ADOTAS – The growing popularity of online video has caught the attention of U.S. advertisers, as they realize the incredible reach this medium presents. Just recently, comScore released data from its comScore Video Metrix service showing that 179 million U.S. internet users watched nearly 38 billion online videos in February alone.
The reason for this tremendous growth is three-fold: Publishers have taken advantage of the sharp reduction in shooting and editing costs; viewers have responded by consuming a whopping 200-plus videos per month across thousands of sites; and marketers are fueling the demand by investing in this emerging format thanks to overwhelming evidence that online video is at least as effective as, if not more effective than, broadcast advertising.
As the interest around online video has grown, so has the real-time bidding (RTB) market. Both media buyers and publishers are becoming more comfortable with the process, as buyers on the exchange are using more advanced technology to take on more bids at a faster pace.
While this is great news for the industry, it is important for buyers to fully understand how they can make the most effective real-time bids for their brand. The reality is that pre-roll video only accounts for 2 percent of all impressions served on the web. Thus, savvy marketers need to treat this small but valuable marketing element carefully to maximize ROI by taking the following points into consideration as they plan their campaigns:
Reach the audience that matters most. You’ve likely spent a good amount of budget to create your video advertisement, so the worst thing you can do it blast it out to a wasted audience. It is crucial that data is pulled from both on- and offline data sets, such as point of sale information, social media, videos, music, local web pages and online magazines, to find the right audience for your brand.
Remember this is a contextual environment. It’s important to work with a buyer that has the power to “know the page” before you buy it. This means understanding the content of the video your ad will be running with. Most brand-conscious marketers do not want their advertisements running during a negative news story, for example, that could tarnish their brand simply by being associated with this type of content.
Remember the 80/20 rule. The majority of your sales come from a fraction of your stores, products or services. Marketers are already blanketing their advertisements through broadcast, print and online efforts, so use your online video bids to deliver focused messaging to your most loyal consumers to increase their purchase frequency.
While it seems like marketers and media buyers are finally ready to dip their toes into online video RTB, it is important that the same standards that apply to the display world are used for video. Thus, marketers need to compile real, actionable data to create campaigns that not only complement their offline efforts, but reach the right online audience with a message that motivates them to make an offline purchase.