Jun Group Finds that Advertisers Have Shifted Digital Goals

mitchell reichgut Mitchell Reichgut is the Founder and CEO of Jun Group, a premier social video company. Prior to Jun Group, Reichgut was the Creative Director at Bates Worldwide Advertising, where he helped grow the company’s client base. The Makegood recently spoke with Mitchell about a recent study.

The Makegood: Jun Group has recently released data showing that brand advertisers have shifted their digital goals from Facebook and YouTube to promote their owned online destinations. Could you elaborate on what this means, and how you believe this shift occurred?

We looked at over 2 million branded video views and analyzed the actions users took afterwards. Historically most users clicked to Facebook or YouTube, but over the past year and a half we’ve seen a significant shift to brand owned-and-operated destinations.

We believe this shift occurred as a result of a number of factors, as social media approaches market saturation and platforms have changed their algorithms for reaching users.

The Makegood: How have social platforms made it more complicated for brands to communicate with fans? Does it seem that brands are getting frustrated with this complication?

Social platforms have changed the way that content appears to users, prioritizing paid and “sponsored” content over organic content from brands. In the past it might have been enough for brands to gain “likes” and “followers” to build their audiences; they had direct access once they acquired those consumers. But by changing the algorithms, Facebook and YouTube chose to become advertising channels instead of relationship marketing platforms.

The Makegood: What is the appeal of brands driving their audiences to owned/operated content?

Brands want direct relationships with their consumers, and social channels create an intermediary gatekeeper between audiences and brands they actively “liked” or “followed.” By driving people to their owned and operated content, brands can build one-to-one relationships with audiences uninhibited by social layers. Also, the content and experiences they can create on their own tend to surpass what they’re able to do in a social environment.

The Makegood: Do you believe that brands have become frustrated with social media platforms like Facebook and YouTube?

We believe social platforms are maturing. Facebook and YouTube, for instance, are evolving from social conversation platforms into traditional advertising channels, where brands pay to reach specific audiences. The biggest challenge is that the platforms are evolving faster than brands can keep up.

The Makegood: How do you see this data progressing in the future? Do you believe that this trend will continue?

We see brands continuing to focus on content creation and distribution. This means their social spend will shift to paid advertising instead of audience acquisition. They’ll also continue developing owned-and-operated properties so that they can foster 1:1 relationships with consumers and gain a direct understanding of consumer data, without relying on third parties.