Reid Genauer, CMO, Magisto, explains the shift in how marketers using video in social media vs. traditional media landscape
The social media marketing industry is booming as budgets have doubled worldwide over the past two years from $16 billion in 2014 to $31 billion in 2016. And video has become the centerfold of social media. But what is different in 2018 is that there are companies who are navigating this complex landscape with success. Marketers have shifted from traditional media to social media as the preferred way to engage customers, capture elusive consumer attention and achieve marketing objectives through social video.
A Portal For Personification and Authenticity
Unlike traditional media, social media is a world designed for humans, not businesses, to expresses themselves. It’s no longer good enough to sell a great product. Businesses now must also have an ethos that resonates with customers . Traditional marketing channels are quickly becoming detached from the conversation of modern consumers. Social media has forced businesses to express not just what they sell, but who they are.
In order to scale authenticity, companies are using social video to connect with customers as personas rather than faceless organizations. Earned and owned media are gaining importance as marketers continue to use their own websites and social platforms to help share their ideas and personality. You can no longer buy awareness because the volume of earned and owned media being generated is so massive that traditional media buying and advertising no longer cuts through the clutter .
Companies are using customer testimonial videos, event recaps and branded storytelling videos (i.e., content marketing) to reach and authentically engage with customers. Through these tactics, businesses of all sizes are humanizing their message and making themselves more relevant and engaging in the social era. Earned and owned channels are becoming paramount for businesses, and paid and traditional media are quickly becoming legacy tactics. Today’s consumers are savvy and know when they’re being sold to, and they’re craving authenticity and personal conversation.
Standing Out in a Sea of Sameness
Consumers must contend with a maelstrom of information and media coming in from a multitude of sources. The vast majority of this user-generated content comes from friends and family which garners most the users’ attention. Businesses have to compete against friends and family for the customer’s attention – a game of both quantity and quality of information. This leaves businesses grappling to capture even seconds of attention and then struggling to convert that attention into recurring engagement and relationships.
This has created an Attention Economy which, as with any economy, has two sides. Consumers need to feel like they’re getting value in return for giving a business their attention, and businesses need to convert that attention into recurring engagement. If a brand captures consumer attention and offers little more than a sales pitch, nothing is gained from that attention. In order to capture consumer attention and create ROA (Return on Attention), businesses have to shift from the sale to the story and create a place for themselves among the personal networks that make up social media.
One Metric to Rule Them All
Social video is also becoming a one-stop-shop for achieving marketing objectives. Historically, there were two dominant metrics for measuring success: brand recall for traditional media and cost per acquisition (CPA) for acquisition marketing. Interestingly, marketers are now looking at engagement as the leading KPI of success in social video. View-through rates, engagement and shares all indicate that the content they are creating is cutting through the noise and resonating with audiences.
Borrowing from Moonves to Pay Zuckerberg
It’s clear that marketers are now focusing on social versus traditional media, but how are they paying for it? Not surprisingly, half of U.S. businesses are repurposing traditional media budgets from TV, print and radio to fund social video. Even more telling is the fact that 37% of businesses are taking money from existing digital media budgets just to fund video. This comes as no surprise as 95% of millennials follow a company via social media and 74% of all Internet traffic is driven by video .
The New Landscape
Businesses have a number of options when it comes to combating the challenge of being seen and embraced within the growing melee of the social attention economy. But the challenge is not just finding your audience and being seen, but more importantly creating value in the form of inspiration, emotion, education or entertainment. This is what creates meaningful engagement and ROA. One of the most powerful ways for businesses to increase the signal-to-noise ratio is social video content, which combines the power of story with the efficacy of digital advertising.
This is the challenge to businesses today — to re-imagine their conversation with their customers, to re-think the way they engage them, and to move away from highly scripted marketing content to the type of personal, everyday social interaction that fosters engagement today.