Tune in to the most recent episode of our Church Butler Lunch and Learn Podcast with our host Kenny Jahng!
In this episode, Kenny discusses the changes that are happening in the digital advertising world. He will talk about advertising in social media and the engagement that is happening.
TRANSCRIPTION:
It’s that time again. It’s time for the Church Butler Lunch & Learn hour, we are here with a continuation of a conversation that we started in the last episode. If you haven’t listened to the last episode, you might want to check that out. I’ll go back to the Church Butler Lunch & Learn Podcast because we talked about the shifts in consumer behavior as it relates to media and technology and how the digital platforms are really changing the landscape.
One reason I want to share that is because it’s really important to look at the change in behavior of the people you’re trying to reach in your communities as a church communicator, and the more you understand their behaviors, where they’re hanging out, not just physically but also digitally or with their intention as we call this is an intention economy that we’re in today, it will serve you in a way that you can be much more strategic in how to show up in a relevant way, and also in the right places.
We use the presentation from Business Insider, and we share a couple of the highlights from that presentation, and I ended the last episode with this teaser slide. It was talking about where the ad revenue is being spent online today, and they called it duopoly because pretty much everybody is going to Google and Facebook just like we used to frame it, or people think about if you have a website, if you’re not listed in Google, you’re basically nonexistent because Google owns search very much the same way Facebook is the social giant.
If you are looking at ad expenditures, people are seeing that these two platforms are the most efficient place to spend your dollars and that’s going to change or impact a lot of decisions for you as a church communicator if you’re going to actually invest in digital advertising to reach your people which is inevitable, you’re going to need to start to understand these tools if you haven’t dipped your toe in digital and social ads. In the next several years just like every other traditional media ad outlet has matured, these two are going to mature even further and new ones are going to arrive that you’re going to need to start to think about.
Thinking and looking at the behavior of advertisers and publishers, it’s something that you really should wrap your head around as well. Here’s one thing that’s really interesting. Digital audio advertising is accelerating also. Everyone thinks that podcast is the new thing and it… The podcast is the thing, but it’s just isn’t new. It just has seen continued growth. It feels like it’s coming back into fashion. But if you talk to my friend over at… Rob at Libsyn, he has stats to show that basically there’s just been a continuous growth in podcast consumption hence obviously advertisers are paying attention because it’s an efficient place to put their money to get the attention of the target audience and especially because podcast tends to be long tail, niche niche-oriented-selecting of the audiences. It tends to be very efficient and strategic because you pretty much know the profile of the person listening to any given podcast, especially as it goes down the long tail.
In my consultancy, our team at Big Click Syndicate, we use podcasting because we have this phenomenon called the Oprah Effect, where you are able to use the two-person interview format to increase the authority of the publisher. It’s really interesting to see how podcasting is being used much more strategically from publisher’s point of view but also being consumed from the consumer’s point of view, and then from the advertiser’s point of view, it’s a win, win, win as well.
The other place that things are really happening is social video. Social video views are skyrocketing and it doesn’t matter the platform. One copy, the other… Snapchat started it all and yet they’re the ones lagging behind it all, but yet everyone is benefiting from this new format.
Just to be clear, these social stories on these social platforms are using these very short format video stories or content where the sound is optional. They tend to be intimate and conversational. They are sharable, they used to be vertical but now they’re square and vertical, and they’re largely seen as the thumb stopper. People are actually consuming these to the point where if you go to Instagram or Facebook, the way that they’re presented very easily viewed at the top of the user interface, the presentation just makes it easier for you to actually consume stories and then go from one to the other, one to the next one to the next one to the next one.
People end up consuming stories more than newsfeeds. They say stories are the new feed. So that your feed or even your… On Instagram, your grid, your actual like your homepage account, the social grid is the least viewed your stories are something that’s consumed the most. It’s really interesting to see that this format is starting to grow and obviously the opportunity is there for you as an advertiser to insert content into that format as well.
Where are people placing their ad money? Social media ads are going through the roof. I just love this video, traditional versus video chart comparison. This one takes the digital versus traditional ad revenue and compares two giants, YouTube which is the giant online and CBS which is one of the three major networks in traditional media and look at this chart of the ad spend. This is crazy.
In 2014, YouTube advertising surpassed advertising of CBS, the major TV network, and it just continues to grow and it’s now at a point where it’s like a hockey stick growth in advertising revenue for YouTube. The last year 2016, it looks like about $13 million… Sorry, $13 billion. We’re talking billions of dollars, $13 billion was spent on YouTube advertising by advertisers and only about 6 billion… so less than 50%, was spent on CBS.
I want to call this out because almost everyone here, whether you are advertising online or not, YouTube advertising is probably the last place that you are thinking about or actually in terms of behavior, using. Most of the people that are watching this, they’re not using YouTube ads, have probably never dipped their toe in YouTube advertising and yet with that type of perception from an advertiser and publisher’s point of view, from your seat, there’s still $13 billion being spent on YouTube ads and it’s more than doubling the number of revenue that CBS TV is raking in on an annual basis. It’s mind-blowing.
Imagine if YouTube ads become pervasive like Google Adwords, like Facebook advertising, what would happen to YouTube at that point? And the video views just keep on going up, the ad formats and flexibility keep on proliferating on YouTube, live formats and stories are on YouTube now, there’s just tons of opportunity for advertising and publishers. It’s time to think about digital advertising based on this chart alone if you haven’t in the past.
This is just one of those things where I think this is hopefully eye-opening to a lot of people of what actually is happening from a publisher’s and advertising perspective and what you need to be thinking about too.
Here’s another one. Cable TV networks versus digital content where people deriving their revenue. Where people are spending their subscription money. Apple services are through the roof, over $30 billion of revenue. Netflix looks like 12, $13 billion in revenue. These networks, AMC a cable network… Look at that, under 5 billion. It looks like two, $3 billion in content revenue. This is kind of a foreshadowing of where the future is. These are the new giants of media and television.
Big digital distributors already share real money with producers, and they’re going to share more each and every year. This is the one fact that is going to continue to drive online digital media versus traditional media. Traditional media does not share advertising revenue with content producers or it doesn’t even have the ability for individuals and smaller content producers to cash in on producing content, yet online networks have understood that revenue share is an amazing way to incentivize essentially free content to be produced so that they can capitalize on the traffic.
Apple, Google, Netflix, Facebook, Amazon, Spotify, Yahoo, Hulu, Twitter, all of them pay out billions of dollars, billions already, billions of dollars to the content producers that are putting content on their platforms so that they can attract and keep the audiences like you and me. Quite amazing.
What does digital advertising actually look like? If you talk to consumers, they are increasingly more receptive to short skippable digital video ads. If you’re thinking about YouTube, If you’re thinking about Facebook video ads, you’re thinking about all these platforms of where are we going to like stories are shorter and shorter, and if you’re thinking about TikTok and all these other networks that are popping up, that are ultra-short videos, here are some interesting stats.
64% of the respondents they’re… This was the question. What are the most important aspects of a video ad that make you receptive to its message? If you’re going to watch a video ad and you’re going to be receptive to it, what makes it actually… What’s most important so that you’re going to actually pay attention? Consumers have said they want the option to skip the ad, even they don’t choose, that’s very important. The second one, this is something that everyone needs to think about. The length of the ad should be 10 seconds or last 10 seconds or less. This is because if you think about it, where are people consuming video ads? They’re consuming on their mobile phones.
In a mobile device, it’s kind of like a time warp. I say the time set on mobile or your mobile experience is measured in dog years. 10 seconds is a long time when you’re on the go and trying to watch an ad that interrupts your actual original intent and content experience. Thus 39% also said the ad needs to load quickly. If you’re going to interrupt my experience you need to get in, get out, tell me what it is in 10 seconds or less, and let me skip it if I want.
They want the ad to play before the video because once you start the content, they don’t want to interrupt it. Audio should be muted. It should be high res and the video should start automatically. This is like basically, it needs to start immediately, has to load quickly, has to be short, I need to have control of it, don’t interrupt my main experience just let’s get it over and done. That’s what people are thinking about. But this one highlighted at a bar, length of 10 seconds or less is something that I think everyone here needs to come to grips with because we’ve been trained a 30 second and one-minute ad, two-minute explainer videos, three YouTube videos, but now this is the bottom line.
A 30-second video ad on your phone is like an hour-long infomercial on TV. A 30-second video ad on your phone is like an hour long video infomercial on TV. I’m going to leave you with that thought. I’d love to hear what you think about that conclusion and all the other stats that are shared here today, and let’s have a conversation. Let’s see what the implications are and what that means for our church communications, not just paid but also organic content we’re starting to publish as we move further and further into digital and video and mobile. What does that mean? I’d love to share and have your insights, and share it with the audience so we can have these conversations together.
I’m Kenny Jahng. Thank you so much for listening today and watching. You can check out the rest of our content on our blog at churchbutler.com, and otherwise, I’ll check you out here next time on the Church Butler Lunch & Learn Podcast. I’m Kenny Jahng, in the meantime remember, be social stay social.
HIGHLIGHTS:
02:18 If you are looking at ad expenditures, people are seeing that these two platforms are the most efficient place to spend your dollars and that’s going to change or impact a lot of decisions for you as a church communicator if you’re going to actually invest in digital advertising to reach your people which is inevitable, you’re going to need to start to understand these tools if you haven’t dipped your toe in digital and social ads. In the next several years just like every other traditional media ad outlet has matured, these two are going to mature even further and new ones are going to arrive that you’re going to need to start to think about.
04:50 The other place that things are really happening is social video. Social video views are skyrocketing and it doesn’t matter the platform. One copy, the other… Snapchat started it all and yet they’re the ones lagging behind it all, but yet everyone is benefiting from this new format. Just to be clear, these social stories on these social platforms are using these very short format video stories or content where the sound is optional. They tend to be intimate and conversational. They are sharable, they used to be vertical but now they’re square and vertical, and they’re largely seen as the thumb stopper. People are actually consuming these to the point where if you go to Instagram or Facebook, the way that they’re presented very easily viewed at the top of the user interface, the presentation just makes it easier for you to actually consume stories and then go from one to the other, one to the next one to the next one to the next one.
People end up consuming stories more than newsfeeds. They say stories are the new feed. So that your feed or even your… On Instagram, your grid, your actual like your homepage account, the social grid is the least viewed your stories are something that’s consumed the most. It’s really interesting to see that this format is starting to grow and obviously the opportunity is there for you as an advertiser to insert content into that format as well.
07:13 In 2014, YouTube advertising surpassed advertising of CBS, the major TV network, and it just continues to grow and it’s now at a point where it’s like a hockey stick growth in advertising revenue for YouTube. The last year 2016, it looks like about $13 million… Sorry, $13 billion. We’re talking billions of dollars, $13 billion was spent on YouTube advertising by advertisers and only about 6 billion… so less than 50%, was spent on CBS.
09:26 Here’s another one. Cable TV networks versus digital content where people deriving their revenue. Where people are spending their subscription money. Apple services is through the roof, over $30 billion of revenue. Netflix looks like 12, $13 billion in revenue. These networks, AMC a cable network… Look at that, under 5 billion. It looks like two, $3 billion in content revenue. This is kind of a foreshadowing of where the future is. These are the new giants of media and television.
12:03 64% of the respondents they’re… This was the question. What are the most important aspects of a video ad that make you receptive to its message? If you’re going to watch a video ad and you’re going to be receptive to it, what makes it actually… What’s most important so that you’re going to actually pay attention? Consumers have said they want the option to skip the ad, even they don’t choose, that’s very important. The second one, this is something that everyone needs to think about. The length of the ad should be 10 seconds or last 10 seconds or less. This is because if you think about it, where are people consuming video ads? They’re consuming on their mobile phones.
In a mobile device, it’s kind of like a time warp. I say the time set on mobile or your mobile experience is measured in dog years. 10 seconds is a long time when you’re on the go and trying to watch an ad that interrupts your actual original intent and content experience. Thus 39% also said the ad needs to load quickly. If you’re going to interrupt my experience you need to get in, get out, tell me what it is in 10 seconds or less, and let me skip it if I want.
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