1) 73% of Australians streamed videos in May 2013, with youth spending over 80% of their online time watching videos. 2) The online video advertising market is growing rapidly, estimated to increase from $86 million in 2012 to $442 million in 2017. 3) While online video is growing, the process for online video planning and measurement is still evolving as practices from television do not always translate directly to the online environment.

1. #atmel
Online Video: What you need to
know to be more effective
ad:tech Melbourne
Stephen Hunt, Managing Director, TubeMogul Australia & New Zealand
Kate Palmer, Account Director, comScore Australia & New Zealand

2. #atmel 2
73% of Australians streamed a video in May’13
11 of the 17 hours the average person
spent online this month were spent streaming video
Video makes up a big part of our online lives

3. #atmel 3
…. and there’s plenty of room to grow
0
5
10
15
20
25
30
35
40
Averagehoursperviewer
Average hours streaming video
May ‘13

4. #atmel 4
Youth habits indicate the way of the future
% viewed video,
May’13
Average hours of
videos watched, May
‘13
15-24s 86% 16
55+ 81% 10
>80% of 15-24 time online was
spent with video!

5. #atmel 5
Source: Frost and Sullivan,
IAB
Video advertising market is experiencing explosive growth
0
100
200
300
400
500
2012 2013 2014 2015 2016 2017
Millionsofdollars
Annual Spend on Video Advertising
(Estimated)
$86 million
$442 million

6. #atmel 6
However, the current process is messy

7. #atmel 7
Some questions to
consider…

8. #atmel 8
To Add Interactivity Or Not?
Is Your Investment Substantial
Enough To
Justify The
Creative
Cost?
Number of
Interactions
/
TOTAL Budget
= Cost Per Interaction

9. What Frequency Should Be Set?
Empathise With Your Consumer
Frequency
and
Purchase
Intent
Absolute
Difference
(Exposed
minus
Control)
Source: Dynamic Logic Global MarketNorms, Q3/08; Video Freq 1-2= c194, Freq 3-6= c64, Freq 7+= c33.; Rich Media
Freq 1-2= c1756, 3-6= c1234, 7+= 1030.
Difference
in
Purchase
Intent
Frequency
(Number
of
Exposures)
Q4 / 2008
-­‐2
-­‐1
0
1
2
0 2 4 6 8 10
Video
Rich
Media

10. #atmel 10
Should digital planners
conform to TV norms or
Should TV planners conform
to digital?

11. #atmel 11
What is a TARP in Australia?
20 TARP’s are equivalent to reaching 20% of people within a target audience once

12. #atmel 12
20 GRP’s could be the sum of multiple exposures across a consistent or average target
audience penetration – e.g. 10% @ frequency of 2
Different Than a GRP…or Total Reach
FREQUENCY 100GRP = x x
UNIQUES
TOTAL
TARGET
POP
UNIQUES: The number of people or households reached
TOTALTARGETPOPULATION: The size of target population or households
FREQUENCY: The number of times an individual or household saw an ad

13. Interchangeable Terms in Aggregate
100 TARPs
50% of Population
@ 2x Frequency
50 TARPs
50% of Population
@ 1x Frequency
50 TARPs
50% of Population
@ 1x Frequency
40 TARPs
40% of Population
@ 1x Frequency
60 TARPs
60% of Population
@ 1x Frequency
100 GRP
50% of Population
@ 2x Frequency
100 TARPs
50% of Population
(on average)
@ 2x Frequency
50 GRP
50% of Population
@ 1x Frequency
50 GRP
50% of Population
@ 1x Frequency

14. #atmel 14
How This Translates Online

15. #atmel 15
Accuracy Falls In Line With Targeting – Just Like TV
Guaranteed eCPMs are Higher Than Advertisers Expect Because Match Rates are
Lower Than Expected

16. #atmel 16
Is Wastage Such A Bad Thing?
The planner/buyer targeted young people, but pensioners were engaging the
most and bought the product too

17. #atmel 17
Optimize on targeting efficiency, and think beyond age/gender
69%
31%
20%
30%
40%
50%
60%
70%
80%
Demographic Data:
% of women aged 25-45 exposed to
the campaign
Out-of-
Target
In-Target
40%
60%
20%
30%
40%
50%
60%
70%
80%
Behavioral Data:
% of people exposed to campaign
who were also heavy consumers of
“parenting/cooking/home content”
Out-of-
Target
In-Target

18. #atmel 18
What About Context?
Most marketers won’t sacrifice all their context for audience

19. #atmel 19
If total reach goal was 50 %@3x, millions of impressions were wasted on
higher frequencies – 450 TARPs
TV Builds Reach With A Surplus Of Volume
0
10
20
30
40
50
60
70
80
90
1+ 2+ 3+ 4+ 5+ 6+ 7+ 8+ 9+ 10+

20. #atmel 20
Online Video can cap the frequency on the upper end driving huge efficiencies
with far less media – 184 TARPs
Online Can Hold Frequency Reducing Wastage
0
10
20
30
40
50
60
70
80
90
1+
2+
3+

21. #atmel 21
Not the placement you’re
looking for…

22. #atmel 22
Source: Advertiser Perceptions,
5th annual study
60% of agencies cited Brand Recall and
Intent to Purchase as the most important
measures of online success.
However, ‘Performance’ (clicks/conversions)
remains the key criteria agencies say they use to evaluate
media.
How will you evaluate success?

23. #atmel 23
Real-time optimization based on brand lift
0
20
40
60
80
100
1 to 2 3 to 4 5 to 6 7 to 8 9+
%Lift
# of Exposures
Awareness x Frequency
Media Plan Average Frequency Optimization
Media Partner A 5 Cap Delivery
Media Partner B 1 Increase Delivery
Media Partner C 9 Cap Delivery

24. #atmel 24
QUESTIONS?

25. www.comscore.com
www.facebook.com/comscoreinc
@comScore
Thanks