The document discusses trends in video advertising for marketers, focusing on engagement metrics as key indicators of success. It outlines various factors that enhance engagement, such as website choices, ad targeting, and the effectiveness of longer ads or viral videos. Additionally, it emphasizes the importance of understanding consumer interactions and emotions to foster deeper connections with brands.

1. David Ewing VP Digital Marketing May 5, 2 0 1 1 Advertising With Video — Trends for Marketers Sponsored by:

2. What we’ll look at today… Trend 1: What’s at stake (the more factor) Trend 2: Video ad metrics indicate engagement Trend 3: Website choices help boost engagement Trend 4: Ad targeting influences engagement Trend 5: Longer ads can extend engagement Trend 6: Why viral video ads engage consumers Trend 7: Video and social together can generate high engagement Twitter –@EwingEnterprise

3. Marketers define video ad engagement in several different ways Various server-based metrics… time in general Interactivity , clicking or mousing (CPE, Tremor Media ) 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 –@EwingEnterprise

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.” Twitter –@EwingEnterprise

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

12. Engagement is really a mix of various metrics, both server- and survey-based. 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, favorability and awareness. The engagement metric is increasingly central to video advertising Twitter –@EwingEnterprise

13. The amount of time the audience spends with a video ad is an essential engagement metric Twitter – @EwingEnterprise

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 –@EwingEnterprise

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

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

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 –@EwingEnterprise

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 )

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 –@EwingEnterprise

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 –@EwingEnterprise

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 .” Twitter –@EwingEnterprise

45. Social network audience might actively engage with brands, but at most only half of the population

46. Conclusions

47. 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 actually occurs at some point after the audience views your ad? Twitter –@EwingEnterprise

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…” Twitter –@EwingEnterprise

50. Each online video advertising engagement trend offers pros and cons for marketers. For example, precise ad targeting boosts engagement. But it can be hard both to target accurately and still get the audience reach that brand marketers usually want. Engagement for one brand will likely differ from that of other brands—or even from the same brand at a different stage in its development. In the end, engagement is just like awareness, completion rates, targeting, viral sharing or a brand’s Facebook page. They’re just means to an end . In the end, why might marketers want to create video ad engagement ? Twitter –@EwingEnterprise

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**

52. Twitter Hashtag – #EwingEnterprise Advertising With Video — 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 Ewing Enterprise Group and click on Discussions. To learn about our Social Media Packages please visit www.EwingEnterprise.com or contact us: (972) 693-1709 or email at info@EwingEnterprise.com Presented by: David Ewing VP Digital Marketing, Ewing Enterprise.