eyeblaster research analytics bulletin online video advertising:

8/14/2019 Eyeblaster Research Analytics Bulletin Online Video Advertising:

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Eyeblaster Research Analytics Bulletin

Online Video Advertising:Doubles Engagement, Boosts ROI

November 2009


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Highlights

Video growt as outpaced

Ric Media growt b 60%i te last tree ad a alears.

Video icreases Dwell Rateb 20% ad doubles Dwell

Time.

Te ROI o video ads isdouble tat o o-video Ric

Media ads.

Video outperorms i teews, sports, music adace sectios ad lags isocial etworks ad gameseviromets.

Rollover user-iitiated video

perorms best, ollowed bauto-iitiated video; clickuser-iitiated perorms worst.

Weekdas rom 9am to 5pmis users preerred time towatc I-Baer ad Floatigvideo ads.

A icrease o video legt

b ve secods reducesVideo Full Plaed rate b2.8%, o average.


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Video Best Practices

In-Stream

General

Sort olie cotet videos sould ave sort I-Stream ads, wile ull sows ad

movies ca ave loger I-Stream ads.I-Stream ads ave a ver ig Video Full Plaed Rate, ad tereore te mai poito te ad ca be preseted at te ed.

I-Stream is a soud-o eviromet. Ads ca rel o soud as a part o te bradexperiece.

I-Stream ads especiall icrease upper uel attributes suc as uaided bradawareess ad olie ad awareess.

In-Banner and Floating

General

Tpicall, I-Baer ad Floatig video ads experiece is comprised o two stages:First, advertisers eed to draw users attetio to te video; te, users sould be

draw to pla, tur soud o, or egage wit te silet video.Combiig iteractive eatures ad placig users i te middle o te experiece maicrease Dwell Rate ad Dwell Time.

I-Baer ad Floatig ads are tpicall soud-o eviromets; users rarel u-muteor ma keep teir speakers tured o. Ads sould ot rel o soud to make tepoit, ad ca use text to subtitles to augmet video.

Loger videos ted to ave lower Video Full Plaed Rate, ad tereore sould maketeir poit clear rom te start.

I some eviromets, startig videos wit soud tured o wit ver low volumeicreases Dwell Rate witout reducig Video Full Plaed Rate.

I-Baer ad Floatig ads positivel impact especiall lower uel image ad

persuasio metrics suc as brad avorabilit ad itet to purcase.Weekdas rom 9am to 5pm, durig oce ours, is users preerred time to watcI-Baer ad Floatig video ads.

Expandable

Banners

Add a teaser video o te pre-expaded ad or a clear call to actio. Te teaservideo ca be ligtweigt ad ivite te user to egage.

Use Expadable Baers or video campaigs tat require ample space or te brad,as te expad ater a user iteractio, suc as a click or a rollover.

Expadable Baers are a good t or campaigs wit loger marketig messages, aste maitai attetio or loger.

Polite Banners

Ca be used wit user-iitiated ad auto-iitiated video.

I te auto-iitiated case, te video i Polite Baer is exposed to te user at rstglace, but witout soud.

I soud is tured o b deault, use a clear soud o call to actio ad make suretat te poit is clear witout soud.

Floating Ads

Ca be used wit repurposed TV ads i implemetatios suc as Eeblaster TV.

Exceptioal i gaiig users attetio.

Tpicall maitai attetio or a sort duratio o time.


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Olie Video Advertisig:Doubles Engagement, Boosts ROI


Table o contents

Executive Summar ....................................................................................5

Te evolutio o olie video .....................................................................7

Impressio growt ....................................................................................7

Olie video capabilities ...........................................................................8

Video ad bradig ..................................................................................9

Olie video measuremet .......................................................................9

Video ad Ric Media ...................................................................................10

Comparig results ...................................................................................11

Video best practices ....................................................................................12

Video ad ormats ..................................................................................12

Video ad sectio/eviroemet ............................................................13

Video b our o da ...............................................................................14

Iitiatio metods ..................................................................................15

Video ad soud ...................................................................................16

Call to actio ...........................................................................................18Video legt ............................................................................................18

Regioal diereces ................................................................................19

Summar ....................................................................................................20

Glossar....................................................................................................21


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5 EyEBLASTER RESEARCh AnALyTICS BULLETIn


Adding video to your onlinecampaign can signifcantly improveyour marketing results. Marketersare responding in kind with a largerslice o their advertising budgets.

What makes online videoadvertising so successul?What can make your videocampaign even better?In this in-depth bulletin, basedon the knowledge accumulatedat Eyeblaster rom serving alarge portion o the online videocampaigns worldwide, we share ourinsights.

Online video advertising can bedelivered in many orms. Browsers,desktop applications, mobilephones, portable players, IPTVdevices and even outdoor billboardsdeliver online video advertising.

In this research we will ocus onthree ormats In-Banner, Floatingand In-Stream video advertising.

Executive Summary


6/226 EyEBLASTER RESEARCh AnALyTICS BULLETIn


Olie video advertisig spedig is projected toquadruple i te ext our ears. I te last our ears,Eeblaster as see a teold growt i video impressios.I additio, at te same period, video impressios aveclimbed 60% aster ta Ric Media Impressios. Tisoverwelmig growt is acilitated b te strog bradigpowers o olie video, te icrease i time spet oliead te displacemet o TV viewig wit video viewigacross oter devices.

Video boosts te perormace o ads, compared to

creatives wit o video. Particularl, i I-Baer adFloatig ads, video doubles Dwell Time, ad depedig oad ormat, sigicatl icreases Dwell Rate. Campaigsbased o video require ewer exposures to reac te sameDwell Time ad Dwell Rate as campaigs witout video.For I-Stream video ads, pael based market researcsuggests tat olie video advertisig is superior to TVadvertisig i advacig cosumers dow te purcaseuel. Olie video is also a smart acial coice.Sligtl iger cost ad a dramatic icrease i Dwell ields200% icremetal retur o ivestmet o video, ascompared to o-video Ric Media.

Viewig abits o olie video ads are otabl dieret

rom tose o TV spots. A sigicat portio o I-Baerad Floatig video ads is watced wile at te ocedurig weekdas; owever, durig weekeds, users watcvideo ads evel trougout te da.

For I-Stream video ads, te legt o te ad is depedeto te legt o te video cotet. For I-Baer adFloatig ads, dieret video ormats coicide witdieret marketig objectives. Expadable video baersicrease te space or te brad ad work well wit logerad more complex messages, as te maitai logerattetio spa. I Polite video baers, auto-iitiated videoca allure users attetio rom te publisers cotet.

Floatig ads are successul i drawig users to egage,but tpicall or a sorter duratio.

Users are more likel to egage wit a ad ad to plaa larger portio o te video i te ews, sports, musicad ace sectios. Social etworkig ad gameseviromets ted to ave lower Dwell Rate ad lower

Video Full Plaed Rate.

Witi Expadable Baers, Polite Baers ad FloatigAds, creative decisios ma ave a sigicat impacto results. Auto-iitiated video as te igest start rateollowed b user-iitiated rollover ad click. however,i auto-iitiated video, it is ard to ier o te level oattetio wile te video ad is plaed, as te user doesot ave to take a actio i watcig te ad wile mutedDwell Rate is igest or rollover user-iitiated videos, wileauto-iitiated comes ol secod. Click user-iitiated videois bot low o Video Started Rate ad o Dwell Rate.

Olie video advertisig spedigi te US is projected to growrom $1.1 billio i 2009 to $4.1billio i 2013 quadruplig iour ears

Te vast majorit o te auto-iitiated ad rollover user-iitiated videos start wit soud tured o b deault dueto strict publisers rules. Videos wit soud tured o b

deault pla or loger, compared to ads wit soud o, asusers eel less compelled to click o te stop butto.

Relativel ew users u-mute video ads. We lookig at u-mute rate out o total video impressios wit soud o, autoiitiated video as te igest rate, ollowig its ig videostart rate. Click user-iitiated video maitais users attetioor loger wit soud tured o b deault, as tese userswere iterested i watcig to begi wit. All user-iitiatedvideos perorm sigicatl better wit a clear call to actio.

For I-Baer ad Floatig video ads, te video legtdoes ted to be sort et, te 30-secod video is stillte most widel used, closel ollowed b te 15-secod.

A aalsis o te ifuece o legt o Video Full PlaedRate idicates tat loger videos ave iger attritiorates, as ewer users pla te ad i ull.

Overall, olie video advertisig is ow at its tippig poitad is boud to take a ceter stage. Wit suc a arrao creative possibilities, olie video as a steep learigcurve. Marketers ad advertisers sould master it ow,as suciet experiece ma be te dierece betwee ablockbuster ad a fop.

Executive Summary


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Beyond TVs

Second FiddleSuperast growtI 1895 te Lumire broters plaed oe o te rst videosi istor. Te lm, lastig ol 50 secods, sowed a traiarrivig to te trai statio at La Ciotat, a seree tow isouter Frace. We te lm was rst publicall sow, teaudiece was so overwelmed b te movig image o a lie-size trai advacig directl towards tem tat te rused tote back o te room, trig to avoid beig ru over.

nearl 115 ears later, audieces respod more mildl tomovig pictures; everteless, video as remaied oe ote most egagig orms o media. Studies i te eld oPscolog ave sow tat te combiatio o sesescreates greater retetio ad brad recall. It as beeestimated tat people retai ol 10% o wat te read,20% o wat te ear, ad 30% o wat te see. Wetese seses are combied, owever, retetio takes adramatic leap orward. Tose same estimates sa tat wesomeoe ears ad sees, retetio jumps to 50%. Deliverigvideo olie provides aoter beet iteractivit ad touc.Stimulatig retetio b combiig iteractivit as sow toicrease retetio to 70% ad i some cases up to 90%1.

Video as come a log wa sice tese rst experimets iFrace. I te earl das, it was mostl plaed i ciemas;beore te ed o te last cetur, it was viewed o TV.nowadas, video ca be delivered via a arra o devicesrom computers ad media ceters troug mobile poesto billboards. Far rom te low qualit image o te past,aster broadbad coectio, WiMax, ad 4G, combiedwit better compressio algoritms ave trasormed olievideo qualit to matc te qualit o TV, ad i some caseso hDTV.

Olie video advertisig is also cagig i te wa i

wic it is cosumed. Media ceter computers ad olievideos are movig rom te ome oce to te livig room.eMarketer projects tat wile i 2008, 98.4% o te videocotet was delivered via TVs, tis sare is expected to dropto 38.5% i 2013, were te remaider o videos will bedelivered via computers2.

Wile olie video advertisig sums to ol a ractio ototal advertisig spedig, it is projected to grow rapidl.eMarketerprojects tat olie video advertisig spedig i

te US, te worlds biggest advertisig market, will grow rom$1.1 billio i 2009 to $4.1 billio i 2013 quadrupalig iour ears3. I te UK, olie advertisig spedig, icludigvideo, ric media, displa ad searc, as alread surpassed

TV spedig i te rst six mots o 20094.

Te growt o olie video advertisig is staggerig.Eeblaster as see a remarkable icrease i usage ovideo i olie advertisig. From te begiig o 2006 to

Q2 2009, video impressios ave icreased over teoldworldwide ad over seve times i te US market.

Furtermore, olie video advertisig outpaces eve tegrowt o Ric Media. From 2006 to Q2 2009, Ric Mediaimpressios cotaiig video grew 60% aster ta RicMedia impressios tat do ot cotai video. nowadas,35% o Ric Media impressios cotai video.

Ric Media ad video advertisig demostrate seasoalit.Eac ear, strog growt i Q2, Q3 ad particularl i Q4is ollowed b a declie i Q1 o te ollowig ear. Tiscclicalit is more proouced i video ta i Ric Media.Q1 2009 as witessed a uusuall sarp declie i Ric

Media ad video impressios due to te ecoomic turmoil.however, i Q2 2009, we te ecoomic orecasts becamless gloom, it experieced a strog reboud. Wit te worldecoom drivig out o recessio, Eeblaster Researcexpects tis reboud to cotiue.

1 US naval Educatio & Traiig Commad. Navy Instructor Manual. August 1992, p. 25. Available at: ttp://www.msdcc.sdccd.edu/nAVEDTRA%20134.pd2 hallerma, David. Digital Video Advertisig: Weres te Moe? eMarketer. August 2009.3 Ibid.4 Sadler, Kat. Web Ad Sales I Britai Overtake TV. The Wall Street Journal. September 30 2009.

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

0%

500%

1000%

2006

2007

2008

2009

Video

Non-VideoImpressionG

rowth

note: 2006 impressios idexed at 100%. Source: Eeblaster Researc.

Data: 2006-2009

Chart 1: Growth in Video and Non Video RichMedia Impressions 2006-2009
http://www.mysdcc.sdccd.edu/NAVEDTRA%20134.pdfhttp://www.mysdcc.sdccd.edu/NAVEDTRA%20134.pdf




Video Focus:HD Video AdsIt caot get more egagig ull scree, ig deitiovideo wit a pair o ees ol oe oot rom te moitor.hD Video baers deliver a uparalleled experiecewit te brad. higl utilized i te etertaimetidustr, ad particularl i ew movie lauces, hD

Video baers ca trasorm a I-Baer ad Floatigvideo to a teatrical evet.

Te brilliace o hD video las i its abilit to egageusers step b step. Tpicall, te ad starts as a regular

video; users ca te expad te pael to view a ullscree hD versio. I some cases, a ExpadableBaer expads to pla a regular video, ad te usersexpad to te hD versio. Tus, tis ormat esurestat users wo are iterested i a closer iteractio witte brad will receive te best video experiece tereis, wile oters will be sow a regular video. Te maicallege or advertisers is to attract users to activatete ull scree hD video.

I terms o perormace, hD video exceeds regularvideo ads i bot start rate ad videos ull plaed rate.I act, hD videos start rate is over 40% compared to30% or oter video ads; its ull plaed rate reacesearl 60%. Dwell Rate jumps rom 8% to 10% 25%icrease or hD video.

Creative examples for HD Video ads can be found on the

Creative Zone: creativezone.eyeblaster.com

Video Star ted Rate Video Ful ly Played Rate Dwel l Rate

0%

20%

40%

0%

10%

20%

30%

40%

0%

5%

10%

HD Video Other

HD Video Perormance

Source: Eeblaster Researc. Data: Q4 08 to Q3 09

Enhanced capabilities

Te level o advertiser cotrol over users attetio is igldepedet o te eviromet. Ciema is a example o aeviromet wit relativel ig cotrol over users attetio.Users are i a dark room, wit loud soud, ad are uableto leave or speak to eac oter.

TV ad I-Stream are examples o itermediate cotrol. Ilive TV ad I-Stream, users caot skip te commercial,but te ca leave te room, read te ewspaper, or egagei a coversatio. Wit newspapers, I-Baer ad Floatigads, advertisers ave a relativel low cotrol over usersattetio. Users ocus o te publisers cotet, ad it iste advertisers job to allure teir attetio rom te cotetto te ad.

Te eviromet makes I-Baer ad Floatig videodieret rom TV spots ad rom I-Stream. I-Baer adFloatig video ads experiece is comprised o two stages.First, advertisers eed to draw users attetio to te video.

Te, users sould be compelled to coose to ave adeeper experiece wit te brad, b plaig te video, ori auto-iitiated video b turig te soud o. I I-Stream,te audiece is more captive ad as to watc te ad beorete cotet starts. Tereore, I-Stream ma work wit liearootage, wile wit I-Baer ad Floatig ads, advertiserseed to work arder ad combie iteractive eatures.

At preset, olie advertisig still teds to use ads witliear stories suc as repurposed TV ads; tese do ot takeadvatage o te ull iteractive capabilities o olie video.It took TV advertisig decades to evolve to te levels osopisticatio tat it curretl as. Te evolutio o olievideo advertisig is appeig muc aster wit ew admore eective eatures beig developed ever ear.
http://www.creativezone.eyeblaster.com/http://www.creativezone.eyeblaster.com/


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Video and Branding

Usig video, marketers ca quickl cove sopisticatedideas, tell a coeret stor ad persuade customers toideti wit teir brad message. Video ads o TV werete eablers o te creatio o big powerul brads tatcustomers are willig to pa a premium or. now, as video ismovig olie, olie video advertisig will elp tem to sta.Olie also cages bradig, as cosumers o loger takeadvertisers messages at ace value. Te power o olievideo stems rom its abilit to provide more iormatio tousers i a iteractive maer.

Olie video is a uparalleled bradig tool. As a leaorward experiece rater ta a lea back o te soaexperiece, it provides eaced levels o egagemet. Iterms o size, we te video is watced ull scree, evea 14 laptop scree o our lap, oe oot awa, ca lookbigger ta a 32 fat scree TV o te oter side o telivig room, 10 eet awa. Touc ad iteractivit add moredept to te experiece wit olie video ad ca place teuser i te middle o te ad rater ta as a bstader.

A Millward Brow ad DamicLogic surve as oud tat ol21% o te people watcig DVR

plaback ad 30% o peoplewatcig TV airtime pa attetioto commercials, compared to46% o people watcig I-Stream video ads olie

Tree parallel processes acilitate te growt o videoadvertisig olie. People sped more time olie at teexpese o TV viewig time; TV viewig is beig displacedb video viewig across dieret devices, rom computersto cell poes; ad TV viewers ad users o DVR sstems

like TiVo ast orward TV ads. A MillwardBrow ad DamicLogic surve as oud tat ol 21% o te peoplewatcig DVR plaback ad 30% o people watcig TVairtime pa attetio to commercials, compared to 46% opeople watcig I-Stream video ads olie5.

I-Stream, I-Baer ad Floatig video serve diereteviromets. I-Baer ad Floatig video ads reaccosumers wile te sop olie, IM, commuicate bemail ad social etworks or browse or iormatio oretertaimet. I-Stream video ads reac viewers o olie

video cotet; eiter o sort clips or o ull sows admovies. Wit more video cotet watced olie, I-Stream

Video is a adaptatio o te 30 secod TV spot to olie

video broadcastig sites like youTube ad hulu. Oe o teadvatages o I-Stream is tat it delivers ewer ads perpod, compared to traditioal TV gaiig more attetio oreac ad.

No more guesswork

Te measurabilit o olie video advertisig oers a greatadvatage to advertisers. Wile ofie televisio advertisig ismeasured b eeballs extrapolated rom a pael, olie videooers a robust set o metrics tat are based o te actualbeavior collected rom cookies o browsers. Tese metrics

calculate ot ol te umber o uique browsers but also televel o iteractio ad wat portio o te video was plaed.

Te accurate measuremet o olie video advertisig oersadvertisers kowledge o teir audiece tat is uimagiedofie. Ofie measuremets, or example, do ot measureow ma people took a batroom break or just read abook, wile sopisticated olie ad servig sstems trackexactl ow ma videos were touced, iteracted wit,plaed ol al wa troug, ad ow ma videos wereplaed i ull. All o tese metrics are reported i real time.

Te added beet rom real-time accurate measuremetis tat advertisers ca gauge o ad ad publisers

eectiveess ad optimize teir campaig. Olie allowsadvertisers to easil compare ads ad publisers ead toead ad see wic provides a better value.

Pael based advertisig researc as a log 90-ear istorsice Artur nielse rst opeed sop i 1920. Tereore,marketers eel codet tat terms like lit i bradawareess ad itet to purcase are goig to covert tomore dollars at te cas register at te ed o te da. Wileolie metrics do a good job o measurig olie beavior,te iabilit to directl lik betwee users olie activit adteir ofie ad sometimes olie purcasig beavior limitste adoptio o olie metrics b marketers.

Wit kowledge o users activit olie, pael databecomes more powerul as a poit o reerece, likigolie activit ad ofie beavior. Advertisig researccompaies like comScore, Damic Logic ad nielse areprovidig valuable researc tat correlate betwee usersolie beavior, ad teir beavior at te supermarketaisle. We measurig campaigs perormace, oliemeasuremets suc as Dwell Rate, Dwell Time adIteractio Rate complemet ofie measuremet suc asuaided awareess ad itet to purcase.

5 Millward Brow ad Damic Logic. Itegratig olie video advertisig ito te marketig mix.Available at: ttp://www.damiclogic.com/a/ researc/witepapers/docs/MB_KowledgePoit_OlieVideo.pd
http://www.dynamiclogic.com/na/%20research/whitepapers/docs/MB_KnowledgePoint_OnlineVideo.pdfhttp://www.dynamiclogic.com/na/%20research/whitepapers/docs/MB_KnowledgePoint_OnlineVideo.pdf




Adding a Flare to

your Campaignhiger resultsOe o te egies beid te growt o olie videoadvertisig is its success i retaiig users attetio ora loger period o time ad i leavig a lastig impact.

Advertisers sould avoid lookig at olie advertisig asa purel direct marketig tool, judgig success wit directmarketig measuremet suc as clicks. Tis approacmisses muc o wat olie video advertisig is all about

coveig bradig messages.I tis researc, we use several metrics to measure tesuccess o olie video. For I-Baer ad Floatig ads,Eeblasters proprietar Dwell metrics are used to measurete level o egagemet wit ads cotaiig video ascompared to te level o egagemet wit ads tat do otcotai video. Dwell Rate measures ow ma impressioswere itetioall egaged wit b users out o totalimpressios. Average Dwell Time measures te averageduratio tat ads were dwelled upo.

I additio to te Dwell Metrics, to compare video ads eadto ead, tis researc uses specic video metrics: Video

Started Rate measures ow ma videos ave started outo total impressios; Video Full Plaed Rate measures owma o te videos tat ave started plaed ull. Video FullPlaed Rate is cosequetial or bradig as it measureste portio o videos tat were able to cove teir ullmarketig message. Oter metrics tat were used are VideoLegt, wic measures te legt o te video o te ad,ad Average Video Duratio, wic measures te averageduratio o te video tat was actuall plaed.

A close look at te results o billios o impressios servedb Eeblaster i te past ear sows w video makes suca superb advertisig tool. Addig video to a Ric Media ad

doubles te amout o time tat te average user spedswit it, as measured b Dwell Time. I additio, users aremore likel to egage wit a ad i te rst place, as evidetrom te iger Dwell Time. Iteractivit is a ke compoeto olie advertisig measuremet; evidece ere sows tacosumers are more willig to bot egage ad maitaiiterest i te brads message, we ads cotai video.

Dwell Rate Average Dwell Time (Sec)

0%

2%

4%

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8%

0

20

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60

Video No Video

Chart 2: Perormance o Rich Media withand without Video


Expand able Banner Polite Banner

Dwel l Rate Av er age Dwel lTime (Sec)

Dwell Rate Aver ag e DwellTime (Sec)

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Video No Video

Chart 3: Perormance o Polite and ExpandableBanners with and without Video


Furtermore, examiig te results o te two most popular

Ric Media baer ormats reveals te true potetial o videoi providig egagemet. Addig video to Polite Baersicreases Dwell Rate b 50%, o average. I Polite Baersi cases o auto-iitiated video, te video is exposed to teusers at rst glace. Tpicall, eve i user-iitiated video,te user ca visibl otice tat te ad cotais video.

I Expadable Baers, o te oter ad, te video isusuall idde beid te expadig pael ad users areot aware o it util te roll over or click o te ad. From teusers poit o view, Expadable Baers wit idde videolook like ads witout video, ad tereore get te same levelo attetio betwee ads wit ad witout video.

To icrease Dwell Rate, it is a good practice to put a teaservideo o te pre-expaded ad. Te teaser video ca beligtweigt ad ivite te users to egage. Also, usig aclear call to actio makes video easil accessible to usersater expasio icreases te rate o videos plaed (moredetails about call to actio are comig).


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Overall, olie video advertisig does a ver good job oattractig ad maitaiig attetio across all ormats, ad itis excellet at retaiig attetio. More people egage wit

video ads, ad we te video plas, te sta or loger.

Olie video is also a smart acial coice. Video costso average 20% more ta o-video ric media6. Tebeet is 25% icremetal icrease i Dwell Time ad 100%icremetal icrease i Dwell Rate. Tat ields 200% returo ivestmet o video, as compared to o-video RicMedia7.

Tese results are eve more proouced we it comesto Dwell Time. O average, users eed almost treemore exposures o ads rom campaigs witout video to

accumulate te same Dwell Time gaied rom campaigsbased solel o video. At a requec o exposure,campaigs tat are based o video ave iger Dwell Ratead Dwell Time ta campaigs witout video.

Tis is et aoter idicatio tat I-Baer ad Floatigvideo delivers a sigicatl iger ROI or advertisers. Witsligtl iger cost, advertisers obtai te same Dwell Ratelevel ad save oe impressio o average. I additio, teaccumulate more o users time as i te icrease requecb tree impressios.

For video ads, te icreased egagemet i terms o DwellRate ad loger Dwell Time traslates ito iger marketigeectiveess. A Damic Logic researc idicates tat videoads are te most oticeable olie ad ormat, geeratiga icrease i all uel eectiveess metrics. Accordigto te stud, ads wit video geerated a icrease o 18percetage poits i olie ad awareess 10.1 poitsabove a idex o olie ads. I additio, video ads scorediger o aided brad awareess, message associatio,brad avorabilit ad purcase itet8.

I-Baer ad Floatig video ads are clearl superior toI-Baer ad Floatig ads witout video. Wat aboutI-Stream Video? A two ear-researc b MillwardBrowad Damic Logic idicates tat spedig time wit a ad

wile watcig a program olie as a greater eect o totabrad commuicatio awareess as compared wit regular

TV advertisig. Te researc idicates tat te icremetalawareess betwee people wo viewed a ad oce o

TV ad te cotrol group is 10% compared wit 38%or olie video ads. Ad recall was also our times igeramog viewers o olie ads. Te researcers attributetis overwelmig icrease i awareess to users igeregagemet wit olie media, ad te tedec or ewerads per pod olie as compared to TV9.

Frequency of 1Exposure

Frequency of 2Exposures




0%

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30%

0

100

200

300

Camp aign s wi th V id eo Camp aign s wi th o ut Video

Cumulative

DwellRate

Cumulative

DwellTime

Chart 4: Dwell by Frequency o Exposure

Source: Eeblaster Researc. Data: Q3 08 to Q2 09, nort America

A examiatio o users beavior b requec o exposuresows tat campaigs tat are based o video advertisigacieve better results wit ewer exposures, as comparedto campaigs tat are based o Ric Media witout video.For example, users wo were exposed tree times to a adi a campaig witout video ave te same Dwell Rate asusers tat were exposed ol twice to a campaig basedexclusivel o video advertisig.

Users eed almost tree

more exposures o ads romcampaigs witout video toaccumulate te same Dwell Timegaied rom campaigs basedsolel o video.

6 Based on serving cost and media cost, derived from a sample of publishers surveyed by Eyeblaster Research. Publishers incremental fee for video over RichMedia ma var.

7Te beet o video is 2.5 times tat o regular ric media, wile te cost is 1.2 times. Overall ROI (beet/cost) is 200%.8 Damic Logic. Beod te Click. Eacig te TV-like Power o Video Ads o te Web. november 2006.Available at: ttp://www.damiclogic.com/a/researc/btc/beod_te_click_ov2006.tml

9 Millward Brow ad Damic Logic. Itegratig olie video advertisig ito te marketig mix.
http://www.dynamiclogic.com/na/research/btc/beyond_the_click_nov2006.htmlhttp://www.dynamiclogic.com/na/research/btc/beyond_the_click_nov2006.htmlhttp://www.dynamiclogic.com/na/research/btc/beyond_the_click_nov2006.html




Tell me how!Olie video advertisig delivers a wealt o creativepossibilities to crat a ad, te most importat o wicis iteractivit placig te user i te ceter o te ad.

Advertisers ca coose ot ol multiple ad ormats, but alsote ads legt, iitiatio metod, turig te soud o or o,ad weter to place a call to actio. Ma o te creativecoices are also aected b users viewig abits suc as teeviromet ad te time o da i wic te ad is watced.

attributes suc as uaided brad awareess ad olie adawareess. I-Baer ad Floatig ads are more successuli positivel impactig lower uel image ad persuasio

metrics suc as brad avorabilit ad itet to purcase10.

10 IAB Researc. Case Stud o Digital Video Advertisig Eectiveess.December 2008.

0% 20% 40% 60% 80%

Video Started Rate

Video

FullyPlayedRate

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Polite Banner

In-Stream Video

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Average

Average

Share of Video

Impressions

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Chart 5: Video by Ad Format

note: Sare o video impressios out o Ric Media impressios


Aligning the ormat with themessage

Eac o te our ad ormats as advatages addisadvatages, depedig o te marketig objective.I-Stream Video is tpicall auto-iitiated ad tereore asa ver ig start rate. I ma cases, it is served as a pre-rollor mid-roll, ad users ave to patietl wait or it to is,so te ca watc watever video cotet te came or obtaiig a ver ig Video Full Plaed Rate.

however, tere is a caveat. Sort olie cotet videossould ave sort I-Stream ads. Te idustr rule-o-tumbis 15 secods I-Stream ads or videos lastig less ta 3miutes o cotet, ad 30 secods or cotet lastig over3 miutes.

Researc b te Iteractive Advertisig Bureau (IAB) suggeststat I-Stream Videos ave iger eect o upper uel

Uder I-Baer ads, Expadable Baers icrease tespace or te brad, as te ol expad ater a useriteractio, suc as a click or a rollover. Te are a good tor campaigs wit loger marketig messages as te oldpeoples attetio wit iger ta average Dwell Time. Iadditio, Expadable Ads iger Dwell Rate ad Dwell Timeidicate tat more people iteract ad touc tem, leadigto iger retetio.

Eeblaster Researc asoud tat a small portio oExpadable Baers require evemore ta ve user iteractiosbeore plaig te video.

however, i ma cases, advertisers ide te video beidseveral paels, wic makes it dicult or users to d tevideo ad results i lower Video Started Rate. Eeblaster

Researc as oud tat a small portio o ExpadableBaers require eve more ta ve user iteractiosbeore plaig te video. Tese advertisers rel o a verdetermied audiece. A good practice would be to ave

Dwell Rate Average Dwell Time (Sec)

Expandable Banner Polite Banner Floating Ads

0%

10%

20%

30%

0

20

40

60

Chart 6: Perormance o Banners and FloatingAds with Video



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te user-iitiated video pla ater oe iteractio, preerablbeid a clear call to actio or a teaser video.

Polite Baers seem as oe o te more obvious coices orvideo. Advertisers ca coose betwee user-iitiated adauto-iitiated video, but te ig video started rate sowstat advertisers coose te latter more ote. I te auto-iitiated case, te video i Polite Baer is exposed to teuser at rst glace, tpicall wit soud tured o b deault.

A good practice would be a clear soud o call to actio.

Some foatig ads ave ver successul implemetatiossuc as te Eeblaster TV (see separate box). Floatig adsare exceptioal i gaiig users attetio, as evidet b teiriger Dwell Rate. however, te tpicall maitai attetioor a sort amout o time, as evidet b teir lower Dwell

Time. Floatig over te publisers cotet, foatig adsremai i te rage o users visio. Ma use auto iitiatedvideo to augmet visibilit.

Video and the section/environment

Te homepage is were people visit o teir wa to teirdestiatios. however, tis aalsis sows tat users dosped time o omepages to egage wit video ads.

homepages are sligtl iger ta average o Dwell Ratead o Video Full Plaed Rate. It as a iger portio ouser-iitiated video wit Video Start Rate o 16%.

I social etworkig ad games sites, users ted to egagewit video ads less requetl, ad also ave a lower videoull plaed rate. Videos o games sites are earl alwasauto iitiated wit 7% video started rate.

As a desktop rater ta a browser eviromet, istatmessagig is dieret. It earl alwas cotais user-iitiatedvideo, sice te video is tpicall idde beid te paelo a Expadable Baer. Wit predomiatl user iitiatedvideo, it as ol a 3% Video Start Rate. Wile it as sligtllower ta average Dwell Rate, a iger proportio o videosare plaed to teir ull duratio.

2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12%

Dwell Rate

VideoFullyPlayedRate

30%

40%

50%

60%

Sports

Social Network

NewsMusic

Mail

Lifestyle

Instant MessagingHome Page

Health

Games

Finance

Entertainment

Auto

Average

Average

Chart 7: Video Perormance bySection/Environment

note: Icludes I-Baer ad Floatig Ads.Source: Eeblaster Researc. Data: Q4 08 to Q3 09, nort America.

0%

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80%71%

60%

44%43%41%40%38%37%33%

24%

16%14%

3%

InstantMessaging

Health

HomePage

Mail

SocialNetwork

Entertainment

Sports

News

Music

Lifestyle

Finance

Auto

Games

VideoStartedRate

Chart 8: Video Started Rate bySection/ Environment

note: Icludes I-Baer ad Floatig Ads.Source: Eeblaster Researc. Data: Q4 08 to Q3 09, nort America.

Users are more likel to egage wit a ad ad to watcvideo or loger i some olie eviromets/sectios raterta oters. news, sports, music, ace ad mail tedto ave bot superior Dwell Rate perormace ad iger

Video Full Plaed Rate. People sped a loger amout otime i tese eviromets, browsig cotet ad writigad readig emails. Tus, users ave more time to egagewit advertisers ads. Tese eviromets ave mixedauto-iitiated ad user-iitiated videos, as idicated b teirsimilar Video Started Rate o aroud 40%.




Video Focus:Eyeblaster TV

Video Started Rate Video Fully Played Rate Dwell Rate

0%

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EyeblasterTV Other

Eyeblaster TV Perormance


Creative examples for Eyeblaster TV ads can be found on

the Creative Zone: creativezone.eyeblaster.com

It is possible to trasorm a successul TV campaigdirectl to te Web. Eeblaster TV is a foatig ad tatplas video spots besides te publisers cotet.

Tpicall, te video is auto-iitiated ad is plaed witte soud tured sligtl o, to attract users attetio.Oce te video as ised plaig, te foatig adcollapses, leavig a remider.

Eeblaster TV elps advertisers to stretc teirivestmet i te productio o TV ads to te web easilad wit great results. Eeblaster TV ads ted to be logor Web advertisig 30 secods; still teir ull plaedrate is similar to te average. Tereore, tis ormatprovides a great platorm or loger ad more complexmarketig messages. I additio, altoug Eeblaster TVads are auto-iitiated wit soud-o b deault, users doot d tem itrusive compared to oter video ads asevidet b teir similar Video Full Plaed Rate.

Primetime at the ofce

For I-Baer ad Floatig video ads, users viewig abitsare ver dieret rom tose o TV advertisig. A largeportio o TV ads are watced i te eveig, durig TVprimetime wile cuddlig o te livig room couc. Olievideo ads are mostl watced at te oce durig workigours ad i te eveig, at ome.

0%

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Office Hours

Video Fully Played Rate

Midnight

Share

ofTotal

Videos

Started

VideoFully

Playe

dRate

1am

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Share of Videos Started

Chart 9: Video Started and Fully Played byTime o Day, Weekdays

note: Sare o Video Started measure te proportio o videos started witi ourrom total videos started trougout te da.

Source: Eeblaster Researc. Data: Q2 09, US East Coast, EST.

Trackig te lie o te average Jo Doe teaces valuableisigts o we to deliver successul video advertisigtrougout te da. Durig weekdas, wakig up at 6:00amMr. Doe does ot usuall sur te web a lot, mabe ceckiga occasioal email or so; ot muc time to it te startbutto o ma video ads. At 9:00am e gets to te ocelled wit caeie ater gulpig te veti coee durig ismorig commute.

I te morig at te oce e still eels eergized, adread to do some work! Quickl, just to keep is sait, eopes is browser. Tats we video ads plaed reac teipeak. Te oce olie activit is mostl comprised o ews,researcig iormatio ad commuicatios, suc as emailor istat messagig. A clear drop i video ads starts is elt

at 5:00pm, we Mr. Doe is preparig to go ome.

Eve we surg at ome, Mr. Doe would ot pla asma ads as e does rom te oce. Mr. Doe usuall logso beore midigt, we e goes to bed. Durig is wakigours, Video Full Plaed Rate remais ig. Tis rate dropssigicatl at igt.
http://www.creativezone.eyeblaster.com/http://www.creativezone.eyeblaster.com/


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Making it roll, or click

Wile I-Stream videos earl alwas start automaticall,I-Baer ad Floatig video ads ave tree major iitiatiometods: Mouse rollover, mouse click ad auto-iitiatedvideo. Auto-iitiated is te most popular, ollowed b mouserollover.

Over te weeked, Mr. Does egagemet wit olie videoads is vastl dieret ta is egagemet durig te week.Startig ads more evel trougout is wakig ours, Mr.Doe as muc more patiece or watcig ads betwee8am ad 10pm.

Te act tat a large portio o video ads are watced at teoce also puts some costraits o te maer i wicte are delivered. Depedig o te coutr, culture adolie eviromet, advertisers ma wat to rerai romdeliverig auto-iitiated ad rollover user-iitiated ads witsoud tured o b deault, to avoid rubbig oce etiquettete wrog wa. We cratig teir messages, advertisersad agecies sould remember tat teir audiece migt beard pressed at te oce as opposed to relaxed at ome.

User-

Initiated /

Rollover

Auto-

Initiated

User-

Initiated /

Click

Chart 11: Video Initiation Method

Source: Eeblaster Researc. Data: Q2 09

Dwell RateVideo Started Rate

Auto -In iti ated User-In iti ated / Ro ll over User-In iti ated / Cl ick

0%

20%

40%

0%

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10%

Chart 12: Video Started Rate and Dwell Rateby Method o Initiation


0%

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Video Ful ly Played Rate Share o f Videos Star ted

ShareofTotal

VideosStarted

Midnight

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VideoFully

PlayedRate

Chart 10: Videos Started and Fully Played byTime o Day, Weekends

note: Sare o Video Started measure te proportio o videos started witi ourrom total videos started trougout te da.

Source: Eeblaster Researc. Data: Q2 09, US East Coast, EST.

Eac o tese metods as its ow advatage. Auto-iitiated video allows advertisers to attract users attetioto te video passivel; owever, prospects ma miss tebegiig or see it witout soud. Rollover is tpicall used

i expadable baers to expad te pael ad expose tevideo. Rollover requires ewer actios rom te user taa click ol rollig te mouse o te ad, compared torollig te mouse ad clickig. Also, ma users rerai romclickig, to avoid leavig te publisers website or to avoidlaucig a popup.


16/22


17/22



As users ol d out i te video as soud ater it wasiitiated, soud tured o/o does ot aect Dwell Rate oruser-iitiated video, ol or auto-iitiated video. I auto-

iitiated ad rollover user iitiated video, soud o tedsto ave lower Dwell Time, as users ted to tur te videoo more quickl. Tis coclusio ca also be derived bexamiig Video Full Plaed Rate.

Relativel ew users u-mute video ads. We lookig at te

u-mute rate out o total video impressios wit soud o,auto-iitiated video as te igest rate, ollowig its igvideo start rate. neverteless, ol 3% o click ad 10% orollover user-iitiated videos are started, ad tereore avete cace o beig u-muted. We lookig ol at videostat ave started wit soud o b deault, te proportio ousers wo tur te soud o is iger i user-iitiated videoas compared wit auto-iitiated video.

To icrease u-mute rate, it is a good practice to ave aclear call to actio o te video, rater ta a small butto atte bottom. Also, accompaig te ad wit text or subtitlesto augmet te video wile te soud is o ca elp users

compreed te marketig message.

0% 5% 10%

Dwell Rate

0 20 40 60

Average Dwell Time (Sec)

Auto -In itiated Off

On

User-Initiated /Rollover

Off

On

User-Initiated /

Click

Off

On

Chart 16: The Dwell Eect oSound on Video

note: For auto-iitiated video, soud o icreases Dwell Rate ad lowers Dwell

Time as users ted to tur te video o more quickl.Source: Eeblaster Researc. Data: Q2 09

Video Fully Played Rate

Auto -In itiated User -In itiated / Rol lover User -In itiated / C li ck

0%

10%

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Off On

Chart 17: The Fully Played Eect oSound on Video


0.0%

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0.3%

Un-Mute Rate out of Video Impressions

Auto- In i tiated User -Ini tiated / Rol lover User -Ini tiated / Cl i ck

Chart 15: Video Un-Mute Rate or Videoswith Sound Turned O


Advertisers eed to d te balace betwee puttig teusers i cotrol, ad compellig tem to experiece teull video wit soud o. Te Eeblaster TV ormat (seeseparate box) starts wit te soud tured o wit ver low

volume. Usig tis metod, users do ot d te ad itrusivad do ot stop it more requetl ta te average; te

Video Full Plaed Rate o Eeblaster TV is similar to teaverage o oter ads wit video.

I click iitiated video, soud tured o b deault isadvatageous. Users wo clicked wat to watc te ad, sow ot provide tem wit te ull experiece witout orcigtem to take a additioal actio. Te reward or soudtured o b deault, i tis case, is a additioal 5% ousers wo watc te video all te wa toug.

Eiter wa, te dierece i perormace betwee ads witsoud tured o ad soud tured o disproves a idustrmt saig tat ma users browse te web wit mutedspeakers. Tus, accompaig video wit soud tured oto illumiate te marketig message or a memorable jigleor sog, ad deliverig it i a courteous maer, ma be agood wa to eace marketig eectiveess.




You didnt call, they didnt play

Call to Action

No Call to

Action

Chart 18: Share o Video Impressions withCall to Action

note: For user-iitiated video ol.


0.0% 2.0% 4.0% 6.0%

Video Started Rate

Call to Action

No Call to

Action

Chart 19: The Impact o Call to Action

note: For user-iitiated video ol.Source: Eeblaster Researc. Data: Q2 09

5

Sec

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ShareofTotalIm

pressions

Chart 20: Videos by Length

note: I-Baer ad Floatig video ads.Source: Eeblaster Researc. Data: Q2 09, nort America

Is 15 the new 30?

For I-Stream, particularl i pre-roll ad mid-roll, users arerequired to see te ull ad i te wis to view te cotet.Tis is ot te case or I-Baer ad Floatig ads. Waro lower attetio spa o users wo are browsig orcommuicatig, ma i te idustr call or sorter videoads wit more cocise messages.

I tere is oe golde rule o success i user-iitiated video,ad i olie advertisig at large, it is to use a crstal clearcall to actio. I user-iitiated video, a call to actio souldetice users to pla te video, or expad te ad. Wile itma soud obvious to ma, some advertisers coose tokeep te space or teir marketig message, rater ta touse a call to actio. Tis lie o tikig ma ot be prudet.

Overall, ads wit a call to actio ave earl 2% igerVideo Started Rate compared wit ads wit o call toactio. A clear call to actio sould also be used to eticeusers to tur te soud o or video wit soud tured ob deault. Eeblaster Researc aalsts ave oticed tatads wit large ad clear triagles sigalig pla, clear largeicos idicatig soud o ad large scripts saig clickto expad or rollover to pla video etice users or tatparticular beavior. Overall, a clear call to actio icreaseste likeliood tat users pla user-iitiated video or turte soud o i auto-iitiated video. Te brad experiecegaied b a video plaed outweigs te space gaied bomittig te call to actio.

A review o I-Baer ad Floatig ads served i Q2 09

idicates tat ads lastig or 30 secods are still te mostpopular kid, accoutig or over 20% o total video adimpressios; te are closel ollowed b te 15 secodads tat were eatured i 17% o video ad impressios. Adslastig loger ta 30 secods are rare ad ma cotaiseveral sequeced videos.

Oe o te advatages o sorter I-Baer ad Floatigvideos is te iger likeliood tat users will watc temall te wa troug. hig attritio rates or loger videosdimiis te primar advatage o video its abilit to delivemarketig messages as a stor, wit a start, middle ad ed ad promote users to ideti wit te brad message.


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A statistical aalsis coducted b Eeblaster Researcsows tat or I-Baer ad Floatig ads, a icreaseo ve secods i video legt reduces te likeliood tatusers will watc te ull ad b 2.8%, o average. Tis souldot be alarmig; oe reaso or te decrease is tat i tecase o auto-iitiated video te sorter te video is (adwit soud o) te lower te likeliood tat users will clickstop beore te ed o te clip, eve i i realit te stopwatcig. Also, sorter videos ave a iger cace orollig ull beore te user as avigated to aoter page.

Researc b te IAB idicates tat dieret legts areappropriate to dieret marketig objectives. Sorter videoso 5 secods ma work or simple commuicatio, but avete weakest levels o breaktroug ad are te most dicultto uderstad.

Te IAB suggests tat loger videos are more eective.15-secod videos ave te igest brad associatio, areeasiest to uderstad, obtai te igest egagemet adare te most cost eective. Te are most appropriate orsimple messagig ad or a pre-roll i I-Stream. Tirtsecod ads are te most persuasive; te allow or complexcommuicatio ad work well as user-iitiated video11.

I geeral, it is ard to ideti a clear rule o tumb o watlegt sould be used. Ad ormat, te complexit o temarketig message ad objectives, te eviromet, adma oter cosideratios aect te coice o legt.

Regional dierences

Most o tis aalsis was coducted wit worldwidedata; owever tere are regioal diereces. Tere are osigicat variaces betwee nort America, Europe, adLati America i te sare o video impressios out o RicMedia impressios. however, East Asia teds to ave alower sare o video impressios, out o oter Ric Mediaimpressios.

All regios are relativel similar i users tedec to watcvideo ads i ull. however, some markets ave lower VideoStart Rates. Tis ma ave several reasos: Lower auto-iitiated video rate, qualit o creative executio, videosstartig wit soud o b deault ad diereces i beaviobetwee markets ma be amog te more prevaletexplaatios.

5Sec

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Chart 21: Video Length and Perormance

note: I-Baer ad Floatig video ads.Source: Eeblaster Researc. Data: Q2 09, nort America

10% 15% 20% 25% 30% 35% 40% 45%

Video Started Rate

Video

FullyPla

yedRate

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East Asia

AU and NZ

North America

Latin America

Europe

Average

Average

Share of Video

Impressions

10%

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40%

Chart 22: Video by Market

note: Sare o video impressios out o Ric Media impressiosSource: Eeblaster Researc. Data: Q4 08 to Q3 09

11 IAB Researc. Case Stud o Digital Video Advertisig Eectiveess. December 2008.




Whats next?

Video is expected to be oe o te major drivers o olie advertisig ite ext ew ears. At curret levels o spedig, olie video advertisigas plet o room to grow. Eve wit projected growt o 40% auall,olie video ads will amout to ol 10% o total olie advertisigspedig b 201212.

Advertisers ave gaied experiece i te art o TV advertisig ordecades, util te were able to brig it to its curret eectiveessrotier. I curret growt rates persist beod 2012, Eeblaster Researcad ma oter idustr aalsts estimate tat olie video advertisig isgoig to become a staple o ever bradig campaig similar to wat

TV is ow. Tis ma ave a disruptive eect o marketers ad advertiserswo are caugt uprepared.

Olie video advertisig as a steep learig curve. Te uique attributeso olie video advertisig, suc as te dieret time ad surroudigs iwic it is watced, te coice o ad legt, te variet o ad ormats adcreative eatures suggests tat te mere repurposig o a successul TVspot ma ot guaratee success olie.

Marketers ad advertisers wo will ot ave a strog olie bradigcapabilit usig olie video advertisig ma risk jeopardizig teir bradsealt. I a ew ears, we olie video asceds to be advertisigsbradig egie, suciet experiece i ruig olie video campaigsma be te dierece betwee a blockbuster ad a fop.

12 hallerma, David. Digital Video Advertisig: Weres te Moe? eMarketer. August 2009.


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Glossary

In-Banner Video Ads Polite Banner or Expandable banner adswit video.

Floating Video Ads Video Ads tat appear above te publiserscotet.

In-Stream Video Video ads tat appear beore, i te middle, orater video cotet.

Pre-Roll Ad tat rus prior to te publisers video cotet.

Mid-Roll Ad that runs in the middle of the publishers videocotet.

Post-Roll Ad tat rus ater te publisers video cotet.Marketing Funnel A model that describes the customers theoretical

journey towards purchase. Funnel metrics may include: Brand awareness,message avorabilit ad itet to purcase.

Dwell Rate The number of impressions that were dwelled upon outo total impressios. Dwell is deed as a active egagemet witan ad. It includes positioning the mouse over an ad, user-initiationo video, user-iitiatio o a expasio, ad a oter user-iitiatedCustom Interaction. Unintentional Dwell, lasting less than one second,

is excluded.

Average Dwell Time (Seconds) Te average duratio o a Dwell.For impressions that were dwelled upon, this metric sums the durationof the following user initiated actions: The amount of time in whicha mouse was positioned over an ad, user-initiated video duration,user-iitiated expasio duratio ad te duratio o a oter user-initiated Custom Interaction. Unintentional Dwell, lasting less than onesecod, is excluded.

Average Video Duration (Seconds) The average duration, inseconds, of the video assets that played in the ad. This metric includesuser-iitiated ad auto-iitiated videos.

Video Length (Seconds) The length, in seconds, of the videoasset i te ad.

Video Started Rate Te umber o times te video assets startedout of served impressions with video. This metric includes user-initiatedad auto-iitiated videos.

Video Fully Played Rate Of the video assets that have started

plaig, te portio o videos tat ave plaed to teir ull duratio.


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