Nov 21

Advertising ROI: A TV & Online Comparison

By Heather Timmerman addience, Digital Media Trends, Video Comments Off

Increasing evidence from various studies and reports indicate that online video is a compliment to TV versus a replacement when it comes to advertising and branding efforts (Source: State of the Video Industry Q4 2012). Sticking with the theme from last week’s blog which discussed how media is bought and measured in the TV and online world, the question of how (or whether) ROI is measured is an obvious one. However, the results and answers to this question are less than obvious. 

Given ROI metrics for TV are still being developed 70 years after the first ad was broadcast, it begs the question why online is held to higher standards at a fraction of the cost (Source: gigaom.com, nielsen.com)? Does the receptiveness of the consumer mindset and time and place have something to do with it? Perhaps; as most consumers are watching TV after work hours and online during work hours, although tablets and mobile could challenge that theory. A logical reason could simply be that those in the advertising industry have learned from their mistakes and do not want to repeat history without proven ROI for all future advertising mediums.

Regardless of the reason, TV advertising has been shown to produce higher yields for a percentage of campaigns but the return cannot necessarily be guaranteed for all. A three year study by Deutsche Bank indicates that although in half of the advertising campaigns the return did not sufficiently cover the media cost, the gain from the other half more than offset the cost (Source: wpp.com). However, additional recent research by Accenture indicates that 82% of TV ads generate negative ROI, and a recent study by Simulmedia using data from Nielsen and Kantar Media shows that in the majority of cases, TV ads are only seen by 20% of marketers’ targeted audience (Source: Financial Times).

Online advertising on the other hand, has a targeted audience focus with immediate measurable results, but some would argue it lacks the reach of TV, while others would argue scale is the internet’s strength (Source: gigaom.com, techcrunch.com). Platforms such as Facebook with over 1 billion active monthly users are quickly gaining ground, but the industry has yet to settle on the most effective online advertisement type or strategy, which is completely dependent on the brand or advertiser goal (Source: facebook.com). From keyword advertising to banner ads to video, and paid, owned, earned, and social media strategies, the options are vast.

Research any of these methods and you will find multiple studies indicating online keyword campaigns increase offline sales results, to online banners are dead, and that video is the new TV (Source: inc.com, forbes.com, tech crunch.com). How can a marketer not be confused? Out of all the data, one theme is ringing through loud and clear. The proven use of sight, sound, and motion in the TV world is quickly becoming the preferred method of choice online as well with video advertising projections continuing to increase year over year (Source: MediaPost). Advertisers have even gone so far as to say that online video is just as effective if not more than TV advertising, but they also said that more definitive ROI and success metrics are still needed (Source: TechCrunch, Brightroll Report).

Facebook seems to have found a way to close the loop through their partnership with Datalogix, a Nielsen competitor (Source: BusinessInsider.com). The way it works is after a user views or clicks on an ad on Facebook, the retail store collects the user/consumers email and home address information, which allows the brand or advertiser to cross-reference that information with a report Facebook provides, ensuring the user/consumers anonymity, and confirming the online and offline link. The question now remains whether the conversion percentage and overall yield is higher online compared to spend.

About Preview Networks

Preview Networks is a content marketing platform for brands and content aggregation and syndication platform for publishers. We provide the tools for brands to centrally distribute and manage marketing and PR content across media destinations, devices, and commerce platforms; allowing media partners to automate content acquisition delivering audience and advertising revenue growth.

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Nov 14

The Measurable Media Buy: A TV & Online Comparison

By Heather Timmerman addience, Digital Media Trends, Measurement Comments Off

While advertising is becoming more and more targeted for both offline and online mediums, it is still too early to tell how this will affect advertising buying and revenue trends in the future. While online is considered the most measurable medium in the world, TV still holds the majority of advertising budget spend. According to Nielsen, TV holds 61% of advertising dollars globally and in Europe online advertising is currently 20% of budgets according to the latest IAB Europe AdEx Benchmark report. 

Looking at the past 4 fiscal quarters (Q1&2 2012 and Q3&4 2011) there is a positive overall global trend in terms of advertising spend, even though it has steadily become lower per quarter. Starting with the oldest calendar quarter first, Q3 2011 showed a 9.6% increase, Q4 2011 showed a 7.3% increase and Q1 2012 showed a 3.1% increase in global advertising spend. While overall there was global growth in Q1 2012, Europe was the only region to show a decrease in spend. However, the first half of 2012 altogether shows an increase in spend by 2.7% compared to the first half of 2011 (Source: Nielsen.com, Blog.nielsen.com). Comparing 2010 to 2011 there is a marginal increase in U.S. ad spend by 1.8% and a decrease in Europe by -0.4% which indicates the London Olympics and U.S. Election advertising helped in 2012.

Breaking it down by medium, the first half of 2012 shows that even though Europe may have decreased spend overall, online advertising spend was up by 11.2% and TV down by -2.2%. The IAB indicates a 14.5% growth in online overall, with a 45% growth in video, and 132% growth in mobile advertising (Source: IAB UK). Even though all these numbers indicate there is a growth in online advertising mediums, and there have been a multitude of articles written about the shift of TV dollars to digital, TV continues to hold “the lions’s share” of ad dollars (Source: Nielsen). The question is 1) how long will that remain the case and 2) how important are measurable results to the media buy?

If we were to focus on the 2nd question first, the answer is uncertain considering ROI on TV Metrics are still being developed 80 years after the invention of the medium (Source: gigaom.com). Although there are measurement standards that still need to be put into place in the online space, the online advertising world allows brands and advertisers to be much more targeted and strategic than they can be with TV which relies mostly on demographics when buying ad space (gigaom.com). In terms of mass reach, there is no doubt TV dominates but that also comes with a massive price tag. Online syndication strategies, like those offered at Preview Networks, are increasingly becoming a viable option for brands and advertisers focused on reach. The “programmatic buying of video inventory” (otherwise known as RTB) allows for audience specific buys which could eventually close the gap between TV and online (Source: BeetTV/Forrester).

The answer to the 1st question above may take a few more years to develop before we see any monumental shifts moving budgets away from TV and more towards online, particularly as the Millennial generation becomes more influential in the media buy equation. The reality for now is that while online video trends are increasing, the advertising spend is much smaller than TV but the future looks bright. Projections for 2012 spend are 29% over 2011, with another 29% year-over-year growth forecast for 2013, and 27% growth for 2014 (Source: MediaPost). The good news for both advertising mediums is that measurement initiatives are becoming more strategic for TV and standardised for online in 2013 (gigaom.com, comscore.com). Hopefully that will provide more insight into how important measurement is in the media buy equation in the future.

About Preview Networks

Preview Networks is a content marketing platform for brands and content aggregation and syndication platform for publishers. We provide the tools for brands to centrally distribute and manage marketing and PR content across media destinations, devices, and commerce platforms; allowing media partners to automate content acquisition delivering audience and advertising revenue growth.

 

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Jun 13

Got Video? Now Start Distributing!

By Heather Timmerman Digital Media Trends Comments Off

No one content marketing strategy is the same, but if you have begun using video marketing as discussed in Out of the Box Content Marketing then you are ready to start thinking strategy and distribution.

The video marketing strategy is often dependent on the content produced and that is directly related to audience. So first determine whether it is a piece of video advertising or video content marketing. The difference is ever so slight, but the latter is typically a more subtle approach. See various examples of the video content marketing piece featured in our last post here. Chances are you will need to hire someone internally or externally to help script and produce the video content. Regardless of whether you are a B2B or B2C company, most video production company rate cards begin at 30 seconds and go up from there, with the production process lasting an average of 6 weeks. The length of video has tripled since 2003 when video was averaging approximately 2 minutes, compared to 4 and a half minutes in 2010 (Source: Website Optimization’s August 2011 report).  However, even though the average length of video seems to be trending up, that does not mean it is audience appropriate. Which brings us back to the purpose for the video. Is it meant to be entertaining or informative?

Depending on the content development approach, now you’re ready to start thinking distribution. This again depends on the audience in terms of reach and the brand perception you want to portray.  Is traffic or views the most important measure? Or is a targeted and engaged audience more your cup of tea? An easy way to begin thinking about your distribution options is to consider the Paid, Owned, Earned media model presented in previous posts and introduced in 2009. Owned media includes a company website, blog or channel controlled by the brand. Paid media includes paid search or advertising campaigns often involving ad networks. Earned media in the traditional sense is PR and quickly evolving into viral word of mouth and sharing on social media networks. Earned media is hard to control, as it is often user influenced. Therefore, only two parts of the above media model (Paid and Owned) can technically be managed by the brand. However, only one distribution solution eliminates the need for yet another external partner. An online content marketing platform that allows you to manage and control your digital assets while also capturing audience, like Preview Networks.

About Preview Networks

Preview Networks is a platform for brands and content aggregation and syndication platform for publishers. We provide the tools for brands to centrally distribute and manage marketing and PR content across media destinations, devices, and commerce platforms; allowing media partners to automate content acquisition delivering audience and advertising revenue growth.

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May 30

Out of the Box Content Marketing

By Heather Timmerman Digital Media Trends Comments Off

To see this branded content marketing piece by GoPayment, click on the image.

A theme of several recent articles regarding how to create a great content marketing strategy all have one thing in common. They center around using digital platforms like social media to incorporate brand marketing initiatives utilizing video content to create engagement, all of which require both creativity and risk. The overall message to executives and online marketers via multiple sources, is to not be afraid to try something new. A recent ReelSEO Tweet from a post written over a year ago still had some very valuable information worth sharing. The main points were:

  1. Educate Yourself
  2. Embrace Online Video and Social Media Marketing
  3. Commit Budget to Promote Video and Social Media Initiatives
  4. Develop Creative that is Relevant and Shareable
  5. Establish Clear Expectations and Goals – Learn to Predict ROI
  6. Integrate Video and Social Media into Traditional Marketing Initiatives
  7. Allow and Encourage Experimentation
  8. Be Responsive
  9. Don’t Play Follow the Leader
  10. Don’t Assume Video and Social are B2C Only
  11. Be Prepared to Fall on Your Butt Now and Then

All of the points above are important but perhaps the one that is needed to get the creative juices flowing is allowing and encouraging experimentation. This reminds me of the infamous 20% rule which Google applies internally in order to keep innovation alive and well within the organization.  The philosophy is simple. One day a week engineers are allowed to work on a project that isn’t necessarily related to their job descriptions. The idea being that creativity and innovation can’t be forced. Only by loosening the reigns and encouraging freedom of thought can new ideas come to the surface.

Experimenting with video can be daunting, especially for those who haven’t the faintest clue how to get started. That’s where the network and education comes in, which another post labeled ‘Why CMOs Need to Experiment‘ indicates is highly relevant (Source: Digiday). Attending conferences, reading up on the topic, reaching out to colleagues and most importantly securing some budget to play with is critical to get started. According to Steven Cook, the hunt for ROI in social is besides the point. Brands that worry about this too much don’t get social, which is a risky route to take. If you need some reasons why social is here to stay, check out this previous Preview post.

Not assuming that video and social is only for B2C companies is another good piece of advice mentioned in the first article above. GoPayment, a B2B mobile payment service recently released a series of great content marketing videos about their clients (Source: ReelSEO). The focus of the video series was centered around their customer’s stories and how the use of pop-up store initiatives in various cities in the US allowed them to reach their audience and provide a convenient service. This in the end created engaging and entertaining content, while subtly allowing GoPayment’s brand and value proposition to come through. The moral of the story and message of this blog? Never underestimate the power of creativity and collaboration.

About Preview Networks

Preview Networks is a platform for brands and content aggregation and syndication platform for publishers. We provide the tools for brands to centrally distribute and manage marketing and PR content across media destinations, devices, and commerce platforms; allowing media partners to automate content acquisition delivering audience and advertising revenue growth.

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