The Brand Element of Video AdvertisingA N N G R E E N , S R . PA R T N E R , C L I E N T S O L U T I O N S & I N N O VAT I O N

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Video Everywhere

Is All Video Just TV And Which Medium Is Most Economical at Reaching the Target Audience?

With significantly lower net investment, YouTube

reached 35% of target audience.

TV YouTube

Overlap between TV and YouTube reach

Efficiency Cost Per Percentage Point Indexed to TV. (Lower is better!)

56%

6%

29%

&

100

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Source: Cross Media Efficiency Study: Understanding efficiency of media channels in the 360° integrated campaign“Jun-Aug 2011

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Why is Video So Powerful As Part Of The Mix?

The Branding Impact of Online Video

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• 7,500+ online branding campaigns

• 10.6 million survey respondents

• 300,000+ creative executions

• Easily-accessible, user-friendly interface

• 100+ filters for granular insights

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MarketNorms is aggregate data from Dynamic Logic’s AdIndex®, the industry standard for measuring the branding impact of digital campaigns.

World's largest digital advertising effectiveness database

MarketNorms®

The Hierarchy of Advertising Effects

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BRAND AWARENESSMeasures the level of familiarity respondents have with the brand

(aided and unaided)

MESSAGE ASSOCIATIONMeasures the extent to which respondents can match the

messages and/or concepts in the creative to the brand

BRAND FAVORABILITYMeasures the extent to which respondents have a

positive or favorable opinion of the brand

PURCHASE INTENT

Measures the likelihood of respondents to purchase the brand in the future

How do you measure where consumers are in the continuum?

First, consumers need to be aware of a brand

1:

Then they need to understand the value to them, or what the product is used for

2:

The consumer forms an opinion about the brand

3:

Finally, the consumer decides whether he or she is likely to purchase the brand

4:

AWAR

ENES

S

PERS

UASI

ON

Video Works Harder Than Other Digital Formats at Low Frequencies

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1.9*

4.8*

2.1*1.6* 1.5*1.5*

4.0*

2.2*

1.0* 1.1*1.0*

2.3*

1.2*0.6* 0.6*

Ad Format(Frequency = 1)

Online Video (overall)

Rich Media (no video)

Flash

Perc

ent I

mpa

cted

* Statistically significant difference between control and exposed group at a 90% confidence level

Source: Dynamic Logic’s MarketNorms®, Full dataset through Q2 2012, Frequency=1. Online Video N = 523, n= 554,680 respondents; Rich Media w/o video N = 2,622, n= 2,656,495 respondents; Flash N = 2,677, n= 2,869,070 respondents. Percent Impacted = Exposed - Control

Companion Banners Can Boost the Effectiveness of Video Ads

Source: MarketNorms, Full Dataset Q2/12; Video w/ Companion N= 38 campaigns, n= 49,226 respondents; Video w/ no Companion N=464 campaigns, n=513,005 respondentsPercent Impacted = Exposed – Control9

Aided B

rand A

ware...

Online A

d Aware

ness

Messa

ge Asso

ciation

Brand F

avora

bility

Purcha

se

Inten

t

2.9*

7.3*

3.8*2.3*

1.3*2.2*

4.4*

2.3* 1.7* 1.3*

In-stream vs. In-Banner

In-Stream In-Banner

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In-stream Video Formats are Typically More Effective Than In-banner Formats

Statistically significant difference between control and exposed group at a 90% confidence level

Source: Dynamic Logic’s MarketNorms®, Full dataset through Q2/2012; In-Stream Videos N= 47 campaigns, n= 60,842 respondents; In0Banner N= 447 campaigns, n= 478,655 respondents; Percent Impacted = Exposed - Control

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Interactivity Enhances Ad Breakthrough and Message Takeaway

* Statistically significant difference between control and exposed group at a 90% confidence level

Source: Dynamic Logic’s MarketNorms®, Last 3 Years, Q2/2012; Interactive N= 444 campaigns, n= 432,206 respondents; Non-interactive N= 309 campaigns, n= 309,935 respondents; Percent Impacted = Exposed – Control- Interaction Rate Source: YuMe Q3-4 2012 benchmark data.

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1.3*

3.0*

1.3*

0.5* 0.8*

1.4*

2.3*

1.0*0.4

0.7*

Interactivity

InteractiveNon-Interactive

Perc

ent I

mpa

cted

Interaction Rate

2.5%0.6%

InteractiveNon-interactive

Aided B

rand A

ware...

Online A

d Aware

ness

Messa

ge Asso

ciatio

n

Brand F

avora

bility

Purcha

se In

tent

2.3*

5.5*

2.8*

1.6* 1.4*

2.7*

5.1*4.4*

2.1*1.3*

Length

11-20 seconds21 - 30 seconds

Perc

ent I

mpa

cted

Short-form Videos Can Be More Memorable, But Long-form is Better for Message Communication

* Statistically significant difference between control and exposed group at a 90% confidence level

Source: Dynamic Logic’s MarketNorms®, Full dataset through Q2/2012; Video: A/V Length (11-20 seconds) N= 249 campaigns, n= 280,939 respondents; A/V Length (21 - 30 seconds) N= 132 campaigns, n= 147,692 respondents; Percent Impacted = Exposed – ControlCompletion Rate Source: YuMe, 100% completion rates based on Q3-4 2012 benchmark data.

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Completion Rate

84% 74%

15sec30sec

Considerations for Online Video Creative:Original vs. Repurposed

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2.4*2.9*

1.8* 1.8*1.2*

0.8*

4.0*

1.5*

0.40.2

Content SourceWeb OriginalRepurposed

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Web Original Videos Tend to Perform Better on Most Brand Metrics, Particularly Persuasion

* Statistically significant difference between control and exposed group at a 90% confidence level

Source: Dynamic Logic’s MarketNorms®, Last 3 Years, Q2/2012; Overall Web Original N= 218 campaigns, n= 220,681 respondents; Overall Repurposed N= 90 campaigns, n= 102,273 respondents; Percent Impacted = Exposed - Control14

0.6

-0.6

3.0*

0.61.0

-0.1

1.2 1.3*

-1.2 -1.3

0.6

-0.7

RepurposedWeb Original

Repurposed TV Ads Do Not Perform Well on Persuasion on Video-centric Sites

Brand Favorability Purchase Intent

Impact of Repurposed TV ads

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ent I

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cted

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Entertainment News Movies/TV News Movies/TVEntertainment

* Statistically significant difference between control and exposed group at a 90% confidence level

Source: Dynamic Logic’s MarketNorms®, Full dataset through Q2/2012; Overall Web Original N= 50 campaigns, n= 29,814 respondents; Overall Repurposed N= 35 campaigns, n= 19,843 respondents; Percent Impacted = Exposed - Control

Demo Targeting Helps Repurposed Videos Deliver Towards Brand Awareness and Breakthrough Goals

* Statistically significant difference between control and exposed group at a 90% confidence level

Source: Dynamic Logic’s MarketNorms®, Full dataset through Q22012.Video In- Demo Target N= 344 campaigns, n= 241,355 respondents; Video Not-in-demo target N = 282 campaigns, n = 309,070 respondents Percent Impacted = Exposed - Control

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Aided Brand Awareness Online Ad Awareness Purchase Intent

1.4*

3.4*

0.9*

2.5*

5.7*

1.2*

Demo Targeting

Out of target (demo)

In-target (demo)

Perc

ent I

mpa

cted

Aided Brand Awareness Online Ad Awareness Purchase Intent

0.7*

3.2*

0.1

4.6*

8.2*

-0.2

Exposure Frequency1-2 3+

Perc

ent I

mpa

cted

Additional Exposures Help to Build Awareness, But Do Not Necessarily Build Purchase Intent

* Statistically significant difference between control and exposed group at a 90% confidence level

Source: Dynamic Logic’s MarketNorms®, Last 3 Years, Q2/2012; Repurposed Video Frequency (1-2) N= 84 campaigns, n= 92,673 respondents; Repurposed Video Frequency (3+) N= 39 campaigns, n= 44,367 respondents; Percent Impacted = Exposed – Control

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Questions to Ask When Deciding to Use Repurposed or Web-original Video

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Is there TIME/BUDGET to create new

content?

REPURPOSE television

content

Campaign GOAL?

DEVELOP original content

No

YesStopping power for high awareness brands

Increase persuasion by broadening relevance

Maximize reach and synergies for new or low awareness brands

Media Strategies for Repurposed Video Creative

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Primary Campaign Goal

In-stream vs. In-banner

Interactivity

Frequency

Targeting

Length

Source: Dynamic Logic Market Norms., Q2 12. Please note that recommendations refer to typical video performance and are not intended as a guarantee of in-market performance.

Building Awareness

In-stream with companion

Add interactivity

Maximize frequency at or above 3 exp.

Demo target

15 sec

Communicating Message

In-stream with companion

Add interactivity

Maximize frequency at or above 3 exp.

Demo target

30 sec

Increasing Persuasion

Either

Optional

Frequency cap to 1, focus on

reach

Demo target

30 sec

Key Considerations for Online Video

• Online Video has performed above the industry standard for display advertising

• The narrative power of video lends itself well to creating relevant, distinctive, and emotionally resonate ads

• Understand what you expect to accomplish from the videos and why someone would watch your online video…entertainment, useful, unusual, etc.

• Elements such as interactivity, video length, types of sites, targeting and delivery methods are strong differentiating factors in completion rates and achieving positive branding effects

• Web original video content is most efficient at influencing perceptions and purchase decisions by providing useful information or entertainment value that viewers see as different.

• Stop thinking of video as separate from the broader campaign strategy

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And Don’t Forget Mobile Video

Source: eMarketer, March 2013

Growth driven by video distributed on smartphones and tablets is expected to more than double by 2017.

2013 2017

12.6

29.7

Growth of Video Share Attributed to Mobile

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Panel DiscussionI S I T A L L “ J U S T V I D E O ” N O W ? P L A N N I N G F O R A M U LT I - S C R E E N W O R L D