Date post: | 01-Nov-2014 |
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Marketing |
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ONLINE VIDEO ADVERTISINGTHE IMPACT OF BROADBAND FOR BRANDS
ONLINE
PostItFirst
Broadband and brands
Opportunity Timing Context Potential
Audience reach Creative scope Cost efficiencies Targeting
Conclusions Examples
Broadband will transform the online advertising industry as surely as colour transformed TV.
It creates new, vibrant and effective advertising opportunities for brands to engage consumers.
Combining the power of video with the interactive attributes and measurability of online.
It offers new cost efficiencies in audience delivery and in the production and use of video assets.
It can dramatically enhance the effectiveness at brand communication.
And it allows brands to respond to the long term deterioration of linear, broadcast TV as new technologies, fragmentation and viewer control undermines its historic strength as a medium.
www.postitfirst.com
The opportunity
Online advertising is the fastest growing ad medium, worth $2.3bn in Q1 2004 (Source PwC)
Predicted to be worth $14.8bn by 2008 (Source Jupiter)
Video streaming / rich media likely to account for $5.8bn (Source Jupiter)
Brand advertising increasing as a share of the total, to 45% by 2006 (Source EIAA)
This presentation aims to explain why broadband will make online advertising a ‘must have’ media for brands
A video medium, offering reach, cost efficiencies and improved ad performance is worth looking into
http://www.flashtalking.com/showcase/robotsRectangle.htm
Broadband has critical mass
6m UK homes have broadband Now used by 57% of all UK users It is having a significant impact
on web usage Users spend twice as much time
online (13hrs v 7hrs per week (NOP))
Users view more web content Downloading/watching video is a
key activity for broadband users Brands can now use video to
engage online audiences using new or existing assets
http://www.flashtalking.com/rangeroverexpand/
The contextBroadband comes of age
Broadband is growing faster than any other medium
274m users worldwide by 2008 50% of European HH by 2006 Growth facilitated by Shared network access / LLU Competitive pricing / packaging Faster connections Bundling (BB +DTV+Tel+VOD
+VoIP) TV viewing falls significantly in
broadband households 56% of users spend less/lot less
time watching TV Most pronounced among young
users
http://www.flashtalking.com/levisexpand/
The context TV market matures
Digital TV Trends, more choice Platforms – cable, satellite, DTT, DSL Channels – 350+ (on Sky) Fragmenting / diminishing audiences Viewers more fickle, elusive, less loyal
Broadcasters Reliance on blockbuster shows Have to deliver, impact on scheduling BARB research, lacks depth
Increasing viewer control Growth of PVRs (640,000 Sky+ STBs) Research confirms time-shifting, ad
skipping is endemic in PVR householdshttp://www.flashtalking.com/magnumbanner/
The potentialAudience
Using video advertising online to:
• Extend reach - to incremental audience among online users
• Increase frequency – using online advertising, consistent with TV to re-enforce brand messages
• Up weight - to light/non TV users, elusive young adults, older males
http://www.flashtalking.com/showcase/nokia7270.html
www.postitfirst.com
The potentialCreativity
Exploit the broadband users enthusiasm for video content
Create new, innovative uses for video content
Make effective and cost efficient use of existing video assets
Develop multiple purpose video assets capable of being deployed over multiple devices TV, PC, Mobile
This is not just another way to use a 30 second spot
http://www.eyeblaster.com/WebSite/new_archive/september_02/British_Airways/British_Airways_flip_onNYTimes/British_Airways_Launch.htm
Create memorable, impactful advertising that transcends the online / TV medium divide
The potentialCost Efficiency
Online video creates new cost efficiencies
Online audience CPMs are below equivalent TV GRPs
Reducing campaign CPMs, increase ROI
Media Multiplier effects Improves reach and frequency Allows cost effective up-weights Re-enforce messages to key audiences
Using online video can Ensure consistency between mediums Reduce production cost, improve ROI, Prolong campaign sales effects
http://www.tangozebra.com/adgallery_preview.phtml?ad_id=2249
The potentialTargeting
Video advertising online makes for ‘joined up’ marketing
Creates a clear visual link between the TV campaign and the brand’s web site
Allows for far more precise targeting with contextually relevant web sites
Gives the TV viewer the means to view the commercial, off air, on-demand, to interact and engage
At a time and place of their choosing
Allows them access to a richer experience beyond anything possible with TV today
www.postitfirst.com
Media commentary
According to Dynamic Logic’s MarketNorms® database, online ads using audio and video achieve greater impact on Brand Awareness on lower frequency exposure than other standard online formats, by typically 10 % points (Source Dynamic Logic Jan 2005)
Combine the power and emotion of video, the direct response and tracking capabilities of the Internet and the ability to combine long form video content, audio and interactive games and you’ve instantly taken interactive marketing to and entirely new level (Karin Sanjabi – EVP Carat Interactive US)
Pfizer claim an independent study conducted by Millward Brown indicates streaming online video ads ‘are equally as effective as television’ in creating brand interest, communicating a distinctive message and influencing viewers Pfizer Extends Campaign on MSN Video Nov 2004
www.postitfirst.com
Conclusions
Broadband…
Changes Internet usage and behaviour - more time spent, sites visited, video viewed
Impacts on the time spent with other media, especially TV
Makes video attractive to users - faster speeds = faster delivery, better quality, more immediacy
Makes video advertising attractive to brands - critical mass, reach, targeting, measurability, quality of experience
Creates a new channel for delivering video content to engage consumers and communicate brand messages
http://www.trojangames.co.uk/
Thank You