Released last June, DoubleClick's Benchmarks Report showed online video ads astronomically outperforming average click-through rates (0.1 percent vs. up to 5.0 percent, depending upon the size and type of video ad). TubeMogul places the figure a bit lower at 3.0 percent, but that's still a huge boost. Online video advertising also outperforms when it comes to engagement and conversion, particularly when compared to other rich media ad formats. DoubleClick found 13 to 20 percent increases in ad interaction rates of video ads compared to non-video rich media ads. Video ad network BrightRoll conducted a study that found a five-month-long online video campaign for a major CPG company raised in-store sales over 6 percent.
As consumers continue to utilize online video and marketers eagerly follow their lead, video sites and ad networks will only carry on developing bold new products and refining their existing services. Incredibly, this multi-billion dollar market is still in its infancy. And it's definitely the market to watch.
Viral video marketing is one of the best ways to get your brands’ message across without being intrusive. By forcing consumers to interact, like with pre-rolls and overlays, advertisements can come off as being force fed. By using viral video marketing as an alternative, consumers are driven to your viral video by peers and other organizations. This can side step any notion of being salesy and instill a feeling of interest and discovery. By employing consumers to interact with other consumers about a brands’ message, a company can effectively pull itself out of the advertising equation. This achieves the overall goal of viewers sharing your message with other viewers.
<ul><li>While clients were buying Baywatch reruns on cable: </li></ul><ul><li>183 million U.S. Internet users watched nearly 34 billion videos in May 2010 (averaging 100 YouTube videos per month per user). </li></ul><ul><li>eMarketer forecasts that spending for online video ads will make the format the second biggest recipient of new ad dollars from 2010 to 2014. </li></ul><ul><li>Of the more than $13.6 billion incremental dollars that will flow into online advertising, 33 percent will come from video ads, representing a 30 to 40 percent increase in the sector. </li></ul><ul><li>Most of this growth will come from “brand marketers looking for greater targeting shifting a portion of their TV budgets onto the Web." </li></ul>
<ul><li>Performs better than Dancing with the stars: </li></ul><ul><li>Online video advertising works for brand campaigns as well as traffic-generating ones. In April 2010, Nielsen found that premium online video ads actually outperformed traditional television ads in recall, branding, messaging, and likeability. </li></ul>
<ul><li>Video sites and video ad networks abound: </li></ul><ul><li>Existing video sites like YouTube, Hulu, and Break.com, along with video ad networks like Tremor Media, YuMe, and SpotXchange offer numerous ad units and retargeting capabilities. </li></ul><ul><li>New products are emerging such as BrightRoll Exchange (BRX), a self-service online video ad buying platform designed to facilitate the launch of more effective, "brand-safe" campaigns. BRX sold more than $1 million in inventory in August 2010 alone. </li></ul><ul><li>Instead of struggling with how to accurately measure offline TV viewing, online video advertisers enjoy transparency with the effectiveness and performance of everything from pre-roll, mid-roll, post-roll, and overlay ads to video playing skins and companion banners. </li></ul>
<ul><li>Increasing sales. Increasing options: </li></ul><ul><ul><ul><li>Pre-Roll </li></ul></ul></ul><ul><ul><ul><li>Interactive </li></ul></ul></ul><ul><ul><ul><li>Overlay </li></ul></ul></ul><ul><ul><ul><li>Invitation </li></ul></ul></ul><ul><ul><ul><li>Companion/Branded Player </li></ul></ul></ul><ul><ul><ul><li>Viral Video Marketing </li></ul></ul></ul>
PRE-ROLL What: A 15- or 30-second ad that viewers watch before a show or video clip ("pre-roll"), at some point during the video ("mid-roll"), or afterward ("post-roll"). Sometimes, clicking on them can take viewers to another site. Strengths: It's familiar turf to TV advertisers, who don't have to change much about their commercials to make them into pre-rolls for the Web. And because it's the most predominant format, an advertiser can place pre-rolls on a wide variety of sites and get back fairly robust data about who's watching them and where. Weaknesses: It scares off impatient Web surfers, who tend to view video content in bite-size chunks. It also doesn't offer much of an opportunity for interactivity. A site where it's used: MSN An advertiser that uses it: IBM http://wreckandsalvage.blip.tv/file/152544/ http://www.youtube.com/watch?v=zpE12iZWMuU&feature=fvw
INTERACTIVE What: A pre-roll, mid-roll, or post-roll that offers viewers some form of interaction, such as entering a Zip Code or stock ticker, or playing a short game. The ad may persist for longer than 15 or 30 seconds if a viewer engages with it. Strengths: It's highly customizable, leaves viewers with a strong memory of the brand, and sometimes collects more data about each viewer than a pre-roll would. Weaknesses: It's not supported by a large number of Web publishers, and can also be seen as a needless distraction by viewers. A site where it's used: Yahoo! An advertiser that uses it: Esurance http://video.ads.thebuddygroup.com / http://www.youtube.com/watch?v=M11SvDtPBhA
OVERLAY What: A text or graphic that appears on the bottom or top portion of the video for a brief period while content is in progress. Typically, viewers can click on it to expand the ad or go to an advertiser's Web site. Strengths: It doesn't interrupt the viewer's experience, and it's supported by a wide variety of Web publishers. Also, most TV viewers are accustomed to the format—it has become common practice for networks to promote their programs with overlays on television. Weaknesses: Some viewers find overlays a disturbance, and sometimes they can't even tell that overlays are ads. A site where it's used: YouTube An advertiser that uses it: Electronic Arts http://www.youtube.com/watch?v=QYXKaAzEJrk&feature=spotlight
INVITATION What: Similar to an overlay, but the message briefly appears alongside the actual video player rather than on top of it. Strengths: It's not as intrusive as an overlay, and it can still be targeted to particular audiences and timed to appear at moments when viewers are most likely to click on it. Weaknesses: Not supported by as many Web publishers as overlays, and it's easier for audiences to ignore. A site where it's used: Yahoo! An advertiser that uses it: Adobe Systems http://www.hulu.com/watch/183296/dancing-with-the-stars-week-3-part-1
COMPANION / BRANDED VIDEO PLAYER What: A static banner that appears alongside a video player, typically in conjunction with another ad from the same sponsor, like a pre-roll or overlay. Strengths: Companion ads give viewers a branded message for the duration of the video, and invite them to click through to the advertiser's site or expand a pop-up at their leisure. Weaknesses: Because it's not standard for all video players to place companions alongside them, it's mostly used for customized campaigns. A site where it's used: MySpace An advertiser that uses it: Hewlett-Packard http://www.hulu.com/watch/52610/alfred-hitchcock-presents-the-crystal-trench?c=Classics#s-p1-so-i0 http://www.kickapps.com/social-applications/online-video
VIRAL VIDEO MARKETING What: Viral video marketing is the process of creating and seeding a video for use on social networking sites, blogs and video share sites. They engage consumers while encouraging them to share and pass the video along to their network of friends, family and colleagues. Strengths: Lower distribution costs while letting you reach a vast audience of consumers with no set duration. It sets up free word of mouth advertising, which can help generate a buzz around the company and its brand. Allows companies to become part of large online communities and develop an internet presence. You can also track response in the form of views, clicks and visits. Weaknesses: You are not guaranteed an audience. When buying TV ads you are buying gross rating points (GRPs) that guarantee you will reach a certain percentage of your target audience. This give you evidence you got what you paid for. With viral video there are no guarantees. A site where it's used: YouTube An advertiser that uses it: Coca-Cola http://www.youtube.com/watch?v=lqT_dPApj9U http://www.cnet.com/4520-13771_1-6794965-1.html
<ul><li>Viral video helps people like minivans: </li></ul><ul><li>Minivans just aren’t that cool, but someone forgot to tell the millions of people (and counting) that have viewed Toyota’s “Swagger Wagon” online commercials . </li></ul><ul><li>Toyota’s online video and social media campaign sustained success by first creating content that would resonate with Toyota’s targeted audience. </li></ul><ul><li>Then Toyota followed up quality content with a well-executed plan to share the video with the masses via social media platforms . </li></ul>
<ul><li>Swagger success: </li></ul><ul><li>1. Emotion Creates Motion- Emotion sells. Whether it’s comedy, sadness, anger or love; emotion creates a bond between the viewer and the video. Using trendy music mixed with comedy allowed people to feel emotion. This created an attachment to the videos, ensuring that people would watch them over and over again. </li></ul><ul><li>2. Eyes on the Prize- Toyota used a source that they already knew had traffic- their very own site . By traffic that they already had coming to their site, Toyota was able to spread the news about the video in a faster, more efficient way. </li></ul><ul><li>3. Entertain & Educate- Every video you watch, you learn something new about the van. Whether it’s styling, versatility, available entertainment or spaciousness; Toyota was able to deliver entertaining videos, each of which is filled with selling points for the minivans. When viewers began spreading the videos throughout the web, they helped Toyota get the selling process underway. </li></ul><ul><li>4. Caring is Sharing- Because Toyota decided to share these videos via a mini site on YouTube , it allowed people to share the content across many online media platforms. </li></ul><ul><li>1. Facebook: 199,287 shares 2. Twitter: 4,584 tweets 3. Blogs: 687 blog posts (plus one more to include this post) 4. YouTube: 2,770,608 views (including 1,066 comments) </li></ul>
<ul><li>Reckitt Benckister target your behavior: </li></ul><ul><li>Reckitt Benckiser recently partnered with Netmining on their new behavioral targeting extension into video. This is an evolution of their big move over a year ago, when they transferred $20 million in TV ad dollars to online video. </li></ul><ul><li>The Netmining model uses a scoring engine based on cookied users for video that looks at past products and pages a user viewed to determine whether they are in or out of the market. The technology evaluates a user in real time to decide their interests and propensity to purchase. </li></ul><ul><li>They’re finding audiences in market for brands such at Lysol, AirWick and Finish. Netmining works with other ad nets to assemble the necessary scale (SpotXchange). It’s less about reach than getting the right publishers and audience for the client. </li></ul><ul><li>In terms of creative they’re using the general suite of pre-rolls Reckitt Benckiser provides. "They have done a good job of merging online and offline creative," </li></ul>
<ul><ul><ul><ul><ul><li>12 surprising things holding back video ads: </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Surprise #1: Lack of Definitions and Standards After All of These Years </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Surprise #2: The Myth That Branded Content Is a New Thing </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Surprise #3: It Takes A Different Playbook </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Surprise #4: Video Consumption Patterns Are Whack </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Surprise #5: Just Because You Build an Audience, Doesn’t Mean The Advertisers Will Come Knocking </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Surprise #6: When It Comes to Sales, Sell Your Audience, Not Your Videos </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Surprise #7: The Myth and Danger of the Viral Video </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Surprise #8: With Advertisers Sitting on the Sidelines, Partnerships Need to Make Sense for Producers </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Surprise #9: Don’t Chase Hits </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Surprise #10: YouTube is More Open than Challengers </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Surprise #11: Everything Won’t Be Ad-Supported </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Surprise #12: Search and Video are Still Miles Apart </li></ul></ul></ul></ul></ul>