eMarketer Webinar: Best Practices in Digital Video Advertising

© 2015 eMarketer Inc.

Best Practices in Digital Video

Advertising

Paul Verna

Senior Analyst

February 26, 2015

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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


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.


14. Pick your spot


14. Pick your spot


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.


13. Pick your venue


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


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


13. Pick your venue


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.


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


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.


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



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


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.


10. Use the right targeting

parameters


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].”



10. Use the right targeting parameters:

takeaway

Pay attention to the context of your ad and tailor your

targeting parameters to your audience characteristics.


9. Zero in on metrics that

make sense


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


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


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


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


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


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.


8. Have realistic

expectations


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


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


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.


7. Go native


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


7. Go native: social media


7. Go native: video sharing, news, entertainment


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


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.


6. Embrace emerging

video ad platforms


6. Embrace emerging video ad platforms: social


6. Embrace emerging video ad platforms: media


6. Embrace emerging video ad platforms: devices


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.


5. Get with the

program(matic)


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)


5. Get with the program(matic)

In 2015,

programmatic

video will

experience more

growth than any

other ad type


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


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


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


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.


4. Make every screen

count


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


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.”



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


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


In the US,

smartphone

video viewers

are more

numerous and

growing faster

than tablet

video viewers

4. Make every screen count: smartphones


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.


3. Optimize


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


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


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.


2. To autoplay or not to

autoplay?


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


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


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.


1. Forget everything I said


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.


The ‘Top 15 List’ in a nutshell


14. Pick your spot

13. Pick your venue



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!

We are a programmatic

advertising company,

purpose-built for the

marketer.

MEET CHANGO

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

Facebook

& Twitter

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


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Paul Verna

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