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Direct Response, Meet Online Video Advertising

Direct response in online video advertising is fast becoming a reality. Whether advertisers are looking to generate sales, sign-ups, coupon downloads, or any action, online video advertising is a new and effective way to enhance off and online DR efforts.

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:

  • How is that impression recorded and billed?
  • Is that impression counted on the first frame of the video --or is there an engagement mark that qualifies the impression? Other common options to consider include cost per engagement, cost per click and cost per action.

    Engagement in online video can be measured in many ways, with the defining factor the campaign goals. Some questions:

  • Do you want consumers to watch a particular amount of your online video ad spot?
  • Do you want them to click and just see your new micro-site?
  • Do you want them to click on your video spot and then download a coupon or make a purchase?

    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:

  • Engage the consumer with a call to action in your video's message. Whether that is in the voice-over or as an overlay within the video creative, take the consumer to the most relevant landing page on your site.
  • Make the action that you want consumers to take on your site easy, fun, and seamless. Soon enough, you will see consumers not only watching your branded online video ad spot, but they will click to your site and then buy your jeans or sign up to be a member of your DVD rental service.

    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.

     

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