2011 ADVERTISERINTELLIGENCE REPORTDigital Video Advertising:Removing Barriers Equals Greater Opportunities                ...
TABLE OF CONTENTS2NEW OPPORTUNITIES ABOUNDFOR DIGITAL VIDEO ADVERTISING4WHO’S BUYING DVA, AND WHATWILL MAKE THEM BUY MORE?...
NEW OPPORTUNITIES ABOUNDFOR DIGITAL VIDEO ADVERTISING (DVA)Digital Video Advertisingto Increase by 25% This YearDigital Vi...
However, Difficulty in Planning                             Impact of Barrier Removal on Video Spendand Implementing DVA R...
WHO’S BUYING DVA, AND WHATWILL MAKE THEM BUY MORE?What are Advertisers Using                                              ...
Educating Advertisers and Media                                          ELIMINATING BARRIERS  Buyers about DVA is Critica...
Eliminating the Barriers in                                   Creative Barriers to ImplementingCreative and Execution     ...
Eliminating Barriers to Optimization,                       Analysis and Reporting Barriers toAnalysis and Reporting      ...
SUMMARY, CONCLUSIONS, ACTIONConclusion: Online, Interactive DVA Gives                   Action: Remove the BarriersAdverti...
About Casale Media                                              About Advertiser PerceptionsWe help brands profit from onl...
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2011 Digital Video Report from Casale Media

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2011 ADVERTISER INTELLIGENCE REPORT
Digital Video Advertising: Removing Barriers Equals Greater Opportunities

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2011 Digital Video Report from Casale Media

  1. 1. 2011 ADVERTISERINTELLIGENCE REPORTDigital Video Advertising:Removing Barriers Equals Greater Opportunities Presented by
  2. 2. TABLE OF CONTENTS2NEW OPPORTUNITIES ABOUNDFOR DIGITAL VIDEO ADVERTISING4WHO’S BUYING DVA, AND WHATWILL MAKE THEM BUY MORE?5ELIMINATING BARRIERS WILLJUMPSTART DVA SPENDING8CONCLUSION, METHODOLOGY,ABOUT ADVERTISER PERCEPTIONS,CASALE MEDIA
  3. 3. NEW OPPORTUNITIES ABOUNDFOR DIGITAL VIDEO ADVERTISING (DVA)Digital Video Advertisingto Increase by 25% This YearDigital Video Advertising can do for brands what static display advertising on the Internet has not – get major marketers tointegrate online DVA with the growing interactive television phenomenon. All that’s needed is a methodology for makingDVA easier to plan for, create, implement and track.DVA Ad Spending is Climbing FastWhile television revenues continue slightly upward, online ad spending is experiencing rapid growth. The shift in consumertime spent on the Internet and with mobile phones, has inspired advertisers to follow the buyers to those media. In fact,digital video advertising is the new “darling” of the most savvy marketers, replacing static online ads, sharing TV ad dollarsand providing enhanced consumer reach and engagement with a clear view of ROI down to the smallest detail.Spending | Next 12 MonthsMore than two-thirds of marketers (69%) and one-half of agency professionals (55%) say they plan to growtheir digital video advertising (DVA) spending 22% on average in 2011, according to a study by the InteractiveAdvertising Bureau (IAB). Surveyed agency professionals plan to spend 19% of their total online display adbudgets on DVA in the next 12 months, whereas marketers plan to allocate 15% of their budgets to DVA. 2
  4. 4. However, Difficulty in Planning Impact of Barrier Removal on Video Spendand Implementing DVA Remainsan Obstacle to GrowthA recent study conducted for Casale Media found thatspending on DVA is expected to increase by 25% in thenext 12 months, accounting for 23.8% of total onlinead budgets, which is up from 19.1% of total online adspending 12 months ago. Still, that is not to say thatadvertising agencies and marketers do not find the pro-cess of planning, creating, and executing a digital videoadvertising campaign to be easy.This study uncovered that specifically, 38% of thosesurveyed find the planning phase to be difficult, 40%find the creative phase to be difficult, and 35% find theexecution phase to be difficult. If a media companycan assist an advertiser / agency in overcoming thesebarriers, or provide a third party solution to simplifyexecution, they would find themselves with a significant Q: If all barriers were removed, meaning video was simple and painless to book, very cost efficient to buy, highly targetable in premium, brandcompetitive advantage. safe environments with maximum creative control, tracking and analyt- ics would you be more likely to book video? Base: all respondents. Source: Casale Media, digital advertising video thought leadership study, june 2011PLANNING PHASEQ8a: You indicated that you feel that certain aspectsin the buying process for digital video advertising aredifficult, please tell us why you say that. 3
  5. 5. WHO’S BUYING DVA, AND WHATWILL MAKE THEM BUY MORE?What are Advertisers Using become educated on how to overcome these obstacles,Digital Video Advertising For?? they will be far more enthusiastic about integrating targeted and trackable digital media efforts with televi-Marketers and agencies agree, DVA is attractive for commu- sion reach and efficiency. DVA providers who wish tonicating, strengthening and building awareness of brands, increase their sales to major, traditional marketers mayproducts and services. Interactivity and cross-platform op- have to do much more to make these media productsportunities for this type of targeted messaging, along with more visible, and easier to plan for and implement.increased traffic to websites and social portals, and directselling / tracking of ROI are quickly building momentum. Most Responsible in Aspects of Digital Video AdvertisingPurpose of Digital Video Advertising Advertiser Brand or Product Management Most ResponsibleIncreasing awareness of brands, products and/or services (new for Decision to Use DVA | Most Responsible for Budget andbrands too) top reason to use DVA | even more so for agencies Creative Decisions More Evenly Distributedvs. marketers (85% vs. 71%, respectively) Make decisions about whether to use digital video Percent of Respondents Make decisions about how much budget to allocate to digital video advertising Percent of Respondents Make decisions about creative, tactics, and/or placement of video ads Percent of RespondentsQ: Which of the following purposes does your digital video advertis- Advertiser brand or product Agency media buyersing serve? management Agency media plannersBase: all respondents. Source: Casale Media, digital advertising video Agency and/or Advertiser Advertiser CMO or otherthought leadership study, june 2011 research department Advertiser senior marketing Agency account managers leadership Agency account planners andWho Is Making the DVA Media Buy Decisions? strategistsThe majority of spending comes from marketers with Q: To the best of your knowledge, please tell us which role/function is most responsible for the following aspects of decision-making forat least five years of online or digital media advertising digital video advertisingexperience. The remainder are confused by the process Base: all respondents. Source: Casale Media, digital advertising videoof evaluating and purchasing digital media. When buyers thought leadership study, june 2011 4
  6. 6. Educating Advertisers and Media ELIMINATING BARRIERS Buyers about DVA is Critical Education of the media buyer / planner is essential. WILL JUMPSTART Planners and marketers must be assured that digital DVA SPENDING video production is less expensive, the content /creative less restricted, and the implementation fast and track- Television Dollars are Likely able. If this can be accomplished, most will follow the to be Shared with DVA influential “eyeballs” to digital/ online. An eMarketer study indicated that more than 85% of Reasons Hindering Greater Use of respondents would be likely to shift ad dollars from TV Digital Video Advertising advertising to digital video advertising if it were easier Perceived ROI Issues Are the Greatest Hindrance to to get faster turn-around time and lower costs for creat- Greater Use of DVA ing, launching, and tracking digital video advertising campaigns, and simpler means for putting an overall 40% plan into place. This is similar to the findings from our own study of potential digital video advertisers. Not enough ROI 38% Too hard to target the precise audience I want to reach 26% Eliminating the Barriers in Planning and Placements Lack of original ads for the video medium 24% In our study, more than half of marketers and media Too hard to track across standard interactions 23% planners, (52%) indicated that they found the planning phase to be difficult. More than four in ten respondents 23% who find planning a digital video campaign to be dif- Lack of standardized metrics 23% ficult said that the most difficult part is either: Video ad networks lack • Media Negotiations: Get the best placements transparency regarding ad placement 21% and pricing (46%) Inability to implement ad interaction metrics 18% • Develop campaign objectives and goals (41%) campaigns 18%Inability to create an ad unit that allows Planning Barriers to Implementing me to understand how consumers are interacting with my brand 17% Digital Video Advertising Metrics are not Advertiser Brand or Product Management Most Responsible consistent with TV 16% for Decision to Use DVA | Most Responsible for Budget and Not having enough assurance Creative Decisions More Evenly Distributed that my ads/campaigns ran 15% Poor quality of video ads 13% Not allowing for longer video format beyond typical limitation of 15-30 seconds 11% 10% Too hard to add social sharing functionality 9% Inability to have multi-video displays within single ad unit 6% Q: Which of the following reasons are hindering your greater use of digital video advertising? (Please select all that apply.) Base: all respondents. Source: Casale Media, digital advertising video Source: Casale Media, digital advertising video thought leadership thought leadership study, june 2011 study, june 2011 5
  7. 7. Eliminating the Barriers in Creative Barriers to ImplementingCreative and Execution Digital Video AdvertisingFour in ten respondents indicated that the creative phaseis difficult and of those nearly 60% said that “Creating anad unit that allows me to understand how consumers areinteracting with my brand” is difficult, and half said thateither “Implementing ad interaction metrics” was a chal-lenge or creating “Multi-video displays within single adunit” was difficult. Source: Casale Media, digital advertising video thought leadership study, june 2011CREATIVE PHASEQ8b: You indicated that you feel that certain aspectsin the buying process for digital video advertising aredifficult, please tell us why you say that. 6
  8. 8. Eliminating Barriers to Optimization, Analysis and Reporting Barriers toAnalysis and Reporting Implementing Digital Video AdvertisingFor the 35% who agreed that the execution phase is achallenge, nearly half (47%) indicated that “CampaignOptimization (Apply any necessary optimization includ-ing shifting ad impressions, discontinuing placementsor buys, and/or swapping out ad creative)” is difficult.More than 40% who indicated that the execution phaseis difficult, think that “Reporting & Analysis (Get postcampaign reports)” is a tough step in the execution phaseand/or “Ad Trafficking & Tracking (Setup the ad campaignfor tracking and optimization)” is difficult as well. Source: Casale Media, digital advertising video thought leadership study, june 2011EXECUTION PHASEQ8c: You indicated that you feel that certain aspectsin the buying process for digital video advertising aredifficult, please tell us why you say that. 7
  9. 9. SUMMARY, CONCLUSIONS, ACTIONConclusion: Online, Interactive DVA Gives Action: Remove the BarriersAdvertisers the Audience and Analysis and Advertisers will Comethey Demand Digital advertising, especially video, still seems like theWhile television can specify audiences that might like a wild, wild west to most advertisers and planners. Some arecertain type of programming (sports, soaps, news, etc.), willing to educate themselves and muddle through thedigital video advertising can GUARANTEE audience, trials that eventually bring them to online success. But thereach, frequency of delivery, with very specific demo- vast majority are seeking third party solutions – compa-graphic and lifestyle targeting (Facebook users offer nies that can not only educate marketers, but also man-an average of 220 points of personal data and interests age the entire process from start to finish. When these bar-on 700 million users – 50% of whom log into Facebook riers to entry are removed, we will see a significant spike inevery day). Even compared to traditional website data digital video advertising revenue, and greater interactivityand analysis, interactive DVA provides a marketer with with other media – specifically television.the opportunity to reach and target specific audiences,reaching real people, and not anonymous cookies. Methodology Survey MethodNike Follows Pepsi’s • All interviews completed onlineFootsteps to Facebook • Cash IncentivesWhen Nike launched a recent online digital video • Blind Surveycampaign called “The Chosen,” they decided to debut • Timeframe: June 16th – June 27th of 2011it on Facebook first (three days before the televisionpremiere). This is a landmark media campaign decision Sample: Marketer and Agency contacts from Advertiserwith more and more advertisers likely to follow. In fact, Perceptions Media Decision Maker DatabaseNike took a page out of the Pepsi playbook, who ended Qualification: Online Display or Video media decisionup shunning traditional television advertising in the makinglast Super Bowl, instead focusing on social media. TheNike digital video spot’s creative is also social media Represents Leading U.S. Advertiserscentric – encouraging interactivity and engagement. by Ad CategoryThis trend is surely to continue. 8
  10. 10. About Casale Media About Advertiser PerceptionsWe help brands profit from online. With integrity as our Today, Advertiser Perceptions is the world leader in pro-guiding light, we’re on a mission to make the promise of viding the media industry with research-based advertiseronline display live up to its potential. And for an industry insight and guidance necessary for strengthening brandsthat is still growing and maturing, we’ve been around a and increasing advertising sales, market share and com-long time — which gives us the wisdom to know that petitive advantage. We specialize in determining, analyz-amid the buzz, it is still quality that drives results. ing and communicating what advertisers think—their plans, opinions and motivations.Quality isn’t just about media. It’s a broader philosophythat extends to technology, people and business prac- Our proprietary database of media decision makers istices. To marketers, our role is to deliver better performing one of the largest in the world. The advertiser surveymedia that has the power to turn browsers into buyers and questionnaire development process that we employand buyers into brand advocates. To publishers, our role ensures optimal response. Focus and media industryis to optimize the value of their premium content and in expertise enables us to effectively analyze and accuratelythe process, deliver meaningful advertising experiences interpret the research that we conduct on behalf of ourthat resonate with their audiences. clients who represent many of the largest international media companies.We fulfill our roles every day by selectively hunting downthe best media environments on the web, pushing thebounds of what is possible with our technology, andpackaging it all up with our years of business understand- TMing to deliver a better, more profitable solution. New York Office 1120 Avenue of the Americas 4th Floor New York, NY 10036 T: 212 626-6723 F: 212 626-6724Corporate Headquarters74 Wingold AveToronto, ON M6B1P5T: 416.785.5908 9

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