Grow Your Digital Video Comfort Zone - 4 Tips
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DAN ALEXANDERDIR. VIDEO STRATEGY, VALUECLICK MEDIA JUNE 21, 2013
GROW YOUR VIDEO COMFORT ZONE
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WHO WE ARE
Fast Facts
15 years of experience
1400+ employees
25,000 advertisers served
NASDAQ: VCLK
Why Is This Important?
Massive DMP with 25 sources of input
Reach the same users across devices
True cross-device campaign optimization
$40MM annual investment in our technology
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TODAY’S AGENDA = VIDEO IS YOUR FRIEND
Video Trend Spotting
TV vs. Digital Video
Grow Your Video Comfort Zone
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TREND SPOTTING: VIDEO AD SPENDING
$4B will be spent on digital video this year, up 41% YOY
As the fastest growing online ad format, video spending will reach $8B by 2016
2011 2012 2013 2014 2015 2016
$2.00
$2.93
$4.14
$5.75
$6.99
$8.04
US Digital Video Ad Spending, 2011-2016Billions and % Change
Digital video ad spending % Change
Note: Historical data up to 2011 is derived from Interactive Advertising Bureau (IAB)/PricewaterhouseCoopers (PwC) dataSource: eMarketer, Dec 2012
40.8%
46.5%
41.3%
38.9%
21.6%
15.0%
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TREND SPOTTING: TV AD SPENDING
$66B will be spent on TV this year, up 2.8% YOY
TV spending continues to dominate all screens, expected to reach $73B by 2016
2011 2012 2013 2014 2015 2016
$60.66 $64.54 $66.35 $68.54 $69.91
$73.05
US TV Ad Spending, 2011-2016Billions and % Change
June 2013
TV ad spending % Change
2.8%
6.4%
2.8%
3.3%
2.0%
4.5%
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TREND SPOTTING: BUDGETS SHIFT TO VIDEO
23% of digital dollars will go to video this year, increasing to over 30% in 2015
2010: $9.91
2011: $12.33
2012: $14.98
2013: $17.67
2014: $20.69
2015: $23.13
2016: $25.21
0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%
62.9%
61.3%
57.9%
54.3%
49.7%
47.0%
44.8%
14.3%
16.2%
19.6%
23.4%
27.8%
30.2%
31.9%
15.5%
13.4%
12.1%
11.5%
11.5%
11.6%
12.0%
7.2%
9.1%
10.4%
10.8%
11.0%
11.2%
11.4%
Banners Video Rich Media Sponsorships
Note: Includes advertising that appears on desktop and laptop computers as well as mobile phones and tablets; data through 2011 is derived from IAB/PwC data; numbers may not add up to 100% due to roundingSource: eMarketer, Sep 2012
US Digital Display Ad Spending Share by Format 2010-2016% of Total and Billions
Tota
l S
pe
nd
ing
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TREND SPOTTING: TV-TO-VIDEO SHARE SHIFT
IAB, Yahoo and Microsoft Advertising: Digital Video Viewing, Budget Share Shift and Effectiveness
TV95%
Online5%
TV100%
TV90%
Online10%
TV85%
Online15%
Source: IAB/Nielsen Online Video Study, 2012
Reach
Shifting up to 15% of TV ad spend to video provides incremental and effective reach
Running digital video ahead of a TV spot enhances brand lift by 15% to 45%
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Television
$66B industry
One screen
1 main metric
60+ years history
TV VS. DIGITAL VIDEO
Digital Video
$4B industry
Multiple screens
Multiple metrics
5+ years history
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THE VIDEO LUMASCAPE
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4 WAYS TO MAXIMIZE VIDEO ROIASK THE RIGHT QUESTIONS…
CAN YOU TAKE MY CAMPAIGN ACROSS SCREENS?1 DO YOU PROVIDE VIDEO BRAND SAFETY ON EVERY SCREEN?2
DO YOU OFFER DATA-DRIVEN TARGETING?3 WHAT DOES SUCCESS MEAN TO YOU?4
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COMFORT ZONE QUESTION #1: CAN YOU TAKE MY CAMPAIGN ACROSS SCREENS?
What is the modern family?
That was then… This is now…
Americans on average owned 1 device
Today, Americans average
3+ devices
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COMFORT ZONE QUESTION #1: CAN YOU TAKE MY CAMPAIGN ACROSS SCREENS?
DESKTOP
Advertisers are taking a “Screen Agnostic” approach to Digital Video
• More brands are taking a ‘screen-agnostic’ approach to video buying/planning
• The assumption is TV & Digital Video buying/planning teams are consolidating efforts
• Marketers are starting to benchmark against cross-measurement analytics
SMARTPHONE TABLET CONNECTED TV
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COMFORT ZONE QUESTION #2:DO YOU PROVIDE VIDEO BRAND SAFETY ACROSS SCREENS?
Brand Safety & Compliance Vendors
• Digital video introduces additional layers of complexity
• In order to scale a digital audience, you need multiple publishers to reach them… That’s when ad networks come in handy.
• What level of brand safety is provided for video campaigns?
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COMFORT ZONE QUESTION #3:DO YOU OFFER DATA-DRIVEN TARGETING?
It’s undeniable that video is one powerful ad format
In our experience, we know that the combination of
VIDEO + DATA drives higher . . .
VIDEO COMPLETION RATES and CTR
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COMFORT ZONE QUESTION #3 DO YOU OFFER DATA-DRIVEN TARGETING?
BT Non-BT70.0%
75.0%
80.0%
85.0%
90.0%
Video Completion %
Audience Non-Audience Targeted Targeted
BT Non-BT0.00%
0.50%
1.00%
1.50%
2.00%
Video CTR
Audience Non-Audience Targeted Targeted
Execution
• Evaluated 3 top tier advertisers’ video campaigns for more than six months:
• Sports TV advertiser
• Auto advertiser
• Energy drink advertiser
• Compared the Video Completion Rate and CTR performance for each campaign
Results
• On average, campaigns that leveraged audience targeting exhibited a VCR of 11.1% higher than their non-targeted counterparts
• Similarly, campaigns that leveraged audience targeting exhibited a CTR of 84.5% higher than their non-targeted counterparts
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COMFORT ZONE QUESTION #4:HOW DO YOU BENCHMARK VIDEO RESULTS?
What is the “Holy Grail” for Video Measurement?
ClicksTime Spent
Dwell Rate Completion
Brand Lift
Conversion
Interactivity
% on targetCTR
Sharing/Commenting
GRPReach & Frequency
Engagement
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COMFORT ZONE QUESTION #4:HOW DO YOU BENCHMARK VIDEO RESULTS?
NIELSEN OCR BENCHMARKS
OCR in-target benchmarks aggregated across over 3,000 campaigns run to date.*
$10 = $22.73$10 = $45.45 $10 = $17.54
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LET’S SUM IT UP = TAKEAWAYS
Shifting money to digital video may seem daunting given the landscape
Ask the right questions before you initiate a video campaign
Ensure your vendor is driving towards your ROI goals
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@ValueClickMedia
THANKS FOR LISTENING!
Dan AlexanderDir. of Video Strategy
ValueClick Media
(818) 575-4576
dalexander@valueclick.com
/ValueClickMedia
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