Digital Promotional Videos Can Unlock The Real Power Of The Internet

There is absolutely no doubt in my mind that the digital realm is where the real value lies if your company is seeking to establish brand awareness, loyalty and (yes) ultimately increased sales in the U.S. or any of the states. In a country of approximately 325 million people spanning 50 states and almost 3.8 million square miles (I had to look that up), it’s a rather daunting task to plan and fund a national campaign to launch a new product, and even further, to have any reasonable expectation that you will establish market share in the U.S., without spending literally millions of dollars.  And even then you’re your company does spend millions, there is no guarantee that you will ultimately accomplish your goal of establishing national brand awareness. This makes financing a national ad campaign to effectively cover the entire U.S. (or any significant portion thereof) difficult (if not impossible) to undertake, particularly if you are a start-up or early-stage company with modest revenue.  

Twenty or more years ago, that would have been the beginning and end of the discussion. Back then, television, radio and print media were the only viable methods of obtaining national or regional exposure. And since those mediums had limited space in which to advertise, the rates for the available space in each of those media progressively became more expensive as more and more companies sought to run their ads on same; of course, showing preference for those programs and time slots where more eyes could and would see the ad.

If you were to do a quick google search of the cost of television advertising today ( which has been the most cost effective advertising for the last 50 years or more and continues to be according to Nielsen), you would find that (as of 2017) the cost for a single 30-second spot is approximately $200 to $1500 for local TV, $123,000 (on average) for national broadcast TV, with Super Bowl ads toping the price list at $4 million (all estimates as of 2016). The cost of TV ads depends on a number of factors. It is priced on the “Cost per Thousand” (CPM) basis. To put this in perspective, a 60-second ad on TV in Los Angeles would cost approximately $17,375; that same ad would cost $13,580 in NYC, and $10,555 in Cleveland. While there can be little doubt as to the efficacy of television ads in terms of raw exposure for a new brand or product, I would argue the value of that sort of advertising (on a cost per customer basis) is questionable, particularly if you compare it to digital advertising.

For purposes of facilitating a comparison, I will compare TV advertising to free (or non-paid) digital advertising.  

Most experts agree that the most effective advertising (regardless of the source of that advertising) is organic in nature. It is the advertising exposure that is obtained in that rare instance in which one person is so overcome with that ad that he/she will share that ad with another, typically a friend, associate or SM connection. It is fairly obvious that this sort of advertising exposure would be very desirable for a start-up or early stage company because it is free---- by definition, in addition to being very effective.  

This is one of the key hallmarks of digital advertising, which is why we advocate that all companies (particularly start-ups and early stagers) should produce one or more digital promotional videos (in lieu of TV commercials) to promote their products, services and brands. The other reasons why it is good corporate policy to do promotional videos (in lieu of TV commercials) are listed below. Digital promotional videos:

• Are permanent in nature;
• May be any length, but the most effective are between 30 to 60 seconds so that they play well on social media newsfeeds;
• Generally range in price from $1500 to $10,000 to produce;
• May be used for years to come (if properly produced);
• May be altered or adjusted over time to reflect market analytics over time to improve ad performance;
• May be posted several times per day on multiple social media channels;
• May be posted on an unlimited basis over time;
• May be embedded in blog posts (see below);
• May facilitate engagement with SM audience in real time, which may lead to actual sales;
• May be targeted to a specific demographic audience more accurately than TV commercials;
• May be used to increase brand exposure to new demographic groups, without substantial cost;
• May be used to promote legal cannabis products (including CBD) in the U.S. and Canada (to a lesser degree).

It is for these reasons that we assert that digital promotional videos are the key to unlocking the true power of the internet, particularly if you wish to launch a product, service or brand on a regional basis or nationwide, or you are seeking to launch a cannabis (or cannabis related) product or brand. It should be noted that the key reasons digital ads are better than TV commercials (as itemized above) also applies to radio, print and billboard and other forms of traditional advertising.

For more information about digital promotional videos and their use, please either stay tuned, DM me, or contact us at [email protected]