As more customers leave television behind while spending increasing amounts of time on computers and phones this year, brands and chief marketing officers are rethinking how to reach them. Marketing budgets across every industry are shifting from traditional measured media (network commercials) and investing more in search engine optimization and marketing, and social media and digital display ads.
Cost of Network vs. Digital
It’s imperative that a CMO understand how video fits into a larger campaign. While some brands focus heavily on buying commercial slots in prime time, using digital distribution exclusively often can be far less expensive and much more effective. Take a quick look at Nike’s YouTube channel where you can see views ranging from tens of thousands to tens of millions. Distribution on YouTube is free, whereas the same number of views on TV would cost millions of dollars.
Nike Case Study
Why is Nike so successful? The company understands its customers, who are primarily young, athletic and spend most of their time on the phone or online. Nike puts its content where customers can find it easily. Its videos are short, entertaining and consumable. The content is of two distinct types:
- Big-budget videos with celebrities and beautiful graphics. These are meant to align the brand with sport stars (influencers) followed by the target audience.
- Educational or entertaining, meant to bring back viewers consistently. Less expensive, they are easier to produce and always on brand.
Don’t Be Left Behind
Although Nike is a great example of a large company that uses digital media, others are also doing this successfully. Nearly every CMO understands the power of digital videos and in 2016, more money will be spent creating these videos than ever before.