Results tagged “Digital Video” from IABlog
2012 is fast becoming the year of Sight, Sound and Motion, if you haven’t already noticed. The proliferation of tablets is helping to fuel the flames around the globe. But the content bonfire is happening beyond any of their borders.
This year opened with “the money shot” in entertainment — the Super Bowl, followed by the Jeremy Lin “Linsanity” passing the ball to the Hunger Games. Continuing with that sports analogy, The Olympics will soon drive down the middle and setup the assist to the summer political conventions rabidly known for brand spin and personal storytelling.
Fresh premium entertainment content premiering on powerhouse webcasters holds the potential to redefine TV this fall and it is anyone’s guess what the holiday season will hold for innovation in retailing, travel, and shopping. As Occupy Wall Street and Arab Spring leaders will tell you, the revolution will be streamed. So where does that leave those of us in commercial messaging?
Last week at the IAB Digital Video Agency Day we scratched the surface of the some of the thorniest question facing us as an industry: Measurement, Creativity, and the role of Digital Video (“DV”) in media planning. For various reasons each of these questions currently impedes the sector’s growth potential. For some it is a matter of reducing friction in supply chain, for others, the story lies in unlocking the potential of the medium to speak with a voice we don’t hear in other platforms. A few themes emerged, and I had three key takeaways:
1. DV needs to be a higher priority in media planning.
It is a front line strategy, not an afterthought. Savvy marketers understand that translating a :30 into a :15 rarely unlocks the platform’s optimal potential. Leading creative executions from Droga5, HUGE, M ss ng P eces, Anomaly, and Blast Radius displayed cutting edge visuals with an eye toward biometrics, social media, and gameification — trends that will define the space. Marketers are increasingly seeing themselves as content producers who need to fill the pipes every week — if not daily — with fresh content on Facebook Pages and fan blogs. Agencies continue to be the ad sherpa into the heights of the unknown reaches of social marketing. The need for greater innovation was urgent and clear.
2. Measurement is a blueprint, tools build the house.
We must improve measurement, and work with publishing partners who control differentiated technology. Not only in theory, but in practice. Making Measurement Make Sense (3MS) laid out the market case for a shift toward a viewable impression and demographic GRP. These concepts, in conjunction with upcoming pilots, resonated with audience members desperate to have clearer ROI metric across all media. At times as an industry we tend to get ahead of ourselves, focusing on the wish-list items as opposed to the must-haves. We need to be able to compare apples to apples first, before diving deeper into discussions about Granny Smith versus Red Delicious.
Measurement heavyweights comScore and Nielsen opine on measurement tools and audience tracking. We still have a great deal of ground to cover in that direction, particularly on the mobile front. The MRC will play a large hand regulating the means of this new digital currency. The new coin of the realm must then be considered as legal tender throughout the empire, in order to be successful.
3. Creativity turns heads and wallets.
The price is what you pay, value is what you get - invest in creative and choice media to feature your distinct point-of-view. The flexibility, scale and budget effectiveness of DV allows the medium to be both cavalry and ninja in the attack. The afternoon’s creative showcase underscored this perspective.
We will be debating many of these challenges further at the IAB Digital Video Marketplace this Tuesday, April 10, as we address many of these challenges and strive to drive innovations in the digital video ecosystem. Come join us!
About the Author
Seneca Mudd directs IAB’s programs and member initiatives for the Digital Video, Networks and Exchanges, Social Media, and Multicultural Committees and Councils. He specializes in industrial solutions, market development, and revenue advocacy among the advertising agency community. He can be reached on Twitter @muddzhlinger.
When we pursue a research project to advance our goal of building the world’s most effective advertising service, we start with some foundational questions: What problem(s) will the innovation solve? Can it scale? How will we measure the effects? What are the paths to increasing monetization? Will this create value for our customers?
Of course, we asked these same questions when designing Hulu Ad Swap, announced live today onstage from the IAB MIXX Conference & Expo during NY Advertising Week. Hulu Ad Swap is the next evolution in user choice and control—an ad innovation designed to dramatically improve the advertising experience for users and results for brands. Hulu Ad Swap puts complete control in the hands of the user by enabling them to instantly swap out of an ad they are watching for one that is more relevant.
We conducted research to determine whether Hulu Ad Swap could quantify (in both statistically reliable and valid terms) the improvement of the ad experience for advertisers and viewers across a variety of dimensions.
Going into the study, our thesis was that users wanted more choice and control, and advertisers wanted to eliminate waste (via targeting) and drive better outcomes (improved effectiveness measures). A recent Advertiser Perceptions study commissioned by the IAB entitled, “An Inside Look at Demand Side Perceptions of Video Advertising” quantified the criteria that advertisers, marketers, TV and online video buyers look for in their online video partnerships. Here’s what they stated (in rank order):
|1. Targeting||82% - 88%|
|2. Results||85% - 86%|
|3. Reach||68% - 84%|
|4. Cost||28% - 46%|
Advertisers want better targeting and results, and viewers want more choice and relevancy, so naturally the question we wanted to address was simple: through a format rooted in choice, could we deliver on improved relevancy and results?
Our success measures were the predictive success measures that brand marketers use: Brand recall, favorability and purchase intent.
Results from the research study were very positive. Video ads that a user proactively chose to swap into (versus a video ad that was served at random) performed to a significantly greater degree than those that were not:
- Unaided Recall of the brand went from 30% to 58% (+93%)
- Aided Recall became near universal, from 59% to 91% (+54%)
- Brand Favorability went from 34% to 43% (+27%)
- Purchase Intent went from 23% to 31% (+35%)
- Stated Relevancy went from 15% to 22% (+46%)
The measured performance of choice-based ad formats like Hulu Ad Swap illustrates why offering interactivity can be a powerful mechanism to improve the effectiveness of advertising. Interactive formats can significantly exceed the effectiveness and efficiency of traditional video ad formats for the following reasons:
- Self-addressability—the consumer can choose the most relevant ad to them at that moment.
- Increased attentiveness—when a choice is made, a viewer is invested in seeing the outcome.
- Cognitive dissonance—consumers like to feel justified about the choices they make.
Going forward, we are not expecting all Hulu users to swap ads every time they are offered the option to swap. The power behind Hulu Ad Swap is that a user has maximum control over their ad experience, and can swap their ad if they choose to do so. In fact, we expect response rates of around three percent. But for those who do choose to interact with this feature, we’ll have learned a little more about their preferences. We can turn that learning into a better ad experience for our users, a better ad platform for our advertisers, and an improved monetization vehicle for our content partners.
We are continuing to research Hulu Ad Swap, and as we work to improve this ad innovation over time, our goal is to deliver both a more frictionless consumer advertising experience and even better results for our advertising customers.
With regards to the research we conducted on Hulu Ad Swap, there’s a more comprehensive research FAQ you can read here: Hulu Ad Swap Research Results.
About the Author
Director of Research & Sales Strategy, Hulu
Bryon Schafer is a member of the IAB Digital Video Committee and serves as Hulu’s director of research and sales strategy, where he is responsible for all research efforts across Hulu’s business units. This encompasses audience measurement, advertising and marketing research, as well as global market research in support of product development. In addition, Bryon leads the company’s advertising sales strategy, where he is tasked with “making it easy” for advertisers to buy Hulu. Prior to joining Hulu in 2008, Bryon held marketing and media research roles at Warner Bros. Home Entertainment Group and ABC Television Network. Bryon holds a BA in Anthropology from Wesleyan University in Middletown, CT, and he began his career in the media planning department of Ogilvy & Mather in New York City.