2. 01
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EXECUTIVE SUMMARY
One of the more interesting ways for
brands to connect with their audience
is through video advertising. Video
advertising allows brands to tap into
the psyche of their customers,
influence emotions and create an
indelible impression. Tablets,
Smartphones and other connected
devices have brought the video
experience literally into the hands of
consumers. And this proliferation of
devices has made brands rethink their
video marketing strategy. Gone are
the days when video advertising
focused on being grandiose and over
the top. Now the onus is on reaching
consumers where they are and
grabbing their attention in the
quickest way possible.
VIDEO
ADVERTISING
ALLOWS BRANDS
TO TAP INTO THE
PSYCHE OF THEIR
CUSTOMERS,
INFLUENCE
EMOTIONS AND
CREATE AN
INDELIBLE
IMPRESSION.
Digital Media Usage Snapshot 2015
Digital Video consumption continues to grow...
Digital video viewers
203.8M
up 4.2% from 2014
All mobile phone
video viewers
103.1M
up 13.2% from 2014
Smart phone video viewers
102.2M
up 13.9% from 2014
Digital TV viewers
153.4M
up 7.6% from 2014
2015 2014
Mobile phone gamers
166.8M
up 13.2% from 2014
64.8% of mobile users
Digital movie viewers
112.5M
up 7.4% from 2014
Analytics helps brands achieve this
goal. Brands have not come to
realize that customer engagement
is not just limited to creating a
video and putting it up online.
Strategic placement, compelling
content and relevant engagement
touchpoints all go together in
captivating customers. Customer
knowledge in the form of usage
data and content preferences are
being widely used by brands to
better leverage their marketing
investment. However, contrary to
popular belief, analytics extends so
much more beyond that.
3. For example, brands’
contemporary video partners
provide some form of analytics
to help understand how their
money is being spent.
Demographics, viewership
numbers, drop off rates are all
valid metrics, but when it comes
to gaining more information
especially from a predictive or
event oriented standpoint
rudimentary reporting
capabilities fail miserably.
So what other areas can brands
better leverage through
analytical capabilities?
This whitepaper aims to shed
light on the same.
Video ads now span multiple display devices
and come in several different formats.
Online Video - A Statistical Snapshot
83%
Top
consumers:
18-24
year olds
Everyday, 75million U.S. internet
users watch videos online
Average
number
of videos:
213/month
Average
viewing
time: 19.2
hours/
month
of U.S. Internet users watch online
video at least once per month
4. CHALLENGES
The Digital Video landscape is in a
peculiar state of simultaneous
expansion and contraction. The sheer
number of Ad technology vendors
that populate this domain and
provide tools of every conceivable use
is testimonial to the above fact. For
example, the latest ‘Video Ad Serving
Template’ commissioned by the
Interactive Advertising Bureau (IAB)
was developed and put together by
no less than 42 companies with some
form of vested interest in video ad
serving including behemoths like
Google, Yahoo, Turner and Nielsen.
With such a diverse ecosystem
brands are spoilt for choice when
choosing the right video ad partner.
But this is easier said than done.
From a purely analytics standpoint,
most of these companies fail to
address what brands need in their
video advertising ecosystem. Some
challenges are as follows.
THE BOUNDARIES
BETWEEN MEDIA
VEHICLES HAVE
COLLAPSED
CHANGING THE
WAY CONSUMERS
SEARCH,
CONSUME AND
SHARE CONTENT.
02
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5. ● ANALYTICS CHALLENGE
The explosion of personal devices
with internet connectivity has
enabled consistent user experiences
across device screens and caused
coalescing of the various types of
media. The boundaries between
media vehicles have collapsed
changing the way consumers search,
consume and share content. The
various formats, devices, publishing
portals and end user demographics
generate an immeasurable amount
of analytic data. While data
acquisition is not a pressing issue,
how this data is being currently
utilized is where many brands and
their video partners fail. Present
level of Analytics tends to be highly
descriptive i.e. focusing on current
insights and behavior. Questions
such as ‘Who are our customer
segments’ and ‘What are they
interested in’ are answered by
Descriptive Analytics.
The Analytics Pyramid
Beyond Descriptive Analytics
Differentiate yourself by moving up
the Analytics value-chain
Add Forecasting to your Analytical arsenal
PERFORMANCE DIAGNOSIS RESEARCH
SKIP
DESCRIPTIVE
PRESCRIPTIVE
PREDICTIVE
PROGRAMMATIC
While gaining an understanding of
status quo is vital, brands fail to
utilize Analytics for anything more.
Forecasting and Predictive
capabilities are largely ignored.
Questions such as, ‘Who are
most likely to watch ads’ and
‘Who are most likely to skip ads’
remain unanswered. Brands
forego the ability to define the
likelihood of customer behavior
due to this oversight.
WATCH
6. ● PERSONALIZATION
CHALLENGE
One of the biggest
challenges TV industry
faced was the ability to
efficiently reach specific
audiences with ads. With
the rise of digital video this
challenge has been
addressed to some extent.
However there still exists
the problem of providing
contextual and
personalized advertising
content. As viewing
behavior fragments across
multiple screens and
on-demand platforms, this
challenge becomes even
more difficult. Intelligently
predetermining the context
of the consumer’s video,
gauging their preferences
and offering related
advertising, all in real time is
a demanding challenge and
it is this challenge that
brands need to overcome.
Youtube – The Online Video Behemoth
Youtube your way to
Online Video Marketing success
6
BILLION
ours of video are
watched monthly
56
COUNTRIES
Post content in
61 languages
1
BILLION
unique users visit
YouTube each month
100S
OF MILLIONS
YouTube is now being accessed
from hundreds of million devices
2
LARGEST
search engine
behind google
100
HOURS
of video are uploaded
every minute
17
PERCENTAGE
of all internet traffic
flows through YouTube
25
PERCENTAGE
of views globally are
from mobile devices
nd
7. Technology
Evaluation
Factors
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SO WHAT NEEDS
TO BE DONE?
Brands need to change their
perspective of what analytics can
offer them. Brands must begin by
clearly identifying their analytical
goals. For example using predictive
analytics, brands gain a foresight
into what their customers seek and
offer it to them when they want. Be
it informational content, product
demos or ads via video, predictive
analytics can bring relevance and
context into a brand’s advertising
ecosystem.
BE IT
INFORMATIONAL
CONTENT, PRODUCT
DEMOS OR ADS VIA
VIDEO, PREDICTIVE
ANALYTICS CAN
BRING RELEVANCE
AND CONTEXT INTO
A BRAND’S
ADVERTISING
ECOSYSTEM.
The identifying of a suitable
analytical partner who can reconcile
their goals and existing capabilities
is the need of the hour. By
approaching an experienced
analytics organization, brands can
utilize their customer data to
uncover new insights, leverage
customer preferences and gain the
buy in of their customers through
video advertising. Individual service
provider and network reports fail to
reflect opportunities latent or
explicit that exists in the market.
Organization
Evaluation
Factors
Vendor
Evaluation
Factors
Organization/
Vendor
Fit
Evaluate the You-Your Analytical Partner
fit through various angles
IDENTIFYING
AN ANALYTICAL
PARTNER
8. A macro level audience report is
not greatly beneficial.
Typical analytics and report
interfaces from media platforms
are focused on reporting on
‘what happened’ / MIS. Further
the reports are organized from a
perspective of the platform not
the end users.
With predictive Audience
Analytics, accurately predicting
customer behavior is
straightforward. It supports you
in making the best decisions
based on your data, and lets you
determine which Ads /
Programming Content your
customers are likely to want
next. In addition, the value of
each viewer at an individual or
household level can also be
calculated along with risks,
allowing you to create tailored,
personalized communication.
Decisions
What will happen?
When will it happen?
Why will it happen?
How do we
benefit from
these predictions?
How will these
decisions impact
everything else?
Predictions
Effects
Predictive Analytics for Better Decision Making
Predict future outcomes, suggest actions
to benefit from predictions and show the
implications of each decision option
P
R
E
D
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C
T
I
V
E
A
N
A
L
Y
T
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C
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9. ABOUT XERAGO04
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Xerago is a new age marketing solutions company with a footprint across Asia
Pacific, now making its foray into USA. Clients include Citi, DBS, HDFC Bank,
SM Retail, Celcom, Starhub, Intel, BharatMatrimony, and a number of other
market-leading and start-up brands.
CHENNAI
No # 3, 17th Avenue,
Harrington Road, Chetpet,
Chennai – 600 031
Ph: 91-044-42960800
Fax: 91-044-42960801
Email Id: salesIndia@xerago.com
MUMBAI
No # 1005, 10th Floor,
Ellora Fiesta Plot No:8, Sector-II,
Sanpada, Navi, Mumbai - 400 705
Ph: +91-22-27759615
Email Id: salesIndia@xerago.com
USA
# 1670 S Amphlett Blvd,
Suite 214, San Mateo,
California 94402, USA
Ph: +1 650-260-4350
Email Id: salesUSA@xerago.com
SINGAPORE
No # 105 Cecil Street, # 11-00,
The Octagon (Office Suite 1107),
Singapore-069 534
Ph: 065-9006 2077
Email Id: salesAPAC@xerago.com
To learn more about Customer Value Maximization and how it can help you,
contact your nearest Xerago office.
Creates
coherence to transform your marketing
Identifies
implements and manages the technologies that power your marketing
Measures
and analyzes the impact of your marketing
Manages
your marketing programs to help accomplish your goals
Portal Management
Digital & Mobile Marketing
1-to-1 Marketing
Social Media Marketing
Inbound Marketing
Xerago