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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?

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Online Video Metrics Matter

  1. 1. Video Monetization: Metrics Matter Paul Zagaeski Principal Analyst, Online TV Adviser & GigaOm Pro Analyst Network June 2010
  2. 2. copyright 2010 Paul Zagaeski 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. 3. copyright 2010 Paul Zagaeski Video Viewing Trends QuickTime™ and adecompressorare needed to see this picture.  TV: just a box and lots of local broadcasters  Cable/satellite: more channels, narrowcasting  Web video: LOLCats give way to “TV experience online”
  4. 4. copyright 2010 Paul Zagaeski 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? QuickTime™ and adecompressor are needed to see this picture.
  5. 5. copyright 2010 Paul Zagaeski 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: QuickTime™ and a decompressor are needed to see this picture.
  6. 6. copyright 2010 Paul Zagaeski 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. 7. copyright 2010 Paul Zagaeski 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. 8. copyright 2010 Paul Zagaeski Engagement Metrics  Placement  Sentiment  Engagement  Reach QuickTime™ and a decompressor are needed to see this picture.
  9. 9. copyright 2010 Paul Zagaeski 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 QuickTime™ and a decompressor are needed to see this picture.
  10. 10. copyright 2010 Paul Zagaeski 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. QuickTime™ and a decompressor are needed to see this picture.
  11. 11. copyright 2010 Paul Zagaeski Time For Q&A Later…  By the way, check this article about barriers to online video ads things-holding-back-online-video- advertising/ QuickTime™ and a decompressor are needed to see this picture.
  12. 12. That’s all, folks! Paul Zagaeski (Twitter: paulzagaeski) Principal Analyst Online TV Adviser Member of GigaOm Pro Analyst Network