audience.

So it’s beneficial for brands to run awareness, consideration, and conversion video campaigns with the same technology partner to move audiences from one stage of the customer journey to the next.

Improve your video advertising strategy

As video streaming continues to grow in popularity in APAC and more brands spend more advertising dollars on video advertising, it is increasingly crucial for brands to invest their resources in the right video advertising approach – or they risk being overcrowded and neglected.

I’m excited to see how video advertising in the region will continue to evolve in the new year, and I’m confident APAC brands can improve their video advertising strategy by creating timely, entertaining and interactive ads. and by first leveraging party and trade data to reach addressable audiences. Ultimately succeeded in translating consumer engagement into sales conversion.

Kenneth Pao is Executive Managing Director, Asia Pacific at Criteo