emarketer webinar: trends in video advertising and measurement
DESCRIPTION
Join David Hallerman as he provide's an overview of the latest data on digital video ad metrics, video ad types, ad spending forecasts and the video audience.TRANSCRIPT
©2013 eMarketer Inc.
J A N U A R Y 2 4, 2 0 1 3
Trends in Video Advertising and Measurement
David HallermanPrincipal Analyst
Sponsored by:
©2013 eMarketer Inc.
What we’ll look at today…
Video ad spending: market size and growth trends
Video ad measurement: metrics that matter most
Three-screen measurement: online, television and mobile
The digital video audience: fragmented, but how that might create more opportunities
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Digital Video Ad Spending
(Strong growth, but limits, too)
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How big will digital video advertising spending become? (How do you define big?)
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While video ad spending growth is impressive, its place among all the digital ad formats is more modest
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Only one in 10 digital ad dollars in 2013 will go to video
15% video share by 2016
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Additional perspective: 23% of display ad dollars will go to video this year, rising to just over 30% in 2015
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The digital video category consists of three basic types of ads
In-stream video ads: pre-roll, mid-roll or post-roll. These run in the same player as the video content.
In-banner video ads: not connected with video content and therefore could appear on any webpage. They typically need to be started by the user.
Branded video content: refers to longer-form ads sponsored by the marketer. Sometimes the audience does not even view this branded content as an ad, since most of the video contains potentially valuable information or entertainment.
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The financial health of the digital video ad market is relative
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TV vs. digital video:
Single-digit growth vs. double-digit growth
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In 2013, for every $1 going to digital video ads, $16 will go to TV commercials
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Mobile Video Ad Spending
(Its share is small, but will that change soon?)
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Spending for mobile video ads is rising faster than for any other mobile format
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But consider one big concern about mobile video advertising spending…
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Note how video ad spending makes up only a small part of the mobile market
10% share
in 2016
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Video Measurement and Metrics
(The categories, the process)
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Marketers use several core metrics to measure digital video advertising
Clickthrough rate
Completion rate
Engagement, including views, interactivity and simply attention paid to the advertising
Brand health, such as awareness or favorability
Reach and frequency, gross rating points (GRPs) and targeted rating points (TRPs)
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Higher video ad completion rates do not correlate with higher click rates
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Several elements color the results of nearly all online video ad metrics
The length and nature of the content the ad runs against, or the ad’s length itself
The type of site where the ad is viewed
The device used to view the video
The time of day or day of the week
The degree to which the audience is habituated to digital video advertising
The advertising creative itself
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Digital video ad completion rates will likely be influenced by content length
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The metrics that marketers use to measure digital video advertising are evolving, but slowly
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Popular attribution methods tend to be less effective for video advertising
Digital’s “accountability” too often still means clicks
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Completion rate is a much-used way to measure video advertising
But savvy marketers look to determine engagement in other ways:Time spent viewing the ad, even if not to completion
Interactivity, such as starting the ad or mousing over it
Dwell rate, or the proportion of impressions that were intentionally engaged with by touch, interaction or click
Sharing or commenting on ads—the social, word-of-mouth or viral aspects of engagement
Visiting a brand’s website as a result, even if not directly, of viewing the video ad
Simply paying attention to ads and being aware of the brand—which are, in many ways, the core engagement metrics
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“The Goldilocks Principle,” along with audience control, builds engagement
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Video ad targeting—mainly by age and gender—spreads across a range of ages
48% of video ads are targeted at those
ages 45 and older
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The vast majority of smartphone video viewers do not want to be targeted by location, demo data, browsing history, etc.
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Digital video is increasingly needed to help brands stand out in a crowded field
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Brand lift delivered the highest success in 2012, more than server-based metrics that count clicks and completions
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Mobile appears to work very well for the brand-health metrics, but that might bebecause …
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Measurement Across Screens
(Digital cannot stand alone)
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Advertisers may not always know who’s watching, but digital reveals more than TV
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Tracking engagement across screens requires integrated channels and data
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Many think that translating GRPs and TRPs from TV to digital is essential
But many cited digital’s unique vistors
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Digital video exists in the light—and sometimes in the shadow—of TV
More research? How do video ads compare with TV
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The ability to combine all first-party data assets across channels, such as TV and digital, would boost digital video
But 53% said they don’t have the budget for DMP
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The Digital Video Audience
(Thy name is fragmentation)
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The massive audience for digital video content has not yet seen matching levels of digital video advertising
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Video viewer growth is highest among the youngest and oldest segments
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But the viewer share peaks at 25-to-34, and further, many are older than that segment
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Half of internet users watch videos a few times per week or more often
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It’s a three-screen video world: television, computers and mobile
Or better viewed as six screens:
Traditional TV (broadcast, cable, DVRs)
Connected TV (internet-sourced)
Desktop computer
Notebook computer
Smartphone
Tablet
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Multiple screens make it hard for advertisers to know their audience
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…difficulties and also opportunities
The more screens people use to watch video, the more marketers find both…
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But the younger audience is moving away from TV—and even online
The three-screen sweet spot: People ages 35 to 49 use all screens quite a bit
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Longer videos viewed on connected TVs, and shorter videos on computers and mobile
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Counting the time people spend watching video counts for more than mere audience size or how many streams they view
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Relative to TV, people spend far less time watching digital video. However…
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Connecting the Digital and TV Audiences
(Video’s future?)
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What do modern families want? TV still rules, no matter what screen people are using
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Digital TV usage is growing faster than digital video viewership in general
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TV and the internet together promise a prime-time blend of branding and digital
Various ways to connect, from set-top boxes to game consoles to smart TVs
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TV watching relies more and more on TVs with internet connections
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Almost 50% of internet users like TV commercials but few say they like online video ads
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Video is crucial for telling stories, and TV ads are more effective than online advertising
Digital offers a “space” for content marketing
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The Mobile Video Audience
(Many people, little time)
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By next year, more than one-third of mobile phone users will watch video content at least once per month
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How the audience often views mobile video content and ads may surprise you
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Smartphone video, like tablet video, is often an at-home thing
And 54% use other media simultaneously
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Odds are good that a large share of the audience will be annoyed by mobile video ads
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46% said they disliked video ads on mobile phones, while only 23% said they liked them
One implication: Don’t spend their bandwidth
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Few people regularly pay attention to mobile video ads, although clips work better than full TV episodes
The reasons for this may not be obvious
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Main Takeaways
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The sweet spot for digital video blends engagement with accountability
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Caveat: Results aggregated from a range of other companies’ campaigns are imperfect yardsticks, guidelines but not absolute rules.
Spending trends. Higher than for any other digital ad format, but represents a relatively small portion of overall interactive spending.
Measurement and metrics. Moving toward more sophisticated tools will help the growth of digital video.
Audience. While increasing steadily—both in number of viewers and in the amount of time they spend watching digital video—they still love their TV and TV-style content.
Conclusions: Start with an overview of spending, metrics and audience
© 2013 Adobe Systems Incorporated. All Rights Reserved.
Adobe’s Project PrimetimeNoah Levine, Senior Product Evangelist
© 2013 Adobe Systems Incorporated. All Rights Reserved.
Broadcast TV is an Industry In TransformationAdobe Project Primetime: Enabling Broadcast-to-IP
© 2013 Adobe Systems Incorporated. All Rights Reserved.
Ad Insertion Services
(MediaWeaver)
Primetime Media Player
Robust Playback
Ad Decisioning
(Auditude)
Unified Analytics
(SiteCatalyst)Audience Segmentation
(AudienceManager)
‘TV-Everywhere’Authentication
(Pass)
Single WorkflowPublishing
(Access & StreamKit)
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Q&A Session
Trends in Video Advertising and Measurement
Sponsored by:
Adobe’s Project Primetime
You will receive an email tomorrow with a link to
view the deck and webinar recording.
David Hallerman
Connected TV Advertising: Playing the Long Game
Video Advertising Benchmarks: Key Data, Trends and Metrics
Social Video: The Next Wave in Digital Advertising
Key Digital Trends for 2013
Digital Video and TV Advertising: 16 Forces that will Help or Hinder Integration
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