Videonuze

Wednesday, May 16, 2012

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  • Study Shows How to Optimize Video Ads Across Multiple Screens

    It's no secret that video consumption is fragmenting to multiple screens. A key consequence of this trend is that it is creating headaches for advertisers and agencies seeking to optimize their spending across screens to achieve the best results possible. A new study by ad solutions provider Videology details the performance of ads on online video, mobile video and connected TVs as well as the relationship between cost, performance and scale of ads run across these screens. Performance is measured by click-through rates (CTR) and video completion rates (VCR).

    Videology used data from 378 campaigns run through its platform in the U.S., accounting for 184 million online video impressions, 2.1 million mobile video impressions and 360K connected TV impressions. No surprise, different screens perform differently. The study found that mobile video had a 350% improvement in CTR vs. online video. On the other hand, because most connected TVs don't allow clicking through on an ad, they are more akin to typical TV advertising. The flip-side of this is that connected TVs deliver 110% higher VCR than online video because viewers can't click away easily while mobile has 10% lower VCR, likely due to users' shorter attention spans.

    As a result, Videology asserts that if an advertiser was primarily focused on CTR, then it should integrate mobile video; it would get a 350% CTR increase, though the average CPM only increases 30%. Conversely, if VCR is the key goal, then increasing connected TV spend makes sense; it delivers double the VCR of online video but only increases CPM by 54%.

    Beyond the CTR and VCR metrics, the study also looked at 8 campaigns to understand brand recall, some of these only ran on online video while others ran across all screens. Here the multi-screen campaigns resulted in brand lift of 70%-300% while the online video campaigns gained 15%-130%. Multi-screen campaigns drove 9x higher average brand recall, though the cost per incremental brand lift decreased by 55%. The study concludes that to obtain the best mix of performance and scale, online video should always be 60-70%. But if an advertiser is mainly focused on CTR it should pass on connected TV for now. Or if an advertiser is focused on reach it should concentrate on online video, which has by far the highest deployment.

    It's easy to understand intuitively that video ads will perform differently on different screens, but the Videology study helps put some parameters around what advertisers and agencies might expect. It's worth noting that this study follows separate research from last week showing how online video and TV campaigns complement one another. All of this is evidence that ad technology providers recognize how complex the media planner's job has become and as a result are trying to do their part in educating the market.

    (Note: Videology is a VideoNuze sponsor)
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