eMarketer Webinar: Best Practices in Digital Video Advertising
Transcript of eMarketer Webinar: Best Practices in Digital Video Advertising
© 2015 eMarketer Inc.
Best Practices in Digital Video
Advertising
Paul Verna
Senior Analyst
February 26, 2015
Made possible by
© 2015 eMarketer Inc.
15. Define your objective
Branding - sweet spot for video ads
Direct response - works in a growing number of scenarios
Reach - TV still rules, but more video platforms now offer
comparable scale
Frequency - digital platforms are well suited for this, but
beware of too much frequency
Opt in - great for trying to drive a specific outcome with a
captive audience (i.e., gamers)
App installs - video ads are effective in driving downloads
© 2015 eMarketer Inc.
15. Define your objective: takeaway
In most cases, your decision will be an open-and-shut
case for a branding play, but don’t overlook the other
possibilities that digital video advertising now offers,
particularly direct response through interactivity.
© 2015 eMarketer Inc.
14. Pick your spot: takeaway
Use any option that makes sense for your campaign, but
resist the temptation to create an ad for every use case.
© 2015 eMarketer Inc.
13. Pick your venue
“ Demand a full list of placements, not
just an anecdotal one. You have to
best define exactly where you
want your video ads to run.”
—Bettina Hein, founder and CEO of
Pixability
© 2015 eMarketer Inc.
13. Pick your venue
“ With almost all of our clients, a
stronger sales correlation exists for
targeted buys on premium TV-like
digital sites. And I am comparing this
to tonnage—Tier 2 or Tier 3 digital
inventory. The rub is that with
premium TV inventory, CPM is
significantly higher than with
the tonnage media.”
—Megan Tweed, VP of media at Razorfish
© 2015 eMarketer Inc.
13. Pick your venue: takeaway
Decide whether you want your ad to run in a premium or a
remnant-type environment, and then clearly spell out the
specific venues.
© 2015 eMarketer Inc.
12. Pick your pricing plan
CPM - still the leading way to buy, but is it right for you?
CPC - not always best for video, but worth considering
CPE - how do you and the publisher define engagement?
CPV - if a tree falls in the forest …
CPA - like CPC, worth considering if sharing is a goal
PPP - you don’t pay unless your ad performs, but how do
you define performance?
Fixed Cost – for when you really believe in the platform
© 2015 eMarketer Inc.
12. Pick your pricing plan: takeaway
Align your pricing plan with your objectives, ad types and
venues. The bigger your campaign, the greater the
likelihood you’ll want to use multiple approaches.
© 2015 eMarketer Inc.
11. Know your audience
73% of US millennial
internet users watched
digital TV in 2014
Nearly half of them
watched more than 4
hours per week
45% of US Gen X and
boomer internet users
watched digital video
The tables were turned
when it came to linear TV
© 2015 eMarketer Inc.
11. Know your audience
13% of millennial US
internet users watched
TV content via digital
only, compared with 5%
among the 35-to-54 group
Older users were more
likely to watch TV
content exclusively via
traditional TV
© 2015 eMarketer Inc.
11. Know your audience: takeaway
True to stereotype, millennials are voracious consumers
of digital TV content and advertising. Older generations
gravitate toward traditional screens but still spend lots of
time on digital video. Use these and other demographics
insights to your advantage.
© 2015 eMarketer Inc.
10. Use the right targeting parameters
“We care about the context of
the video and where the
player is housed. We’re also
doing demo targeting by age, gender
and ethnicity. We’re doing contextual
with channels and keywords. We’re
doing location by the [designated
market area].”
—Megan Tweed, VP of media at Razorfish
© 2015 eMarketer Inc.
10. Use the right targeting parameters:
takeaway
Pay attention to the context of your ad and tailor your
targeting parameters to your audience characteristics.
© 2015 eMarketer Inc.
There is a huge
difference of
opinion between
US ad buyers
and sellers on
whether
viewability
standards are
adequate.
9. Zero in on metrics that make sense: viewability
© 2015 eMarketer Inc.
9. Zero in on metrics that make sense: viewability
“Viewability has very quickly
bubbled up as a key targeting
component for a transaction on the
programmatic side. Forget about who
you’re trying to reach. Was the video
player even on the screen to begin
with?”
—Todd Pasternack, VP of digital innovation
and product strategy at PointRoll
© 2015 eMarketer Inc.
9. Zero in on metrics that make sense: shareability
“ Completion and shareability are
strongly correlated. You don’t
share what you’ve not seen
entirely.”
—Benoit Radenne, global digital media
manager at Evian Danone
© 2015 eMarketer Inc.
9. Zero in on metrics that make sense: internal
data
“ We’re looking for silver bullets, one
overall measurement—like television
has GRPs [gross rating points] that
everyone subscribes to. Don’t wait.
Your data are your internal
measurements, and those can
be extended into media
measurements. If you go down
that road, it won’t be easy, but they’ll
be happy discoveries.”
—Matt Timothy, president of VINDICO
© 2015 eMarketer Inc.
9. Zero in on metrics that make sense: tracking
“If the campaign is
underdelivering, [publishers
and DSPs] don’t want an
advertiser to know that during
the course of the campaign.
They’re trying to adjust for it and they
don’t want advertisers to have total
visibility.”
—Mark Marvel, director of video and mobile
sales strategy at Time.com
© 2015 eMarketer Inc.
9. Zero in on metrics that make sense:
takeaways
Measure anything that’s relevant to your campaign using
internal and third-party toolsets. Take a “trust but verify”
approach toward publishers and DSPs when it comes to
ad visibility.
© 2015 eMarketer Inc.
8. Have realistic expectations
“ Be flexible with online video. You can’t do it
as a TV buy, but you can’t hold it as
accountable as you would other online
display. Video is at a disadvantage, [but]
because it’s an online buy it must be held
accountable. And yet, how do you truly
measure the impact on people’s
perceptions when being exposed to
a pre-roll video?”
—Matthew Waghorn, communications planning
director at Huge
© 2015 eMarketer Inc.
8. Have realistic expectations
“ For a national brand message, brand
safety is really important in aligning
with premium content. So having that
level of control is important for us.”
—Carrie Murray, manager of digital media at Audi
© 2015 eMarketer Inc.
8. Have realistic expectations: takeaways
Digital video is somewhere between TV and other forms
of digital. Video won’t deliver the mass reach of TV or the
detailed metrics of display. Accept this limitation, but
don’t let it steer you away from video.
© 2015 eMarketer Inc.
7. Go native: more than 75% of US publishers’
native advertising offerings include video
This highlights the
importance of
video in the native
ad space
© 2015 eMarketer Inc.
7. Go native: format grew partly out frustrations
with pre-roll and display ads
“ Marketers are interested in a new
opportunity to distribute video beyond
pre-roll and display. Pre-roll is
interruptive and display just wasn’t
getting the attention or engagement,
so native evolved out of that
need for a new format.”
—Chris Schreiber, VP of marketing and
communications at Sharethrough
© 2015 eMarketer Inc.
7. Go native: takeaways
The train is leaving the station. You can still jump on
board, but if you don’t move quickly you’ll be left behind.
© 2015 eMarketer Inc.
6. Embrace emerging video ad platforms:
takeaways
You don’t need to be on every software platform, app or
device that carries video advertising. Be selective and
use the same criteria that guided your decisions about
objectives, ad types, venues and pricing plans.
© 2015 eMarketer Inc.
US programmatic video
ad spending will grow by
more than 200% this year
and over 75% next year
By 2016, programmatic
will account for 40% of
US digital video ad
spending
5. Get with the program(matic)
© 2015 eMarketer Inc.
5. Get with the program(matic)
In 2015,
programmatic
video will
experience more
growth than any
other ad type
© 2015 eMarketer Inc.
5. Get with the program(matic): quality matters
“The buy side is getting more
sophisticated when it comes
to traffic quality and
viewability. To the extent that the
exchanges don’t make similar
investments in their own quality,
they’re going to find there’s less and
less demand out there. Ultimately,
they’ll find themselves priced out of
market.”
—John Murphy, VP of marketplace quality
at OpenX
© 2015 eMarketer Inc.
5. Get with the program(matic): OTT before TV
“ This year, we’ll see real
auctions running inside of many of
the apps that sit inside your Roku,
your Amazon Fire or your Apple TV.”
—Jeff Green, CEO of The Trade Desk
© 2015 eMarketer Inc.
5. Get with the program(matic): caveats
Interest is high, but inventory remains small
Most programmatic video inventory is in the exchanges
and isn’t premium stuff
Premium inventory remains with sellers who are
reluctant to put it into the programmatic marketplace
Those who get premium video inventory often go through
programmatic direct and private marketplace deals
Programmatic will make up 40% of US video spending in
2016, but video will be less than 20% of programmatic
© 2015 eMarketer Inc.
5. Get with the program(matic): takeaways
Programmatic is a growing trend in digital video
advertising, thus something marketers should consider.
But there are caveats, including lack of quality inventory.
© 2015 eMarketer Inc.
4. Make every screen count: TV + digital video
“ As a cross-media planner, if you’re
able to sequence [TV and video]
together, you can have them
working in unison—one for
reach, one for frequency. TV
advertising typically raises the profile
and creates a lot of impact. Then it’s
supplemented by high frequency,
much cheaper inventory bought
through video networks.”
—Matthew Waghorn, communications
planning director at Huge
© 2015 eMarketer Inc.
4. Make every screen count: a nuanced approach
“ There’s a lot of attention right now on
a holistic approach to video, but there
are individual purposes each screen
can serve. Rather than having broad
strokes, where you collect the same
data from every single platform, you
need to have nuanced
measurement, too—an idea of
how you see each platform
playing out in your mix.”
—Megan Tweed, VP of media at Razorfish
© 2015 eMarketer Inc.
Connected TV
households are
on a steep
growth track
By 2018, over
75% of US
households
will have a
connected TV
4. Make every screen count: connected TV
© 2015 eMarketer Inc.
Growth in US
tablet video
viewers will level
off, but still rise
by double digits
this year
By 2019,
two-thirds of US
tablet users will
watch video on
those devices
4. Make every screen count: tablets
© 2015 eMarketer Inc.
In the US,
smartphone
video viewers
are more
numerous and
growing faster
than tablet
video viewers
4. Make every screen count: smartphones
© 2015 eMarketer Inc.
4. Make every screen count: takeaways
Sometimes a holistic approach to TV + digital makes
sense; other times looking at each screen on a granular
level is best. Either way, usage of most digital screens
continues to grow.
© 2015 eMarketer Inc.
In 2015, mobile
will make up about
one-third of US
digital video ad
spending
By 2018, mobile’s
share will be
nearly 50%
3. Optimize: US mobile video ad spending
© 2015 eMarketer Inc.
3. Optimize
“ We used to think of mobile as a nice-to-
have. We’d optimize for the desktop
and if we could do something for
mobile, that was great. No more. We
have to think about mobile first. It’s
important to make sure content
is optimized for whatever device
people may be using, whether it’s a
smartphone or a tablet. It’s not a nice-
to-have anymore. It’s a requirement.”
— Laura Powers, head of global social media
marketing at Cisco
© 2015 eMarketer Inc.
3. Optimize: takeaways
Mobile video advertising makes up one-third of all US
digital video advertising and will grow to nearly 50% of
the total by 2018. Mobile and desktop are on equal
footing in their importance to marketers, publishers and
consumers.
© 2015 eMarketer Inc.
2. To autoplay or not to autoplay?
“ The autoplay feature lets someone
get a little snippet of what you’re
offering, and it really brings people in.
We love it as a brand.”
—Katie Fischer, US media manager for
Beam Suntory
© 2015 eMarketer Inc.
2. To autoplay or not to autoplay?
“A video impression shoved down someone’s throat
unwillingly is hardly the same as a standard in-stream ad
that is shown as part of a quid pro quo for accessing
content.” —Josh Sternberg, senior editor at Digiday Content Studio
“It concerns me that autoplay video is evolving into the
industry norm, as it ultimately damages the brands of
publishers and marketers alike.” —Jen Sargent, CEO and co-founder
of HitFix, writing in MediaPost
© 2015 eMarketer Inc.
2. To autoplay or not to autoplay? Takeaways
Autoplay has its benefits, but if consumers really dislike
the ads, your message could backfire. The verdict? Let’s
see how consumer survey data shakes out.
© 2015 eMarketer Inc.
1. Forget everything I said
Every best practice is subject to factors that vary from
one marketer, agency or campaign to the next.
There is no right answer when it comes to choosing the
type of ad, the places where it runs, how it’s bought, how
it’s targeted, how it’s measured, how it’s optimized for
different screens, whether it auto-plays, or whether it
matters if it’s viewed to completion, shared or ‘liked.’
The only thing that matters is your ability to connect with
your customer. Video is a great way to do it, and you have
more options at your disposal than ever before.
© 2015 eMarketer Inc.
The ‘Top 15 List’ in a nutshell
15. Define your objective
14. Pick your spot
13. Pick your venue
12. Pick your pricing plan
11. Know your audience
10. Use the right targeting
parameters (for you)
9. Zero in on metrics that
make sense (to you)
8. Be realistic
7. Go native
6. Embrace emerging video
ad platforms
5. Explore programmatic
4. Make every screen count
3. Optimize (for mobile)
2. Be careful with autoplay
1. Forget everything I said!
Better targeting
cross-device
Improved
performance
Data and insights
about target
market
Cost
efficiencies
WHY CHANGO
Source: based on the responses from 232 marketers to Brand Innovators – Chango programmatic pulse, November 2014
WHAT WE DO
Video
Mobile
Display
AdsYour
Customers
Use data to target your audience
across their journey
HOW WE DO IT
1ST PARTY/CRM DATA
+11ONLINE
PURCHASES
+2OFFLINE
PURCHASES
-7LTV
SCOR
E
+1LOYALTY
PROGRAM
+0RECENCY
+7FREQUENCY
+10PURCHASE
INTENT
PURCHASE DATA
+14SOCIAL
SIGNALS
SOCIAL DATA
+14SOCIAL
REFERRAL URL
-3SOCIAL
SHARES
DEMOGRAPHIC DATA
-5LIFESTYLE
+4CITY/
DMA
-5INCOME
-12OCCUPATIO
N
+8AGE/
GENDER
+15SEARCH
KEYWORD
S
+9BROWSING
BEHAVIOR
INTENT DATA
-9INTENT
+9SITE
SEARCH
+25INFERRED
SEARCH
+20REFERRAL
URL
-13WEBSITE
-1SITE
CATEGORY
-2SITE
ACTIONS
CONTEXTUAL/BEHAVIORAL DATA
+19BROWSING
BEHAVIOR
+21FREQUENCY
AT LOCATION
LOCATION BASED DATA (MOBILE ONLY)
+14CURRENT
LOCATION
-3MOBILE WEB
OR MOBILE
APP
WHY CHANGO
Chango serves ads to the qualified audience
Pre-Roll Ad15-30 seconds
Companion
Banner300x250px
Healthy baby food
HHI
$75K+
*Illustrative example of target audience
category based on 3rd
party demo data
© 2015 eMarketer Inc.
Learn more about digital marketing with an
eMarketer corporate subscription
Around 200 eMarketer reports are published
each year. Here are some recent reports you
may be interested in:
Q&A Session
Made possible by
You will receive an email tomorrow with a link to view the
deck and webinar recording.
To learn more: www.emarketer.com/products
800-405-0844 or [email protected]
Paul Verna
Best Practices in Digital Video
Advertising
50 Best Practices for Digital Video: Do's and Don'ts for More
Effective Advertising
Digital Display Advertising: Nine Things to Know for 2015
Video Advertising: How Facebook, Twitter, Instagram, Tumblr
and Snapchat are Changing the Rules
Native Advertising: Difficult to Define, but Definitely Growing