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Rich Media AdFXUnderstanding the effectiveness ofUnderstanding the effectiveness ofrich media ads
Rich media advertising is defined as: advertisements with which users can interact (asadvertisements with which users can interact (as opposed to solely animation) in a web page format.
- IAB Rich Media Measurement Guidelines
2Yahoo! Confidential 2
B tili i i t i t d ff ti th h t th
Portfolio of metricsBy utilizing various metrics to measure ad effectiveness throughout the sales funnel, the Rich Media AdFX study offers a comprehensive view of rich media ad performance.
Rich Media AdFXportfolio of metrics
DuringAd
Exposure• Interaction rate• Click-through rate
Ad Engagement
PostAd
Exposure
• Brand awareness• Site engagement
Brand and Site
Engagement
Exposure
• Purchase intent• Offline sales lift• ROI
Conversions
3Yahoo! Confidential 3
Some questions we answer
Do rich media ads drive ad interactions?Do rich media ads drive ad interactions?Brand awareness? Site engagement? Offline sales?
How do interaction rates and brand awareness on Yahoo! compare with the marketplace?
Wh t b t ti f d t ti d ti d i ?What are best practices for ad targeting and creative design?
4Yahoo! Confidential 4
Wh Ri h M di
AgendaWhy Rich Media Why Yahoo!Targeting Your CampaignDesigning Your CreativeDesigning Your CreativeImplications
Rich Media AdFX
Why Rich MediaWhy Yahoo!Targeting Your Campaigng g p gDesigning Your CreativeImplications
Rich media ads encourage higherclick-through and interaction rates
ConversionBrand / Site Engagement
Ad Engagement
g
CTR Interaction Rate
1.5
CTR
7.4%
Interaction Rate
1
N/A
Rich Media Static Rich Media Static
Rich media ads on Yahoo! have a 1.5x CTR and a 7.4% interaction rate compared with static display ads on Yahoo!
7Yahoo! Confidential
Data Source: - Yahoo! Behavioral ad data for Rich Media Ad Campaigns in 2009
7
Brand influence for rich media ads is higher
ConversionBrand / Site Engagement
Ad Engagement
g
Yahoo! CampaignsDelta difference between control and exposed at 1 frequencyDelta-difference between control and exposed at 1 frequency
7.5
Banner/FlashRich Media
ge
2.0
6.4
5.5
a -%
poi
nt c
hang
1.4
NSS
UnaidedAwareness
AidedAwareness
Online AdAwareness
Del
ta
Rich media ads on Yahoo! perform better on upper-funnel (awareness) brand metrics compared with non-rich media ads on Yahoo!.
Awareness Awareness Awareness
8Yahoo! Confidential
InsightExpress InsightNorms Campaigns measured 4/1/06 – 3/31/10
8
Site engagement - definitionsConversionBrand / Site
EngagementAd
Engagement
Site engagement is a measure of page views per day on the advertiser’s site in the “during” and “post” campaign periods compared with “pre-” campaign.
Advertiser’s sites were based on advertiser-owned domains and ad click URLs.
Campaigns are rich media ad campaigns (n=47) consisting of lines that often differ by time and placement within a single campaign.
Example:•During was the time period in which the impressions of a given line of a campaign were served
•Pre and post were the time periods before and after the “during” time period and equal in length with a minimum of 7 days
9Yahoo! Confidential 9
Site engagement of rich media adson Yahoo! increased significantly
ConversionBrand / Site Engagement
Ad Engagement
g yy
90% increase in
Lift in View-throughSite Engagement
ge V
iew
s pe
r Day site engagement
“during” campaign90%
45%
Lift
in S
ite P
ag
45% increase “post” campaignDuring Post
10Yahoo! Confidential
Data Source: - Yahoo! Behavioral ad data for Rich Media Ad Campaigns in 2009
ConversionBrand / Site Engagement
Ad EngagementPurchase intent of Yahoo!
rich media ads
Yahoo! CampaignsDelta difference between control and exposed at 1 frequency
5 8
Delta-difference between control and exposed at 1 frequency
6
Banner/FlashRich Media
ge
50% greater5.6
5.8
4.0
4.6
3.0
a -%
poi
nt c
hang purchase intent delta
MessageAssociation
BrandFavorability
PurchaseIntent
Del
ta
Rich media ads on Yahoo! perform about the same or better on lower-funnel (persuasion) brand metrics compared with non-rich media ads on Yahoo!.
Association Favorability Intent
11Yahoo! Confidential
InsightExpress InsightNorms Campaigns measured 4/1/06 – 3/31/10
11
Offline sales & ROI increasedfor rich media ads on Yahoo!
ConversionBrand / Site Engagement
Ad Engagement
23.5%
Offline Sales Lift
2.7
ROI
22.0% 2.3
Rich Media Non-Rich Media
Rich Media Non-Rich Media
Rich media ads on Yahoo! drive offline sales and generate a 2.7x return on campaign spend. This is a 15% higher ROI compared with non-rich media ads on Yahoo!.
12Yahoo! Confidential
Data Source – Nielsen Consumer Direct
12
Rich Media AdFXWhy Rich Media
Why Yahoo!Targeting Your CampaignDesigning Your CreativeImplications
ConversionBrand / Site Engagement
Ad EngagementYahoo! campaigns outperform
the marketplace in interaction rate and timep
Interaction Rate Average Interaction Time
7.4%
Interaction Rate(% of impressions)
16.8
14.7
Average Interaction Time(seconds)
6.0%
Yahoo!Campaigns
Other Portals(excl Yahoo!)
Yahoo!Campaigns
Other Portals(excl Yahoo!)
Rich media ads on Yahoo! have 1.25x interaction rate compared with other portals.
14Yahoo! Confidential
PointRoll 2009 Data
14
Yahoo! interaction rates greater than average in 8 of top 10 categories
ConversionBrand / Site Engagement
Ad Engagement
g p g
Interaction Rate
Other Portals (excl Yahoo!)Yahoo! Campaigns
8.7%Consumer Goods Manufacturers 8.7%7.1%
Consumer Goods Manufacturers
8.3%5.2%
Retail
7.6%7.0%
Food & Beverage Manufacturers
7.5%Telecommunications7.7%
Telecommunications
6.8%5.0%
Entertainment
6.5%5.6%
Restaurants & Food Service
6.4%6 2%
Government6.2%
6.3%5.0%
Automotive
5.9%3.8%
Finance
10 4%Sports & Fitness4.8%
15Yahoo! Confidential
10.4%p
PointRoll 2009 Data
15
ConversionBrand / Site Engagement
Ad EngagementYahoo! campaigns outperform the
marketplace in brand equity impactp q y p
Yahoo! CampaignsYahoo! CampaignsDelta-difference between control and exposed at 1 frequency
All CampaignsYahoo! Campaigns
7.5
5.6
1 6
6.0
oint
cha
nge
4.6
1.2
1.6
-1.2Del
ta -
% p
o
-0.6
AidedAwareness
MessageAssociation
Brand Favorability
PurchaseIntent
16Yahoo! Confidential
InsightExpress InsightNorms Campaigns measured 4/1/06 – 3/31/10
16
Rich Media AdFXWhy Rich MediaWhy Yahoo!
Targeting Your CampaignDesigning Your CreativeImplications
Targeting your rich media ad buy
We assessed 400 rich media campaignsWe assessed 400 rich media campaignsp g
Found that three main targeting buys account for 90% of all rich media impressions:
Run-of-Network with behavioral targeting
Media property buy with no additional targeting
Communications property buy with demo targeting
Each targeting buy employs a different approach to reachingEach targeting buy employs a different approach to reaching a desired audience
18Yahoo! Confidential 18
Data Source: - Yahoo! Behavioral ad data for Rich Media Ad Campaigns in 2009
Performance of rich media ad targeting
Run-of-network
Reach
Communications property with demo targeting
Run-of-networkwith BT
ReachMedia Property with no
additional targeting
Interaction Rate
• There is a tradeoff between reach and interaction rate for each targeting buy• Media property buy with no additional targeting has the highest interaction rate• Run-of-network with behavioral targeting has the highest reach
19Yahoo! Confidential
Data Source: - Yahoo! Behavioral ad data for Rich Media Ad Campaigns in 2009
19
Targeting implications for marketers
If i l i t Ch
• Maximize ad engagement
If your campaign goal is to:
• Contextual targeting on relevant sites
Choose:
relevant sites
• Reach a sizable audience for a specific interest • Behavioral targeting across
th Y h ! N t kpcategory the Yahoo! Network
• Market a universal product • Demographic targetingto a broad audience • Demographic targeting
20Yahoo! Confidential 20
Why Rich Media
Rich Media AdFXWhy Rich MediaWhy Yahoo!Targeting Your Campaign
Designing Your CreativeDesigning Your CreativeImplications
Rich media with vs. without video
The addition of video to rich media ads results in significant lifts in both CTR and interaction rates
+85% interaction rate+19% CTR
Rich media without video Rich media with video
22Yahoo! Confidential
Data Source: - Yahoo! Behavioral ad data for Rich Media Ad Campaigns in 2009
22
In-stream video vs. in-banner video
-30% cost per interaction-22% cost per completion
In-stream video In-banner video
In-banner video is a more cost efficient alternative to in-stream video, and is often effective for…
• BRANDING: Trying to drive interactions and views
• REACH: Attempting to reach a large and diverse population
• EFFICIENCY: Working with a budget
23Yahoo! Confidential
Data Source: - Yahoo! Behavioral ad data for Rich Media Ad Campaigns in 2009
23
In-banner video completion rates
Over half of auto play video impressions are watchedto completion, compared to just 3% of rollover to play
IncompleteComplete
Auto Play
3%
Auto Play Rollover to Play
24Yahoo! Confidential
Data Source: - Yahoo! Behavioral ad data for Rich Media Ad Campaigns in 2009
24
Video implications for marketers
In-Banner Video
• In order to drive higher interaction rates with rich media ads, consider addingin-banner video as it provides a significant lift (+85% interaction rate)
• If the goal of a video is to drive interaction, in-banner video offers a more efficient option than in-stream video (-30% cost per interaction)
In-Banner Video Completion Rates
• Ad technology: In order to achieve a higher rate of video completion, employ more auto play functionality instead of rollover to play
C ti T i i t ti l f ll t l id th id ti
In Banner Video Completion Rates
• Creative: To maximize potential of rollover to play video, the non-video portion of the ad should function self sufficiently, not solely as a driver of video views
25Yahoo! Confidential 25
Gaming features generate more interactions and greater time spentg p
30 seconds Engagement by Ad Feature
econ
ds
Gaming
AudioForced
File Download
Movie Connect
16%0%
Tim
e Sp
ent -
Se
Survey
Text
VideoForced Video
Dynamic Data
Interactivity
Data
Ad Control
Interactive Video
Ave
rage Text
Messaging
PromoCoupon
ReminderCollectionInstant Email
0 seconds
Interaction Rate - % of Impressions
26Yahoo! Confidential
PointRoll 2009 data Client examples by ad feature
Interaction Rate % of Impressions
26
Gaming features generate more interactions and greater time spentg p
30 seconds Engagement by Ad Feature
econ
ds
Gaming
AudioForced
File Download
Movie Connect
16%0%
Tim
e Sp
ent -
Se
Survey
Text
VideoForced Video
Interactivity
Data
Ad Control
Interactive VideoDynamic Data
Ave
rage Text
Messaging
PromoCoupon
ReminderCollectionInstant Email
0 seconds
Interaction Rate - % of Impressions
Incorporate features based on campaign objectiveFor branding use functionality such as video, polling, and gaming
For direct response use functionality such as data collection and sweepstakes
27Yahoo! Confidential
Interaction Rate % of Impressions
PointRoll 2009 data Client examples by ad feature
27
Creative should stand on its own
Since 93% of impressions do not generate ando not generate an
interaction, brand logo and key messages should b t ll fbe present on all frames
of the creative
28Yahoo! Confidential
Source: Dynamic Logic Online Creative Best Practices-10 Tips To Maximize Brand Impact Oct 2009
28
Wh Ri h M di
Rich Media AdFXWhy Rich MediaWhy Yahoo!Targeting Your CampaignDesigning Your Creativeg g
Implications
Rich media ads on Yahoo! outperformed non-rich media throughout the sales funnelg
• Interaction rate: 7.4%• CTR: 1.5x static
Ad Engagement
• Aided brand awareness lift: 3.8x non-rich media• View through site engagement lift: +90%
Brand and Site
Engagement
• Purchase intent lift: 1.5x non-rich media • Offline sales lift: +23%• ROI: 2.7 (15% higher than static ads)
Conversions
30Yahoo! Confidential 30
Key takeaways – benefits of rich media
Rich media is a platform that enables advertisers to tell a Rich media is a platform that enables advertisers to tell a story and consumers to jump in and engage with the brand
Rich media ads on Yahoo! generate more brand awareness and a higher ROI than non-rich media ads
Rich media ads on Yahoo! outperform the marketplacein interactions time spent and brand awareness in interactions, time spent, and brand awareness
31Yahoo! Confidential 31
Key takeaways – rich media best practices
When selecting ad placement and targeting buy, considerWhen selecting ad placement and targeting buy, consider• contextual property buy for specialized products to maximize interactions
• behavioral targeting across the Yahoo! network to maximize reach
• demo targeting for universal products to reach a broad audience
To drive higher ad engagement, consider using in-banner video. To achieve higher in-banner video completion rates, video. To achieve higher in banner video completion rates, opt for auto play vs. rollover to play.
Incorporate features into the creative based on the campaign objective. Place messaging on all frames of the creative.
32Yahoo! Confidential 32
B2B InsightsPhylis Savari, David Laird, Sahil Anand, Keval Patel,Phylis Savari, David Laird, Sahil Anand, Keval Patel, Athena Vasile
Data powered by User Data Analytics (UDA)Gary Thwing, Kenneth Lin
Data sources & methodology
Ad Interactions This data is from Yahoo! Ad Systems and includes various video ad basic metrics (e.g. ad views) and advanced metrics (e.g. interaction rates). Data was collected over 2009.
Site Engagement This data is from Yahoo! Toolbar User Opt-in Panel, and is anonymously joined with rich media ad serving data to identify users exposed to rich media ads. Lift is measured based on daily average page views and unique users before the campaign, Vs. during and after the campaign.
Brand Impact This data is from InsightExpress’s InsightNorms database and includes a variety of Brand Awareness metrics for Yahoo! measured campaigns. Lift is measured based on an InsightExpress-proprietary test/control methodology. Data was collected over 4/1/2006 – 3/31/2010
Conversions This data is from the Yahoo!-Nielsen Consumer Direct panel of users and includes offline sales lift and ROI for seven rich media campaigns on Yahoo!. Lift is measured based on a Nielsen-proprietary test/control methodology. Data was collected over 2009.
Interaction Rate and Time Benchmarks This data is from PointRoll and includes Interaction Rate and Time on Yahoo! versus other Portals. Data was collected over 2009
p p y gy
34Yahoo! Confidential 34
AppendixAppendix