eMarketer Digital Video Roundup

8/22/2019 eMarketer Digital Video Roundup

1/14

eMarketerDigita VideoRondp

July 2013

sponsored by

Video is the astest-growing o any digital ad ormat, with marketers

attracted to the branding possibilities o video and more consumers

watching digital video content each year. Spending is predicted

to continue growing robustly in coming years, and by 2017 will

account or nearly 15% o all US digital ad spending. eMarketer has

curated a roundup o key trends, statistics and inormation relevant

to marketers exploring the possibilities o online video advertising.

We hope this brie will help you navigate the complexity acing all

digital marketers.


2/14

Digital Video Roundup Copyright 2013 eMarketer, Inc. All rights reserved. 2

Digita Video Rondp July 2013

Digita Video Rondp Overview

Digital video viewing is a mass activity in the USand its popularity has helped to drive signicant growth

in video ad spending. eMarketer estimates that 182.5 million US consumers will watch video content

online at least monthly this year, equivalent to 57.7% o the population or 75% o all internet users.

A large number o those viewers are also starting

to watch video on mobile devices. This year,

74.4 million mobile users will watch video content

on their phones, up 16.9% since 2012. By 2017,

eMarketer estimates, about 45% o all mobile phone

users will watch video on their devices.

Between the popularity o video content and the

attractiveness o video or brand-building purposes,

marketers are also drawn to the channel. US

advertisers will spend $4.1 billion on digital video

ads this yearincluding ormats served to desktop

and mobile devices. Thats still a small share o

total digital ad spending, at 9.7%, but its the single

astest-growing ormat throughout eMarketers

orecast period. By 2017, spending will reach

$9.1 billion.

US Digital Video Viewers, 2012-2017

Digital video viewers(millions)

% change

% of population

% of internet users

2012

171.6

9.1%

54.7%

72.2%

2013

182.5

6.3%

57.7%

75.0%

2014

190.6

4.4%

59.8%

76.6%

2015

196.6

3.1%

61.2%

77.3%

2016

201.0

2.2%

62.1%

77.8%

2017

204.6

1.8%

62.7%

78.1%

Note: internet users who watch video content online via any device at leastonce per month; CAGR (2012-2017)=3.6%Source: eMarketer, Feb 2013

151606 www.eMarketer.com

% changeUS Digital Ad Spending Growth, by Format, 2011-2017

Display

Video

Sponsorships

Rich media

Banners andother*

Search

Lead

generationEmail

Classifieds anddirectories

Mobilemessaging

Total

2011

24.4%

40.8%

56.1%

7.3%

21.3%

25.8%

13.7%

9.2%

-0.7%

-1.1%

21.7%

2012

19.9%

44.5%

37.0%

8.6%

13.3%

14.8%

10.5%

3.0%

-0.8%

-11.0%

15.0%

2013

18.1%

41.4%

22.1%

13.3%

10.6%

12.4%

11.5%

4.5%

4.2%

-3.4%

14.0%

2014

17.1%

38.9%

20.0%

17.7%

7.0%

10.0%

10.0%

2.3%

3.7%

-7.0%

12.4%

2015

15.1%

21.4%

13.3%

41.5%

5.8%

7.3%

3.9%

2.3%

2.5%

-5.3%

10.2%

2016

12.7%

16.8%

12.4%

27.7%

5.5%

6.4%

2.9%

4.1%

4.0%

-1.0%

9.0%

2017

10.5%

12.8%

7.6%

18.0%

6.8%

3.9%

2.9%

2.6%

2.2%

-4.3%

6.9%

Note: includes advertising that appears on desktop and laptop computersas well as mobile phones and tablets on all formats mentioned; datathrough 2012 is derived from IAB/PwC data; *includes ads such asFacebook's Sponsored Stories and Twitter's Promoted TweetsSource: eMarketer, June 2013



3/14


Video Ads Sccess Hinges on Socia Sharing in the Ear Das

FMCG ranks second, behind entertainment

Digital video has viral potential, and advertisers are increasingly trying to tap into the social-sharing instinct

among viewers. Unruly Media Inc., a video technology company, studied social shares worldwide and ound

that the ast-moving consumer goods and consumer products category (FMCG) made particular stridesin Q1 2013, capitalizing especially on Super Bowl placements and increasing the number o social video

shares by 78.2% over Q4 2012.

In total, entertainment garnered the most social video shares

in Q1 2013, which is unsurprising given the adeptness o the

industry at creating video content. Impressively, the FMCG

sector was right behind. The two industries accounted or over

hal o total video ad shares.

Looking specically at social video ad shares around the Super

Bowl, the study also ound that the auto sectora major Super

Bowl advertiserperormed airly poorly.

The Super Bowl is where auto advertisers devote a signicant

percentage o their yearly budget, and that allocation showed

in the increased shares the auto sectors videos received in

Q1 2013377% more than in Q4 2012. But that didnt help

boost auto above ourth place in the percentage o total shares

garnered during that period. It seems auto manuacturers

have more work to do to bring their TV ad-spot know-how to

the web.

While creating unique, compelling video is critical to

getting social shares, there is also a bit o science behind

the phenomenon.

Unruly Media looked at social video sharing during 2012 among

the 200 most-shared brand videos and ound that the rst three

days ater an ads debut determined a lot about its success:

10% o total shares occurred on the second day ater debut,

the apparent high point or video ad sharing. And the rst three

days saw one-quarter o total shares.

% of total

Share of Online Social Video Ads Shared Worldwide,by Industry, Q1 2013

Entertainment 28.7%

FMCG 25.3%

Tech 17.0%

Automotive 9.4%Sports 5.3%

Apparel3.7%

Retail2.7%

Finance1.9%

Note: on the Unruly platformSource: Unruly Media, "Unruly Social Video Report: Q1 2013," April 16, 2013


% of total shares

Length of Time Internet Users Worldwide Take toShare Online Branded Videos*, 2012

10% of shares occur on day 2

25% of shares occur in the first 3 days

50% of shares occur within the first 3 weeks

66% of shares occur in the first 3 months

Note: *200 most shared videos tracked by Unruly MediaSource: Unruly Media, "The Social Diffusion Curve," April 23, 2013



4/14


Video Ads Success Hinges on Social Sharing in the Early Days

Social networkers are ready and willing to share video; they

are simply waiting or content worthy o their attention and

endorsement. Online video sharing was a top internet activity

among US web users, according to a December 2012 study

rom NetBase, especially among younger consumers. It was the

No. 2 online activity among those between 18 to 34 years old.And even among those in the 35-to-54 age group, more than

hal reported sharing video.

Wordwide, Digita Video Viewers Spend More Time with live Videothan VOD

Smartphones and tabets increasing sed to watch content

Digital video continues to work its way into the content-viewing habits o consumers around the world.

No longer willing to have digital video habits dictated by programmers, networks and cable companies,

viewers have shown a ondness or on-demand content. But is video-on-demand (VOD) the most popular

orm o online video?

Research rom video publisher Ooyala suggests otherwise.

A March 2013 analysis by the company o its customer

and partner database ound that digital video viewers were

spending substantially longer periods o time watching live

video than they were VOD content. In act, those on PCs spent

an average o 40 minutes watching live video on a per-play

basis, compared with 3.15 minutes or VOD. Those on tablets

spent an average o 16 minutes with live content, and only 3.6

minutes with VOD. A gap also existed among those watching on

a mobile device.

Digital video viewers are also spreading their habit across an increasing number o devices, with smart mobile devices such as

smartphones and tablets continuing to grow in popularity. Ooyala ound that mobile and tablet views, when added together,

accounted or 10% o the total number o online video plays.

% of respondents in each group

Online Activities of US Internet Users, by Age,Dec 2012

18-24 25-34 35-44 45-54

Social networking 90.4% 81.7% 84.5% 77.3%

Shopping 41.7% 55.2% 55.1% 48.6%

Video sharing 75.7% 64.2% 53.5% 51.9%

Rating and review 25.2% 37.3% 36.7% 27.6%

Photo sharing 42.6% 38.8% 29.4% 17.7%

Microblogs 39.1% 35.8% 29.0% 30.9%

Blogs 36.5% 36.9% 28.2% 21.0%

Bookmarking and tagging 32.2% 32.8% 20.4% 16.6%

Location sharing 15.7% 16.0% 12.2% 3.9%

55+

70.8%

37.5%

31.6%

19.0%

16.2%

15.8%

14.2%

13.4%

2.4%

Source: NetBase, "Social Listening vs. Digital Privacy, a Consumer Study:Your Practical Guide for How to Engage Consumers Based on Their AttitudeToward Privacy" conducted by J.D. Power & Associates, Feb 13, 2013


minutes

Time Spent with Video-on-Demand (VOD) and LiveVideo per Play Worldwide, by Device, Q1 2013

VOD

CTV & GC 5.1

Desktop 3.2

Tablet 3.6

Mobile 2.4

Live video per play

45.0

40.0

16.0

8.0

Note: over Ooyala's customer and partner databaseSource: Ooyala, "Global Video Index Q1 2013," June 19, 2013



5/14


Worldwide, Digital Video Viewers Spend More Time with Live Video than VOD

Interestingly, tablets showed a higher video completion rate

than either PCs or other mobile devices, underscoring how

quickly viewers have taken to these portable devices or

online video. Ooyala reported that 41.5% o tablet viewers in

their database watched videos until their end on the devices,

compared with 38.3% on a PC and 33.4% on a mobile device.

Marketers have been quick to ollow audiences to these new

platorms. A survey by AOL Networks conducted in April 2013

ound that a majority o marketing proessionals worldwide

believed that digital video was better at engaging viewers than

traditional television. Almost hal thought online video was an

improvement over television in creating awareness.

For Driving Engagement, Digita Video Ads Beat TV b a Wide Margin

Targeting is a ke advantage or digita video

Almost three-quarters o marketing proessionals worldwide planned to increase their spending on

branded video content or video ads in the next year, according to AOLs survey. More than 50% o that

group said that the added investment would come rom TV and display budgets. Only 4% o respondents

planned to draw back spending on digital video ads.

In keeping with digital advertisings requent role as a

direct-response vehicle, the study ound that digital video

ads beat out TV ads or achieving engagement goals: 58%

o marketers thought digital video ads perormed better

than TV ads by this measure, compared with 15% who said

engagement was worse or digital video ads.

A smaller percentage47%also thought digital video ads

were better at driving awareness than TV ads. But this was still

more than the 31% o marketers who said TV ads got better

awareness results.

Targeting seems to be the secret sauce behind digital video

ad success. The highest percentage o marketers (87%) said

targeting was an important actor when planning a branded

digital video campaign, just ahead o those who cited reach

(85%) and content (81%).

Digital Video Completion Rates Worldwide, by Device,Q1 2013

Tablet CTV & GC Desktop Mobile

25% completion 72.9% 68.8% 63.1% 60.5%

50% completion 64.3% 62.7% 54.5% 52.9%

75% completion 56.2% 57.7% 48.5% 46.9%100% completion 41.5% 47.2% 38.3% 33.4%

Note: over Ooyala's customer and partner databaseSource: Ooyala, "Global Video Index Q1 2013," June 19, 2013


% of respondents

Ability of Marketing Professionals Worldwide toAchieve Better Share of Awareness and Engagementwith Digital Video than TV*, April 2013

Better

47%

58%

Same

24%

14%

Worse

31%

15%

Awareness Engagement

Note: read as 47% of respondents believe that digital video drivesawareness better than TV and 58% of respondents believe that digital videodrives engagement better than TV; includes branded video content andvideo ads; *for the same investmentSource: Be On, a division of AOL Networks as cited in press release, June 5,2013



6/14


For Driving Engagement, Digital Video Ads Beat TV by a Wide Margin

And when marketers determine whether to put more dollars

toward digital video adsand by how muchtargeting is key,

with 73% o respondents saying better targeting would aect

how much more they would spend on the ormat.

But even as marketers go all in on digital video ads, they mustcontend with consumer resistance to the ad ormat, especially

when compared with TV, where advertising is expected.

A Starcom study rom January 2013, in which participants in the

US were shown a controlled series o clips and told that they

were either traditional TV programming or original streaming

content, ound that consumers remained more resistant to

commercials in digital ormats, with 45% having a negative

attitude toward such ads vs. 39% who had negative opinions o

ads shown on TV.

But the study also showed that viewers may simply have a

stronger reaction to video ads overall, whether good or bad.

More consumers reported having a positive attitude toward

ads in original streaming content (25%) than in TV programming

(22%), as well.

It seems there is huge potential or digital video ads to deliver

strong results or marketers, as long as they can identiy the

right audience and create compelling enough content such that

viewers dont mind the intrusion.

% of respondents

Factors that Will Affect the Increase in Digital VideoSpending According to Marketing ProfessionalsWorldwide, April 2013

Better targeting 73%

Measurement 67%

Scale/reach 54%

Note: includes branded video content and video adsSource: Be On, a division of AOL Networks as cited in press release, June 5,2013


Traditional TV Original streaming*

% of respondents

Attitude Toward Ads During Traditional TV vs. OriginalStreaming* Content According to US Internet Users,Jan 2013

Note: n=4,800 ages 18-55; *professionally produced for online viewingSource: Starcom, "Streaming Original Content: The Source-Agnostic Vieweris Here," May 22, 2013


Neutral39%

Negative39%

Positive22%

Neutral30%

Negative45%

Positive25%


7/14


TV, Video Habits See Big Changes

With rising OTT viewing, man ct cabe

As online video gains viewers, cable TVs losses mount. While 60% o US internet users surveyed told

AYTM Market Research that they still had a cable TV subscription in May 2013, another 23% said they had

a subscription in the past, but not any longer.

Consumers inclination to watch cable and network TV as it airs

is declining ast, while consuming video on non-TV devices and

watching over-the-top (OTT) content are increasingly becoming

regular activities.

In a March 2013 survey, Leichtman Research Group ound that

27% o US adults watched videos on non-TV devices every day,

and more than hal o respondents did so on a weekly basis.

Online video and streaming is also bumping up the connectedTV and OTT market. The Leichtman study ound that in 2013,

44% o US households had at least one TV set connected to the

internet, up rom 38% in 2012. And as more TVs are connected

digitally, OTT viewing is rising quickly. This year, one-third o

US adults surveyed reported watching OTT content daily

(nearly double what it was 2 years ago), and 59% said they did

so weekly.

YouTube and Netfix are big drivers o the movement to digital

and OTT viewing. AYTM ound that 29% o US internet users

surveyed watched YouTube videos at least daily in May, andmore than hal o respondents did so more than once a week.

Netfix has also seen a big bump in its subscriptions and use. In

2013, according to Leichtman, 22% o US consumers surveyed

said they streamed Netfix weeklymore than ve times as

many as watched content via Netfix in 2010.

These trends are all pointing in the same direction: Traditional

TV viewing is on the wane, and digital video is rising ast. But

this does not mean that TVs role in the media ecosystem is

totally diminished. As TV manuacturers and networks oer

more dynamic viewing options, the nature o how and what USconsumers watch on TV will continue to change.

AYTM additionally ound that over hal o cable TV viewers said they watched less than hal o the channels available via their

subscription, and an overwhelming 74% said they would preer to choose individual channels rather than paying or a whole

bundle. As cable and network TV providers strategize how to keep consumers tuned in, all options are on the table.

% of respondents

US Internet Users Who Have a Cable TV Subscription,May 2013

Yes60.0%

No, but I havein the past22.5%

No17.5%

Note: n=400Source: AYTM Market Research as cited in company blog, May 10, 2013


% of respondents

US Consumers Who Watch Any Over-the-Top (OTT)Content Daily or Weekly, 2011 & 2013

Daily

17%

33%

Weekly

41%

59%

2011 2013

Note: ages 18+; includes connected TV sets

Source: Leichtman Research Group Inc. (LRG), "Emerging Video Services VII"as cited in press release, May 2, 2013



8/14


Ad Agencies See Eectiveness in Onine Video

Ad execs think onine video ads are eqa or more eective thanteevision ads at reaching adiences

The online video advertising ecosystem has gained both prominence and complexity, but that might

be because buyers have ound that the ads really work. A March 2013 survey o US advertising agencyexecutives conducted by online video ad platorm BrightRoll ound that the vast majority o respondents

(75%) said online video ads were equally or more eective than traditional TV. Nine out o 10 also thought

online video ads had equal or greater impact than display ads.

Ad execs may be responding to US consumers seemingly

endless demand or online video. Video monetization rm

FreeWheel reported that in Q4 2012, total video views among US

internet users climbed 23% year over year.

The popularity o digital video viewing is helping drive the

expansion o the online video ad market. eMarketer estimates

that video ad spending in the US will grow 41.4% this year, to

reach $4.1 billion. BrightRoll ound that the greatest percentage

o advertising proessionalsone-quarterexpected online

video ads to see the highest growth rate o any ad category, with

mobile video a close second.

The growing complexity o the online video ad market means

that advertisers now have a variety o ways to measure return

on investment. But which method is best? This year, 36% o ad

executives indicated that their clients placed the highest value

on gross rating points (GRP) or target rating points (TRP) tomeasure the size o their audience. Still, another 30% said clients

valued the percent o impressions that reached their target

audience, while 24% named the percent o unique viewers

in target.

Ad buyers are aced with an increasingly complicated equation

when it comes to online video ads, and they need to consider

which sites to purchase ads on, what ormat the ads will take

and how to measure their eectiveness.

% of respondents

Effectiveness of Video Ads Compared to Select AdTactics According to US Agency Executives,March 2013

TV

75% 17% 8%

Social media 68% 17% 15%

Search advertising

52% 35% 14%

Direct response

45% 31% 25%

Equally or more effective Less effective Don't know

Note: numbers may not add up to 100% due to roundingSource: BrightRoll, "Digital Video 2013," May 1, 2013


Display

91% 6%

3%

% of respondents

Ad Tactics in Which US Agency Executives Expect toSee the Highest and Lowest Growth, March 2013

Highest growth Lowest growth

Online video 25% 2%

Mobile video 23% 4%

Mobile display 17% 10%

Social media 9% 4%

Direct response 7% 32%

Online display 7% 4%

TV 6% 25%

Search advertising 5% 5%

Connected TV 2% 15%

Note: numbers may not add up to 100% due to roundingSource: BrightRoll, "Digital Video 2013," May 1, 2013



9/14


Video Is the Next Frontier or Emai Marketers

One ot o or aread se video in emai messages

On paper, the blending o video with email marketing might make perect sense. Opt-in email marketing

takes much o the guesswork out o hitting target audiences, and consumers have shown an almost

insatiable demand or online video. However, aFebruary 2013 survey o marketing executives

conducted by The Relevancy Group ound that only

one-quarter o respondents had used video in email

marketing campaigns.

Forty-three percent o marketers said they didnt use videos

in email messaging simply because they lacked the content,

making it the most prominent obstacle to the practice. That was

ollowed by the added costs o producing videos (27%), videos

guring low on the priority list (24%) and skepticism that videowould improve email campaign perormance (22%).

Despite the slow incorporation o video into email marketing,

81% o respondents were at least somewhat likely to start

putting videos into their emails, indicating a change could be

close on the horizon.

Respondents who had used videos in their email campaigns

saw real returns on their investments. Fity-ve percent reported

higher clickthrough rates, 44% saw an increase in the amount

o time subscribers spent with an email, and 41% reported an

increase in the sharing or orwarding o emails.

For retailers especially, online video can serve a crucial role

during the path to purchase. Online videos rise also coincides

with the growing importance attached to content marketing,

and can be used to connect in new ways with consumers

who may be tuning out more traditional messaging. eMarketer

estimates that digital video ad spending in the US will grow

rom $4.1 billion in 2013 to $9.1 billion in 2017, while email ad

spending will climb rom $229.3 million to $256 million over the

same period.

% of respondents

Reasons that US Marketing Executives Do Not UseVideo in Email Marketing, Feb 2013

We don't have any video content

43%

Increased production costs of video content

27%

We have other priorities to improve our email program

24%

We don't think video will improve the performance of our emailcampaigns

22%

It doesn't universally work in all email client software

18%

We are unfamiliar that this was possible to do in email

9%

Our vendor's technology doesn't support it

7%

Note: n=200 marketers that do not use video in email marketingSource: The Relevancy Group, "The ROI of Video in Email Marketing"sponsored by StreamSend, June 10, 2013


% of respondents

Benefits of Using Video in Email Marketing Accordingto US Marketing Executives, Feb 2013

Increased clickthrough rates

55%

Increased the duration of time that subscribers read the email

44%

Increased sharing and forwarding of the email message

41%

Increased conversion rates

24%

Increased the dollars generated from this email message

20%

Increased our ads sales for email marketing messages

15%

Increased the average sales size of orders

14%

Other

2%

None of the above

6%

Note: n=66 marketers that use video in email marketingSource: The Relevancy Group, "The ROI of Video in Email Marketing"sponsored by StreamSend, June 10, 2013



10/14


How to Get the Most Impact When Bing Video Ads

Jeff Zannella

Associate Media Director

Hi Hoida

Je Zannella helps strategize digital media plans

or clients like TJX and Supercuts. He spoke with

eMarketers Lauren McKay about the elements

that contribute to the decision to buy digital

video ads.

eMarketer: How do you decide where to run digital

video ads?

Jeff Zannella: It all starts with the brand objectives or the

particular campaign, or the particular client. We also use

our third-party planning tools, comScore and Nielsen, to

evaluate the potential audience reach against each o the

major video partners that are out there. In addition to that,

its just looking at those particular ad platorms to try and

understand the contextual relevance o the environments

as they pertain to the type o content were looking to

promote against the particular type o audience. Then

we try to understand the nuances in terms o what user

behavior looks like, to then help gauge the potential reach

or that particular campaign.

eMarketer: Can you give a ew examples o buying

video ads?

Zannella: For our client Supercuts, the campaign

and video content is all about rocking the cut. It has a

heavy music infuence and is trying to reach a younger

demographic. We used comScore to help us evaluate the

potential reach against an 18-to-34-year-old demographic

and then thought about how we could be more relevant

with the actual video spots themselves.

That led us to align with VEVO, because that site had the

best opportunity or demographic targeting, as well as just

the natural contextual environment or music altogether.

We targeted within various music categories, and it was a

perect marriage.

For a big retail client, our strategy is much more predicated

on extending the reach and complementing the reach o

our TV buys. So were looking to extend the TV spots andbuild requency and distribution amongst ashion-related

as well as emale-specic content.

Were abe to target the exactdemographics that were tring to reachwith TV, and were doing it in a wa thatrepicates that TV-watching experience.

Were ocusing on network websites, as well as Hulu,

because the content o these aligns well with our

TV-based buys. Were able to target the exactdemographics that were trying to reach with TV, and

were doing it in a way that replicates that TV-watching

experience. Hulus targeting guarantees delivery against

our specic demographic o emales ages 24 to 49.

eMarketer: When you advertise on TV network sites,

either broadcast or cable, is that part o the larger television

ad buy?

Zannella: Yes, denitely with the network TV sites. We look

to complement that with digital dollars on Hulu as well. But,

yes, its a part o the overall negotiated contract that we ge

by going direct with ABC and NBC.

eMarketer: How do you approach YouTube, given its size

and its scale?

Zannella: In addition to running paid ads, we will post

branded content on YouTube branded channels or clients.

In terms o paid ads, we like that with the TrueView-based

product oering, its guaranteeing viewership, and its more

choice-based oriented, which is something that we try to

align with as much as possible.

We like giving consumers the control as to what they

watch and what they dont watch, so that when we do get

people to actually watch something, theyre much more

engaged with our content. We leverage YouTube wherever

possibleits eective in maximizing the amount o

consumption and reach.


11/14


How to Get the Most Impact When Buying Video Ads

eMarketer: With sites that oer more o a lean-back

experience, like Hulu, are consumers more or less engaged

with the content?

Zannella: Because Hulu does replicate the TV lean-back

type o experience, theres less engagement rom [the]consumer. Hulu does have some products that allow or

more engagement, but or the most part, their standard

oerings are typically just Watch this video and then

continue into the content that you intended to watch in

the rst place. So, we will supplement that with other

sites that have more immersive and interactive points

o engagement.

eMarketer: To what degree do you need to adapt or

tailor video assets or dierent sites, or even or dierent

audiences or technological demands?

We dont want a pre-ro to otweigh theacta viewership ength o the contentthe came to view in the frst pace.

Zannella: There are some basic technical needs or

dierent ormats and le sizes and rame rate restrictions

as you move rom platorm to platorm. Although were

limited in terms o what our clients are able to produce

rom a cost standpoint, we are trying to design or the

space as best as possible. I we are on, say, a Hulu, we havethe opportunity to run more longer-orm content.

But with YouTube and wherever short-orm types o

content are consumed, we try to run shorter video units to

complement that experience. We dont want a pre-roll to

outweigh the actual viewership length o the content they

came to view in the rst place. We want our ads to be as

noninterruptive as possible but to be as engaging as they

possibly can.

eMarketer: When and why do you choose to work with avideo ad network?

Zannella: It usually depends on the client objectives and

when were trying to create some level o scalability. [For

example], i its a sports category, we know that we can go

to a certain site specically and buy video inventory there,

but we also know that as a good complement to that, or

a more eciency-based buy, we can build some level o

scale at a lower cost and get greater distribution across

more destinations that are still relevant to our target.

I we are mostly trying to align with our TV buy, then we will

typically go directly to Hulu or another ull episode player, insome instances, to complement the ofine buy as much as

possible. Thats typically when we have more dollars in play

and can aord the premium costs or those specically. I

were looking or reach and distribution, thats where were

looking or a YouTube and network-style approach.

eMarketer: With ad networks, can you still choose and

limit specic sites?

Zannella: Its a case-by-case basis. Typically, we can

eliminate sites and categories o sites that were notcomortable with. We can typically blacklist, but we cant

typically whitelist. We do this across the board with our

clients when running with a network. Well require ull lists

o actual sites that [the video] will be distributed on and

then work with the client to eliminate ones that we eel we

would not be comortable advertising on.

Weve actually also [used] some content distribution

solutions and have been running and testing with the

Visible Measures o the world, and to some degree

StumbleUpon and Outbrain. When we have originallyproduced content and were looking to maximize

consumption and distribution o that, we use those types

o network partners.

eMarketer: What are you looking to achieve next with

digital video advertising?

Zannella: Weve been pushing more in the mobile space,

recognizing the importance o the second and third

screen. Weve been pushing toward a more holistic sort o

multiscreen approach in terms o our video oerings and

video targeting.

Weve been pshing toward a more hoisticsort o mtiscreen approach in terms oor video oerings and video targeting.


12/14


How to Get the Most Impact When Buying Video Ads

A platorm thats emerging and denitely interesting or

us is Xbox and working with Microsot testing out the

Kinect technology. The way Microsot is giving consumers

the opportunity to engage through their new ad ormat is

really interesting. Weve begun presenting it to clients and

testing it. We recognize it will be a huge, huge opportunitygoing orward.

eMarketer: Do you have any best practices or advertisers

looking to buy advertising on video sites?

Zannella: Theres such a huge opportunity to build o

o and supplement TV-based buying with video. Theres

a whole slew o advantages in terms o targeting and

augmenting that experience. You have your spot, but you

should then also think about that interactive overlay you

want included. Think not only about the video content,but also think about the intention ater the act. What are

you asking consumers to do? Have some sort o clear call

to action.

I nd the concept o users being in control o their destiny

interesting. Were all about choice, so i were giving

consumers the choice to watch and engage with our

content, we want to make sure that the content pays o

and that its good or interesting enough or them to have

spent time.


13/14
http://www.ustream.tv/


14/14

Documents

eMarketer Digital Video Roundup