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INTRODUCTION
BrightRoll US Video Advertising Report: April 2013 | brightroll.com | 415.677.9222 | 343 Sansome Street, Suite 600,San Francisco, CA 94104 | Copyright 2013 BrightRoll, Inc. | P2
TRENDING
40%
40%
30%
20%
20%
10%
10%
0%
Targeting Reach Price Format Other Creative reuse
0%
Targeting
Interestingly, price relative to TV is still considered the third most important aspect of video advertising (at a distant 10 percent), yet most advertisers find video to Reach Price Format Other Creative reuse be just as effective as TV. In fact, three in four respondents find video advertising equally or more effective than TV, a 17 percent increase from last year. An overwhelming 91 percent of respondents find video to be equally or more effective than display, a response that has grown rapidly year-over-year. This illustrates that advertisers are no longer comparing the effectiveness of digital and TV media, but rather the categories of advertising that offer the sight, sound and motion of video, no matter the screen.
91%
Display
75%
TV
68%
Social media
52%
Search
45%
Direct response
No I dont know
When asked what is the most limiting factor to the growth of video, a third of respondents state price is too high, although this is a significant drop of 15 percent from 2012. Fewer planning and measurement barriers, greater reach and proven effectiveness have enabled advertisers to embrace video but at the same time they still need to be sure of its ROI, especially when coupled with TV in advertising strategies.
BrightRoll US Video Advertising Report: April 2013 | brightroll.com | 415.677.9222 | 343 Sansome Street, Suite 600,San Francisco, CA 94104 | Copyright 2013 BrightRoll, Inc. | P3
GROWTH
The doors are open for the growth of video advertising today.
- Survey respondents fill-in answer to the question, What factor is most limiting to the growth of video advertising today?
BrightRoll US Video Advertising Report: April 2013 | brightroll.com | 415.677.9222 | 343 Sansome Street, Suite 600,San Francisco, CA 94104 | Copyright 2013 BrightRoll, Inc. | P4
Since 2010, a steadily increasing amount of digital RFPs include a video ad component. Two out of three survey respondents indicate that half or more of their RFPs had video in 2012 up 35 percent since the question was first asked in 2010.
2010
35%
2010
2012
2012
33%
0% 20% 40% 60% 80%
0%
20%
40%
60%
80%
Since more advertisers are including video in their digital RFPs, its no surprise they also expect to see the largest increases in spending for online and mobile video categories, followed closely behind by mobile display. User adoption of smartphones has driven the industry to follow consumers to where they are increasingly engaged. US mobile ad spending is expected to increase 83 percent for mobile display and 112 percent for mobile video in 20132. On the other side of the spectrum, TV and connected TV are two categories expected to see the smallest increase in spending in 2013.
4. Which advertising categories do you expect to see the highest and lowest growth in media spending this year?
HIGHEST GROWTH
(% of respondents) Online video
25% 32%
LOWEST GROWTH
(% of respondents)
Direct response
23% 17%
Mobile video
15%
Connected TV
25%
Mobile display
TV
Categories include: Connected TV | Direct response | Mobile display | Mobile video | Online display | Online video | Search advertising | Social media | TV
2012 was touted as the year of connected TV 3 . However, as industry standards are a frequent topic of discussion, consumer adoption is progressing slowly. Nearly a quarter of all US households currently have and use Internet-connected TV, yet only 17 percent of consumers used it at least monthly by the end of 20124 . As a result, its likely that advertisers are waiting to see how the technology and consumer adoption develop before allocating more significant ad dollars to the device.
TA R G E T I N G A N D M E A S U R E M E N T
A numbers game
While targeting is considered the most important aspect of video advertising, behavioral is deemed the most valuable form of targeting according to 36 percent of respondents. Nearly a third of survey respondents say that lifestyle is the type of behavioral targeting they expect to use most. This might be attributed to advertisers level of comfort with this broad form of behavioral targeting since they have used it for many years in TV and print advertising. The technology now allows advertisers to use this more advanced targeting method for video across screens and ad media, whether it is TV, print or digital.
5. What type of behavioral targeting do you expect to use the most in your video advertising in 2013?
35%
35%
Lifestyle Lifestyle
Look alike / spend alike
30%
30%
Purchase-based TV targeting
In-market TV targeting
25%
In-market
25%
20%
20%
15%
10%
15%
5%
10%
0%
5%
0%
When asked what form of audience measurement clients value most for video advertising, respondents indicate that GRPs/TRPs are most important, a 46 percent lift from 2012. This could be attributed to agencies no longer questioning if video is effective for campaigns and rather asking how video can complement TV buys. With GRP planning and measurement, advertisers can ensure their ads reach the appropriate target audience and desired number of viewers.
40%
6. When it comes to audience measurement, which metric do your clients value most for video advertising?
35% 40%
25%
25%
20%
20%
15%
15%
10%
10%
5%
5%
%0 %0
2012 2012
2013 2013
2013
2012
2012 2013
2013 2012
2013 2012
2013
Other
% impressions in target Im not sure Im not Other % impressions in target GRPs or TRPs GRPs or TRPs sure
BrightRoll US Video Advertising Report: April 2013 | brightroll.com | 415.677.9222 | 343 Sansome Street, Suite 600,San Francisco, CA 94104 | Copyright 2013 BrightRoll, Inc. | P5
INSIGHT
7. What is the most important success metric for your video campaign?
40%
35%
30%
25%
20%
15%
10%
5% 0%
Views Brand lift Sales impact CTR Conversion GRP
Following the birth of TV and the adoption of TV ratings, GRP soon became the common currency for media planning and reporting. Online video is often compared to TV commercials leading to a growing demand to apply online GRP (a.k.a. iGRP) to new media. However, there is a fundamental challenge: Unlike TV, there is no rating for online content, so how is online GRP calculated?
iGRP BUILDS ON THE BASIC MODEL OF REACH X FREQUENCY
Traditional GRP:
UVs* UNIVERSE
FREQUENCY
iGRP:
IMPRESSIONS UVs
X 100
iGRP
IMPRESSIONS UNIVERSE
X 100
The calculation is straightforward and in line with TV GRPs. Does this mean that TV GRPs and online GRPs can be added together and then used for cross-platform delivery? Download the BrightRoll iGRP white paper to learn more about these calculations at brightroll.com/reports
BrightRoll US Video Advertising Report: April 2013 | brightroll.com | 415.677.9222 | 343 Sansome Street, Suite 600,San Francisco, CA 94104 | Copyright 2013 BrightRoll, Inc. | P6
INSIGHT
8. In which area of video advertising would you most like to see additional research?
35%
30%
25%
20%
15%
10%
5%
0%
2011
O
2013
2011
2013
2011
2013
2011
2013
GRP
2011
2013
2011
2013
ine impact
Purchase intent
Performance
Audience proles
Brand e ectiveness
Impact on o
Brand e ectiveness
BrightRoll US Video Advertising Report: April 2013 | brightroll.com | 415.677.9222 | 343 Sansome Street, Suite 600,San Francisco, CA 94104 | Copyright 2013 BrightRoll, Inc. | P7
Advertising
Video
LOOKING AHEAD
W H AT I S P R O G R A M M AT I C 50% BUYING?
40%
9. What percent of your overall digital budget do you expect to be programmatic in the next 12 months?
50%
30%
30%
20%
20%
10%
10%
0%
(0-19%)
(20-39%)
(40-59%)
(60-79%)
(80-100%)
algorithms to drive the best possible price for each impression. This occurs in real time, on demand and on an impression-byimpression basis.
- Goldman Sachs
0%
(0-19%)
As advertisers migrate to programmatic buying to maximize efficiency, they are focused on opportunities of this solution that offer the greatest campaign (20-39%) According (40-59%) to (60-79%) (80-100%) benefits. respondents, pricing efficiency (34 percent) is considered the top benefit for programmatic buying of digital advertising, which is not a surprise as media costs are always at the forefront of advertisers minds. This is followed by targeting (27 percent), optimization (16 percent) and audience efficiency (12 percent). With the forecast for tremendous growth of RTB and programmatic solutions this year, it will be interesting to watch how these benefits may shift or if specific efficiencies rise to the top as the market matures.
10. In your opinion, what are the key benefits to programmatic buying for digital advertising?
Programmatic Buying Programmatic Buying Programmatic Buying Key Benets Key Key Benets Benets
Pricing e e ciency ciency Pricing
12% 12% 12% 34% 34% 34%
Pricing e
ciency
Audience ciency e eciency ciency Audience e Universal frequency capping Universal frequency capping frequency capping Time savings Time savings savings
E D U C AT I O N
Efficiency prophecy
With the growth of programmatic buying for video and the proliferation of publishers, ad networks, demand side platforms and exchanges, its no surprise brands and agencies are increasingly questioning how to best create efficiencies across all of their campaigns. To address this, some buyers are considering single platform solutions. Moving to a single platform for video promises to provide efficiency to streamline processes and maximize ROI by delivering one point of contact for inventory, ad serving, targeting, optimization and unified reporting across screens. In support of this, 43 percent of survey respondents say they are somewhat likely or likely to consolidate all or a portion of their budget to a single platform, while 46 percent indicate they are unlikely to do so. This may be attributed to a a need for further education about the benefits of using any particular platform for all or a majority of an advertisers video buying.
11. How likely are you to consolidate all or a large portion of your digital ad spending on one platform?
50%
50%
Unlikely Unlikely
Somewhat likely Somewhat likely I dont dont know I know
40%
40%
Likely
Likely
30%
30%
20%
20%
10%
10%
0%
0%
Gr eat
er
effi
cien cy
BrightRoll US Video Advertising Report: April 2013 | brightroll.com | 415.677.9222 | 343 Sansome Street, Suite 600,San Francisco, CA 94104 | Copyright 2013 BrightRoll, Inc. | P9
CONCLUSION
Programmatic buying is at
the forefront of
helping advertisers
save time
and money.
BrightRoll US Video Advertising Report: April 2013 | brightroll.com | 415.677.9222 | 343 Sansome Street, Suite 600,San Francisco, CA 94104 | Copyright 2013 BrightRoll, Inc. | P10
The digital ecosystem is rapidly changing with video leading the way. The number of video ads served from 2012 to 2013 increased 64 percent7. This trend wont likely slow down as more brands and agencies are embracing digital video and realizing how it enhances digital advertising strategies and bottom lines. Technological innovations in digital video are rapidly advancing planning, targeting and measurement capabilities. These have the benefit of not only arming advertisers with more effective tools, but also enabling video to be the greatest category of growth in digital advertising2. According to respondents, video has proven its effectiveness and has been found in other studies to be viewed as more complementary to TV advertising. Video ads can actually increase the efficacy of TV spots: 29 percent of viewers who were exposed to both online video and TV ads recalled the message versus 19 percent that viewed the TV ads alone, a 53 percent increase in message performance 8 . While the conversation about video and TV has shifted, the value found in advanced targeting, especially behavioral, and the importance of audience measurement through views still remains a big priority to advertisers. They seek to better understand GRP to more accurately plan their digital campaigns, while views help them measure campaign success through audience engagement. As digital video advertising solutions continue to evolve, programmatic buying is at the forefront of helping advertisers save time and money. The value of single platform media buying solutions will be a key trend to watch over the next 12 months to see how they gain traction and become more prevalent in the industry. Eighty-five percent of the US Internet audience viewed online video in March 2013 and video ads accounted for 25 percent of all videos viewed9. Its clear video has staying power and can have a major impact when incorporated into a larger advertising strategy. Brands and agencies are taking advantage of the benefits video offers but are still eager for further innovation and advancement to continue to achieve campaign goals and drive ROI.
GRAPHS & CHARTS 1. Which aspect of video advertising do your clients view as most valuable? P3
2. Compared to the following channels, is video equally or more effective? P3 3. What % of your digital RFPs included a video ad component in 2012? P4 4. Which advertising categories do you expect to see the highest and lowest growth in media spending this year? P4 5. What type of behavioral targeting do you expect to use the most in your video advertising in 2013? P5 6. When it comes to audience measurement, which metric do your clients value most for video advertising? P5 7. What is the most important success metric for your video campaign? P6 8. In which area of video advertising would you most like to see additional research? P7 9. What percent of your overall digital budget do you expect to be programmatic in the next 12 months? P8 10. In your opinion, what are the key benefits to programmatic buying for digital advertising? P8 11. How likely are you to consolidate all or a large portion of your digital ad spending on one platform? P9
CITING & SOURCES 1 eMarketer: https://www.emarketer.com/coverage/advertisingmarketing.aspx 2 eMarketer: http://www.slideshare.net/eMarketerInc/emarketer-webinar-trends-in-video-advertising-and-measurement-16163295 3 Reel SEO: http://www.reelseo.com/ces-2012-connected-tv-advertising-begins/ 4 eMarketer: http://www.emarketer.com/Article/Connected-TVs-Reach-One-Four-Homes/1009581 5 IAB/Break Media Digital Video Advertising Trends: 2012: http://www.iab.net/media/file/BreakMediaDigitalVideoStudy2012.pdf 6 Forrester Consulting: RTB Powers The Rapid Growth Of Online Video: http://www.spotxchange.com/images/documents/reports/ SpotXchange-RTB-Powers-the-Rapid-Growth-Of-Online-Video-Forrester-TLP-April-2013.pdf 7 comScore Video Metrix Key Measures, Jan. 2012 Jan 2013 8 Nielsen/IAG Microsoft Advertising Video Effectiveness Research Report: http://www.iabcanada.com/wp-content/uploads/2011/09/ NielsenIAG_MicrosoftAdvertising_VideoEffectivenessReport_2011.pdf 9 comScore Video Metrix Key Measures, March 2013
ABOUT BRIGHTROLL BrightRoll is the largest independent video advertising platform for reaching audiences across web, mobile and connected TV. The company powers digital video advertising for the worlds largest brands including 90 percent of the top 50 US advertisers and 17 of the top 20 advertising technology companies. The platform enables advertisers to reach 4 in 5 video viewers online and consistently ranks among the top two video ad platforms in ads served. As a result, BrightRoll technology collects and analyzes hundreds of billions of data points monthly enabling real-time decisions that drive ROI for advertisers.
BrightRoll US Video Advertising Report: April 2013 | brightroll.com | 415.677.9222 | 343 Sansome Street, Suite 600,San Francisco, CA 94104 | Copyright 2013 BrightRoll, Inc. | P11