How to Justify a Video Budget to a CFO in Today’s Climate: Navigate Video’s Seven-Point Cheat Sheet

When you were seven, it was Darth Vader; at 11, it was your parents when you hadn’t tidied your room; at 18, it was your partner’s parents. Currently, the scariest person you know is probably your CFO and the chances are, right now, they’re even scarier.

The latest IPA Bellwether Report shows that marketing budgets are experiencing their worst decline in over ten years, with most channels suffering double-digit falls and whilst spend on video - which includes TV, online video and cinema - is actually up 2%, we’re under no illusions that CFOs will be scrutinising marketing costs a lot harder in the coming months.

Let’s not beat around the bush: as video experts, we at Navigate Video have a vested interest to help you combat your axe-wielding CFO. So, should you be a marketer struggling to justify budgets, we have put together a handy seven-point cheat sheet of reasons why budget attributed to video should remain, or even increase in 2020/21.

1. Digital behaviours, such as streaming video, have accelerated

Research by numerous, reputable sources including Kantar, Global Web Index and McKinsey have shown that lockdown has accelerated digital behaviours. A pertinent example is in McKinsey’s COVID-19 Pulse survey, which indicates that nearly 4 in 10 of the UK population are watching more of or have started online streaming. Gen Z, Millennials, Gen X and even Boomers are spending more time with video content than they were before - a trend that is expected to live on. This isn’t just a UK thing either; the trend is seen around the world from America to Australia.

2. Digital e-commerce, such as that enabled by video, will increase

Kantar say that a third of households have increased their digital spend during the COVID-19 crisis, while a similar proportion (33%) expect to buy more online once the pandemic is over. IPSOS expect more retailers to shift money into digital to link path to purchase. Kantar are predicting that experimentation with shoppable ad formats will speed up in 2020. Enabling and promoting the purchase journey through online video will be more important than ever.

3. 5G will encourage more people to watch video out and about

New technology will have positive implications for on-the-move media consumption. When 5G masts aren’t being burnt down by conspiracy theorists, they will enable the population to stream video content at speed and without interruption - expect a further uptick in usage.

4. Newly established DIY behaviours rely heavily on video tutorials

Lockdown has made people a lot braver about what they take on themselves. DIY, baking, haircuts, you name it, your audience is taking it all in their stride and where are they going for the advice they need to do all this stuff? YouTube, of course.

5. Audio-visual communications support ever-important brand building

Pre-COVID-19, the importance of brand building was (justifiably) back in vogue. Post COVID-19 there has been a return to short-termism in the form of performance marketing. Yet Kantar state that brands currently need a short AND long-term strategy. Subsequent to the recession in 2008, Millward Brown saw that strong brands recovered nine times faster than weaker brands, meaning, in short, that brand building is as important now than it ever has been. A 2017 Ebiquity/Gain Theory study to understand the full impact of advertising shows that online video records the second highest long-term multiplier for sales success, behind TV. Say Ebiquity: ‘That the two highest long-term multipliers go to TV then online video supports the importance of audio-visual when it comes to brand building and telling a brand’s story. This is key to changing tastes, preferences and loyalty over time’.

6. Higher expectations of brands can be met with audio-visual content

Research from Kantar shows that, in the wake of the COVID-19 crisis, consumers expect brands to stand for something and to ‘do good’. Showing your audience what you are doing via audio-visual content is a lot more powerful than writing about it.

7. Video evaluation is getting better (we’ll take credit for this)

The video industry has spent too long reporting metrics that can be bought or faked. What people tell you that they’re thinking is often not what they think at all.

Evolving the definition of success to better understand meaningful engagement and interaction metrics through to Biometric research (championed by Navigate Video) is changing everything and improving video evaluation immeasurably. Technology that was only previously available in a lab environment has become portable, enabling the tracking of both conscious and unconscious responses to video content.

So…

With all this in mind, and whether your video budget is big or small, the most important thing to do is to plan well, have confidence in your creative and be sure to evaluate your efforts regardless of its outcome. A CFO (or any manager for that matter) will be hard pushed to complain if you truly understand the analysis and apply what you’ve learnt to future projects.

Consider yourself equipped for battle. Good luck with your CFO.