With the launch of Samsung AdHub yesterday, the next big battleground for video advertising is shaping up to be on connected TVs. That makes a lot of sense because as more video viewing occurs on connected TVs (or "Smart TVs as they're also called), audiences will further fragment from traditional linear TV. Connected TVs are projected to account for 155 million units by 2015, or 54% of all flat-panel TV shipped. By then over 500 million connected TVs will have been shipped. In 2011, approximately 27% of TVs shipped will be able to connect to a network. Advertisers have no choice but to figure out how to reach all of those eyeballs and TV manufacturers are now beginning to lay the groundwork.
Traditional ways of measuring the effectiveness of online video campaigns such as click-through and completion rates are being enhanced with brand lift metrics such as awareness and intent that are common in other forms of advertising. The latest indicator is that Adap.tv, an online video advertising marketplace, has integrated Vizu's Ad Catalyst solution, which measures brand lift, to offer this capability to its clients. Yesterday the companies released a case study which speaks to the new insights online video advertisers can gain from studying brand lift as well.
Vizu, an online ad technology provider which measures brand lift, announced an upgrade of its platform yesterday which will give brands and agencies greater insight into the effectiveness of in-stream video ad campaigns, an important step to increasing their spending. With the upgrade, Vizu now supports the VAST/VPAID spec which means Vizu can measure the effectiveness of video ads placed through ad exchanges and real-time bidding platforms as well those bought through direct publisher sales. As Vizu's CEO Dan Beltramo explained to me last week, this is a key step because a significant portion of video ads are already being placed through exchanges and RTB platforms which he expects to grow further.
Last Thursday's BrightRoll announcement of a suite of 3rd party verified reporting tools, including comScore, Nielsen, Insight Express, and Vizu, breaks new ground is addressing the online video advertising efficacy problem. The suite aims to help marketers understand the actual results of online video campaigns with an eye to driving increased spending in the medium. On Friday, I had a chance to chat with BrightRoll's CEO, Tod Sacerdoti, who explained the reasons for this value-add reporting service.
Tod said that the idea for enhanced reporting came from three problems. The first is that an extraordinarily high number of media buyers - somewhere in the realm of 85% according to BrightRoll's research - did not understand the effectiveness of their online video buys. The second problem was that buyers don't fully use ad networks' in-house analytics and don't fully trust them anyway. Further, as ad spend has poured into online video, so have many low quality networks, who can rely on unsavory tactics to get views and thus lower overall CPMs. Thirdly, internal analytics don't get at the big picture, including for example, how a placement on BrightRoll performs versus a competitor.
VideoNuze is the authoritative online source for original analysis and news aggregation focused on the burgeoning online video industry. Founded in 2007 by Will Richmond, a 20-year veteran of the broadband, cable TV, content and technology industries, VideoNuze is read by executive-level decision-makers who need to get beyond the standard headlines and achieve a deep understanding of online video’s disruptive impact.