online video

Live Video Is Where the Advertising Bucks Are – via the NY Times

Online video – and especially live video – has become a promised land for a bevy of Internet companies. Live-streamed video brings an immediacy and a reason for people to keep coming back to a website.

And it also provides valuable content with which marketers can place advertisements, typically for a heftier price than, say, an online display ad. That’s why Facebook, Snapchat and Twitter, among others, are all rushing to strike deals to bring live-streamed events to their users.

Access full article from the NYTimes

Majority of European Video Buyers Use Programmatic, AOL Report Finds

According to AOL’s “2015 European State of Video Industry” report, 98% of video buyers surveyed in European markets buy digital video programmatically. On the sell side, 97% of those surveyed are selling digital video programmatically instead of using traditional models.

AOL, working with Advertiser Perceptions, collected quantitative data on digital video from 411 brands, agencies and publishers in the U.K., France, the Netherlands and Germany.

Among the findings of this report:

-Mobile video is the “most robust growth area” in digital media, with 42% of buyers surveyed reporting a rise in mobile digital video budgets last year.

-42% of advertisers surveyed said they buy digital video directly from publishers.

-48% of advertisers said they’d brought programmatic video-buying capabilities in-house, and 47% said they planned to do so in the next year.

This report included the varying concerns of buyers and sellers concerning programmatic digital video.

Buyers: Need to integrate into existing process and systems and an inability to access premium inventory at scale.

Publishers: Perceived risk of the commoditization of content, a lack of existing process and systems, and a lack of expertise.

Both buyers and sellers surveyed cited viewability issues and fraud scores as important when measuring campaign performance.

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Interaction Helps Brands Stand Out in the Vast Volume of Video

Mike O’Brien, writing for ClickZ, points out that video has become a standard expectation for digital campaigns.  As a result, it has become more difficult for a video to stand out.  O’Brien explains that brands are increasingly making their videos interactive.  Consumers who feel actively involved with the brand via interactive videos will likely have longer and deeper levels of brand engagement.

Erika Trautman, CEO of Rapt Media, suggests that “creating an opportunity for engagement creates connections with the audience and makes them more likely to come back again.”

O’Brien highlights two companies that have effectively used interactive videos: Dos Equis and L’Oreal.  In the Dos Equis video, the viewer is a guest at the masquerade party, and interacts with the Most Interesting Man in the World.  L’Oreal provides a tutorial to teach viewers how to use its products in unconventional ways.

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Where is Video Going in the Future?

Mike O’Brien, writing for ClickZ, discusses recent research by AOL and Crayon which reveals the direction of video’s future, and he summarizes five areas of focus:

-Mobile video is seeing the greatest increase in ad spending compared with desktop and TV.  From 2014 to 2015, it increased by 75% from $1.5 billion to $2.7 billion.

-Homepage videos are rare, but if done effectively, can have great potential in terms of showcasing brands and introducing prospects to the company.

-High-quality digital video content by brands will continue to be an area of growth.

-Agencies and brands are continuing to increase their purchase of digital video programmatically, and an increasing percentage have also brought programmatic buying in-house.

-More companies are moving away from just using free social video platforms.  Larger companies are undertaking in-house video hosting.

O’Brien offers some tips for marketers planning to use video to reach consumers:

-Do a lot of testing before you invest too much money.

-The potential of videos to generate ROI can be increased by positioning them near conversion points.

-High-quality video can be shot on smartphones; however, consumers expect polished videos.

-Online video content must provide value to the targeted consumers in order to attract and retain their attention.

-Programmatic video buying and video-hosting can be brought in-house, but only if marketers have the trained personnel and the appropriate technology.

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Video Viewing Time Now Equals TV Viewing Time According to Millward Brown Study

This Media Life Magazine article presents highlights from a new study from Millward Brown, “AdReaction: Video Creative in a Digital World.” According to this study viewers worldwide watch 102 minutes of TV per day, as well as spending 102 minutes per day viewing videos on digital devices.  Their digital video time is allocated between 45 minutes on smartphones, 20 minutes on tablets, and 37 minutes on PCs or laptops.  These averages vary by generation and geography.

The study also found that only 19% of viewers report that advertising on digital videos is favorable, versus 29% for TV.  Skippable ads are generally viewed more favorably.  Specifically, skippable pre-roll ads have 34% favorability on PCs and 31% favorability on mobile devices.  Non-skippable pre-roll ads have 15% favorability.

The study further reveals that consumers would rather be targeted for an ad that is selling an item or service that they are interested in and have searched for online, but they are not receptive to feeling “stalked.”

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Mobile Phone Video Viewers Spending Most of Their Time With Short-Form Content

According to Ooyala’s Global Video Index’s Q2 2015 study, online video viewers using mobile phones spent two-thirds of their viewing time in Q2 with content less than 10 minutes in length.

According to the report’s executive summary, mobile phones and PCs are equally popular (at 32% each) for short-form videos of 1-3 minutes in length.  However, when it comes to content over 10 minutes in length, tablets (57%) and connected TVs (53%) were the top choice of views, followed by desktop (40%) and mobile phones (33%).

The report further analyzed content over 30 minutes in length: connected TVs were the top choice (52%), followed by tablets (36%), mobile phones (23%), and PCs (22%).

In Q2 2015, mobile video plays exceeded 44%, and by the end of 2015, Ooyala expects mobile to account for more than 50% of all global video plays.


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YouTube Will Allow Third-Party Verification of Ad Viewability

YouTube will begin allowing third-party measurement tools for viewability verification by the end of 2015.  This represents a change from its long-standing policy of using only its Active View Measurement tool for ad viewability.  David Kirkpatrick, writing for Marketing Dive, reports that The Financial Times cited Unilever and Kellogg’s as the brands that pressured YouTube to make this policy change for independent verification options.

According to a study done by Google:

-Active View reported 91% of YouTube ads.

-54% viewability across all of its video ad networks.

Kirkpatrick also provides a quote given to The Financial Times by Google about the change in their policy, “We’re committed to meeting all of our clients’ measurement needs” and “are taking our clients’ feedback into account as we continue to roll out new solutions.”

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Digital Strategies Mature According to Cannes Study

Digital Strategies Mature According to Cannes Study

According to Warc’s analysis of the 2015  Cannes Creative Effectiveness Lions, digital-led advertising strategies, particularly those combining video and PR, are increasingly delivering business results for marketers.

Of the shortlisted and winning entries:

  • 60% used social media as a lead channel vs. 50% of the total pool of entries.
  • 44% used online video as a lead channel vs. 34% of the total pool of entries.

According to Warc, 2015 marked the first year that a truly digital-led campaign won the Grand Prix at the Cannes Creative Effectiveness Lions. The “Live Test Series” campaign from Volvo Trucks utilized a strategy built around online video and PR.

Social media, online video and PR have all seen significant growth in recent years: 85% of case studies used social media in the 2015 Lions compared with 51.9% in 2011; 64% of entries used public relations, and the same percentage used online video – in both cases more than double the 2011 figures.


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Takeaways from the 2015 NewFronts

Howard Blumenstein, writing for Think With Google, provides major takeaways from the 2015 NewFronts season.

He discusses the rapid growth of online video and the impact this growth has had on digital media buying and planning decisions for the upcoming year. As advertisers allocate more of their budgets to online video, decisions on where and how to invest become increasingly critical.

As a result of the 2015 NewFronts, Blumenstein raises the following points:

-Online video is now an essential element of media plans.

-Videos viewed on mobile screens have high viewership.

-Online video content also encourages a strong connection between viewers and brands.

-Results from online video campaigns can be quickly proven via brand and engagement metrics.

-Video viewability on YouTube is extremely high.

Online video’s rapid growth and extensive audience are major points to consider when allocating media dollars.


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