emarketer webinar: video advertising engagement—trends for marketers

©2011 eMarketer Inc.

David Hallerman

Principal Analyst

A P R I L 2 8, 2 0 1 1

Video Advertising Engagement—Trends for Marketers

Sponsored by:

What we’ll look at today…

Trend 1: What’s at stake (the more factor)

Trend 2: Video ad metrics indicate engagement

Trend 3: Website choices help boost engagement

Trend 4: Ad targeting influences engagement

Trend 5: Longer ads can extend engagement

Trend 6: Why viral video ads engage consumers

Trend 7: Video and social together can generate high engagement

Twitter – #eMwebinar

©2011 eMarketer Inc.

Marketers define video ad engagement in several different ways

Various server-based metrics…time in general

Interactivity, clicking or mousing (CPE, Tremor Media)

Traditional brand-health metrics, like awareness

When people share or comment (viral, social)

“Interactions, experiences and context that create and nurture enduring, profitable customer relationships” (Forbes)

Funny, emotionally touching, informative (Nielsen)

Conceptually similar to social media marketing

Twitter – #eMwebinar

Troy Young, president, SAY Media (formerly VideoEgg)

“What we saw was the overwhelming power of engagement to change metrics. The takeaway

here is: If you want your propaganda to work, get people to engage with it.”

Trend Trend #1#1

Trend Trend #1#1 What’s At Stake (The

More Factor)

©2011 eMarketer Inc.

Big dollars at stake for video ad market, and engagement improves results

©2011 eMarketer Inc.

Online video advertising can be costly: Nearly 20% of agency executives said average video CPM is $21 to $60

©2011 eMarketer Inc.

Engagement is a highly desired way to base video ad spending

©2011 eMarketer Inc.

How one type of cost per engagement video ad can work to draw in audience

©2011 eMarketer Inc.

Soon, over 60% of online video viewers will watch TV shows regularly (however)

Trend Trend #2#2

Trend Trend #2#2 Video Ad Metrics

Indicate Engagement

Engagement is really a mix of various metrics, both server- and survey-based. These include:

Time spent with the ad, particularly metrics such as completion rates and percentage of ad viewed.

Deliberate audience interactions, such as start rates, mouse-overs, activating a video player and expanding a video banner ad.

Sharing links to video ads, if they go viral.

Strong lift for key brand-health metrics, such as purchase intent, favorability and awareness.

The engagement metric is increasingly central to video advertising

Twitter – #eMwebinar

©2011 eMarketer Inc.

The amount of time the audience spends with a video ad is an essential engagement metric

Twitter – #eMwebinar

©2011 eMarketer Inc.

Pre-roll dominates but mid-roll ads got the highest completion rates because of engagement with content

©2011 eMarketer Inc.

Two primary online video campaign objectives: brand engagement and brand awareness (which is a type of engagement)

©2011 eMarketer Inc.

Core of engagement—swaying audience’s emotions, thereby bonding with the brand

©2011 eMarketer Inc.

Joe Zahtila, chief operating officer, Dynamic Logic

“Understanding how brand perceptions have

changed doesn’t say how much you can sell. That gets you to the 10-yard line, but it doesn’t give you the touchdown.”

Twitter – #eMwebinar

Trend Trend #3#3

Trend Trend #3#3 Website Choices Help

Boost Engagement

©2011 eMarketer Inc.

Full-length TV shows and movies support much of online video advertising, and so can foster engagement

©2011 eMarketer Inc.

Hulu, traditional video content, at top—but networks also key places to engage

©2011 eMarketer Inc.

Media content people discuss with friends, family, work colleagues

Source: Deloitte, February 2011

©2011 eMarketer Inc.

Premium content tends to make 71% of the audience more willing to watch ads (trade-off is traditional)

©2011 eMarketer Inc.

Video ads should reflect brand website, and vice versa, because site visits are what 48% do after viewing ad

Twitter – #eMwebinar

Trend Trend #4#4

Trend Trend #4#4 Ad Targeting

Influences Engagement

Most important criteria for decision to spend on digital video advertising

Source: IAB, Advertiser Perceptions, April 2011

Higher completion rates require quality and relevancy, so targeting is essential to get the audience’s attention

Twitter – #eMwebinar

©2011 eMarketer Inc.

Traditional targeting tactics used more than those that are more talked about

Trend Trend #5#5

Trend Trend #5#5 Longer Ads Can Extend

Engagement

©2011 eMarketer Inc.

Longer ads tend to reduce audience involvement, at least with one metric

©2011 eMarketer Inc.

Custom video content can generate engagement, but the marketing message typically is best when it’s subtle

©2011 eMarketer Inc.

Doug Chavez, director digital marketing, Del Monte Foods

“We have some very emotional brands, such as with Milk-Bone where we don’t just use a repurposed 30-second spot. Whether on

publishers’ sites or our Facebook page, we look at how much people engage

with the brand besides the video ad itself.”

Twitter – #eMwebinar

©2011 eMarketer Inc.

Awareness rather than purchase intent gained in one example of branded video content (done for Sprint)

Trend Trend #6#6

Trend Trend #6#6 Why Viral Video Ads

Engage Consumers

©2011 eMarketer Inc.

About 25% of marketers who used YouTube for viral had viral success (and sharing video clearly indicates engagement)

Twitter – #eMwebinar

©2011 eMarketer Inc.

More familiarity with viral than usage because niche tactic (in some ways)

Source: DMA, Ipsos Reid, CMA, February 2011

©2011 eMarketer Inc.

Viral video may be better for awareness than boosting purchase decisions

©2011 eMarketer Inc.

Dan Greenberg, chief executive officer, Sharethrough

“The power of emotional

storytelling will always be a necessary

vehicle on the path towards sharing.”

Twitter – #eMwebinar

VW’s The Force lessons: Both a good story and good ad spending

Trend Trend #7#7

Trend Trend #7#7 Video and Social

Together Can Generate High Engagement

©2011 eMarketer Inc.

Social media marketing is all about engagement (along with branding)

©2011 eMarketer Inc.

Affinity is the main reason about one-quarter of Gen-Y respondents engage with brands on social media sites

©2011 eMarketer Inc.

Advertising encourages engagement with brands (it’s not all earned media)

Twitter – #eMwebinar

©2011 eMarketer Inc.

Engagement and conversations are a sign of social-media brand success

©2011 eMarketer Inc.

Adam Kleinberg, chief executive officer, Traction

“Social is not about listening to people talking about your brand. It’s about

listening to people talk about their lives.”

©2011 eMarketer Inc.

Social network audience might actively engage with brands, but at most only half of the population

Conclusions

Engagement is a slippery concept

Is engagement simply people paying attention to your video ad?

Does engagement happen only when people interact with your video?

How much engagement actually occurs at some point after the audience views your ad?

Twitter – #eMwebinar

Consumers don’t really engage with digital video ads, say 1/3 of respondents

Source: IAB, Advertiser Perceptions, April 2011

Ian Schafer, chief executive officer, Deep Focus

“When marketers choose to truly engage audiences

(and that means something different for every

brand), it requires more custom thinking, more

custom execution, more attention paid at every

turn…”

©2011 eMarketer Inc.

Each online video advertising engagement trend offers pros and cons for marketers.

For example, precise ad targeting boosts engagement. But it can be hard both to target accurately and still get the audience reach that brand marketers usually want.

Engagement for one brand will likely differ from that of other brands—or even from the same brand at a different stage in its development.

In the end, engagement is just like awareness, completion rates, targeting, viral sharing or a brand’s Facebook page. They’re just means to an end.

In the end, why might marketers want to create video ad engagement?

Source: Morgan Stanley; Note: Time spent data per NA Technographics (2009), ad spent data per VSS, internet advertising opportunity assumes online ad spent share matches time spent share, per Yahoo! Investors Dat, 5/10.**eMarketer Online Video Ad Sp0ending, 2009-2014 March 20

% o

f T

ota

l M

edia

Co

nsu

mp

tio

n T

ime

or

Ad

vert

isin

g S

pen

din

g

-$50BGlobal

Opportunity

5.5%Digital Video

Spend**

Misappropriated Funds?

A Force Multiplier for Broadcast

• Digital video outperformsoutperforms broadcast in every major metric

• Brand recall rose an additional 18%additional 18% when TV & Web TV & Web were paired

Nielsen Wire April 2010

Quality Reach You Can’t Get Anywhere Else

Digital videovideo on the best content sitesbest content sites

Digital videovideo associated with premium contentwith premium content

++

Right User. ANY Format. Single IO.

High Impact VideoDisplay

Get More Value on Undertone

$1MM investment delivers $1.7MM in value $1.7MM in value on Undertone

100

167 174

Top FiveVideo Networks

What’s your investmentWhat’s your investment worth on Undertone?worth on Undertone?

70% More 70% More

VALUEVALUE

In-Banner & Pre-Roll Mix Pre-Roll only

©2011 eMarketer Inc.

Twitter Hashtag – #eMwebinar

Video Advertising Engagement—Trends for Marketers

Questions & AnswersRegistrants will receive an email tomorrow that includes a link to view the deck and webinar recording.

For more discussion, please join us after the webinar on LinkedIn. Search for the eMarketer Group and click on Discussions.

To learn about eMarketer Total Access please visit www.emarketer.com/productsor contact us: (800) 405-0844 ben@emarketer.com

Presented by:David HallermanPrincipal Analyst, eMarketer, Inc.

Sponsored by:

Jared Skolnickjskolnick@undertone.com