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Value-Exchange Video:
Understanding the Brand
Performance Advantage
Value-Exchange video is perhaps the most misunderstood ad
format today. This is in spite of the fact that it has consisten...
3
● What exactly is a value-exchange format, with
examples
● How consumers perceive value-exchange
formats vs other video ...
4
Core components of
value-exchange
video
Value-Exchange video is any
targeted user initiated video ad
format that enhance...
5
Value-Exchange video can be deployed across a wide range of apps including
editorial, music, dating, chat and games.
Wor...
6
You’ve used 10 Private
Messages this week.
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month to get unlimited PMs
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Watch a sponsor...
Positive Priming with Value-Exchange - #userexperiencematters
Priming is a term from psychology describing how an initial ...
Value-Exchange and Ad-Blocking
Considering what we know about negative priming and its
impact on consumers’ perception of ...
9
So called “Incentivized” advertising evokes “click farms” generating high
volumes of low-quality traffic via monetary in...
10
A range of well known DSPs are launching “opt-in” or
“rewarded” video ad standards for programmatic buying.
The trend t...
Conclusion - #UserExperienceMatters
Ultimately value-exchange advertising is all about
encouraging openness to a brand’s m...
Sources:
1 MMA Mobile Media Buyers Guide, April 2014
2 Winterberry Group, In-app Advertising: Defining the Market and Its ...
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Insider's Guide to Value-Exchange Video Advertising - Understanding the Brand Performance Advantage

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Value-Exchange video is quickly becoming known as the highest performance mobile ad format. 84% of mobile users are actually favorable to the format. But it remains one of the most misunderstood ad formats around. This insider's guide seeks to cut through the mystery and help advertisers make informed decisions.

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Insider's Guide to Value-Exchange Video Advertising - Understanding the Brand Performance Advantage

  1. 1. Value-Exchange Video: Understanding the Brand Performance Advantage
  2. 2. Value-Exchange video is perhaps the most misunderstood ad format today. This is in spite of the fact that it has consistently proven to out-perform other digital video ad formats. In fact, a number of recent studies have shown value-exchange video to be the top performing format across every major campaign metric including brand favorability, recall, purchase intent, engagement, acquisition and retention1, 2 . Furthermore, value-exchange formats have been explicitly whitelisted by all major ad-blocking software providers. Some 84% of consumers surveyed in one recent study2 reported they were favorable to value-exchange formats. Unfortunately, in spite of its clear performance advantages value- exchange video is all too rarely deployed by brand advertisers. The following paper lays out what exactly the value-exchange format is and provides specific information on how marketers can benefit from it. Executive Summary 2 84% Of Mobile Users Say They Are Favorable to a Value-Exchange Video Format
  3. 3. 3 ● What exactly is a value-exchange format, with examples ● How consumers perceive value-exchange formats vs other video formats ● The key advantages of value-exchange for overcoming ad-blocking ● A few (unfounded) objections to the format Read this paper to learn:
  4. 4. 4 Core components of value-exchange video Value-Exchange video is any targeted user initiated video ad format that enhances the user experience by offering access to premium content in exchange for agreeing to watch a short sponsored video. Videos are usually less than 30 seconds and users must watch the full video to access their content or reward. It is a one-to-one interaction where the brand gets a user who is more open to their message and the user gets direct access to content that they want. Targeted Video High-value video format with strong engagement User Opt-in It is 100% user initiated, no forced interruptions Enhanced UX Built into an app to improve the overall user experience
  5. 5. 5 Value-Exchange video can be deployed across a wide range of apps including editorial, music, dating, chat and games. World News App … … … … … … World News App You’ve reached your limit of 10 free articles in a month. Get unlimited access to the World News App now for just $10 per month Or Watch a sponsored video to access an additional free article. Terms of Service | Privacy Policy Researchers Find Hopeful Signs for Genetic Cures Researchers at Johns Hopkins University have recently The Shortlist: Obama’s Likely Supreme Court Nominees Justice Antonin Scalia’s replacement will face a brutal approval process; here’s our best guess on who the lucky candidates might be. Special Report World News App Subscribe Now Watch a Video
  6. 6. 6 You’ve used 10 Private Messages this week. Subscribe now for just $11.99 a month to get unlimited PMs Or Watch a sponsored video to PM @2hot4u now. Hottr KwikChat In fact, any publisher with premium content can use Value-exchange to create a more rich experience across its entire audience. KwikChatHottr Watch a video No Thanks! @2hot4u - 25 SUBSCRIBE NOW WATCH A VIDEO
  7. 7. Positive Priming with Value-Exchange - #userexperiencematters Priming is a term from psychology describing how an initial experience will influence an individual’s perception of subsequent experiences either positively or negatively. Priming happens all the time with digital advertising formats and can have a very real impact on important brand metrics. One study from Carnegie Mellon University researchers3 found that negative priming from interruptive ads like pre-roll video actually decreases purchase intent! Here are two examples of priming in both Value-Exchange and Pre-roll formats: 7 Value-Exchange Pre-Roll Brand provides something the user wants Positive Posture towards brand’s message Brand slows down user’s access to content Negative Posture towards brand’s message FORMAT EXPERIENCE #1 PRIMING EXPERIENCE #2 Better Performance, Brand Favorability, Higher Purchase Intent Poorer Performance, Low Favorability, Lower Purchase Intent OUTCOME
  8. 8. Value-Exchange and Ad-Blocking Considering what we know about negative priming and its impact on consumers’ perception of advertising, the recent consumer backlash towards digital advertising and the adoption of ad-blockers should really come as no surprise. For advertisers and publishers trying to make sense of this shifting consumer sentiment, value-exchange provides a unique way to sidestep the whole issue of ad-blocking. This is because - thanks to the opt-in nature of value- exchange ads - these formats are whitelisted by all major adblockers. This means that value-exchange video ads will be served regardless of whether a user has activated an ad-blocker both on mobile and on desktop. 8
  9. 9. 9 So called “Incentivized” advertising evokes “click farms” generating high volumes of low-quality traffic via monetary incentives to non-targeted audiences. Four key aspects set Value-exchange apart from these notions of “incentivized” ads: Far from a cheap traffic gimmick, value-exchange is a smart format that allows brands to reach targeted consumers on their own terms and in a way that respects the user experience. Objection #1 - Isn’t Value-Exchange just a new term for ‘incentivized’ ads? Value- Exchange Incentivized Targeted Before a reward is proposed Views Only No incentive for post-view actions Content Only No money, gift cards, lotteries etc.. Verifiable Transparent & verifiable inventory
  10. 10. 10 A range of well known DSPs are launching “opt-in” or “rewarded” video ad standards for programmatic buying. The trend towards programmatic value-exchange is in large part driven by growing concern around the quality of other video formats - pre-roll, interstitial and outstream - which are seen as interruptive by users and which are more prone to fraud. With premium publishers also getting turned on to the format, media buyers can expect an explosion of high- quality value-exchange inventory in the near future. Objection #2 - Value-Exchange sounds non-standard so it can’t be bought programmatically... Value- Exchange Programmatic
  11. 11. Conclusion - #UserExperienceMatters Ultimately value-exchange advertising is all about encouraging openness to a brand’s message. It’s akin to offering someone a coffee in exchange for a few minutes of their time. The person being invited can of course refuse the coffee being offered, but if they accept they are implicitly agreeing to listen to what the other has to say. The option makes them more open to talk. In the same way, value-exchange is a win/win format that creates a different posture with your audience. The kind of mental openness created via value-exchange - or buying someone a coffee - is light years away from the interruptive advertising practices of the past. As much as we seem to forget, user experience matters to how your brand is perceived. Done right, value- exchange is perhaps the best way to change the way users view digital ads. 11
  12. 12. Sources: 1 MMA Mobile Media Buyers Guide, April 2014 2 Winterberry Group, In-app Advertising: Defining the Market and Its Unique Dynamics, January 2016 3 Acquisiti & Spiekermann, Do Interruptions Pay off? Effects of Interruptive Ads on Consumers' Willingness to Pay Journal of interactive Marketing. 2011 Get in touch hello@smrtr.media

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