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brightroll-online-video-ad-effectiveness-june2012.pngDigital video advertising can be equally or more effective than TV, say 64% of advertisers responding to a BrightRoll survey released in June 2012. An even greater proportion see digital video as equally or more effective than display (87%) and social media (69%). Digital video’s effectiveness appears to be driven by its targeting capabilities, which 43% cite as its most valuable aspect. As a result, the use of behavioral targeting by agencies in online video campaigns will increase by 24% this year, with two-thirds saying that more than 40% of their online video ads will be behaviorally targeted.

Interestingly, beyond targeting, advertisers also see digital video’s reach and format as more valuable than its price relative to TV, which appears as the channel’s least valuable aspect. Online video’s reach doesn’t yet hold a candle to TV’s reach, though, but it is growing, according to a comScore report also released in June. Across 10 major brands included in the study, on average, 90% of their audiences were reached via TV, compared to 12% through online video.

Digital Video Spending Gets A Boost

Data from BrightRoll’s “US Video Advertising Report 2012” indicates that digital video advertising budgets are on the rise. This year, close to one-third of the respondents said that 40-60% of their digital RFPs include an online video component, up 9% from last year. Almost one-third of respondents also said that more than 60% of their digital RFPs include video, up 4% from 2011.

Digital video ad spending could get a more significant boost if clearer ROI and success metrics could be determined, with 7 in 10 respondents identifying these needs.

Mobile Gets Share of Video Budgets

This year, half of the BrightRoll respondents said they will likely include tablets in their digital video budgets. This seems sensible, given recent (separate) research from comScore indicating that a majority of tablet owners watch video and/or TV content on their device. While a majority of advertisers will also devote a portion of their digital video budget to mobile, a significant proportion (30%) will also likely allocate some to connected TVs. This choice also seems to follow consumer behavior, as a May 2012 report from Ooyala found connected TVs and gaming consoles to have the highest conversion and engagement rates among the various online video viewing mediums.

Other Findings:

  • The BrightRoll respondents do not display a clear preference for audience measurement. One-third say that their clients most value knowing what percent of viewers reached by their campaign were within their target audience. Not far behind, 26% value knowing what percentage of impressions were delivered to their target audience, and 25% value GRP or TRP measurements.
  • More respondents see contextual and behavioral targeting as valuable than demographic or geographic targeting.
  • The area of online video advertising that most agencies want to see more research into is the impact on offline purchase behavior, at close to one-third of respondents. Almost 1 in 4 want to see more research into the performance of video advertising as compared to TV.
  • The most common video campaign success metrics among respondents are views, brand lift, and sales impact.
  • Advertisers are most likely to buy video inventory from ad networks this year, marking a shift away from publishers.
  • According to the comScore report, 17% of the media brands’ studied audience were multi-screen consumers.
  • Further data from the comScore study indicates that multi-screen consumers who used the media brands via TV and online video spent 25% more time with the content than those who engaged only via? TV.
  • Across the media brands studied, 3 in 5 of their TV viewers used the internet within the same half-hour time block at least once during the 5-week study period. 29% used Facebook.

About the Data: The BrightRoll data is from 106 respondents to a survey conducted in March and April 2012.

comScore developed a Multi-Screen panel of consumers who had access to TV, Internet and mobile devices. The study includes media behavior from both smartphones and tablets but does not include mobile app usage. TV viewing was obtained from set top boxes with return path data capability, with panel households located in metropolitan areas of 22 states. Internet and mobile media usage data was collected for each panelist and includes detailed demographics for each user. To report TV usage at a demographic basis, comScore developed a methodology to attribute demographics to the household- based TV data. With these pieces in place, each platform was enabled with the demographic and socio-demographic segments commonly used in the media industry.

In all, 10,000 consumers participated in the study and 1,000 were active mobile Internet users.

comScore measured the audience size and composition for 10 networks and network groups (“media brands”) and 3 advertisers. The networks/network groups were comprised of 4 major broadcast networks and 6 major cable networks or networks groups. The study was conducted over a five week period in Fall 2011 and examined TV viewing for individual networks or groups of networks and cross-tabulated that viewing with the use of related content on the Internet, mobile Internet and online video. Due to sample size considerations, “related” content was usually broadly defined, so that it included the media company’s network-specific websites and online video, but also may have included other websites and online video content that the media company owns. By way of defining the consumer groups, “Multi-Screen” consumers are those who used the respective network/network group’s content on two or more platforms of the three measured: TV, Internet, mobile.

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