emarketer webinar: trends in video advertising and measurement

©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:


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

Twitter – #eMwebinar


Digital Video Ad Spending

(Strong growth, but limits, too)


How big will digital video advertising spending become? (How do you define big?)


While video ad spending growth is impressive, its place among all the digital ad formats is more modest


Only one in 10 digital ad dollars in 2013 will go to video

15% video share by 2016


Additional perspective: 23% of display ad dollars will go to video this year, rising to just over 30% in 2015


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.



The financial health of the digital video ad market is relative


TV vs. digital video:

Single-digit growth vs. double-digit growth


In 2013, for every $1 going to digital video ads, $16 will go to TV commercials


Mobile Video Ad Spending

(Its share is small, but will that change soon?)


Spending for mobile video ads is rising faster than for any other mobile format


But consider one big concern about mobile video advertising spending…


Note how video ad spending makes up only a small part of the mobile market

10% share

in 2016


Video Measurement and Metrics

(The categories, the process)


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)



Higher video ad completion rates do not correlate with higher click rates


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



Digital video ad completion rates will likely be influenced by content length


The metrics that marketers use to measure digital video advertising are evolving, but slowly


Popular attribution methods tend to be less effective for video advertising

Digital’s “accountability” too often still means clicks


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



“The Goldilocks Principle,” along with audience control, builds engagement


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


The vast majority of smartphone video viewers do not want to be targeted by location, demo data, browsing history, etc.


Digital video is increasingly needed to help brands stand out in a crowded field


Brand lift delivered the highest success in 2012, more than server-based metrics that count clicks and completions


Mobile appears to work very well for the brand-health metrics, but that might bebecause …


Measurement Across Screens

(Digital cannot stand alone)


Advertisers may not always know who’s watching, but digital reveals more than TV


Tracking engagement across screens requires integrated channels and data


Many think that translating GRPs and TRPs from TV to digital is essential

But many cited digital’s unique vistors


Digital video exists in the light—and sometimes in the shadow—of TV

More research? How do video ads compare with TV


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


The Digital Video Audience

(Thy name is fragmentation)


The massive audience for digital video content has not yet seen matching levels of digital video advertising


Video viewer growth is highest among the youngest and oldest segments


But the viewer share peaks at 25-to-34, and further, many are older than that segment


Half of internet users watch videos a few times per week or more often


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



Multiple screens make it hard for advertisers to know their audience


…difficulties and also opportunities

The more screens people use to watch video, the more marketers find both…


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


Longer videos viewed on connected TVs, and shorter videos on computers and mobile


Counting the time people spend watching video counts for more than mere audience size or how many streams they view


Relative to TV, people spend far less time watching digital video. However…


Connecting the Digital and TV Audiences

(Video’s future?)


What do modern families want? TV still rules, no matter what screen people are using


Digital TV usage is growing faster than digital video viewership in general


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


TV watching relies more and more on TVs with internet connections


Almost 50% of internet users like TV commercials but few say they like online video ads


Video is crucial for telling stories, and TV ads are more effective than online advertising

Digital offers a “space” for content marketing


The Mobile Video Audience

(Many people, little time)


By next year, more than one-third of mobile phone users will watch video content at least once per month


How the audience often views mobile video content and ads may surprise you


Smartphone video, like tablet video, is often an at-home thing

And 54% use other media simultaneously


Odds are good that a large share of the audience will be annoyed by mobile video ads


46% said they disliked video ads on mobile phones, while only 23% said they liked them

One implication: Don’t spend their bandwidth


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


Main Takeaways


The sweet spot for digital video blends engagement with accountability


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


Broadcast TV is an Industry In TransformationAdobe Project Primetime: Enabling Broadcast-to-IP


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)


Questions?

Noah [email protected]


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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