by Hank Frecon, the chief executive officer of Source Digital
People love to watch videos. In fact, YouTube reports that there are over 500 hours of content uploaded to the site every minute. It also reports that every day, people watch over a billion hours of video on the website. The fact is that for smart marketers, video advertising is a literal goldmine. While consumers continue to show that they like watching videos, that hasn’t necessarily translated into a profitable avenue for marketers.
The problem, which many advertisers have experienced, is that most of them don’t know how to create video advertising that is effective. Our company, Source Digital, is on a mission to help change that, helping companies to create video advertising that is productive, which helps to improve their return on investment, and increase their overall sales.
One of the biggest challenges with video advertising is determining its effectiveness. A good place to start is to consider how time is valued. Everyone is competing for time, so it’s crucial to ensure that you get the viewers’ time and attention, as they are the most valued assets. We have created Source Activated Moments (SAMs), a new ad technology that autonomously allows interaction and removes engagement guesswork.
Focusing on the “four P’s of marketing,” which are price, promotion, product, and place, SAMs optimize all of those and do so at precisely the right time. Traditionally, someone watches a video and sees an ad for something they are interested in, only to be left with the task of clicking out of what they are watching, which they don’t want to do, or remembering to go find what it is that caught their attention in the ad they saw at a later time.
Our technology works in a different way. Multiple advertised products become simultaneously accessible within pop-up icons that activate during key moments in the video, allowing frictionless purchases without leaving the video they are watching. These Source Activated Moments (SAMs) inspire time sensitive engagement and improve the user experience, promote interaction and provide for a better ROI. Ultimately, SAMs direct the viewer to deeper engagement, capturing attention and saving time which leads to a higher conversion rate.
This technology is taking the advertising industry forward by giving marketers a unique way to reach their target market and by helping viewers avoid the annoying ads that can take them away from primary video content. Viewers not only save time and ease efforts toward acquisition through this technology, they are ensured that their privacy is not violated; a big concern for most viewers.
It’s clear that video viewing popularity isn’t going to go away anytime soon, which makes it that much more important that companies consider their advertising expenses. Now is the time to make decisions that will bring in more results, especially when it comes to advertising online.
Hank Frecon is CEO and co-founder of Source Digital, pioneering the next generation of advertising and commerce technology. Frecon also continues his family’s third-generation farming legacy at Frecon Cidery, one of Pennsylvania’s premier cideries he helped to establish in 2008.