Tags containing: "premium video"

Advertising | Perspectives | Supporter Spotlight

Rethinking ad spend: The science supports premium digital video

April 22, 2022 Mark Lollback, Global Chief Strategy and Growth Officer – Oovvuu

Just a few weeks ago, Think Premium Digital in Australia launched part three of their research into the effectiveness and competitiveness of premium digital video. As the ex-CMO and ex-CEO of GroupM, I love to see the investment in quality research to help lift the performance of marketing and challenging out of date thinking.

This latest report, called “Not all time spent is equal,” looks at time spent on a platform vs. the advertising attention on that platform. The research shows that time spent on a media platform is not the same as time spent consuming advertising. Publisher premium digital video performed the best in terms of ad exposure and ad attention – beating out YouTube and social platforms.

The research also found that just because consumers are spending hours and hours on a media platform doesn’t automatically qualify it as a great place to advertise to them. The study highlights that ad attention (the time that eyes were on the ad), rather than time spent, should play a more important role in media channel selection. Time spent on a platform is not a suitable proxy for advertising effectiveness and should challenge agency planners to think differently about digital planning.

The new way to choose marketing channels

The obvious question becomes, if time spent is no longer the driving forced behind where advertisers should spend their money, what factors should they take into consideration. Here are three important factors to understand before making a channel choice:

Time spent on platform – Total time spent converts to 10.2% ad exposure for premium video compared to 4.5% for YouTube and 0.7% for Social Video.
Ad exposure opportunity – Ad exposure for premium video is 2.2X more than YouTube and 16X more than Facebook in an average hour.
Ad attention is what drives engagement and behavior change – An hour on premium video generates 5 mins of ad attention; 2.6X more than YouTube and 25X more than social video.

Notice time spent is still a consideration – but only part of the equation.

Why attention matters

“Attention” is getting a lot of attention in marketing, advertising and agency discussions – as it should. The pressure on marketing dollars to truly deliver impact and business results has never been higher and selecting the right channel and environment is critical. This is an area where multiple research studies have shown that premium digital video on premium publisher’s sites deliver best in class results.

If the publishing industry ever wanted insights and results to help drive transformation of their video offerings to be a perfect match for advertiser needs, these are those insights. Building premium digital inventory should be every publisher’s priority. Premium video refers to short- and long-form video housed in the digital environments of known and trusted media brands that are brand-safe and offer meaningful scale.

Dr. Duane Varan, CEO of MediaScience, said about this latest piece of research, “Here, we’re looking specifically at these video ads appearing and trying to understand those differences. Similar research needs to be done across 100 other variables. But attention is a good starting point, because if you don’t have attention, you don’t have anything else. Attention is the start of the conversation.”

Dr. Varan added, “As we’ve consistently demonstrated, environments matter. The case for premium video continues to strengthen with this research showing its ability to deliver ad exposure and even more importantly, advertising attention.”

Rethinking your media strategy

Venessa Hunt, General Manager of Think Premium Digital in Australia, wasn’t surprised by the findings given consumption behavior. Where the disconnect comes from is that people aren’t looking at the full picture in the planning processes, she said.

“It’s often frustrated me when we talk about time on reach and exposure to advertising, because they are such different things. If a client is paying for time on a platform, or the ability for time on the platform, it doesn’t potentially benefit the brand. But if the ad isn’t even there, you’re using the wrong data to start that planning process.”

Hunt expected this kind of exposure and attention would become a factor in industry decision making, though she admitted the industry isn’t there yet. Measuring attention is problematic and variable.

“For now, though, we have to start changing the conversation around the planning,” Hunt said. “Why are we spending so much on this platform over another? We’re using time spent as the justification, and the fact everyone is there and there a lot. Sure they are, but there are no ads. Changing the mindset around planning ad exposure and ad attention as opposed to platform exposure and attention is key.”

Industry-Research

Online pay-TV customers will more than double in a year

May 18, 2018 Michelle Manafy, Editorial Director – DCN

New research from Parks Associates shows that 6% of U.S. broadband households are highly likely to subscribe to an online pay-TV service within the next 12 months, which would more than double the number subscribing today.

While traditional television subscriptions held quite steady from 2010 to 2015, they have declined year-over-year since 2015. Significantly, the percentage of households “cutting the cord” has increased between 2015 and 2017. Parks Associates also reports a larger number of “cord-never” households, though a much greater percentage of consumers are either testing new options or still in decision mode.

Why Consumers Cut the Cord

Price, cost, and low price/value perceptions dominate as reasons for pay-TV cancellation and cord shaving. More than 50% of households that have switched, shaved, or cut the cord in the 12 months prior to Parks Associates’ survey said that the reason is that their pay-TV service was not worth the cost. Parks Associates also found that about a third of cord cutters would have stayed with their service provider if offered a Netflix-style service bundled with broadcast TV channels.

Providers must replace revenues lost in the wake of fewer subscribers. However, only one-quarter to one-third of consumers are willing to pay more for their pay-TV services, even given the addition of highly appealing features.

Maintaining Customers & Sustaining Revenue

Thus, providers must prioritize consumer retention. Given that Parks Associates found that many pay-TV subscribers are unaware of the video on-demand (VoD) features available to them, pay-TV providers must do a better job in communicating VoD offerings, or they will lose consumer VoD viewing to online options. Providers should also consider adding the features that Parks Associates found are most appealing to digital video consumers (pause, restart, and rewind) for no extra cost in order to incentivize maintaining their pay-TV subscription.

The good news, according to Brett Sappington, Parks Associates’ Senior Director of Research, is that streaming is well-established, and consumers are familiar with its function, even without a deep understanding of the technology. And, while percentage of potential shavers and cancellers has risen, Sappington points out that many consumers are comfortable with what they have and not in a rush to change. This lapse provides providers and entrepreneurs openings for creative solutions to bring consumers ever closer to their ideal vision of price/value and feature excellence.

Industry-Research | Video

Consumers Pay More for More Online Video

September 4, 2015 DCN

As overall online viewing continues to, so has consumer willingness to pay a premium for content according a new study from Vimeo, “Online Video Viewing and Purchasing.” The research examines consumption habits of online video viewers today as compared with a year ago to provide insights into the purchasing habits of digital video content viewers in an effort to help filmmakers market and sell their work more effectively.

Among the nine key insights provided:

People are spending more money on online video than they were a year ago.
Viewers will pay double or more for longer form content as compared with shorter form content.
Having both Buy and Rent options is optimal.
Niche content is worth a premium.
Ad-free viewing is also worth a premium.

Vimeo, which conducts studies in order to provide best-practices to the community of filmmakers who sell their work on the Vimeo on Demand platform, worked with independent international research consultancy Latitude to produce the study, which surveyed more than 1,000 people in the U.S. ages 18 to 54 who self-reported as online video viewers.