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Video Wars: Click Through vs. Completion Rates
What Is More Valuable to a Brand?
There is a lot of talk in digital video   given outcome. In a quest to infuse a                       Get to the point to
about getting away from using Click       video campaign with optimum value,
Through Rate (CTR) and Video              some even look for both—high CTR,
                                                                                                      make your point: if click
Completion Rate (VCR) as measures         coupled with high VCR.                                      through is a digital metric
of performance. The thinking behind
                                          The truth is, however, while you can                        that is important to your
this argument is sound. Advertisers
are ultimately concerned with             achieve a happy medium between the                          ultimate brand goals,
achieving brand marketing                 two, you cannot optimize for both CTR
                                          and VCR. They are inversely related.
                                                                                                      the call to action, as
results—awareness, favorability,
consideration, purchase intent, or        Logically, this makes sense. If a viewer                    well as your key value
                                          is clicking through on an ad, they are
actual sales. Not a click or a view.                                                                  message, should come
                                          not completing it. The following graph
Yet, it cannot be denied that CTR         shows the numerical correlation                             early on (preferably before
and VCR are still widely used as          between the two.                                            or after the halfway point
performance indicators—easily
measured proxies, if you will, for a                                                                  in your advertisement).



•At every quartile of partially
completed ad viewership, CTRs are            CLICK THROUGH RATE INCREASES
dramatically higher compared to              Partially Completed Video Ads Compared to 100% Completed Ads
100% completed viewership.

•Most importantly, CTR peaks at
approximately the 50% partial                                             279%
viewed point, then begins to decline.
For instance, viewers are almost 3x
                                                   233%                                           231%
more likely to click on a video
advertisement at the 25%-50%                                                                                              180%
viewing mark compared to the
baseline of completion. Similarly, if
a viewer does not click by the 75%
viewing mark, they are likely to
complete the entire ad.

•In simple terms, this means that if
a viewer doesn’t click on a spot
                                                     0-25                 25%                  50%                  75%              Completed
before the halfway point, that viewer
is less likely to click at all.
                                            Source: Videology, 20Million Impressions, February 2012, Controlled for Placement and Duration
                                                    (Includes both :30 second and :15 second units)
www.videologygroup.com

The Click Clock: 15s vs. 30s
It is known that Click Through Rate is
                                                                         CTR INDEX
higher for :30 second spots than for
:15 second spots.
Quantifying this, Videology found that
                                                                                            Ads                                                                  114
:30 second spots outperform the
overall CTR norms by 14%, while :15
second spots underperform by 28%.
                                                                               15 Ads
                                                                               sec                                                      72

                                                                        Index=Likelihood to Click Compared to Avg. CTR for total spots (:30s + 15s)
                                                                        Source: Videology, 20 Million Impressions, February 2012, Controlled for Placement and Duration



                                                                                                                           Looking at the timing of when a
   ANATOMY OF A CLICK                                                                                                      typical viewer clicks on a video ad
                                                                                                                           may help to explain this CTR
                           112                                                                                             advantage for the :30 second spot.
                                             104
           96                                                   92                                                         The charts to the left show that
                                                                                                                           while most viewers click on a :30
                                                                                                                           second spot after watching 25-50%
                                                                                                                           of the ad, most viewers click on the
                                                                                                                           :15 second spot at the 50%-75%
                                                                                                                           level. Thinking about this from a raw
                                                                                                                           timing perspective, this suggests
                                                                                                                           that in both cases it takes about
                                                                                                                           7-15 seconds to generate enough
         0-7.5            7.5-15           15-22.5           22.5-30
         Secs              Secs             Secs              Secs                                                         interest in an ad to prompt a click.

                                                                                                                           So in other words, advertisers
                                                                                   178                                     interested in generating click
                                                                  167                                                      through using :15 second spots
                                                                                                                           must work even harder, whether
                                                                                                                           through the use of compelling



                  15
                                                                                                   109                     creative, the early placement of call
                                                                                                                           to action prompts, or message


                  sec
                                                                                                                           relevancy, to engage the click.
                                                 51
                                                                                                                           Advertisers using :30 second
                                                                                                                           messages—though they too should
                                                                                                                           follow the general guidelines of
                                              0-3.75          3.75-7.5         7.5-11.25          11.5 -15
                                               Secs             Secs              Secs             Secs                    prompting the click as early as
                                                                                                                           possible—benefit from 7 additional
  Index=Likelihood to Click by Completion Percentage Quintile compared to overall CTR averages.                            seconds or so before click through
  Source: Videology, 20 Million Ex, February 2012.                                                                         levels drop significantly.
www.videologygroup.com
A Propensity for Completion
We have been talking primarily about                        For those advertisers seeking high                          The good news for advertisers
those advertisers interested in                             VCR rates, creative execution,
prompting click through. As we stated                                                                                   seeking VCR—almost 7 out of
                                                            storytelling elements that entice
earlier, however, there is a large                          completion, message relevancy, and                          10 viewers complete an
segment of video advertisers who are                        quality of the actual video content
interested in video completion
                                                                                                                        online video advertisement.
                                                            following the pre-roll all help to
rates—ensuring that viewers watch
                                                            promote completion.
their entire message.


 PRE-ROLL AD                                                  85.3%
 COMPLETION                                                                                  78.0%
                                                                                                                        72.7%
 PERCENTAGES
                                                                                                                                                 67.5%
 FOR ONLINE
 VIDEO VIEWERS



                                                                >25%                          >50%                       >75%                     100%
 Source: Videology, 20 Million Impressions, February 2012, Controlled for Placement and Duration




 WHAT HAPPENS AFTER A COMPLETED VIEW?
  It is generally assumed that VCR                           The results of our analysis were                           advertiser in days following
  corresponds to upper-level                                 significant. In the following case                         exposure—in this case, to request a
  purchase funnel metrics, such as                           study, we found those who completed                        quote—than those who only watched
  awareness and brand affinity.                              viewing a spot were significantly                          part of the video (whether to click
  Conversely, it’s assumed that CTR                          more likely to interact with the                           away or click through).
  is the metric needed for sales
  conversion, customer acquisition                              Case Study: Insurance Provider Sees Quote Requests Jump Post-Ad Exposure
  and other direct response metrics.                            Category: Insurance
  However, as part of our analysis,                             Objective: Generate Quote Requests
  we explored what happens after                                Media: Online Video :30 second Pre-roll
  the completed view. Do people
                                                                •Those who were exposed to the online video campaign were 45% more
  remember? Do some take action
                                                                 likely to request a quote within the next week than those not exposed.
  after seeing an ad? Or is click
  through the sole gateway to action.                           •Those who completed viewing the spot were 45% more likely to request a
                                                                 quote within the next week than those who completed only part of the ad.


 Source: Videology data monitoring, February, 2012. [Note: Quote requests were monitored 5-8 days after ad exposure.]




                                                                                                                        Video Wars: Click Through vs. Completion Rates
                                                                                                                                       What is more Valuable to a Brand
About Videology, Inc.
The Videology Addressable Audience Platform (videologygroup.com) is a
screen- agnostic video advertising technology that works to connect brands
with consumers. Videology achieves this through mathematically-driven
data analyses that allow us to target precise consumer segments—at
scale—by demographics, psychographics, and behavioral segments. This
precise targeting permits advertisers to extract increased value from every
media impression, and allows our content partners to monetize their
audience more effectively.

Videology, Inc. is headquartered in Baltimore, MD, with key offices in
New York, Austin and London, and sales teams throughout North America.


For additional information, please contact:
Michele Skettino, Director of Communications
michele@Videologygroup.com

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Videology: Video Click through or Completion? Q1, 2012

  • 1. Video Wars: Click Through vs. Completion Rates What Is More Valuable to a Brand? There is a lot of talk in digital video given outcome. In a quest to infuse a Get to the point to about getting away from using Click video campaign with optimum value, Through Rate (CTR) and Video some even look for both—high CTR, make your point: if click Completion Rate (VCR) as measures coupled with high VCR. through is a digital metric of performance. The thinking behind The truth is, however, while you can that is important to your this argument is sound. Advertisers are ultimately concerned with achieve a happy medium between the ultimate brand goals, achieving brand marketing two, you cannot optimize for both CTR and VCR. They are inversely related. the call to action, as results—awareness, favorability, consideration, purchase intent, or Logically, this makes sense. If a viewer well as your key value is clicking through on an ad, they are actual sales. Not a click or a view. message, should come not completing it. The following graph Yet, it cannot be denied that CTR shows the numerical correlation early on (preferably before and VCR are still widely used as between the two. or after the halfway point performance indicators—easily measured proxies, if you will, for a in your advertisement). •At every quartile of partially completed ad viewership, CTRs are CLICK THROUGH RATE INCREASES dramatically higher compared to Partially Completed Video Ads Compared to 100% Completed Ads 100% completed viewership. •Most importantly, CTR peaks at approximately the 50% partial 279% viewed point, then begins to decline. For instance, viewers are almost 3x 233% 231% more likely to click on a video advertisement at the 25%-50% 180% viewing mark compared to the baseline of completion. Similarly, if a viewer does not click by the 75% viewing mark, they are likely to complete the entire ad. •In simple terms, this means that if a viewer doesn’t click on a spot 0-25 25% 50% 75% Completed before the halfway point, that viewer is less likely to click at all. Source: Videology, 20Million Impressions, February 2012, Controlled for Placement and Duration (Includes both :30 second and :15 second units)
  • 2. www.videologygroup.com The Click Clock: 15s vs. 30s It is known that Click Through Rate is CTR INDEX higher for :30 second spots than for :15 second spots. Quantifying this, Videology found that Ads 114 :30 second spots outperform the overall CTR norms by 14%, while :15 second spots underperform by 28%. 15 Ads sec 72 Index=Likelihood to Click Compared to Avg. CTR for total spots (:30s + 15s) Source: Videology, 20 Million Impressions, February 2012, Controlled for Placement and Duration Looking at the timing of when a ANATOMY OF A CLICK typical viewer clicks on a video ad may help to explain this CTR 112 advantage for the :30 second spot. 104 96 92 The charts to the left show that while most viewers click on a :30 second spot after watching 25-50% of the ad, most viewers click on the :15 second spot at the 50%-75% level. Thinking about this from a raw timing perspective, this suggests that in both cases it takes about 7-15 seconds to generate enough 0-7.5 7.5-15 15-22.5 22.5-30 Secs Secs Secs Secs interest in an ad to prompt a click. So in other words, advertisers 178 interested in generating click 167 through using :15 second spots must work even harder, whether through the use of compelling 15 109 creative, the early placement of call to action prompts, or message sec relevancy, to engage the click. 51 Advertisers using :30 second messages—though they too should follow the general guidelines of 0-3.75 3.75-7.5 7.5-11.25 11.5 -15 Secs Secs Secs Secs prompting the click as early as possible—benefit from 7 additional Index=Likelihood to Click by Completion Percentage Quintile compared to overall CTR averages. seconds or so before click through Source: Videology, 20 Million Ex, February 2012. levels drop significantly.
  • 3. www.videologygroup.com A Propensity for Completion We have been talking primarily about For those advertisers seeking high The good news for advertisers those advertisers interested in VCR rates, creative execution, prompting click through. As we stated seeking VCR—almost 7 out of storytelling elements that entice earlier, however, there is a large completion, message relevancy, and 10 viewers complete an segment of video advertisers who are quality of the actual video content interested in video completion online video advertisement. following the pre-roll all help to rates—ensuring that viewers watch promote completion. their entire message. PRE-ROLL AD 85.3% COMPLETION 78.0% 72.7% PERCENTAGES 67.5% FOR ONLINE VIDEO VIEWERS >25% >50% >75% 100% Source: Videology, 20 Million Impressions, February 2012, Controlled for Placement and Duration WHAT HAPPENS AFTER A COMPLETED VIEW? It is generally assumed that VCR The results of our analysis were advertiser in days following corresponds to upper-level significant. In the following case exposure—in this case, to request a purchase funnel metrics, such as study, we found those who completed quote—than those who only watched awareness and brand affinity. viewing a spot were significantly part of the video (whether to click Conversely, it’s assumed that CTR more likely to interact with the away or click through). is the metric needed for sales conversion, customer acquisition Case Study: Insurance Provider Sees Quote Requests Jump Post-Ad Exposure and other direct response metrics. Category: Insurance However, as part of our analysis, Objective: Generate Quote Requests we explored what happens after Media: Online Video :30 second Pre-roll the completed view. Do people •Those who were exposed to the online video campaign were 45% more remember? Do some take action likely to request a quote within the next week than those not exposed. after seeing an ad? Or is click through the sole gateway to action. •Those who completed viewing the spot were 45% more likely to request a quote within the next week than those who completed only part of the ad. Source: Videology data monitoring, February, 2012. [Note: Quote requests were monitored 5-8 days after ad exposure.] Video Wars: Click Through vs. Completion Rates What is more Valuable to a Brand
  • 4. About Videology, Inc. The Videology Addressable Audience Platform (videologygroup.com) is a screen- agnostic video advertising technology that works to connect brands with consumers. Videology achieves this through mathematically-driven data analyses that allow us to target precise consumer segments—at scale—by demographics, psychographics, and behavioral segments. This precise targeting permits advertisers to extract increased value from every media impression, and allows our content partners to monetize their audience more effectively. Videology, Inc. is headquartered in Baltimore, MD, with key offices in New York, Austin and London, and sales teams throughout North America. For additional information, please contact: Michele Skettino, Director of Communications michele@Videologygroup.com