Grow Your Digital Video Comfort Zone - 4 Tips
- 1. DAN ALEXANDER DIR. VIDEO STRATEGY, VALUECLICK MEDIA JUNE 21, 2013 GROW YOUR VIDEO COMFORT ZONE
- 2. 2 WHO WE ARE Fast Facts 15 years of experience 1400+ employees 25,000 advertisers served NASDAQ: VCLK Why Is This Important? Massive DMP with 25 sources of input Reach the same users across devices True cross-device campaign optimization $40MM annual investment in our technology
- 3. 3 TODAY’S AGENDA = VIDEO IS YOUR FRIEND Video Trend Spotting TV vs. Digital Video Grow Your Video Comfort Zone 1 2 3
- 4. 4 TREND SPOTTING: VIDEO AD SPENDING $4B will be spent on digital video this year, up 41% YOY As the fastest growing online ad format, video spending will reach $8B by 2016 $2.00 $2.93 $4.14 $5.75 $6.99 $8.04 2011 2012 2013 2014 2015 2016 US Digital Video Ad Spending, 2011-2016 Billions and % Change Digital video ad spending % Change Note: Historical data up to 2011 is derived from Interactive Advertising Bureau (IAB)/PricewaterhouseCoopers (PwC) data Source: eMarketer, Dec 2012 40.8% 46.5% 41.3% 38.9% 21.6% 15.0%
- 5. 5 TREND SPOTTING: TV AD SPENDING $66B will be spent on TV this year, up 2.8% YOY TV spending continues to dominate all screens, expected to reach $73B by 2016 $60.66 $64.54 $66.35 $68.54 $69.91 $73.05 2011 2012 2013 2014 2015 2016 US TV Ad Spending, 2011-2016 Billions and % Change June 2013 TV ad spending % Change 2.8% 6.4% 2.8% 3.3% 2.0% 4.5%
- 6. 6 TREND SPOTTING: BUDGETS SHIFT TO VIDEO 23% of digital dollars will go to video this year, increasing to over 30% in 2015 62.9% 61.3% 57.9% 54.3% 49.7% 47.0% 44.8% 14.3% 16.2% 19.6% 23.4% 27.8% 30.2% 31.9% 15.5% 13.4% 12.1% 11.5% 11.5% 11.6% 12.0% 7.2% 9.1% 10.4% 10.8% 11.0% 11.2% 11.4% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 2010: $9.91 2011: $12.33 2012: $14.98 2013: $17.67 2014: $20.69 2015: $23.13 2016: $25.21 Banners Video Rich Media Sponsorships Note: Includes advertising that appears on desktop and laptop computers as well as mobile phones and tablets; data through 2011 is derived from IAB/PwC data; numbers may not add up to 100% due to rounding Source: eMarketer, Sep 2012 US Digital Display Ad Spending Share by Format 2010-2016 % of Total and Billions TotalSpending
- 7. 7 TREND SPOTTING: TV-TO-VIDEO SHARE SHIFT IAB, Yahoo and Microsoft Advertising: Digital Video Viewing, Budget Share Shift and Effectiveness TV 95% Online 5% 0%0% TV 100% 0%0%0% TV 90% Online 10% 0% 0% TV 85% Online 15% 0% 0% Source: IAB/Nielsen Online Video Study, 2012 Reach Shifting up to 15% of TV ad spend to video provides incremental and effective reach Running digital video ahead of a TV spot enhances brand lift by 15% to 45%
- 8. Television $66B industry One screen 1 main metric 60+ years history 8 TV VS. DIGITAL VIDEO Digital Video $4B industry Multiple screens Multiple metrics 5+ years history
- 10. 10 4 WAYS TO MAXIMIZE VIDEO ROI ASK THE RIGHT QUESTIONS… CAN YOU TAKE MY CAMPAIGN ACROSS SCREENS?1 DO YOU PROVIDE VIDEO BRAND SAFETY ON EVERY SCREEN?2 DO YOU OFFER DATA-DRIVEN TARGETING?3 WHAT DOES SUCCESS MEAN TO YOU?4
- 11. 11 COMFORT ZONE QUESTION #1: CAN YOU TAKE MY CAMPAIGN ACROSS SCREENS? What is the modern family? That was then… This is now… Americans on average owned 1 device Today, Americans average 3+ devices
- 12. 12 COMFORT ZONE QUESTION #1: CAN YOU TAKE MY CAMPAIGN ACROSS SCREENS? DESKTOP Advertisers are taking a “Screen Agnostic” approach to Digital Video • More brands are taking a ‘screen-agnostic’ approach to video buying/planning • The assumption is TV & Digital Video buying/planning teams are consolidating efforts • Marketers are starting to benchmark against cross-measurement analytics SMARTPHONE TABLET CONNECTED TV
- 13. 13 COMFORT ZONE QUESTION #2: DO YOU PROVIDE VIDEO BRAND SAFETY ACROSS SCREENS? Brand Safety & Compliance Vendors • Digital video introduces additional layers of complexity • In order to scale a digital audience, you need multiple publishers to reach them… That’s when ad networks come in handy. • What level of brand safety is provided for video campaigns?
- 14. 14 COMFORT ZONE QUESTION #3: DO YOU OFFER DATA-DRIVEN TARGETING? It’s undeniable that video is one powerful ad format In our experience, we know that the combination of VIDEO + DATAdrives higher . . . VIDEO COMPLETION RATES and CTR
- 15. 15 COMFORT ZONE QUESTION #3 DO YOU OFFER DATA-DRIVEN TARGETING? 70.0% 75.0% 80.0% 85.0% BT Non-BT Video Completion % Audience Non-Audience Targeted Targeted 0.00% 0.50% 1.00% 1.50% 2.00% BT Non-BT BT Non-BT Audience Non-Audience Targeted Targeted Execution • Evaluated 3 top tier advertisers’ video campaigns for more than six months: • Sports TV advertiser • Auto advertiser • Energy drink advertiser • Compared the Video Completion Rate and CTR performance for each campaign Results • On average, campaigns that leveraged audience targeting exhibited a VCR of 11.1% higher than their non-targeted counterparts • Similarly, campaigns that leveraged audience targeting exhibited a CTR of 84.5% higher than their non-targeted counterparts
- 16. 16 COMFORT ZONE QUESTION #4: HOW DO YOU BENCHMARK VIDEO RESULTS? What is the “Holy Grail” for Video Measurement? Clicks Time Spent Dwell Rate Completion Brand Lift Conversion Interactivity % on target CTR Sharing/Commenting GRP Reach & Frequency Engagement
- 17. 17 COMFORT ZONE QUESTION #4: HOW DO YOU BENCHMARK VIDEO RESULTS? NIELSEN OCR BENCHMARKS OCR in-target benchmarks aggregated across over 3,000 campaigns run to date.* $10 = $22.73$10 = $45.45 $10 = $17.54
- 18. 18 LET’S SUM IT UP = TAKEAWAYS Shifting money to digital video may seem daunting given the landscape Ask the right questions before you initiate a video campaign Ensure your vendor is driving towards your ROI goals 1 2 3
- 19. @ValueClickMedia 19 THANKS FOR LISTENING! Dan Alexander Dir. of Video Strategy ValueClick Media (818) 575-4576 dalexander@valueclick.com /ValueClickMedia
Editor's Notes
- #8: Link to IAB study http://www.iab.net/media/file/Digital-Video-and-TV-Advertising-Viewing-Budget-Share-Shift-and-Effectiveness.pdf
- #18: In-target CPM Calculation: Gross CPM ($) ÷ In-target delivery (%) Note: Nielsen benchmarks used for illustration. Actual benchmarks are publisher-specific.