SpotXchange joined industry leaders at VideoNuze's ELEVATE and OMMA Video this week to discuss the state of the online video advertising industry. Here's the buzz and a few insights from digital advertising leaders:
- Whatever the video ad format, we know that giving users choice of which ad to watch is very powerful. When users have choice about video ads, they recall brands and share ads with friends. Forced impressions are passive, and online ad viewership is essentially attentiveness, which leads to brand awareness.
- TV has mass reach, but also lots of waste. Online video eliminates waste and delivers more relevant messages to consumers. Online video is more interactive than TV, so why aren't more dollars moving? -The video advertising industry is working hard to educate and develop standards and better measurement. Live video is so DVR-proof that ad dollars are shifting meaningfully...video, then mobile is next.
- Online video - prediction for 2016: the buying process for online video advertising will come together and be more cohesive and comprehensive. And IP-based streaming will make all content device-agnostic.
- Will CPMs go up or down for online video advertising? One study be an ad technology vendor says that for the top 20% of video publisher market, video CPMs grew 125% year-over-year, and are 2.5x higher than the bottom 20% of publishers.
- Everything in digital video is equivalent to prime TV because the viewer initiates online advertising. And it's up to the advertiser to choose which metric is important to them. One pricing model does not fit all, and advertisers need to get a handle on what they'd like to measure and how.
- Part of the digital advertising advantage is that you can target. Advertisers can spend less money to reach their audiences because of its precision. While video advertising is still a drop in the bucket compared to traditional TV, it's also a great deal because of its accuracy. It does have a disproportionate impact on the market, even with this small piece of the pie.
- TV dollars won't shift until TV and online are reconciled and buy across it, you won't see real dollars move fluidly. Once those systems exist, you'll see video advertising really move. Still a few years from now before it's all moving quicker.
- You have a different video experience with each type of screen - video on mobile is much different than passive home TV - so the creative needs to be different. It's becomes a companion to on-air experiences. It's all about communicating in real-time with other very engaged fans.
- Most feel that there will be a constant shift from TV to video. The top of the online video tail is pretty well monetized. Over time, long-tail and User-Generated Content (UGC) will be monetized with data. This will shift as consumers' needs shift.
- Companies in the online advertising business need to use language that the advertising buyer understands. GRP is understood. Nielsen is the measurement, GRP is the currency. Online is working (IAB, NAI, ANA) is coming together to make online video advertising make sense. It's an intellectual challenge to put all these very different online audiences together. The industry needs to work hard to remove the complexity of online video. The equivalent in online for GRP might just be video ad viewership. With better targeting and effective reach, online video should start to see more TV dollars each year.
SpotXchange is a leader in the industry and can help get your team on target with reaching the right audience and understanding which measuring techniques work best for your video ad campaigns.
Contact us today for a consultation on how to effectively use online video advertising. |
