Interactive Video & Connected TV

Poised to Dominate 2016 Media Strategies

The State of Interactivity Report | Q3 2015

4Key Findings

5Today’s Media

Spending

6Interactive Video: What’s Important

7The WHY Behind Buying Interactive

8Connected TV:

The Next Frontier

9Personalization & Programmatic

10The Next Step

Contents

3State of the Industry &

Methodology

(Click to view each section)

1Adobe U.S. Digital Video Benchmark Report, 2014 2eMarketer, March 2015

State of the Industry

Consumers’ demand for engaging, relevant content hasn’t slowed down one bit. Which is one of many reasons advertisers continue to leverage the power of video’s sight, sound and motion to achieve engaging branded experiences. From desktop, to mobile, to tablet, to connected TV and over-the-top platforms, advertisers are investing more and more into video. Creating seamless, over-the-top video content experiences takes precedence, as online TV consumption has tripled (up 388% since 20141) and 138.8 million people own connected TVs (compared to 107.1 million who own smartphones)2.

In order to fully understand where, how and why advertisers and their agencies are responding to this demand, we conducted a market survey with top U.S. media agencies and brand advertisers. The results reveal how these parties plan to budget, create and deliver against pre-roll, interactive video, and programmatic creative, while addressing the rise of advertising on OTT and connected TV.

Methodology

Over 200 respondents, ranging from VPs, to media and strategy directors, media planners and buyers, completed the survey in August 2015. 95% of the respondents represented U.S. media agencies, and the remaining 5% were brand advertisers across CPG, QSR, Finance, Retail, and Automotive. The survey was only applicable to those responsible for making media buying decisions within their organization.

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Key Findings

Video wins. Nearly 50% of the respondents indicated they are currently buying interactive video, and a whopping 92% are also buying pre-roll. 62% indicated they will continue to invest more and more budget in video next year.

Agencies are buying a very wide spread of media—budgets are spread across video, display and mobile. As consumer preferences shift, it is crucial to focus on media that can accomplish multiple goals or more efficiently achieve KPIs and higher ROI.

Interactive video buyers are preferential to the results it can drive, its strong user experience and its unique creative aspect. 92% said they continue to renew investments in their current interactive video.

Connected TV is emerging as the newest player for advanced video, with nearly 80% of current ad buyers being willing to invest more. However, there’s a lack of awareness for interactive video solutions for connected TV, with over 60% being unaware of their creative choices.

Personalization

of rich media and

video is showing

slow adoption,

with only 34% of

those who are

responsible for

buying actually

applying tactics

to personalize the

message creative.

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Today’s Media Spending

Among survey respondents, pre-roll video and display are the top types of media currently being purchased, with mobile display and video right behind them.

What type of digital ad products do you currently buy?

Video (Pre-roll)

Display

Mobile Display

Mobile Video

Rich Media

Social

Interactive Video

Interactive Display

Connected TV

Content Marketing (Native)

INNOVID’S INSIDER TIP

The results show a vast

spread of media, signifying

many approaches to achieve

KPIs. Given the multi-faceted

natures of these media, it

could benefit agencies to

streamline spending into

mediums that accomplish

multiple goals, rather than

working in silos, and make

strategy application more

efficient.

92.3%

91.3%

87.0%

85.0%

78.3%

64.3%

61.4%

60.9%

60.9%

55.1% BACK TO TABLE OF CONTENTS

Interactive Video: What’s Important

Video stands alone as a strong medium—connecting with viewers through sight, sound and motion. But adding interactive content to videos can take engagement to a whole new level, fostering positive experiences and brand loyalty. When we examine the 61% of respondents who currently buy interactive video, we find that they may be judging the effectiveness of interactive campaigns the same way as they approach pre-roll campaigns.

Top 3 KPIs by which Buyers Judge Interactive Video’s Effectiveness

Completion Rate Brand Engagement Viewability

INNOVID’S INSIDER TIP

With interactive video, ensuring that

brands understand the wealth of

engagement metrics that interactive

campaigns yield is pivotal in

determining campaign’s success.

Whether it’s measuring user activity

within a video or calculating additional

time earned by adding interactive

elements, it’s crucial that brands

understand all of the data at hand to

better pinpoint their target audience’s

wants and behaviors.

49% 47% 43%

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The WHY Behind Buying Interactive Video

Results show that pre-roll video is widely popular, so why are agencies taking the next step to add interactive elements? Not only are they currently buying interactive video, but 92% plan to renew spending in the next 12 months.

Top 3 Reason Interactive Video Buyers are Renewing Investment

Desire to continue testing it out.

It’s proving effective.

More creative ad units.

INNOVID’S INSIDER TIP

Interactive video can cover a lot of KPIs

across vertical categories, so it’s no wonder

why creativity and further testing are two

of the top drivers for renewal. Adding

interactivity opens up doors for creative

with real-time analytics to determine what’s

working and what could be improved—this

lets marketers take more chances by adding

new features or trying different formats,

without the risks. In short, you want to bring

innovation that drives results to your client?

Interactive video is a great first step.

46%

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43% 40%

Connected TV: The Next Frontier that’s Here

Over-the-top content is on the rise as the transformation of TV continues, so it’s only natural that the medium’s popularity is picking up speed. INNOVID’S INSIDER TIP

With connected TV and interactive

video being priorities for the majority of

respondents, it’s pivotal to research all

solutions in the marketplace to understand

which solutions achieve KPIs most efficiently

with the major OTT platforms. Roku is the

most popular among audiences as they

stream 37 million hours of video per week on

Roku devices2. Sticking with devices that are

popular among consumers will expand reach

and better connect with target audiences. In

fact, Roku and Innovid recently teamed up

to offer interactive video on Roku devices,

capitalizing on their extremely engaged

audience.

1 Connected TV buyers are defined as those respondents who are responsible for connected TV buying decisions and who currently buy connected TV advertising.

2 Variety, 2015

Of those surveyed are responsible for

connected TV media buying decisions.

Of those responsible for connected

TV media buying decisions are

currently buying connected TV

advertising.

Current connected TV buyers1 are

likely to invest more in connected TV

advertising in 2016.

Of connected TV buyers1 who plan

to invest more in it, are still unaware of

interactive solutions for connected TV in the

marketplace.

66% 60%71% 79%

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Read more from TechCrunch

Personalization & Programmatic Creative

It’s a constant goal to make advertising more relevant to consumers, so it surprised us to see that less than 35% of respondents who are responsible for programmatic creative buying decisions are actually personalizing their display and rich media advertising.

INNOVID’S INSIDER TIP

While the adoption of programmatic creative

may appear slower than other mediums, it

adds that next level of relevant content that

keeps audiences engaged. Programmatic

creative can also help make media buys less

costly and more efficient by creating multiple

versions of one ad with one tag, rather than

creating many placements. Hey, you never

know until you try, right?

1Programmatic creative users are defined as those who are responsible for programmatic creative buying decisions and who currently personalize display and rich media advertising.

Of programmatic creative users1 are

doing so by retargeting consumers with

products they showed interest in.

Of those responsible for programmatic

creative decisions, are personalizing display and rich

media advertising.

Of programmatic creative users1

are buying video programmatically

through behavioral targeting.

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Of respondents are responsible

for programmatic creative buying

decisions.

68% 62% 77%34%

Join the Video Revolution

It’s clear that there are numerous media options to deliver brand messages and connect with audiences, but the next level of master marketing planning must ensure that your current marketing mix engages audiences with multi-channel solutions, rather than in silos. Streamlining investments to support solutions that achieve multiple KPIs simultaneously is a no-brainer and completely attainable.

Let your video ads work harder for you, while stepping up creativity and increasing opportunities for engagement—driving deeper and more memorable interactions with consumers.

Are you achieving your video KPIs in the most efficient and engaging ways for maximum ROI?

Contact us to get ahead in your video marketing strategy to deliver relevant content experiences to audiences on the screens they love.

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