A Business Perspective on the Impact of Production Quality on Video Advertising

A Business Perspective on the Impact of Production Quality on Video Advertising

When it comes to video advertising, Wistia, a video software company, found other factors drive impact more so than the production cost. In their recently released report, “Does Production Quality Matter in Video Advertising?”, the Wistia team concluded that large and small businesses alike need to consider more than price before they assume video advertising exceeds their market budget. They used similar audience targeting and ad copy for each and launched the ads on YouTube and Facebook. The advertising budget for this study was split across three ad types that included direct response video ads, sequential ads and video carousel ads. Related: The Future of Video Advertising Is Artificial Intelligence Key Findings Here’s what they discovered after conducting the research: Storytelling means more: Results showed that the $10,000 video performed twice as well as the other two videos. Video production doesn’t need to be polished: The results showed that the iPhone ad performed just as well and sometimes better than the video that included Hollywood actors and film crew. For example, Wistia spent $1.09 on Facebook to get one viewer to watch 25 percent of the $1,000 ad and $1.53 to get the same impression for the $100,000 ad. The conclusion was that there isn’t enough return on the investment to necessarily justify spending $100,000. Instead, all businesses should focus on developing compelling stories for their target audiences versus production quality. With that in mind, Wistia shared some advice for how to approach video advertising in 2019: Start with a small video advertising budget and focus on creating the content over the production cost.

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A Business Perspective on the Impact of Production Quality on Video Advertising

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The adage, “you get what you pay for,” doesn’t always hold true. When it comes to video advertising, Wistia, a video software company, found other factors drive impact more so than the production cost.

In their recently released report, “Does Production Quality Matter in Video Advertising?”, the Wistia team concluded that large and small businesses alike need to consider more than price before they assume video advertising exceeds their market budget.

Research Method

Wistia wanted to answer the following question: Do companies have to spend hundreds of thousands of dollars on video production to get a return or can they use something as simple and low-cost as an iPhone to create compelling ads that engage viewers?

To find out, they worked with Sandwich Video to create three two-minute videos for Wistia’s video creation tool, Soapbox. They used similar audience targeting and ad copy for each and launched the ads on YouTube and Facebook. However, each of the three videos was produced for a very different price: $1,000, $10,000, and $100,000.

The research focused on two key performance indicators (KPIs). There were Cost Per Install and Cost Per 25 percent View. These KPIs provided a way to calculate the return on investment (ROI) as easily as possible plus directly relates to a company’s bottom line.

The advertising budget for this study was split across three ad types that included direct response video ads, sequential ads and video carousel ads. For example, with sequential advertising, a person viewed the $1,000 ad, then they would be shown the $10,000 ad next, and so on. They also used the Facebook carousel ad format, which allowed all three videos appear at once so that viewers could watch and compare each one.

In terms of targeting, Wistia used two core targets on Facebook, which were lookalike audience based on a customer match and an engagement audience targeting those audience members who tended to watch less than 75 percent of another video.

With YouTube, the targeting strategy varied from the one used for Facebook due to the more complex nature of this video platform. The focus was in-market audiences who previously searched for advertising, marketing, or video software in Google; custom intent based on non-brand…

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