The True ROI of Online Video Advertising: A Nielsen Media Lab Report

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A new report from Nielsen Media Lab, commissioned by HIRO Media, looks at the true ROI of online video advertising.

According to recent data from L2, nearly 80 percent of total global internet traffic will be driven by video in 2020, however as great as that seems just 41 percent of marketers surveyed said that the top challenge to online video spend is return-on-investment compared to other media. New reports have been coming out about the effectiveness of online video.

As ubiquitous as online video advertising has become, there is hardly any correlation between engagement based KPI’s as CTR, VTR, viewability and actual consumer intent and ROI. A new report, Online Video Advertising Effectiveness, from Nielsen Media Lab commissioned by HIRO Media looks at online video advertising’s effectiveness. Here are the topline highlights from the report:

1. Size doesn’t matter – the player size didn’t change the consumer impact metric when dealing with known brands. It did have an effect among unknown brands. The comparisons were made between comScore top 1000 sites with a small (video) player and comScore top 5 sites with a big (video) player. Player size has high implications on pricing, according to industry rate cards, big players in comScore top 5 sites cost 5 times more than small player in comScore top 1000 sites, but don’t deliver the ROI.

2. Content does matter – content relevant to the ad and the target audience increased consumer impact by 30%.

3. The cost difference does not correlate to consumer impact – the difference in pricing between big player in top 5 sites and small players in top 1000 sites can reach 500% while the effect on consumers is lower than 5% (i.e. statistically insignificant).

About HIRO

According to Deloitte, HIRO (based in Tel Aviv) is one of the fastest growing companies in Europe, the Middle East and Africa (EMEA). They were ranked number 11 on the Deloitte Technology Fast 500 EMEA 2015, a ranking of the 500 fastest growing technology companies in EMEA, and the second consecutive year that HIRO has been ranked in the list’s top 20. Rankings are based on percentage revenue growth over four years.

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