Press Coverage
January 17, 2007

Impact of Online Video Advertising Varies Widely

The latest research analysis by Dynamic Logic shows that the impact of online video advertising varies widely, depending on whether the ad quickly reinforces the brand and differentiates from its competitors.

Based on results from 108 different video campaigns, the surveys measured changes in consumer attitudes for several different brands and products, including entertainment, FMCG and automotive, surveying 125,733 respondents.

Suzanne Moorey-Denham, MD, Dynamic Logic (Europe), said: “As marketers and media companies try to better utilise online video advertising to communicate with consumers, research is starting to identify what works and what doesn’t creatively. Our November 2006 Beyond The Click® demonstrated the power of online video campaigns in their ability to positively move all branding metrics compared to overall MarketNorms®. With more data, we begin to see a wider range and variance in effectiveness. While video norms in general are positive, there are some dramatic differences in the results of the most memorable and least memorable video campaigns. For online video ads to raise awareness for a brand, communicate a message and persuade consumers to buy, the ads must first break through the clutter and simply put – be noticed and associated with the brand.”

The chart below shows the average delta scores, or increases, for each brand metric, comparing the most noticed video campaigns, overall video norms and the least noticed video ads. The most noticed, or most memorable, campaigns are defined as those videos that scored among the top 20 percent in generating Online Advertising Awareness while the least noticed are those campaigns that fell among the bottom 20 percent. This data shows how effective, or ineffective, online video advertising can be. For example, the most noticed online video ads not only generated the greatest average increase in Online Ad Awareness (+37.8 points), but they also exhibited the largest increases in persuading viewers to become more favourable towards the brand (+7.4 points) and more likely to consider purchasing the advertised product (+6.9 points). On the flip side, the worst performing video ads had little or no effect on favourability or Purchase Intent.

To view chart, please visit http://www.dynamiclogic.com/eu/research/btc/beyond_the_click_jan2007_int.html

Phil Christer, Marketing Director, Zed Media, said: “Dynamic Logic’s research confirms our own findings, that online video advertising can work extremely well but without the correct implementation, can be ineffective and wasteful. Video ads afford us the opportunity to really engage with a receptive audience, but engagement is the key. The ad has to be in a correctly targeted environment, the message has to be compelling and ideally work with both the brand and the media in which it is placed. It is not enough just to put your TV ad in an online ad any more; they are unlikely to deliver the results that a carefully targeted video ad will do. It’s important that all the media channels that are utilised in advertising campaigns, be it online or offline compliment one other. We can see from the research here that a memorable video ad can be a key part of this process.”

Below, we share some key differentiating factors between the most and least memorable video ad campaigns tested.

Commonalities among the most noticed video ads –
• The creative was intrinsically linked to the brand. In other words, it would be difficult for viewers to describe the ad without mentioning the brand.
• The best performing online video ads utilised the unique features of the Web to create an interactive experience with their brand. For example, a video ad for a consumable brand might include a link to find out its nutritional value or allow you to download a coupon, find a recipe and email coupons/recipes to friends. It could also include a micro-site that allows you to save and post your favourite recipes online and join discussion groups sharing helpful titbits about cooking or throwing a dinner party.
• Videos that were enjoyable and entertaining generally performed well.
• The online video content was synergistic with offline marketing efforts.
• Often, the use of companion ads with the video keeps the brand constant and provides an additional branding opportunity while the video is playing.

Key take-aways from the least noticed video ads –
• The ad did not engage and establish relevance quickly.
• Often, it wasn’t clear what was being advertised in the video. It is important to bear in mind that viewers will not want to work at understanding what is being featured and communicated — the branding and messaging should be readily apparent.
• When using video, keep in mind that many viewers may not have the audio turned on, so they may be exposed to the video ad with only the imagery and no sound. If you’re relying on a catchy jingle or song to solely communicate your brand message, viewers with the audio turned off may “miss” the point of your ad entirely or misunderstand the brand message.

While it is critical to ensure that video advertising gets noticed and is linked to the brand so it has the opportunity to be effective, this alone may be insufficient. The ultimate goal of advertising is to change or reinforce behaviour and attitudes about the brand, either immediately or at some point in the future, so online video ads need to communicate something that reinforces brand usage or differentiates it from competitors.

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Contact Information:
Amanda Harrison
ah@amandaharrisonmedia.co.uk
01296 660 294

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