Grow Your Digital Video Comfort Zone - 4 Tips

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ValueClick Media's Director of Video Strategy, Dan Alexander, offers four tips for cross-platform marketers to maximize their digital video ROI. Before digital video, TV was one of the few visual mediums where advertisers knew that when they bought air time, they were getting a specific audience, at a precise time, for a determined spend. While navigating the current video landscape can be unnerving for both traditional and digital marketers – often unsure of what they are getting in return for their time and spend – digital video is where top brands are progressively allocating their advertising budgets.

Now is the time to grow your video comfort zone to meet increasing demand. Learn the 4 essential questions to ask your video ad provider.

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  • Link to IAB study http://www.iab.net/media/file/Digital-Video-and-TV-Advertising-Viewing-Budget-Share-Shift-and-Effectiveness.pdf
  • In-target CPM Calculation: Gross CPM ($) ÷ In-target delivery (%) Note: Nielsen benchmarks used for illustration. Actual benchmarks are publisher-specific.
  • Grow Your Digital Video Comfort Zone - 4 Tips

    1. 1. DAN ALEXANDERDIR. VIDEO STRATEGY, VALUECLICK MEDIAJUNE 21, 2013GROW YOUR VIDEO COMFORT ZONE
    2. 2. 2WHO WE AREFast Facts 15 years of experience 1400+ employees 25,000 advertisers served NASDAQ: VCLKWhy Is This Important? Massive DMP with 25 sources of input Reach the same users across devices True cross-device campaign optimization $40MM annual investment in our technology
    3. 3. 3TODAY’S AGENDA = VIDEO IS YOUR FRIENDVideo Trend SpottingTV vs. Digital VideoGrow Your VideoComfort Zone123
    4. 4. 4TREND SPOTTING: VIDEO AD SPENDING$4B will be spenton digital video thisyear, up 41% YOYAs the fastest growingonline ad format, videospending will reach$8B by 2016$2.00$2.93$4.14$5.75$6.99$8.042011 2012 2013 2014 2015 2016US Digital Video Ad Spending, 2011-2016Billions and % ChangeDigital video ad spending % ChangeNote: Historical data up to 2011 is derived from Interactive Advertising Bureau (IAB)/PricewaterhouseCoopers (PwC) dataSource: eMarketer, Dec 201240.8%46.5%41.3%38.9%21.6%15.0%
    5. 5. 5TREND SPOTTING: TV AD SPENDING$66B will be spenton TV this year, up2.8% YOYTV spending continuesto dominate allscreens, expected toreach $73B by 2016$60.66$64.54 $66.35$68.54 $69.91$73.052011 2012 2013 2014 2015 2016US TV Ad Spending, 2011-2016Billions and % ChangeJune 2013TV ad spending % Change2.8%6.4%2.8%3.3%2.0%4.5%
    6. 6. 6TREND SPOTTING: BUDGETS SHIFT TO VIDEO23% of digital dollarswill go to video thisyear, increasing toover 30% in 201562.9%61.3%57.9%54.3%49.7%47.0%44.8%14.3%16.2%19.6%23.4%27.8%30.2%31.9%15.5%13.4%12.1%11.5%11.5%11.6%12.0%7.2%9.1%10.4%10.8%11.0%11.2%11.4%0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%2010: $9.912011: $12.332012: $14.982013: $17.672014: $20.692015: $23.132016: $25.21Banners Video Rich Media SponsorshipsNote: Includes advertising that appears on desktop and laptop computers as well as mobile phones and tablets; data through 2011 is derived fromIAB/PwC data; numbers may not add up to 100% due to roundingSource: eMarketer, Sep 2012US Digital Display Ad Spending Share by Format 2010-2016% of Total and BillionsTotalSpending
    7. 7. 7TREND SPOTTING: TV-TO-VIDEO SHARE SHIFTIAB, Yahoo and Microsoft Advertising:Digital Video Viewing, Budget Share Shift and EffectivenessTV95%Online5% 0%0%TV100%0%0%0%TV90%Online10% 0% 0%TV85%Online15% 0% 0%Source: IAB/Nielsen Online Video Study, 2012ReachShifting up to 15% of TV adspend to video providesincremental and effective reachRunning digital video ahead of aTV spot enhances brand lift by15% to 45%
    8. 8. Television$66B industryOne screen1 main metric60+ years history8TV VS. DIGITAL VIDEODigital Video$4B industryMultiple screensMultiple metrics5+ years history
    9. 9. 9THE VIDEO LUMASCAPE
    10. 10. 104 WAYS TO MAXIMIZE VIDEO ROIASK THE RIGHT QUESTIONS…CAN YOU TAKE MY CAMPAIGN ACROSS SCREENS?1 DO YOU PROVIDE VIDEO BRAND SAFETY ON EVERY SCREEN?2DO YOU OFFER DATA-DRIVEN TARGETING?3 WHAT DOES SUCCESS MEAN TO YOU?4
    11. 11. 11COMFORT ZONE QUESTION #1:CAN YOU TAKE MY CAMPAIGN ACROSS SCREENS?What is the modern family?That was then… This is now…Americans on averageowned 1 deviceToday, Americans average3+ devices
    12. 12. 12COMFORT ZONE QUESTION #1:CAN YOU TAKE MY CAMPAIGN ACROSS SCREENS?DESKTOPAdvertisers are taking a “Screen Agnostic” approach to Digital Video• More brands are taking a ‘screen-agnostic’ approach to video buying/planning• The assumption is TV & Digital Video buying/planning teams are consolidating efforts• Marketers are starting to benchmark against cross-measurement analyticsSMARTPHONE TABLET CONNECTED TV
    13. 13. 13COMFORT ZONE QUESTION #2:DO YOU PROVIDE VIDEO BRAND SAFETY ACROSS SCREENS?Brand Safety & Compliance Vendors• Digital video introducesadditional layers of complexity• In order to scale a digitalaudience, you need multiplepublishers to reach them…That’s when ad networks comein handy.• What level of brand safety isprovided for video campaigns?
    14. 14. 14COMFORT ZONE QUESTION #3:DO YOU OFFER DATA-DRIVEN TARGETING?It’s undeniable that video is one powerful ad formatIn our experience, we know that the combination ofVIDEO + DATAdrives higher . . .VIDEO COMPLETION RATES and CTR
    15. 15. 15COMFORT ZONE QUESTION #3DO YOU OFFER DATA-DRIVEN TARGETING?70.0%75.0%80.0%85.0%BT Non-BTVideo Completion %Audience Non-AudienceTargeted Targeted0.00%0.50%1.00%1.50%2.00%BT Non-BTBT Non-BTAudience Non-AudienceTargeted TargetedExecution• Evaluated 3 top tier advertisers’ video campaignsfor more than six months:• Sports TV advertiser• Auto advertiser• Energy drink advertiser• Compared the Video Completion Rate and CTRperformance for each campaignResults• On average, campaigns that leveraged audiencetargeting exhibited a VCR of 11.1% higher thantheir non-targeted counterparts• Similarly, campaigns that leveraged audiencetargeting exhibited a CTR of 84.5% higher thantheir non-targeted counterparts
    16. 16. 16COMFORT ZONE QUESTION #4:HOW DO YOU BENCHMARK VIDEO RESULTS?What is the “Holy Grail” for VideoMeasurement?ClicksTime SpentDwell Rate CompletionBrand LiftConversionInteractivity% on targetCTRSharing/CommentingGRPReach & FrequencyEngagement
    17. 17. 17COMFORT ZONE QUESTION #4:HOW DO YOU BENCHMARK VIDEO RESULTS?NIELSEN OCR BENCHMARKSOCR in-target benchmarks aggregated across over 3,000 campaigns run to date.*$10 = $22.73$10 = $45.45 $10 = $17.54
    18. 18. 18LET’S SUM IT UP = TAKEAWAYSShifting money to digital video mayseem daunting given the landscapeAsk the right questions before youinitiate a video campaignEnsure your vendor is driving towardsyour ROI goals123
    19. 19. @ValueClickMedia19THANKS FOR LISTENING!Dan AlexanderDir. of Video StrategyValueClick Media(818) 575-4576dalexander@valueclick.com/ValueClickMedia

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