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HomeSales and MarketingAdvertisingAn Analysis by Growth Expert Laurent Zahut on the Profitability of Video...

An Analysis by Growth Expert Laurent Zahut on the Profitability of Video Ads

Photo by Austin Distel on Unsplash

Video ads have become a vital part of most successful marketing campaigns and are the dominant means of online advertising. A term that can be used to describe a successful video is profitable. However, this term has far too many components to outline directly and needs further breaking down. Video ads are the most effective visual tool in an ad campaign. The purpose of an online video ad can be broken down into three categories; promote new content, drive traffic to the website, and increase website conversions. Increasing either of these or a combination would deem the ad successful. The following is an outline of factors that need to be addressed during the production and publishing of said video ad to improve its performance and likelihood of successfully achieving the three previously mentioned components.

Steps and components to a successful video

Video length is a vital component of its success. Being concise and hooking the viewer from the start is essential according to marketing strategists. Often, only a few seconds of the video are watched as it is easy to skip, a common limitation for “in-feed” videos and skippable ads on platforms such as YouTube. In fact, if the viewer makes it past the initial few seconds, the video still only has approximately 30 seconds to convey the message and convince the viewer, underlining the need for the video to be impactful, using staple advertising techniques to bring value to the customer through either educating or entertaining the viewer.

Other technical aspects of the video include cinematography and description. Both have to be intriguing and stimulating to the viewer with the description and title also playing an important role as they must aim to utilize trending keywords, increasing the likelihood of social media algorithms sharing the video with the right audience. In addition to this, elements such as landscape orientation, a quality that Facebook’s marketing team suggests videos should have or be designed to still be captivating without any sound are also important.

A multi-platform approach

An element that has become increasingly important when planning and producing a video is the ability to be successful across a range of social media platforms. Relating back to the goal of producing a profitable video, this is far more likely to be achieved if a video can be shared on a number of outlets. With the likes of TikTok, Instagram reels, and YouTube shorts, entire videos, or segments of the full-length video, are key and vastly important to boost the success of the campaign. 

Example of a great video

As a case study to outline all these events in practice, we can look at some examples that have proven to get great audience approval, high outreach, and in return be profitable. The first example is the video run by Mila Air which can be found here. It is evident how the video addresses the previously mentioned components for a video, being short, impactful, descriptive, and accommodating for challenges such as lack of sound with the orientation as size allowing it to be shared on a number of platforms. In addition, similar videos or iterations of the same one were shared on their other platforms such as Instagram in the form of Instagram reels.

Budget considerations

When looking at how to make a successful and profitable video advertising campaign and video, the budget must be discussed. At the end of the day, the equation is simple; a lower budget with a higher view count that eventually leads to conversions and sales would be deemed more profitable.

In many cases, videos do not have to have astronomical budgets to be deemed successful. However, this is very relative and a big budget certainly does help but the scale of the brand or products that are being promoted must be taken into consideration. There are a number of ways a video can be structured to cost less and appeal to viewers. Interestingly, research has shown that in some cases a video with a lower budget can appeal to a person more, as overly polished and expensive videos can distance themselves from a perspective that a viewer would relate to.

In turn, a video that tells a story or explains the product/story can be produced for less and still achieves that connection with the viewer. When it comes to production, in particular, animated videos have shown that costs can be cut with no spending on sets and actors and still produce similar results as software has become more accessible and less expensive.

In summary, there is a clear roadmap or checklist for online video ads to follow. Of course, this process can be far more complex, with additional challenges at each stage or platform and different for a specific product or service. However, for a video to be profitable, high conversion rates and user interest with low marketing spending are fundamental at the root of it.

By the way, who is Laurent Zahut?

From a child passionate about dark rooms to a dedicated and innovative producer, Laurent Zahut has established himself as an active and respected figure in the French and international film industry.

Expert in marketing and advertising, he has worked with the giants of the industry (Disney and Paramount, to name a few). He has also produced film posters, directed documentaries and animated shorts. Passionate about the world of fashion, Laurent now offers his extensive expertise as a consultant in entertainment and business.

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