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Online Video Metrics Matter

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Online video is about to reach parity with other media as a primary ad platform. But what are the right metrics to track and pay for?

Online video is about to reach parity with other media as a primary ad platform. But what are the right metrics to track and pay for?

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  • 1. Video Monetization: Metrics Matter Paul Zagaeski Principal Analyst, Online TV Adviser & GigaOm Pro Analyst Network June 2010
  • 2. Today’s Key Ideas
    • Video viewing trends (the New TV)
    • New TV is making money (are you?)
    • Online viewers > engagement
    • Engaging viewers is cheap! (or is it?)
    • What does engagement mean exactly?
    • Engagement Metrics: this ain’t your grandfather’s Arbitron Ratings Book
  • 3. Video Viewing Trends
    • TV: just a box and lots of local broadcasters
    • Cable/satellite: more channels, narrowcasting
    • Web video: LOLCats give way to “TV experience online”
  • 4. New TV Is Making Money
    • Broadcast 1940s-1970s (ads)
    • Cable/satellite 70s-90s (ads + subs)
    • Web video 90s-00s (no one paying or buying ads)
    • Online TV 00s (no one pays for LOLCats on YT)
    • Paid Content 10s-future (ads + subs + PPV(?))
    • Pain: what does an ad buyer buy in New TV?
  • 5. Online Viewing>Engagement
    • Web & mobile platforms give the viewer power—they can act!
    • HSN=$billions
    • Interaction rate 5-7x higher than for ads
    • Lots of innovation, measurable results
      • UbiSoft ( Your Shape for Wii) competes with Wii Fit using online video
    • Source: http://www.clickz.com
  • 6. Engaging Viewers Is Cheap…
    • …when it works (Nike Hyperdunk)
    • Can also be impossible/too expensive
    • What’s the cost? Rough scale
      • CPM Display Ads $2.30-$2.45
      • CPM Online Video Ads
        • $7-$8 ROS or in-banner video
        • $15-$20 for pre-roll/premium pre-roll*
      • *eMarketer/Credit Suisse/LiveRail/AdAge
  • 7. What’s Engagement Mean?
    • Ads online are in a completely new context versus ads on TV
    • For the user:
      • Where did I find this? Who helped me find it? What did I think while watching? What did I do during and after watching?
    • For the brand:
      • What format did we choose? Where are we putting this? What else appears with it? How did the viewer respond?
    • Goal: Going viral!
      • Means brand is probably maximizing all relevant metrics for the video—and you need metrics even when it’s an obvious success.
  • 8. Engagement Metrics
    • Placement
    • Sentiment
    • Engagement
    • Reach
  • 9. Nike Ad Metrics Case
    • My recent favorite “viral video” (Kobe & Hyperdunk)
    • Measuring ad results of:
      • Placement (6 > 250+)
      • Sentiment (40% re-enacted)
      • Engagement (35k comments)
      • Reach/Exposure (375,000 hours)
    • See case at http://corp.visiblemeasures.com/case-studies/engaged-reach/
  • 10. And Now You Know
    • There’s New TV
    • New TV is gaining ad revenue traction
    • One reason: online viewer engagement, with great follow-on value brought to the brand
    • Measuring that engagement is absolute requirement for your brand’s next success.
  • 11. Time For Q&A Later…
    • By the way, check this article about barriers to online video ads http://techcrunch.com/2010/01/16/12-things-holding-back-online-video-advertising/
  • 12. That’s all, folks! Paul Zagaeski (Twitter: paulzagaeski) Principal Analyst Online TV Adviser http://onlinetvadviser.wordpress.com Member of GigaOm Pro Analyst Network