eMarketer Webinar: Video Advertising Engagement

David Hallerman Principal Analyst O C T O B E R 2 1 2 0 1 0 N E W Y O R K NY Video Advertising Engagement

What we’ll look at today…
12 Rules of Video Engagement…
Metrics for measuring video results
Video ad spending trends
Where and what people watch
Experience, control, relevancy
Social media, WOM and engagement
And more!

Troy Young, president, SAY Media (formerly VideoEgg) “ What we saw was the overwhelming power of engagement to change metrics. The takeaway here is: If you want your propaganda to work, get people to engage with it.” Twitter Hashtag – #eMwebinar

Engagement is a slippery concept
Is engagement simply people paying attention to your video ad?
Does engagement happen only when people interact with your video?
How much engagement occurs at some point after the audience views your ad?
Twitter Hashtag – #eMwebinar

Encouraging brand engagement is a key reason why marketers use online video advertising

Engagement defined is…
Various server-based metrics… time in general
Interactivity , clicking or mousing (CPE, ScanScout )
Traditional brand-health metrics, like awareness
When people share or comment (viral, social)
“ Interactions, experiences and context that create and nurture enduring, profitable customer relationships” ( Forbes )
Funny, emotionally touching , informative ( Nielsen )
Conceptually similar to social media marketing
Twitter Hashtag – #eMwebinar

Rules of Engagement

Rule #1 Q: How can spending levels improve video ad engagement? A: Connecting with consumers often relies on classic advertising…

US Online Video Advertising Spending, 2008 - 2014 (billions and % change) Source: eMarketer, May 2010 127% 39% 48% 43% 43% 35% 33%

One-third of marketers want to use cost per engagement to budget for video ads

Rule #2 Q: Which video ad metrics best indicate engagement? A: Once you define engagement for your current needs…

Server-based metrics
Marketers can choose from dozens, but among the most important ones for video engagement are completion rate, percent of ad viewed and interaction rate. Click rates, however, tend to be inadequate for video advertising.
Survey-based metrics
Also called brand-health, brand-lift or brand-equity metrics. All of these traditional metrics are highly important for video engagement. They include awareness, message association, brand favorability and purchase intent.
Metrics for online video advertising fall into two main categories Twitter Hashtag – #eMwebinar

Engagement is really a mix of various metrics, both progress and performance. These include:
Time spent with the ad, particularly metrics such as completion rates and percentage of ad viewed.
Deliberate audience interactions , such as start rates, mouse-overs, activating a video player and expanding a video banner ad.
Sharing links to video ads, if they go viral.
Strong lift for key brand-health metrics, such as purchase intent or brand favorability.
The engagement metric is increasingly central to video advertising

What makes engagement both significant and difficult to measure is how it blends several distinct types of metrics

Boosting brand awareness key element for creating engagement

Joe Zahtila, chief operating officer, Dynamic Logic “ Understanding how brand perceptions have changed doesn’t say how much you can sell. That gets you to the 10-yard line, but it doesn’t give you the touchdown.” Twitter Hashtag – #eMwebinar

Rule #3 Q: When audience members just watch the video ad, does that deliver engagement? A: Metrics such as start rates or completion rates carry more weight than…

Start rate for video advertising, by site section or environment Source: MediaMind (Eyeblaster), November 2009

Completion rates will vary based on several factors, including the source of the video ad’s creative — either repurposed or original

The usefulness of completion rates vs. click rates for video ads is clear

However — and this is why the 12 rules are questions — video clicks can work

Rule #4 Q: How much do marketers need HD video ads to create engagement? A: Never under-estimate simply getting the audience to watch…

Consumers won’t cut costs by cutting HD (quality matters) Source: Yankee Group, August 2010

Rule #5 Q: How important is user traffic for gauging engagement? A: Can give insight into engagement, but results are not always immediate…

YouTube gets the most audience, viewing sessions, and time — but other factors on other sites facilitate engagement

Hulu leads the pack in ads per viewer because many brand marketers look for what they already know (TV counts)

Rule #6 Q: How much does time of day or day of the week affect engagement? A: All targeting elements need to be factored in…

Main reason for video ad networks? Targeting more than reach or price

Traditional types of targeting encourage engagement ( imagine great ad on wrong site )

Rule #7 Q: Can longer video ads offer greater engagement? A: Yes, sometimes, maybe, depends on…

Branded content, mainly video, is an effective way to engage Source: CMO Council, October 2010

Doug Chavez, director digital marketing, Del Monte Foods “ We have some very emotional brands, such as with Milk-Bone, where we don’t just use a repurposed 30-second spot. Whether on publishers’ sites or our Facebook page, we look at how much people engage with the brand besides the video ad itself .” Twitter Hashtag – #eMwebinar

Rule #8 Q: Is experience a form of engagement? A: Certainly, but it’s hard for advertisers to generate experience, at least consistently…

Brand experience and engagement are linked by emotional connections

Brand experiences encourage engagement and marketers encourage experiences

Rule #9 Q: How does consumer control contribute to engagement? A: The more choice and communication, the more likely people are to…

Consumer feelings about getting information ( high-to-low scale ) Source: Jack Morton, May 2010

How much attention do consumers pay to recent information about brands? Source: Jack Morton, May 2010

Rule #10 Q: Are viral video ads more engaging? A: Perhaps. It’s not that simple. Only a small share of ads go viral—plus typically need blend of paid, owned, earned…

Old Spice Man lessons: More than meets the eye or any other sense

Various YouTube marketing tactics: vital venue for viral video Source: MarketingProfs, December 2009

Rule #11 Q: Does the mix of video and social media offer more engagement? A: You’d like to think it always does, however…

When it all comes together, social media is a great environment for audience engagement

Bob Hoffman, chief executive officer, Hoffman/Lewis “ If your social media marketing strategy is contingent on the idea that consumers want to have a conversation with you, create a relationship with your company and engage with your brand , you may be living in a dream world.” Twitter Hashtag – #eMwebinar

Social media engagement often depends on brand advertising first

Nicole Haygood, vice president interactive media director, Draftfcb “ Within video, engagement is important. Is the window active? Are they muting it? How much time are they spending with the ad? Are they passing it along to friends? Are they commenting about the ad on YouTube?” Twitter Hashtag – #eMwebinar

Marketers typically cannot control social media engagement, oftentimes they need just to listen

Rule #12 Q: How might TV and online together help marketers create greater engagement? A: When one medium feeds into the other, holistic campaigns…

Brand engagement is anti-silo, much better done cross-channel

When engagement is defined differently, more consumers prefer TV over online Source: Nielsen Online, July 2009

Takeaways

Ian Schafer, chief executive officer, Deep Focus “ When marketers choose to truly engage audiences (and that means something different for every brand ), it requires more custom thinking, more custom execution, more attention paid at every turn…” Twitter Hashtag – #eMwebinar

Server metrics
Pro = fast results, often real-time.
Con = no insight into audience change of perception.
Survey metrics
Pro = more depth than server-based metrics.
Con = costs marketers more than server-based data.
Viral video
Pro = works hand-in-hand with social media.
Con = often doesn’t take off.
Social media
Pro = when successful, many ways to engage.
Con = marketers give up—or need to share—control.
Conclusions: Each rule of engagement offers pros and cons for video ads

EyeWonder Video Campaign Performance Metrics Q1-Q2 2010 *Campaigns listed in order of time and avg. percent viewed.
Brand Awareness campaigns measured by interaction rate
Direct Response campaigns measured by click through rate
Video Length Vertical Market Average Time Viewed Avg. Percent Viewed Interaction Rate Clickthru Rate 15 Technology / Telecommunications 13.21 88.07% 13.37% 0.37% 15 Automotive 12.76 85.05% 1.24% 0.20% 15 Lifestyles 12.31 82.05% 6.97% 0.08% 15 Business / Finance 11.25 75.00% 10.68% 0.34% 15 Travel 11.20 74.68% 3.37% 0.15% 15 Consumer Packaged Goods 11.02 73.46% 3.64% 0.30% 15 Entertainment & News 10.60 70.65% 4.25% 0.28% 15 Pharmaceuticals 10.17 67.82% 0.43% 0.11% 15 Public Service 9.70 64.64% 2.08% 0.08% 15 Consumer Electronics 9.47 63.17% 14.42% 0.20% 15 Retail 8.83 58.86% 5.50% 0.06% Video Length Vertical Market Average Time Viewed Avg. Percent Viewed Interaction Rate Clickthru Rate 30 Automotive 19.09 63.63% 7.48% 1.32% 30 Travel 18.49 61.64% 27.25% 0.80% 30 Consumer Electronics 18.21 60.70% 7.88% 0.31% 30 Entertainment & News 17.62 58.75% 5.19% 0.31% 30 Public Service 17.03 56.77% 11.43% 0.13% 30 Retail 16.84 56.14% 7.47% 0.35% 30 Technology / Telecommunications 14.25 47.49% 14.12% 0.23% 30 Business / Finance 12.96 43.21% 13.55% 0.51% 30 Lifestyles 11.94 39.78% 1.22% 0.31% 30 Pharmaceuticals 7.61 25.38% 8.37% 0.11% 30 Consumer Packaged Goods 3.27 10.91% 8.77% 0.33%

Video Scores for CPG Advertisers Gatorade G Series Before During and After Campaign

Presented by: David Hallerman Principal Analyst, eMarketer, Inc. Twitter Hashtag – #eMwebinar Sponsored by: Video Advertising Engagement – What Marketers Need to Know Questions & Answers Registrants will receive a copy of the slide deck and the playback link in a follow-up email within 24 hours of this presentation. To learn about eMarketer Total Access please visit www.emarketer.com /products or contact us: (800) 405-0844 [email_address]

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eMarketer Webinar: Video Advertising Engagement

by eMarketer on Oct 22, 2010

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eMarketer Webinar: Video Advertising Engagement — Presentation Transcript