David HallermanPrincipal Analyst
O C T O B E R 2 1 2 0 1 0
N E W Y O R K NY
Video Video Advertising Advertising EngagementEngagement
What we’ll look at today…
12 Rules of Video Engagement…12 Rules of Video Engagement… Metrics for measuring video results Video ad spending trends Where and what people watch Experience, control, relevancy Social media, WOM and engagement And more!
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.”
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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 occurs at some point after the audience views your ad?Twitter Hashtag – #eMwebinar
Encouraging brand engagement is a key reason why marketers use online video advertising
Engagement defined is…
Various server-based metrics…time in general
Interactivity, clicking or mousing (CPE, ScanScout) 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
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Rules of EngagementRules of Engagement
Rule Rule #1#1
Q: How can spending levels improve video ad engagement?
A: Connecting with consumers often relies on classic advertising…
US Online Video Advertising Spending, 2008 - 2014 (billions and % change)
Source: eMarketer, May 2010
127%39%
48%43%
43%35%
33%
One-third of marketers want to use cost per engagement to budget for video ads
Rule Rule #2#2
Q: Which video ad metrics best indicate engagement?
A: Once you define engagement for your current needs…
Server-based metricsMarketers can choose from dozens, but among the most important ones for video engagement are completion rate, percent of ad viewed and interaction rate. Click rates, however, tend to be inadequate for video advertising.
Survey-based metricsAlso called brand-health, brand-lift or brand-equity metrics. All of these traditional metrics are highly important for video engagement. They include awareness, message association, brand favorability and purchase intent.
Metrics for online video advertising fall into two main categories
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Engagement is really a mix of various metrics, both progress and performance. 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 or brand favorability.
The engagement metric is increasingly central to video advertising
What makes engagement both significant and difficult to measure is how it blends several distinct types of metrics
Boosting brand awareness key element for creating engagement
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.”
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Rule Rule #3#3
Q: When audience members just watch the video ad, does that deliver engagement?
A: Metrics such as start rates or completion rates carry more weight than…
Start rate for video advertising, by site section or environment
Source: MediaMind (Eyeblaster), November 2009
Completion rates will vary based on several factors, including the source of the video ad’s creative — either repurposed or original
The usefulness of completion rates vs. click rates for video ads is clear
However — and this is why the 12 rules are questions — video clicks can work
Rule Rule #4#4
Q: How much do marketers need HD video ads to create engagement?
A: Never under-estimate simply getting the audience to watch…
Consumers won’t cut costs by cutting HD (quality matters)
Source: Yankee Group, August 2010
Rule Rule #5#5
Q: How important is user traffic for gauging engagement?
A: Can give insight into engagement, but results are not always immediate…
YouTube gets the most audience, viewing sessions, and time — but other factors on other sites facilitate engagement
Hulu leads the pack in ads per viewer because many brand marketers look for what they already know (TV counts)
Rule Rule #6#6
Q: How much does time of day or day of the week affect engagement?
A: All targeting elements need to be factored in…
Main reason for video ad networks? Targeting more than reach or price
Traditional types of targeting encourage engagement (imagine great ad on wrong site)
Rule Rule #7#7
Q: Can longer video ads offer greater engagement?
A: Yes, sometimes, maybe, depends on…
Branded content, mainly video, is an effective way to engage
Source: CMO Council, October 2010
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.”
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Rule Rule #8#8
Q: Is experience a form of engagement?
A: Certainly, but it’s hard for advertisers to generate experience, at least consistently…
Brand experience and engagement are linked by emotional connections
Brand experiences encourage engagement and marketers encourage experiences
Rule Rule #9#9
Q: How does consumer control contribute to engagement?
A: The more choice and communication, the more likely people are to…
Consumer feelings about getting information (high-to-low scale)
Source: Jack Morton, May 2010
How much attention do consumers pay to recent information about brands?
Source: Jack Morton, May 2010
Rule Rule #10#10
Q: Are viral video ads more engaging?
A: Perhaps. It’s not that simple. Only a small share of ads go viral—plus typically need blend of paid, owned, earned…
Old Spice Man lessons: More than meets the eye or any other sense
Various YouTube marketing tactics: vital venue for viral video
Source: MarketingProfs, December 2009
Rule Rule #11#11
Q: Does the mix of video and social media offer more engagement?
A: You’d like to think it always does, however…
When it all comes together, social media is a great environment for audience engagement
Bob Hoffman, chief executive officer, Hoffman/Lewis
“If your social media marketing strategy is
contingent on the idea that consumers want to have a
conversation with you, create a relationship with your
company and engage with your brand, you may be living
in a dream world.”
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Social media engagement often depends on brand advertising first
Nicole Haygood, vice president interactive media director, Draftfcb
“Within video, engagement is important. Is the window active? Are they muting it? How much time are they
spending with the ad? Are they passing it along to
friends? Are they commenting about the ad
on YouTube?”
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Marketers typically cannot control social media engagement, oftentimes they need just to listen
Rule Rule #12#12
Q: How might TV and online together help marketers create greater engagement?
A: When one medium feeds into the other, holistic campaigns…
Brand engagement is anti-silo, much better done cross-channel
When engagement is defined differently, more consumers prefer TV over online
Source: Nielsen Online, July 2009
TakeawaysTakeaways
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…”
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Server metricsProPro = fast results, often real-time.ConCon = no insight into audience change of perception. Survey metricsProPro = more depth than server-based metrics.ConCon = costs marketers more than server-based data. Viral videoProPro = works hand-in-hand with social media.ConCon = often doesn’t take off. Social mediaProPro = when successful, many ways to engage.ConCon = marketers give up—or need to share—control.
Conclusions: Each rule of engagement offers pros and cons for video ads
EyeWonder Video Campaign Performance Metrics Q1-Q2 2010
Video Length Vertical Market Average Time Viewed Avg. Percent Viewed Interaction Rate Clickthru Rate15 Technology / Telecommunications 13.21 88.07% 13.37% 0.37%15 Automotive 12.76 85.05% 1.24% 0.20%15 Lifestyles 12.31 82.05% 6.97% 0.08%15 Business / Finance 11.25 75.00% 10.68% 0.34%15 Travel 11.20 74.68% 3.37% 0.15%15 Consumer Packaged Goods 11.02 73.46% 3.64% 0.30%15 Entertainment & News 10.60 70.65% 4.25% 0.28%15 Pharmaceuticals 10.17 67.82% 0.43% 0.11%15 Public Service 9.70 64.64% 2.08% 0.08%15 Consumer Electronics 9.47 63.17% 14.42% 0.20%15 Retail 8.83 58.86% 5.50% 0.06%
Video Length Vertical Market Average Time Viewed Avg. Percent Viewed Interaction Rate Clickthru Rate30 Automotive 19.09 63.63% 7.48% 1.32%30 Travel 18.49 61.64% 27.25% 0.80%30 Consumer Electronics 18.21 60.70% 7.88% 0.31%30 Entertainment & News 17.62 58.75% 5.19% 0.31%30 Public Service 17.03 56.77% 11.43% 0.13%30 Retail 16.84 56.14% 7.47% 0.35%30 Technology / Telecommunications 14.25 47.49% 14.12% 0.23%30 Business / Finance 12.96 43.21% 13.55% 0.51%30 Lifestyles 11.94 39.78% 1.22% 0.31%30 Pharmaceuticals 7.61 25.38% 8.37% 0.11%30 Consumer Packaged Goods 3.27 10.91% 8.77% 0.33%
*Campaigns listed in order of time and avg. percent viewed.
• Brand Awareness campaigns measured by interaction rate
• Direct Response campaigns measured by click through rate
Video Scores for CPG Advertisers
Gatorade G Series Before During and After Campaign
Presented by:David HallermanPrincipal Analyst, eMarketer, Inc.
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Sponsored by:
Video Advertising Engagement – What Marketers Need to Know
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