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David Hallerman Principal Analyst A P R I L  2 8,  2 0 1 1 Video Advertising Engagement — Trends for Marketers Sponsored  by:
What we’ll look at today… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Twitter – #eMwebinar
Marketers define video ad engagement in several  different  ways ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Twitter – #eMwebinar
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.”
Trend #1 What’s At Stake (The More Factor)
Big dollars at stake for video ad market, and engagement  improves  results
Online video advertising can be  costly : Nearly 20% of agency executives said average video CPM is $21 to $60
Engagement is a highly desired way to  base  video ad spending
How one type of  cost per engagement  video ad can work to draw in audience
Soon,  over 60%  of online video viewers will watch TV shows regularly ( however )
Trend #2 Video Ad Metrics Indicate Engagement
[object Object],[object Object],[object Object],[object Object],[object Object],The engagement metric is increasingly  central  to video advertising Twitter – #eMwebinar
The amount of  time  the audience spends with a video ad is an essential engagement metric Twitter – #eMwebinar
Pre-roll dominates but  mid-roll ads  got the highest completion rates because of engagement with content
Two primary online video campaign objectives: brand engagement and brand  awareness  (which is  a type of engagement)
Core of engagement—swaying audience’s  emotions , thereby bonding with the brand
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
Trend #3 Website Choices Help Boost Engagement
Full-length  TV shows  and movies support much of online video advertising, and so can foster engagement
Hulu,  traditional  video content, at top—but networks also key places to engage
Media content people  discuss  with friends, family, work colleagues Source: Deloitte, February 2011
Premium content tends to make 71% of the audience more  willing  to watch ads ( trade-off is traditional )
Video ads should reflect  brand website , and vice versa, because site visits are what 48% do after viewing ad Twitter – #eMwebinar
Trend #4 Ad Targeting Influences E ngagement
Most important  criteria  for decision to spend on digital video advertising Source: IAB, Advertiser Perceptions, April 2011
Higher completion rates require quality and  relevancy , so targeting is essential to get the audience’s attention Twitter – #eMwebinar
Traditional targeting  tactics  used more than those that are more talked about
Trend #5 Longer Ads Can Extend Engagement
Longer ads tend to  reduce  audience involvement, at least with one metric
Custom video content can generate engagement, but the marketing message typically is best when it’s  subtle
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
Awareness rather than purchase intent  gained  in one example of branded video content (done for Sprint)
Trend #6 Why Viral Video Ads Engage Consumers
About 25% of marketers who used YouTube for viral had  viral success  ( and sharing video clearly indicates engagement ) Twitter – #eMwebinar
More familiarity with viral than usage because  niche  tactic ( in some ways ) Source: DMA, Ipsos Reid, CMA, February 2011
Viral video may be better for awareness than boosting  purchase decisions
Dan Greenberg, chief executive officer, Sharethrough “ The power of  emotional storytelling  will always be a necessary vehicle on the path towards sharing.” Twitter – #eMwebinar
VW’s The Force  lessons : Both a good story and good ad spending
Trend #7 Video and Social Together Can Generate High Engagement
Social media marketing is  all about  engagement ( along with branding )
Affinity  is the main reason about one-quarter of Gen-Y respondents engage with brands on social media sites
Advertising encourages engagement with brands ( it’s not all  earned media ) Twitter – #eMwebinar
Engagement and conversations are a sign of social-media  brand success
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 .”
Social network audience might actively engage with brands, but at most  only half  of the population
Conclusions
Engagement is a  slippery  concept ,[object Object],[object Object],[object Object],Twitter – #eMwebinar
Consumers  don’t really  engage with digital video ads, say 1/3 of respondents Source: IAB, Advertiser Perceptions, April 2011
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…”
[object Object],[object Object],[object Object],[object Object],In the end, why might marketers want to create  video ad engagement ?
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**
A Force Multiplier for Broadcast ,[object Object],[object Object],Nielsen Wire April 2010
Quality Reach You Can’t Get Anywhere Else ,[object Object],[object Object],+
Right User. ANY Format. Single IO. High Impact Video Display
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
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  www.emarketer.com/products or contact us: (800) 405-0844  [email_address]   Presented by: David Hallerman Principal Analyst, eMarketer, Inc. Sponsored  by: Jared Skolnick [email_address]

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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.
  • 3.
  • 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
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  • 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
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  • 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…”
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  • 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**
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  • 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 www.emarketer.com/products or contact us: (800) 405-0844 [email_address] Presented by: David Hallerman Principal Analyst, eMarketer, Inc. Sponsored by: Jared Skolnick [email_address]