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David Hallerman Principal Analyst O C T O B E R  2 1  2 0 1 0 N E W  Y O R K  NY Video Advertising Engagement
What we’ll look at today… 12 Rules of Video Engagement… Metrics for measuring video results Video ad spending trends Where and what people watch Experience, control, relevancy Social media, WOM and engagement And more!
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.” Twitter Hashtag – #eMwebinar
Engagement is a slippery concept Is engagement simply people paying  attention  to your video ad? Does engagement happen only when people  interact  with your video? How much engagement occurs at some point  after  the audience views your ad? Twitter Hashtag – #eMwebinar
Encouraging brand engagement is a key reason why marketers use online video advertising
Engagement defined is… Various server-based metrics… time  in general Interactivity , clicking or mousing (CPE,  ScanScout ) Traditional  brand-health  metrics, like awareness When people  share  or comment (viral, social) “ Interactions,  experiences  and context that create and nurture enduring, profitable customer relationships” ( Forbes ) Funny, emotionally  touching , informative ( Nielsen ) Conceptually  similar to  social media marketing Twitter Hashtag – #eMwebinar
Rules of Engagement
Rule #1 Q:   How can spending levels improve video ad engagement? A:   Connecting with consumers often relies on classic advertising…
US Online Video Advertising Spending, 2008 - 2014 (billions and % change) Source: eMarketer, May 2010 127% 39% 48% 43% 43% 35% 33%
One-third of marketers want to use cost per engagement to budget for video ads
Rule #2 Q:   Which video ad metrics best indicate engagement? A:   Once you define engagement for your current needs…
Server-based metrics Marketers can choose from dozens, but among the most important ones for video engagement are completion rate, percent of ad viewed and interaction rate. Click rates, however, tend to be inadequate for video advertising. Survey-based metrics Also called brand-health, brand-lift or brand-equity metrics. All of these traditional metrics are highly important for video engagement. They include awareness, message association, brand favorability and purchase intent.  Metrics for online video advertising fall into two main categories Twitter Hashtag – #eMwebinar
Engagement  is really a mix of various metrics, both progress and performance. These include: Time   spent with the ad, particularly metrics such as completion rates and percentage of ad viewed. Deliberate audience  interactions , such as start rates, mouse-overs, activating a video player and expanding a video banner ad. Sharing  links to video ads, if they go viral. Strong lift for key  brand-health   metrics, such as purchase intent or brand favorability. The engagement metric is increasingly central to video advertising
What makes engagement both significant and difficult to measure is how it blends several distinct types of metrics
Boosting brand awareness key element for creating engagement
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 Hashtag – #eMwebinar
Rule #3 Q:   When audience members just watch the video ad, does that deliver engagement? A:   Metrics such as start rates or completion rates carry more weight than…
Start rate for video advertising, by site section or environment Source: MediaMind (Eyeblaster), November 2009
Completion rates will vary based on several factors, including the source of the video ad’s creative — either repurposed or original
The usefulness of completion rates vs. click rates for video ads is clear
However — and this is why the 12 rules are questions — video clicks can work
Rule #4 Q:   How much do marketers need HD video ads to create engagement? A:   Never under-estimate simply getting the audience to watch…
Consumers won’t cut costs by cutting HD (quality matters) Source: Yankee Group, August 2010
Rule #5 Q:   How important is user traffic for gauging engagement? A:   Can give insight into engagement, but results are not always immediate…
YouTube gets the most audience, viewing sessions, and time — but other factors on other sites facilitate engagement
Hulu leads the pack in ads per viewer because many brand marketers look for what they already know (TV counts)
Rule #6 Q:   How much does time of day or day of the week affect engagement? A:   All targeting elements need to be factored in…
Main reason for video ad networks? Targeting more than reach or price
Traditional types of targeting encourage engagement ( imagine great ad on wrong site )
Rule #7 Q:   Can longer video ads offer greater engagement? A:   Yes, sometimes, maybe, depends on…
Branded content, mainly video, is an effective way to engage Source: CMO Council, October 2010
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 Hashtag – #eMwebinar
Rule #8 Q:   Is experience a form of engagement? A:   Certainly, but it’s hard for advertisers to generate experience, at least consistently…
Brand experience and engagement are linked by emotional connections
Brand experiences encourage engagement and marketers encourage experiences
Rule #9 Q:   How does consumer control contribute to engagement? A:   The more choice and communication, the more likely people are to…
Consumer feelings about getting information ( high-to-low scale ) Source: Jack Morton, May 2010
How much attention do consumers pay to recent information about brands? Source: Jack Morton, May 2010
Rule #10 Q:   Are viral video ads more engaging? A:   Perhaps. It’s not that simple. Only a small share of ads go viral—plus typically need blend of paid, owned, earned…
Old Spice Man lessons: More than meets the eye or any other sense
Various YouTube marketing tactics: vital venue for viral video Source: MarketingProfs, December 2009
Rule #11 Q:   Does the mix of video and social media offer more engagement? A:   You’d like to think it always does, however…
When it all comes together, social media is a great environment for audience engagement
Bob Hoffman, chief executive officer, Hoffman/Lewis “ If your social media marketing strategy is contingent on the idea that  consumers want to  have a conversation with you, create a relationship with your company and  engage with your brand , you may be living in a dream world.” Twitter Hashtag – #eMwebinar
Social media engagement often depends on brand advertising first
Nicole Haygood, vice president interactive media director, Draftfcb “ Within video, engagement is important. Is the window active? Are they muting it? How much time are they spending with the ad? Are they passing it along to friends? Are they  commenting  about the ad   on YouTube?” Twitter Hashtag – #eMwebinar
Marketers typically cannot control social media engagement, oftentimes they need just to listen
Rule #12 Q:   How might TV and online together help marketers create greater engagement? A:   When one medium feeds into the other, holistic campaigns…
Brand engagement is anti-silo, much better done cross-channel
When engagement is defined differently, more consumers prefer TV over online Source: Nielsen Online, July 2009
Takeaways
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…” Twitter Hashtag – #eMwebinar
Server metrics Pro  = fast results, often real-time. Con  = no insight into audience change of perception. Survey metrics Pro  = more depth than server-based metrics. Con  = costs marketers more than server-based data.  Viral video Pro  = works hand-in-hand with social media. Con  = often doesn’t take off. Social media Pro  = when successful, many ways to engage. Con  = marketers give up—or need to share—control. Conclusions: Each rule of engagement offers pros and cons for video ads
 
EyeWonder Video Campaign Performance Metrics  Q1-Q2 2010 *Campaigns listed in order of time and avg. percent viewed. Brand Awareness campaigns measured by interaction rate Direct Response campaigns measured by click through rate Video Length Vertical Market Average Time Viewed Avg. Percent Viewed Interaction Rate Clickthru Rate 15 Technology / Telecommunications 13.21 88.07% 13.37% 0.37% 15 Automotive 12.76 85.05% 1.24% 0.20% 15 Lifestyles 12.31 82.05% 6.97% 0.08% 15 Business / Finance 11.25 75.00% 10.68% 0.34% 15 Travel 11.20 74.68% 3.37% 0.15% 15 Consumer Packaged Goods 11.02 73.46% 3.64% 0.30% 15 Entertainment & News 10.60 70.65% 4.25% 0.28% 15 Pharmaceuticals 10.17 67.82% 0.43% 0.11% 15 Public Service 9.70 64.64% 2.08% 0.08% 15 Consumer Electronics 9.47 63.17% 14.42% 0.20% 15 Retail 8.83 58.86% 5.50% 0.06% Video Length Vertical Market Average Time Viewed Avg. Percent Viewed Interaction Rate Clickthru Rate 30 Automotive 19.09 63.63% 7.48% 1.32% 30 Travel 18.49 61.64% 27.25% 0.80% 30 Consumer Electronics 18.21 60.70% 7.88% 0.31% 30 Entertainment & News 17.62 58.75% 5.19% 0.31% 30 Public Service 17.03 56.77% 11.43% 0.13% 30 Retail 16.84 56.14% 7.47% 0.35% 30 Technology / Telecommunications 14.25 47.49% 14.12% 0.23% 30 Business / Finance 12.96 43.21% 13.55% 0.51% 30 Lifestyles 11.94 39.78% 1.22% 0.31% 30 Pharmaceuticals 7.61 25.38% 8.37% 0.11% 30 Consumer Packaged Goods 3.27 10.91% 8.77% 0.33%
Video Scores for CPG Advertisers Gatorade G Series Before During and After Campaign
 
Presented by: David Hallerman Principal Analyst, eMarketer, Inc. Twitter Hashtag – #eMwebinar Sponsored  by: Video Advertising Engagement –  What Marketers Need to Know Questions & Answers Registrants will receive a copy of the slide deck and the playback link in a follow-up email within 24 hours of this presentation.  To learn about  eMarketer Total Access  please visit  www.emarketer.com /products or contact us: (800) 405-0844  [email_address]

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eMarketer Webinar: Video Advertising Engagement

  • 1. David Hallerman Principal Analyst O C T O B E R 2 1 2 0 1 0 N E W Y O R K NY Video Advertising Engagement
  • 2. What we’ll look at today… 12 Rules of Video Engagement… Metrics for measuring video results Video ad spending trends Where and what people watch Experience, control, relevancy Social media, WOM and engagement And more!
  • 3. 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.” Twitter Hashtag – #eMwebinar
  • 4. Engagement is a slippery concept Is engagement simply people paying attention to your video ad? Does engagement happen only when people interact with your video? How much engagement occurs at some point after the audience views your ad? Twitter Hashtag – #eMwebinar
  • 5. Encouraging brand engagement is a key reason why marketers use online video advertising
  • 6. Engagement defined is… Various server-based metrics… time in general Interactivity , clicking or mousing (CPE, ScanScout ) Traditional brand-health metrics, like awareness When people share or comment (viral, social) “ Interactions, experiences and context that create and nurture enduring, profitable customer relationships” ( Forbes ) Funny, emotionally touching , informative ( Nielsen ) Conceptually similar to social media marketing Twitter Hashtag – #eMwebinar
  • 8. Rule #1 Q: How can spending levels improve video ad engagement? A: Connecting with consumers often relies on classic advertising…
  • 9. US Online Video Advertising Spending, 2008 - 2014 (billions and % change) Source: eMarketer, May 2010 127% 39% 48% 43% 43% 35% 33%
  • 10. One-third of marketers want to use cost per engagement to budget for video ads
  • 11. Rule #2 Q: Which video ad metrics best indicate engagement? A: Once you define engagement for your current needs…
  • 12. Server-based metrics Marketers can choose from dozens, but among the most important ones for video engagement are completion rate, percent of ad viewed and interaction rate. Click rates, however, tend to be inadequate for video advertising. Survey-based metrics Also called brand-health, brand-lift or brand-equity metrics. All of these traditional metrics are highly important for video engagement. They include awareness, message association, brand favorability and purchase intent. Metrics for online video advertising fall into two main categories Twitter Hashtag – #eMwebinar
  • 13. Engagement is really a mix of various metrics, both progress and performance. These include: Time spent with the ad, particularly metrics such as completion rates and percentage of ad viewed. Deliberate audience interactions , such as start rates, mouse-overs, activating a video player and expanding a video banner ad. Sharing links to video ads, if they go viral. Strong lift for key brand-health metrics, such as purchase intent or brand favorability. The engagement metric is increasingly central to video advertising
  • 14. What makes engagement both significant and difficult to measure is how it blends several distinct types of metrics
  • 15. Boosting brand awareness key element for creating engagement
  • 16. 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 Hashtag – #eMwebinar
  • 17. Rule #3 Q: When audience members just watch the video ad, does that deliver engagement? A: Metrics such as start rates or completion rates carry more weight than…
  • 18. Start rate for video advertising, by site section or environment Source: MediaMind (Eyeblaster), November 2009
  • 19. Completion rates will vary based on several factors, including the source of the video ad’s creative — either repurposed or original
  • 20. The usefulness of completion rates vs. click rates for video ads is clear
  • 21. However — and this is why the 12 rules are questions — video clicks can work
  • 22. Rule #4 Q: How much do marketers need HD video ads to create engagement? A: Never under-estimate simply getting the audience to watch…
  • 23. Consumers won’t cut costs by cutting HD (quality matters) Source: Yankee Group, August 2010
  • 24. Rule #5 Q: How important is user traffic for gauging engagement? A: Can give insight into engagement, but results are not always immediate…
  • 25. YouTube gets the most audience, viewing sessions, and time — but other factors on other sites facilitate engagement
  • 26. Hulu leads the pack in ads per viewer because many brand marketers look for what they already know (TV counts)
  • 27. Rule #6 Q: How much does time of day or day of the week affect engagement? A: All targeting elements need to be factored in…
  • 28. Main reason for video ad networks? Targeting more than reach or price
  • 29. Traditional types of targeting encourage engagement ( imagine great ad on wrong site )
  • 30. Rule #7 Q: Can longer video ads offer greater engagement? A: Yes, sometimes, maybe, depends on…
  • 31. Branded content, mainly video, is an effective way to engage Source: CMO Council, October 2010
  • 32. 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 Hashtag – #eMwebinar
  • 33. Rule #8 Q: Is experience a form of engagement? A: Certainly, but it’s hard for advertisers to generate experience, at least consistently…
  • 34. Brand experience and engagement are linked by emotional connections
  • 35. Brand experiences encourage engagement and marketers encourage experiences
  • 36. Rule #9 Q: How does consumer control contribute to engagement? A: The more choice and communication, the more likely people are to…
  • 37. Consumer feelings about getting information ( high-to-low scale ) Source: Jack Morton, May 2010
  • 38. How much attention do consumers pay to recent information about brands? Source: Jack Morton, May 2010
  • 39. Rule #10 Q: Are viral video ads more engaging? A: Perhaps. It’s not that simple. Only a small share of ads go viral—plus typically need blend of paid, owned, earned…
  • 40. Old Spice Man lessons: More than meets the eye or any other sense
  • 41. Various YouTube marketing tactics: vital venue for viral video Source: MarketingProfs, December 2009
  • 42. Rule #11 Q: Does the mix of video and social media offer more engagement? A: You’d like to think it always does, however…
  • 43. When it all comes together, social media is a great environment for audience engagement
  • 44. Bob Hoffman, chief executive officer, Hoffman/Lewis “ If your social media marketing strategy is contingent on the idea that consumers want to have a conversation with you, create a relationship with your company and engage with your brand , you may be living in a dream world.” Twitter Hashtag – #eMwebinar
  • 45. Social media engagement often depends on brand advertising first
  • 46. Nicole Haygood, vice president interactive media director, Draftfcb “ Within video, engagement is important. Is the window active? Are they muting it? How much time are they spending with the ad? Are they passing it along to friends? Are they commenting about the ad on YouTube?” Twitter Hashtag – #eMwebinar
  • 47. Marketers typically cannot control social media engagement, oftentimes they need just to listen
  • 48. Rule #12 Q: How might TV and online together help marketers create greater engagement? A: When one medium feeds into the other, holistic campaigns…
  • 49. Brand engagement is anti-silo, much better done cross-channel
  • 50. When engagement is defined differently, more consumers prefer TV over online Source: Nielsen Online, July 2009
  • 52. 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…” Twitter Hashtag – #eMwebinar
  • 53. Server metrics Pro = fast results, often real-time. Con = no insight into audience change of perception. Survey metrics Pro = more depth than server-based metrics. Con = costs marketers more than server-based data. Viral video Pro = works hand-in-hand with social media. Con = often doesn’t take off. Social media Pro = when successful, many ways to engage. Con = marketers give up—or need to share—control. Conclusions: Each rule of engagement offers pros and cons for video ads
  • 54.  
  • 55. EyeWonder Video Campaign Performance Metrics Q1-Q2 2010 *Campaigns listed in order of time and avg. percent viewed. Brand Awareness campaigns measured by interaction rate Direct Response campaigns measured by click through rate Video Length Vertical Market Average Time Viewed Avg. Percent Viewed Interaction Rate Clickthru Rate 15 Technology / Telecommunications 13.21 88.07% 13.37% 0.37% 15 Automotive 12.76 85.05% 1.24% 0.20% 15 Lifestyles 12.31 82.05% 6.97% 0.08% 15 Business / Finance 11.25 75.00% 10.68% 0.34% 15 Travel 11.20 74.68% 3.37% 0.15% 15 Consumer Packaged Goods 11.02 73.46% 3.64% 0.30% 15 Entertainment & News 10.60 70.65% 4.25% 0.28% 15 Pharmaceuticals 10.17 67.82% 0.43% 0.11% 15 Public Service 9.70 64.64% 2.08% 0.08% 15 Consumer Electronics 9.47 63.17% 14.42% 0.20% 15 Retail 8.83 58.86% 5.50% 0.06% Video Length Vertical Market Average Time Viewed Avg. Percent Viewed Interaction Rate Clickthru Rate 30 Automotive 19.09 63.63% 7.48% 1.32% 30 Travel 18.49 61.64% 27.25% 0.80% 30 Consumer Electronics 18.21 60.70% 7.88% 0.31% 30 Entertainment & News 17.62 58.75% 5.19% 0.31% 30 Public Service 17.03 56.77% 11.43% 0.13% 30 Retail 16.84 56.14% 7.47% 0.35% 30 Technology / Telecommunications 14.25 47.49% 14.12% 0.23% 30 Business / Finance 12.96 43.21% 13.55% 0.51% 30 Lifestyles 11.94 39.78% 1.22% 0.31% 30 Pharmaceuticals 7.61 25.38% 8.37% 0.11% 30 Consumer Packaged Goods 3.27 10.91% 8.77% 0.33%
  • 56. Video Scores for CPG Advertisers Gatorade G Series Before During and After Campaign
  • 57.  
  • 58. Presented by: David Hallerman Principal Analyst, eMarketer, Inc. Twitter Hashtag – #eMwebinar Sponsored by: Video Advertising Engagement – What Marketers Need to Know Questions & Answers Registrants will receive a copy of the slide deck and the playback link in a follow-up email within 24 hours of this presentation. To learn about eMarketer Total Access please visit www.emarketer.com /products or contact us: (800) 405-0844 [email_address]