Direct Response, Meet Online Video Advertising
Online video is still a nascent medium for most advertisers and agencies. Today most spots consumers view are a branded effort, a repurposed TV commercial, and bought on a CPM basis. Video is a powerful branding tool, but imagine taking that branded message and adding a strong call to action along with a CPC or CPA payout structure; well, this is the new frontier for online video.
As the Interactive Advertising Bureau and other boards are setting the standards for online video reporting metrics, it is important for advertisers and agencies to understand the various options they have for their online video budgets. Clearly, to generate significant reach and get a big bang for the brand, a CPM buy is the way to go. However, some things must be considered:
Engagement in online video can be measured in many ways, with the defining factor the campaign goals. Some questions:
This model is also a great vehicle for online retailers. ICongo just released a survey that found that one-third of polled adults said the high price of gasoline is making them more likely to shop online rather than at a retail store location. Further, according to a recent Online Publishers Association report, 80% of U.S. online video users have watched an advertisement in an online video. Of those people, 52% took action after watching that video; 28% looked for more information; 19% clicked a banner ad that accompanied the video; and 16% t bought something as a result of the ad. All signs suggest that this trend will continue well into 2009.
In addition to running a DR-focused spot in a standard 15 or 30 second in-stream (pre-, mid-, or post-roll) format, there are some new and exciting ways advertisers can take advantage of streaming video for DR campaigns. Particularly interesting are the many uses advertisers have for an overlay ad unit. These ad units, often called tickers or takeovers, are usually rich media units that show up on the bottom of the screen of the streaming video content. Viewers can either click on the unit and be directed right to the advertiser's site, or they can click on the rich media unit and the advertiser will have a "takeover" video spot that the consumer can watch, click or exit.
Many advertisers don't have, or else are in the midst of creating, online video assets -- but you don't need them to reap the rewards of this powerful medium. Consider testing first with a rich media overlay ad unit that drives traffic to a specific site or landing page. Back that up with a CPC or CPA based pricing model and incur little to no risk.
Here are some keys to establishing a strong DR online video ad spot:
So, whether you are considering online video advertising for the first time or have tried it and have already seen a strong ROI, it might be time to consider testing a different pricing and reporting model that best fits your particular goals.