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Sharing Screens

1 Jul, 2011 By: Jackie Jones Response

Marketers tap into advancing, complementary television and Internet capabilities to keep video advertising relevant to an empowered consumer group.


Undertone’s high-impact online video advertising combines interactive creative with the reach of an ad network to drive interaction rates that are 88-percent higher than industry standards, according to the company.
Undertone’s high-impact online video advertising combines interactive creative with the reach of an ad network to drive interaction rates that are 88-percent higher than industry standards, according to the company.

Taking TV Online

Whether it’s through newer emerging channels such as connected TV, or traditional online outlets using pre-roll or in-banner video ads, it’s clear video advertising can have strong roots in both. Online video’s significant growth will eventually outdo that of classifieds and directories by 2013, making it the third-largest online ad format, according to eMarketer.

“Marketers increasingly see the Internet as a place where brand advertising, especially in the form of video advertising, is effective,” Hallerman says. “Combined with greater targeting and measurement than marketers get with TV ads, the growing consumption of online video has done more to attract brands than any other online ad format.”

Additionally, recent advances centering on improved content delivery, targeting and measurement, as well as the introduction of new video ad formats, has increased the creative possibilities for advertisers, according to Eric Franchi, co-founder of Undertone, which connects brands with consumers online through display, high-impact and video ads.

“We’re in a place today where brand advertisers can get all the visual impact of TV advertising, but with the added benefits of targeting and measurement that come as part and parcel of online advertising,” Franchi says. “We’ve really only started to scratch the surface as far as technology and innovation are concerned, and yet already there are extensive opportunities for advertisers through today’s video advertising solutions.”

Integrating video advertising with high-impact, rich media display ad formats can generate campaign results that exceed industry benchmarks, Franchi says, citing Undertone’s PageGrabber unit, which utilizes interactive creative to drive interaction rates.

“When pairing our PageGrabber unit with online video advertising for a large automaker’s digital ad campaign, 51 percent of consumers demonstrated brand engagement by watching an entire three-minute video advertisement after the high-impact unit ran,” Franchi says.

There are three key factors for advertisers to consider when replicating the TV experience online, which have only recently all come together at the right place at the right time, according to Franchi: the availability of quality content to wrap video ads around; advanced technology that delivers a high-quality experience to viewers; and high volumes of engaged audiences to watch the content and to consume the ads online.

“For some time now, leveraging targeting, data and low-funnel activity techniques have been a focus for many digital advertisers. In contrast, TV commercials have largely been used for reach and brand awareness. The precise impact of this upper-funnel activity is hard to define but everyone agrees that a consumer will not know what they intend to buy without first being made aware of the options. Why should we abandon this principle online when digital video advertising strategies can successfully engage consumers in the same way?” Franchi says.

“Marketers trust TV, so replicating its advertising model online is a logical step,” he adds. “Online video advertising is most effective when it is leveraged in a similar way to TV — targeting upper-funnel, brand-awareness goals.”

As technology expands, the limits for video advertising are endless as long as brands and marketers stay innovative, though it doesn’t come without its own set of challenges for marketers in the DR world, as well.

“The idea of pairing ads with particular pieces of content represents a shift for brands that have been accustomed to working with cable channels who serve bundles of related content, and the ability to time-shift content on the Web also presents challenges as many advertisers have become accustomed to targeting specific demographics based on viewing hours,” Chandratillake says.

The future of online video advertising and the challenges involved especially revolve around the availability of quality content, Franchi adds.

“The world of digital video advertising is growing fast, but one particularly important issue that must be addressed is defining video terminology so it is uniform and identifiable,” he says. “If the industry can’t define and agree on uniform formats, media buyers controlling more than $60 billion in TV budgets may be apprehensive to shift billions of dollars online and thus hinder this multibillion dollar industry from reaching its full potential.”

Most experts agree that video advertising’s strongest suit is its ability to be shared across a plethora of screens, something sure to come in handy as devices change and consumers continue to shift their modes of consumption.

“The explosion of always-on, super-fast broadband Internet, coupled with the myriad of new devices from laptops to smartphones and tablets, has not only changed the face of communications as we know it, but has also had a huge impact on the consumption of entertainment media,” says Chandrapal, who adds that consumers’ ability to watch TV practically anywhere extends from their iPhone and tablet devices to gaming consoles and social media outlets. “With all of this in mind, it is hardly surprising that experts now predict that the combined forces of those two major transformations will change the face of advertising forever, opening up a wide range of new creatively challenging, engaging opportunities, and creating a lucrative market.” ■

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