rich media adfx

Rich Media AdFXUnderstanding the effectiveness ofUnderstanding the effectiveness ofrich media ads

Rich media advertising is defined as: advertisements with which users can interact (asadvertisements with which users can interact (as opposed to solely animation) in a web page format.

- IAB Rich Media Measurement Guidelines

2Yahoo! Confidential 2

B tili i i t i t d ff ti th h t th

Portfolio of metricsBy utilizing various metrics to measure ad effectiveness throughout the sales funnel, the Rich Media AdFX study offers a comprehensive view of rich media ad performance.

Rich Media AdFXportfolio of metrics

DuringAd

Exposure• Interaction rate• Click-through rate

Ad Engagement

PostAd

Exposure

• Brand awareness• Site engagement

Brand and Site

Engagement

Exposure

• Purchase intent• Offline sales lift• ROI

Conversions


Some questions we answer

Do rich media ads drive ad interactions?Do rich media ads drive ad interactions?Brand awareness? Site engagement? Offline sales?

How do interaction rates and brand awareness on Yahoo! compare with the marketplace?

Wh t b t ti f d t ti d ti d i ?What are best practices for ad targeting and creative design?


Wh Ri h M di

AgendaWhy Rich Media Why Yahoo!Targeting Your CampaignDesigning Your CreativeDesigning Your CreativeImplications

Rich Media AdFX

Why Rich MediaWhy Yahoo!Targeting Your Campaigng g p gDesigning Your CreativeImplications

Rich media ads encourage higherclick-through and interaction rates

ConversionBrand / Site Engagement

Ad Engagement

g

CTR Interaction Rate

1.5

CTR

7.4%

Interaction Rate

1

N/A

Rich Media Static Rich Media Static

Rich media ads on Yahoo! have a 1.5x CTR and a 7.4% interaction rate compared with static display ads on Yahoo!

7Yahoo! Confidential

Data Source: - Yahoo! Behavioral ad data for Rich Media Ad Campaigns in 2009

7

Brand influence for rich media ads is higher


Ad Engagement

g

Yahoo! CampaignsDelta difference between control and exposed at 1 frequencyDelta-difference between control and exposed at 1 frequency

7.5

Banner/FlashRich Media

ge

2.0

6.4

5.5

a -%

poi

nt c

hang

1.4

NSS

UnaidedAwareness

AidedAwareness

Online AdAwareness

Del

ta

Rich media ads on Yahoo! perform better on upper-funnel (awareness) brand metrics compared with non-rich media ads on Yahoo!.

Awareness Awareness Awareness


InsightExpress InsightNorms Campaigns measured 4/1/06 – 3/31/10

8

Site engagement - definitionsConversionBrand / Site

EngagementAd

Engagement

Site engagement is a measure of page views per day on the advertiser’s site in the “during” and “post” campaign periods compared with “pre-” campaign.

Advertiser’s sites were based on advertiser-owned domains and ad click URLs.

Campaigns are rich media ad campaigns (n=47) consisting of lines that often differ by time and placement within a single campaign.

Example:•During was the time period in which the impressions of a given line of a campaign were served

•Pre and post were the time periods before and after the “during” time period and equal in length with a minimum of 7 days


Site engagement of rich media adson Yahoo! increased significantly


Ad Engagement

g yy

90% increase in

Lift in View-throughSite Engagement

ge V

iew

s pe

r Day site engagement

“during” campaign90%

45%

Lift

in S

ite P

ag

45% increase “post” campaignDuring Post




Ad EngagementPurchase intent of Yahoo!

rich media ads

Yahoo! CampaignsDelta difference between control and exposed at 1 frequency

5 8

Delta-difference between control and exposed at 1 frequency

6

Banner/FlashRich Media

ge

50% greater5.6

5.8

4.0

4.6

3.0

a -%

poi

nt c

hang purchase intent delta

MessageAssociation

BrandFavorability

PurchaseIntent

Del

ta

Rich media ads on Yahoo! perform about the same or better on lower-funnel (persuasion) brand metrics compared with non-rich media ads on Yahoo!.

Association Favorability Intent



11

Offline sales & ROI increasedfor rich media ads on Yahoo!


Ad Engagement

23.5%

Offline Sales Lift

2.7

ROI

22.0% 2.3

Rich Media Non-Rich Media

Rich Media Non-Rich Media

Rich media ads on Yahoo! drive offline sales and generate a 2.7x return on campaign spend. This is a 15% higher ROI compared with non-rich media ads on Yahoo!.


Data Source – Nielsen Consumer Direct

12

Rich Media AdFXWhy Rich Media

Why Yahoo!Targeting Your CampaignDesigning Your CreativeImplications


Ad EngagementYahoo! campaigns outperform

the marketplace in interaction rate and timep

Interaction Rate Average Interaction Time

7.4%

Interaction Rate(% of impressions)

16.8

14.7

Average Interaction Time(seconds)

6.0%

Yahoo!Campaigns

Other Portals(excl Yahoo!)

Yahoo!Campaigns

Other Portals(excl Yahoo!)

Rich media ads on Yahoo! have 1.25x interaction rate compared with other portals.


PointRoll 2009 Data

14

Yahoo! interaction rates greater than average in 8 of top 10 categories


Ad Engagement

g p g

Interaction Rate

Other Portals (excl Yahoo!)Yahoo! Campaigns

8.7%Consumer Goods Manufacturers 8.7%7.1%

Consumer Goods Manufacturers

8.3%5.2%

Retail

7.6%7.0%

Food & Beverage Manufacturers

7.5%Telecommunications7.7%

Telecommunications

6.8%5.0%

Entertainment

6.5%5.6%

Restaurants & Food Service

6.4%6 2%

Government6.2%

6.3%5.0%

Automotive

5.9%3.8%

Finance

10 4%Sports & Fitness4.8%


10.4%p

PointRoll 2009 Data

15


Ad EngagementYahoo! campaigns outperform the

marketplace in brand equity impactp q y p

Yahoo! CampaignsYahoo! CampaignsDelta-difference between control and exposed at 1 frequency

All CampaignsYahoo! Campaigns

7.5

5.6

1 6

6.0

oint

cha

nge

4.6

1.2

1.6

-1.2Del

ta -

% p

o

-0.6

AidedAwareness

MessageAssociation

Brand Favorability

PurchaseIntent



16

Rich Media AdFXWhy Rich MediaWhy Yahoo!

Targeting Your CampaignDesigning Your CreativeImplications

Targeting your rich media ad buy

We assessed 400 rich media campaignsWe assessed 400 rich media campaignsp g

Found that three main targeting buys account for 90% of all rich media impressions:

Run-of-Network with behavioral targeting

Media property buy with no additional targeting

Communications property buy with demo targeting

Each targeting buy employs a different approach to reachingEach targeting buy employs a different approach to reaching a desired audience



Performance of rich media ad targeting

Run-of-network

Reach

Communications property with demo targeting

Run-of-networkwith BT

ReachMedia Property with no

additional targeting

Interaction Rate

• There is a tradeoff between reach and interaction rate for each targeting buy• Media property buy with no additional targeting has the highest interaction rate• Run-of-network with behavioral targeting has the highest reach



19

Targeting implications for marketers

If i l i t Ch

• Maximize ad engagement

If your campaign goal is to:

• Contextual targeting on relevant sites

Choose:

relevant sites

• Reach a sizable audience for a specific interest • Behavioral targeting across

th Y h ! N t kpcategory the Yahoo! Network

• Market a universal product • Demographic targetingto a broad audience • Demographic targeting


Why Rich Media

Rich Media AdFXWhy Rich MediaWhy Yahoo!Targeting Your Campaign

Designing Your CreativeDesigning Your CreativeImplications

Rich media with vs. without video

The addition of video to rich media ads results in significant lifts in both CTR and interaction rates

+85% interaction rate+19% CTR

Rich media without video Rich media with video



22

In-stream video vs. in-banner video

-30% cost per interaction-22% cost per completion

In-stream video In-banner video

In-banner video is a more cost efficient alternative to in-stream video, and is often effective for…

• BRANDING: Trying to drive interactions and views

• REACH: Attempting to reach a large and diverse population

• EFFICIENCY: Working with a budget



23

In-banner video completion rates

Over half of auto play video impressions are watchedto completion, compared to just 3% of rollover to play

IncompleteComplete

Auto Play

3%

Auto Play Rollover to Play



24

Video implications for marketers

In-Banner Video

• In order to drive higher interaction rates with rich media ads, consider addingin-banner video as it provides a significant lift (+85% interaction rate)

• If the goal of a video is to drive interaction, in-banner video offers a more efficient option than in-stream video (-30% cost per interaction)

In-Banner Video Completion Rates

• Ad technology: In order to achieve a higher rate of video completion, employ more auto play functionality instead of rollover to play

C ti T i i t ti l f ll t l id th id ti

In Banner Video Completion Rates

• Creative: To maximize potential of rollover to play video, the non-video portion of the ad should function self sufficiently, not solely as a driver of video views


Gaming features generate more interactions and greater time spentg p

30 seconds Engagement by Ad Feature

econ

ds

Gaming

AudioForced

File Download

Movie Connect

16%0%

Tim

e Sp

ent -

Se

Survey

Text

VideoForced Video

Dynamic Data

Interactivity

Data

Ad Control

Interactive Video

Ave

rage Text

Messaging

PromoCoupon

ReminderCollectionInstant Email

0 seconds

Interaction Rate - % of Impressions


PointRoll 2009 data Client examples by ad feature

Interaction Rate % of Impressions

26

Gaming features generate more interactions and greater time spentg p

30 seconds Engagement by Ad Feature

econ

ds

Gaming

AudioForced

File Download

Movie Connect

16%0%

Tim

e Sp

ent -

Se

Survey

Text

VideoForced Video

Interactivity

Data

Ad Control

Interactive VideoDynamic Data

Ave

rage Text

Messaging

PromoCoupon

ReminderCollectionInstant Email

0 seconds

Interaction Rate - % of Impressions

Incorporate features based on campaign objectiveFor branding use functionality such as video, polling, and gaming

For direct response use functionality such as data collection and sweepstakes


Interaction Rate % of Impressions

PointRoll 2009 data Client examples by ad feature

27

Creative should stand on its own

Since 93% of impressions do not generate ando not generate an

interaction, brand logo and key messages should b t ll fbe present on all frames

of the creative


Source: Dynamic Logic Online Creative Best Practices-10 Tips To Maximize Brand Impact Oct 2009

28

Wh Ri h M di

Rich Media AdFXWhy Rich MediaWhy Yahoo!Targeting Your CampaignDesigning Your Creativeg g

Implications

Rich media ads on Yahoo! outperformed non-rich media throughout the sales funnelg

• Interaction rate: 7.4%• CTR: 1.5x static

Ad Engagement

• Aided brand awareness lift: 3.8x non-rich media• View through site engagement lift: +90%

Brand and Site

Engagement

• Purchase intent lift: 1.5x non-rich media • Offline sales lift: +23%• ROI: 2.7 (15% higher than static ads)

Conversions


Key takeaways – benefits of rich media

Rich media is a platform that enables advertisers to tell a Rich media is a platform that enables advertisers to tell a story and consumers to jump in and engage with the brand

Rich media ads on Yahoo! generate more brand awareness and a higher ROI than non-rich media ads

Rich media ads on Yahoo! outperform the marketplacein interactions time spent and brand awareness in interactions, time spent, and brand awareness


Key takeaways – rich media best practices

When selecting ad placement and targeting buy, considerWhen selecting ad placement and targeting buy, consider• contextual property buy for specialized products to maximize interactions

• behavioral targeting across the Yahoo! network to maximize reach

• demo targeting for universal products to reach a broad audience

To drive higher ad engagement, consider using in-banner video. To achieve higher in-banner video completion rates, video. To achieve higher in banner video completion rates, opt for auto play vs. rollover to play.

Incorporate features into the creative based on the campaign objective. Place messaging on all frames of the creative.


B2B InsightsPhylis Savari, David Laird, Sahil Anand, Keval Patel,Phylis Savari, David Laird, Sahil Anand, Keval Patel, Athena Vasile

Data powered by User Data Analytics (UDA)Gary Thwing, Kenneth Lin

Data sources & methodology

Ad Interactions This data is from Yahoo! Ad Systems and includes various video ad basic metrics (e.g. ad views) and advanced metrics (e.g. interaction rates). Data was collected over 2009.

Site Engagement This data is from Yahoo! Toolbar User Opt-in Panel, and is anonymously joined with rich media ad serving data to identify users exposed to rich media ads. Lift is measured based on daily average page views and unique users before the campaign, Vs. during and after the campaign.

Brand Impact This data is from InsightExpress’s InsightNorms database and includes a variety of Brand Awareness metrics for Yahoo! measured campaigns. Lift is measured based on an InsightExpress-proprietary test/control methodology. Data was collected over 4/1/2006 – 3/31/2010

Conversions This data is from the Yahoo!-Nielsen Consumer Direct panel of users and includes offline sales lift and ROI for seven rich media campaigns on Yahoo!. Lift is measured based on a Nielsen-proprietary test/control methodology. Data was collected over 2009.

Interaction Rate and Time Benchmarks This data is from PointRoll and includes Interaction Rate and Time on Yahoo! versus other Portals. Data was collected over 2009

p p y gy


AppendixAppendix

rich media adfx

Technology

rich media advertising

nonrich media ads

answerdo rich media

rich mediawhy yahoo

rich media adfx study

rich media wh ri h

yahoo behavioral ad

yahoo comparewith