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eMarketer Webinar: Video Advertising Engagement—Trends for Marketers


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Join eMarketer Principal Analyst David Hallerman, who will help you navigate the video advertising market and show you how marketers are using video to engage their audience.

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eMarketer Webinar: Video Advertising Engagement—Trends for Marketers

  1. David Hallerman Principal Analyst A P R I L 2 8, 2 0 1 1 Video Advertising Engagement — Trends for Marketers Sponsored by:
  2. What we’ll look at today… <ul><li>Trend 1: What’s at stake (the more factor) </li></ul><ul><li>Trend 2: Video ad metrics indicate engagement </li></ul><ul><li>Trend 3: Website choices help boost engagement </li></ul><ul><li>Trend 4: Ad targeting influences engagement </li></ul><ul><li>Trend 5: Longer ads can extend engagement </li></ul><ul><li>Trend 6: Why viral video ads engage consumers </li></ul><ul><li>Trend 7: Video and social together can generate high engagement </li></ul>Twitter – #eMwebinar
  3. Marketers define video ad engagement in several different ways <ul><li>Various server-based metrics… time in general </li></ul><ul><li>Interactivity , clicking or mousing (CPE, Tremor Media ) </li></ul><ul><li>Traditional brand-health metrics, like awareness </li></ul><ul><li>When people share or comment (viral, social) </li></ul><ul><li>“ Interactions, experiences and context that create and nurture enduring, profitable customer relationships” ( Forbes ) </li></ul><ul><li>Funny, emotionally touching , informative ( Nielsen ) </li></ul><ul><li>Conceptually similar to social media marketing </li></ul>Twitter – #eMwebinar
  4. 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.”
  5. Trend #1 What’s At Stake (The More Factor)
  6. Big dollars at stake for video ad market, and engagement improves results
  7. Online video advertising can be costly : Nearly 20% of agency executives said average video CPM is $21 to $60
  8. Engagement is a highly desired way to base video ad spending
  9. How one type of cost per engagement video ad can work to draw in audience
  10. Soon, over 60% of online video viewers will watch TV shows regularly ( however )
  11. Trend #2 Video Ad Metrics Indicate Engagement
  12. <ul><li>Engagement is really a mix of various metrics, both server- and survey-based. These include: </li></ul><ul><li>Time spent with the ad, particularly metrics such as completion rates and percentage of ad viewed. </li></ul><ul><li>Deliberate audience interactions , such as start rates, mouse-overs, activating a video player and expanding a video banner ad. </li></ul><ul><li>Sharing links to video ads, if they go viral. </li></ul><ul><li>Strong lift for key brand-health metrics, such as purchase intent, favorability and awareness. </li></ul>The engagement metric is increasingly central to video advertising Twitter – #eMwebinar
  13. The amount of time the audience spends with a video ad is an essential engagement metric Twitter – #eMwebinar
  14. Pre-roll dominates but mid-roll ads got the highest completion rates because of engagement with content
  15. Two primary online video campaign objectives: brand engagement and brand awareness (which is a type of engagement)
  16. Core of engagement—swaying audience’s emotions , thereby bonding with the brand
  17. 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 – #eMwebinar
  18. Trend #3 Website Choices Help Boost Engagement
  19. Full-length TV shows and movies support much of online video advertising, and so can foster engagement
  20. Hulu, traditional video content, at top—but networks also key places to engage
  21. Media content people discuss with friends, family, work colleagues Source: Deloitte, February 2011
  22. Premium content tends to make 71% of the audience more willing to watch ads ( trade-off is traditional )
  23. Video ads should reflect brand website , and vice versa, because site visits are what 48% do after viewing ad Twitter – #eMwebinar
  24. Trend #4 Ad Targeting Influences E ngagement
  25. Most important criteria for decision to spend on digital video advertising Source: IAB, Advertiser Perceptions, April 2011
  26. Higher completion rates require quality and relevancy , so targeting is essential to get the audience’s attention Twitter – #eMwebinar
  27. Traditional targeting tactics used more than those that are more talked about
  28. Trend #5 Longer Ads Can Extend Engagement
  29. Longer ads tend to reduce audience involvement, at least with one metric
  30. Custom video content can generate engagement, but the marketing message typically is best when it’s subtle
  31. 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 – #eMwebinar
  32. Awareness rather than purchase intent gained in one example of branded video content (done for Sprint)
  33. Trend #6 Why Viral Video Ads Engage Consumers
  34. About 25% of marketers who used YouTube for viral had viral success ( and sharing video clearly indicates engagement ) Twitter – #eMwebinar
  35. More familiarity with viral than usage because niche tactic ( in some ways ) Source: DMA, Ipsos Reid, CMA, February 2011
  36. Viral video may be better for awareness than boosting purchase decisions
  37. Dan Greenberg, chief executive officer, Sharethrough “ The power of emotional storytelling will always be a necessary vehicle on the path towards sharing.” Twitter – #eMwebinar
  38. VW’s The Force lessons : Both a good story and good ad spending
  39. Trend #7 Video and Social Together Can Generate High Engagement
  40. Social media marketing is all about engagement ( along with branding )
  41. Affinity is the main reason about one-quarter of Gen-Y respondents engage with brands on social media sites
  42. Advertising encourages engagement with brands ( it’s not all earned media ) Twitter – #eMwebinar
  43. Engagement and conversations are a sign of social-media brand success
  44. Adam Kleinberg, chief executive officer, Traction “ Social is not about listening to people talking about your brand. It’s about listening to people talk about their lives .”
  45. Social network audience might actively engage with brands, but at most only half of the population
  46. Conclusions
  47. Engagement is a slippery concept <ul><li>Is engagement simply people paying attention to your video ad? </li></ul><ul><li>Does engagement happen only when people interact with your video? </li></ul><ul><li>How much engagement actually occurs at some point after the audience views your ad? </li></ul>Twitter – #eMwebinar
  48. Consumers don’t really engage with digital video ads, say 1/3 of respondents Source: IAB, Advertiser Perceptions, April 2011
  49. 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…”
  50. <ul><li>Each online video advertising engagement trend offers pros and cons for marketers. </li></ul><ul><li>For example, precise ad targeting boosts engagement. But it can be hard both to target accurately and still get the audience reach that brand marketers usually want. </li></ul><ul><li>Engagement for one brand will likely differ from that of other brands—or even from the same brand at a different stage in its development. </li></ul><ul><li>In the end, engagement is just like awareness, completion rates, targeting, viral sharing or a brand’s Facebook page. They’re just means to an end . </li></ul>In the end, why might marketers want to create video ad engagement ?
  51. Misappropriated Funds? Source: Morgan Stanley; Note: Time spent data per NA Technographics (2009), ad spent data per VSS, internet advertising opportunity assumes online ad spent share matches time spent share, per Yahoo! Investors Dat, 5/10. **eMarketer Online Video Ad Sp0ending, 2009-2014 March 20 % of Total Media Consumption Time or Advertising Spending -$50B Global Opportunity 5.5% Digital Video Spend**
  52. A Force Multiplier for Broadcast <ul><li>Digital video outperforms broadcast in every major metric </li></ul><ul><li>Brand recall rose an additional 18% when TV & Web were paired </li></ul>Nielsen Wire April 2010
  53. Quality Reach You Can’t Get Anywhere Else <ul><li>Digital video on the best content sites </li></ul><ul><li>Digital video associated with premium content </li></ul>+
  54. Right User. ANY Format. Single IO. High Impact Video Display
  55. Get More Value on Undertone $1MM investment delivers $1.7MM in value on Undertone Top Five Video Networks What’s your investment worth on Undertone? 100 167 174 70% More VALUE In-Banner & Pre-Roll Mix Pre-Roll only
  56. Twitter Hashtag – #eMwebinar Video Advertising Engagement — Trends for Marketers Questions & Answers Registrants will receive an email tomorrow that includes a link to view the deck and webinar recording. For more discussion, please join us after the webinar on LinkedIn. Search for the eMarketer Group and click on Discussions. To learn about eMarketer Total Access please visit or contact us: (800) 405-0844 [email_address] Presented by: David Hallerman Principal Analyst, eMarketer, Inc. Sponsored by: Jared Skolnick [email_address]