ValueClick Media's Director of Video Strategy, Dan Alexander, offers four tips for cross-platform marketers to maximize their digital video ROI. Before digital video, TV was one of the few visual mediums where advertisers knew that when they bought air time, they were getting a specific audience, at a precise time, for a determined spend. While navigating the current video landscape can be unnerving for both traditional and digital marketers – often unsure of what they are getting in return for their time and spend – digital video is where top brands are progressively allocating their advertising budgets.
Now is the time to grow your video comfort zone to meet increasing demand. Learn the 4 essential questions to ask your video ad provider.
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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
$2.00
$2.93
$4.14
$5.75
$6.99
$8.04
2011 2012 2013 2014 2015 2016
US Digital Video Ad Spending, 2011-2016
Billions and % Change
Digital video ad spending % Change
Note: Historical data up to 2011 is derived from Interactive Advertising Bureau (IAB)/PricewaterhouseCoopers (PwC) data
Source: 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
$60.66
$64.54 $66.35
$68.54 $69.91
$73.05
2011 2012 2013 2014 2015 2016
US TV Ad Spending, 2011-2016
Billions 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
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%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%
2010: $9.91
2011: $12.33
2012: $14.98
2013: $17.67
2014: $20.69
2015: $23.13
2016: $25.21
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 rounding
Source: eMarketer, Sep 2012
US Digital Display Ad Spending Share by Format 2010-2016
% of Total and Billions
TotalSpending
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TREND SPOTTING: TV-TO-VIDEO SHARE SHIFT
IAB, Yahoo and Microsoft Advertising:
Digital Video Viewing, Budget Share Shift and Effectiveness
TV
95%
Online
5% 0%0%
TV
100%
0%0%0%
TV
90%
Online
10% 0% 0%
TV
85%
Online
15% 0% 0%
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%
8. Television
$66B industry
One screen
1 main metric
60+ years history
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TV VS. DIGITAL VIDEO
Digital Video
$4B industry
Multiple screens
Multiple metrics
5+ years history
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4 WAYS TO MAXIMIZE VIDEO ROI
ASK 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 + DATAdrives higher . . .
VIDEO COMPLETION RATES and CTR
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COMFORT ZONE QUESTION #3
DO YOU OFFER DATA-DRIVEN TARGETING?
70.0%
75.0%
80.0%
85.0%
BT Non-BT
Video Completion %
Audience Non-Audience
Targeted Targeted
0.00%
0.50%
1.00%
1.50%
2.00%
BT Non-BT
BT Non-BT
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?
Clicks
Time Spent
Dwell Rate Completion
Brand Lift
Conversion
Interactivity
% on target
CTR
Sharing/Commenting
GRP
Reach & 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 = $17.54
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LET’S SUM IT UP = TAKEAWAYS
Shifting money to digital video may
seem daunting given the landscape
Ask the right questions before you
initiate a video campaign
Ensure your vendor is driving towards
your ROI goals
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Link to IAB study http://www.iab.net/media/file/Digital-Video-and-TV-Advertising-Viewing-Budget-Share-Shift-and-Effectiveness.pdf
In-target CPM Calculation: Gross CPM ($) ÷ In-target delivery (%) Note: Nielsen benchmarks used for illustration. Actual benchmarks are publisher-specific.
