DAN ALEXANDER DIR. VIDEO STRATEGY, VALUECLICK MEDIA JUNE 21, 2013 GROW YOUR VIDEO COMFORT ZONE
Sep 13, 2014
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
/ValueClickMedia