A Big Opportunity to Level the Playing Field
What: There's an opportunity for online video to drive Hispanic media, as, on average, Hispanics watch more online videos compared to the U.S. consumer. Cisco forecasts that by 2016 two-thirds of mobile traffic will be video viewing, and approximately 70% of advertising spending targeting Hispanics is spent in television.
Why it matters: There's such high growth potential in online video – they're the highest CPM in digital advertising – and Facebook seeks between US $1-2.4 million a day for its in-feed video ad feature. For online video to become a revenue driver for Hispanic media, the content should not be recycled and repurposed – rather, the content needs to be creative in its own way.
The strong growth of online video usage and advertising has interesting implications for the Hispanic market. On average, each U.S. Hispanic person watched 1,176.2 minutes (over 19 hours) of online video in March of this year, according to ComScore data. As importantly, Hispanics watch more online videos per viewer than the average U.S. consumer (270 per month vs. 243 for the U.S. consumer). Mobile communications, so pervasive among Hispanics, are also being driven by video consumption. In fact, Cisco forecasts that by 2016 two-thirds of mobile traffic will be video viewing. Online video offers digital extensions of Hispanic radio, print media and pure play digital properties a chance to level the playing ﬁeld in the traditionally broadcast advertising oriented Hispanic market. Approximately 70% of advertising expenditures targeting Hispanics goes into TV.
Online Video Advertising Offers Non TV Media a Chance in the Broadcast TV Oriented Hispanic Ad Market.
Online Video CPMs (cost per thousand viewers) are the highest in digital advertising, usually three to four times as high as display advertising CPM’s. This explains why Facebook is seeking between US $1 million and US $2.4 million a day for its new in-feed video ad feature. Because of the high growth prospects of online video advertising, a whole new ecosystem of video advertising placement ﬁrms, which also provide comprehensive audience data insights and RTB (Real-Time Bidding) and video content producers, has emerged. It includes companies such as Vevo, Hulu, Google’s YouTube, Machinima, Videology, TubeMogul and Adap.tv.
For online video really to become a revenue driver for Hispanic media properties it is crucial that it does not just become a way to repurpose broadcast content. The key is to invest in creative that is native to the digital medium. “As clients are not investing in creative, but just repurposing video, I believe there is a lost opportunity to make better ads, to connect better with the audience and tell better stories as we are not limited to smaller spots,” says Xavier Mantilla, Partner and Client Manager at UM in Miami.
We Need to Invest in This and Not Just Repurpose Videos.
According to Mantilla, while online video may be a media buy, at heart, it is a creative piece. If media agencies got more together with creative agencies, these would be much more successful. He adds that, “when we look at video campaigns that have had higher click-through rates we realize that the creative played a very big role, as well as where it was running, so this fusion of art and science needs to grow. The next big opportunity is to generate localized video advertising to speak to an audience from its natural point of view.” The local nature of newspapers and radio can make them a particularly good ﬁt for a new wave of localized online video ads. But as Mantilla concludes, “We need to invest in this and not just repurpose videos.”