Commentary

ROI On Video Rises -- Targeting Aids Performance

Agencies are enjoying the results they’re getting with their online video ad spend, especially when it comes to targeted placements.

Some agencies are making video the main focus of digital campaigns. Forty-four percent of those who have done so said they are pleased with the return on investment in their online video campaigns, according to eMarketer data from a May Strata study.

OK, but that’s not a majority. Still, the number of advertisers who are realizing ROI is up 43% quarter over quarter, so the positive trend may be reassuring for the online video industry, the report said.

Likewise, the number of agency professionals who said they were unsure of the ROI of online video lessened by a full quarter of the total, to 37% of marketers in the study. These are positive signs that underscore the increasing measurability of online video advertising, which is coming in part because of better targeting tools and data.

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Targeting by viewer interest is the most effective strategy for driving viewers to actually watch the ads, said 65% of agencies in the report.

According to ad tech firm Videology, 94% of video campaigns in the first quarter used at least one non-demographic form of targeting, with behavioral and geographic the most common tactics. About half of campaigns included Zip code targeting.

The best way to target will likely vary, with some choosing demographics but others preferring more refined data on interests, behaviors, shopping habits and more. Perhaps the most valuable way to target will be with specific data sets. Econsulstancy has ranked first-party data as the most effective in gaining customer insights.

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