Greetings! My name is Agam Berry, and I am a serial entrepreneur. My latest venture is an e-commerce company called Quantified Commerce. Social media is a big part of what we do at Quantified Commerce because it is a cheaper, more efficient way to promote any company’s product or service. Facebook video ads are the future of advertising for many reasons, three of which I share below:
1. Digital Ad Spending Is Now Beating Out Traditional Ad Spending
The era of flipping through television channels when you’re bored are over. Today, people are much more likely to check their Twitter feeds on their phone, watch a video on YouTube or Facebook, or tune into their favorite “non-traditional celebrity.”
The reason why is simple: choice. The internet gets more new content every 30 days than major TV networks have produced in 30 years. With that kind of variety, nobody needs to settle. That creates a more engaged audience that advertisers would be foolish not to target.
As a result, 2017 was the first year that digital advertising out-spent their more traditional counterparts on television. This trend will only continue in the future, especially on the Facebook platform, which I recently shared with Ad Age in India.
2. Streaming Services Like Facebook Are Replacing Traditional Cable
Speaking of Facebook, it’s become much more than a place to connect with old friends you haven’t thought about in 10 years. Their Facebook Live platform allows influencers to “go live” and talk to their audience in real time, promoting a level of audience engagement that simply isn’t possible on TV.
Sports are also being broadcast live on the social media platform, in which my colleague Ryan Andreas recently shared in an article. For example, Major League Baseball (MLB) started airing a “Facebook Game of the Week” in 2018, allowing fans to watch and comment on an exclusive game not broadcast nationally anywhere else. This promotes engagement while also eliminating live sports as a reason to maintain a traditional cable setup.
3. Costs Significantly Less Than Traditional Advertising
Best of all, the lower volume of people watching any individual video ad means that they’re much cheaper than traditional TV spots. Ads are generally sold based on viewers, but only a small portion of the viewers of a television program are potential customers for any given business. This introduces a lot of waste as companies pay to reach people they have no realistic chance of converting into sales.
Television viewership is also on the decline. One recent poll found that 84 percent of viewers want to skip TV commercials entirely, while 60 percent record all of their favorite shows for the privilege of doing so. While traditional TV ads haven’t died yet, the medium is clearly entering a deep decline phase.
In contrast, the smaller, more focused audiences associated with Facebook video ads are much more convertible than more generic TV audiences. Roughly half of all time spent on the internet is spent watching video content, a statistic that only figures to increase as more of the world gains solid internet access. Check out Ryan’s thoughts on these stats in this recent article.
Since so many modern companies have an e-commerce component, online ads can also improve conversion rates by including a convenient link to the company’s website. Good luck doing that on a traditional TV show!