online video metrics matter
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Online video is about to reach parity with other media as a primary ad platform. But what are the right metrics to track and pay for?TRANSCRIPT
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Video Monetization: Metrics Matter
Video Monetization: Metrics Matter
Paul ZagaeskiPrincipal Analyst, Online
TV Adviser &GigaOm Pro Analyst Network
June 2010
Paul ZagaeskiPrincipal Analyst, Online
TV Adviser &GigaOm Pro Analyst Network
June 2010
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copyright 2010 Paul Zagaeski
Today’s Key IdeasToday’s Key Ideas
Video viewing trends (the New TV) New TV is making money (are you?) Online viewers > engagement Engaging viewers is cheap! (or is it?)
What does engagement mean exactly? Engagement Metrics: this ain’t your grandfather’s Arbitron Ratings Book
Video viewing trends (the New TV) New TV is making money (are you?) Online viewers > engagement Engaging viewers is cheap! (or is it?)
What does engagement mean exactly? Engagement Metrics: this ain’t your grandfather’s Arbitron Ratings Book
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copyright 2010 Paul Zagaeski
Video Viewing TrendsVideo Viewing Trends
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TV: just a box and lots of local broadcasters
Cable/satellite: more channels, narrowcasting
Web video: LOLCats give way to “TV experience online”
TV: just a box and lots of local broadcasters
Cable/satellite: more channels, narrowcasting
Web video: LOLCats give way to “TV experience online”
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copyright 2010 Paul Zagaeski
New TV Is Making MoneyNew TV Is Making Money
Broadcast 1940s-1970s (ads) Cable/satellite 70s-90s (ads + subs) Web video 90s-00s (no one paying or buying ads) Online TV 00s (no one pays for LOLCats on YT) Paid Content 10s-future (ads + subs + PPV(?)) Pain: what does an ad buyer buy in New TV?
Broadcast 1940s-1970s (ads) Cable/satellite 70s-90s (ads + subs) Web video 90s-00s (no one paying or buying ads) Online TV 00s (no one pays for LOLCats on YT) Paid Content 10s-future (ads + subs + PPV(?)) Pain: what does an ad buyer buy in New TV?
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copyright 2010 Paul Zagaeski
Online Viewing>Engagement
Online Viewing>Engagement
Web & mobile platforms give the viewer power—they can act!
HSN=$billions Interaction rate 5-
7x higher than for ads
Lots of innovation, measurable resultsUbiSoft (Your Shape for Wii) competes with Wii Fit using online video
Source: http://www.clickz.com
Web & mobile platforms give the viewer power—they can act!
HSN=$billions Interaction rate 5-
7x higher than for ads
Lots of innovation, measurable resultsUbiSoft (Your Shape for Wii) competes with Wii Fit using online video
Source: http://www.clickz.com
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copyright 2010 Paul Zagaeski
Engaging Viewers Is Cheap…
Engaging Viewers Is Cheap…
…when it works (Nike Hyperdunk) Can also be impossible/too expensive
What’s the cost? Rough scale CPM Display Ads $2.30-$2.45 CPM Online Video Ads
$7-$8 ROS or in-banner video$15-$20 for pre-roll/premium pre-roll*
*eMarketer/Credit Suisse/LiveRail/AdAge
…when it works (Nike Hyperdunk) Can also be impossible/too expensive
What’s the cost? Rough scale CPM Display Ads $2.30-$2.45 CPM Online Video Ads
$7-$8 ROS or in-banner video$15-$20 for pre-roll/premium pre-roll*
*eMarketer/Credit Suisse/LiveRail/AdAge
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copyright 2010 Paul Zagaeski
What’s Engagement Mean?
What’s Engagement Mean?
Ads online are in a completely new context versus ads on TV
For the user: Where did I find this? Who helped me find it? What did I think while watching? What did I do during and after watching?
For the brand: What format did we choose? Where are we putting this? What else appears with it? How did the viewer respond?
Goal: Going viral! Means brand is probably maximizing all relevant metrics for the video—and you need metrics even when it’s an obvious success.
Ads online are in a completely new context versus ads on TV
For the user: Where did I find this? Who helped me find it? What did I think while watching? What did I do during and after watching?
For the brand: What format did we choose? Where are we putting this? What else appears with it? How did the viewer respond?
Goal: Going viral! Means brand is probably maximizing all relevant metrics for the video—and you need metrics even when it’s an obvious success.
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copyright 2010 Paul Zagaeski
Engagement MetricsEngagement Metrics
Placement Sentiment Engagement Reach
Placement Sentiment Engagement Reach
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copyright 2010 Paul Zagaeski
Nike Ad Metrics CaseNike Ad Metrics Case
My recent favorite “viral video” (Kobe & Hyperdunk)
Measuring ad results of: Placement (6 > 250+) Sentiment (40% re-enacted)
Engagement (35k comments) Reach/Exposure (375,000 hours)
See case athttp://corp.visiblemeasures.com/case-studies/engaged-reach/
My recent favorite “viral video” (Kobe & Hyperdunk)
Measuring ad results of: Placement (6 > 250+) Sentiment (40% re-enacted)
Engagement (35k comments) Reach/Exposure (375,000 hours)
See case athttp://corp.visiblemeasures.com/case-studies/engaged-reach/
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copyright 2010 Paul Zagaeski
And Now You KnowAnd Now You Know
There’s New TV New TV is gaining ad revenue traction
One reason: online viewer engagement, with great follow-on value brought to the brand
Measuring that engagement is absolute requirement for your brand’s next success.
There’s New TV New TV is gaining ad revenue traction
One reason: online viewer engagement, with great follow-on value brought to the brand
Measuring that engagement is absolute requirement for your brand’s next success.
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copyright 2010 Paul Zagaeski
Time For Q&A Later…Time For Q&A Later…
By the way, check this article about barriers to online video ads
http://techcrunch.com/2010/01/16/12-things-holding-back-online-video-advertising/
By the way, check this article about barriers to online video ads
http://techcrunch.com/2010/01/16/12-things-holding-back-online-video-advertising/
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That’s all, folks!That’s all, folks!
Paul Zagaeski (Twitter: paulzagaeski)Principal AnalystOnline TV Adviser
http://onlinetvadviser.wordpress.comMember of
GigaOm Pro Analyst Network
Paul Zagaeski (Twitter: paulzagaeski)Principal AnalystOnline TV Adviser
http://onlinetvadviser.wordpress.comMember of
GigaOm Pro Analyst Network