December 2004   

Video Ads Achieve Greater Branding Impact With Fewer Impressions

According to analysis of Dynamic Logic's MarketNorms® database, online ads using audio and video achieve a greater impact on Brand Awareness at a lower frequency exposure frequency than other standard online ad formats. In fact, exposure to audio/video ads increases Brand Awareness by 10.0 percentage points.

In the chart below we compare the impact of audio/video ads and standard units on Brand Awareness at various frequency levels of ad exposure (see chart below, y-axis=delta, exposed minus control). For 468X60 banners, using 10+ frequency exposure achieves a 6-point gain in Brand Awareness; while for skyscrapers, it takes 6+ units to achieve an 8-point increase in Awareness. Large rectangles/squares come closest to matching the impact of 1 video unit with a frequency level of 3.

Previous Dynamic Logic research has shown that, on average, online video campaigns positively impact core branding metrics. While video units are still a relatively new online ad format, exposure to video ads has resulted in significant increases in other metrics as well: Message Association (+14.4), Brand Favorability (+5.0) and Purchase Intent (+4.8).

Editor's Note: MarketNorms contains results for more than 1,500 online ad campaigns conducted by Dynamic Logic from over 1.7 million respondents. The aggregated results are not adjusted for demographics, ad size, Web sites, and other factors that may contribute to brand lift.

The Potential for Video Advertising

By Andrew Snyder

The research referenced in the chart is striking, yet it may under-represent the true potential of online video. While it's not surprising that video outperforms other online creative in building awareness, it may be argued that the performance of online video advertising could be pushed even higher.
At ESPN.com, our belief is that simply delivering video advertising on the Web in an untargeted, non-contextual manner misses the mark. We believe that our primary video product, ESPN Motion, provides fans with highly compelling video content that continues to improve. Whereas we started two years ago with highlights repurposed from popular ESPN television programs, we've moved quickly to add content specifically developed for an online, Web-savvy audience and continue to enhance efforts to create original video programming. Building more engaging content will produce a better advertising environment.

The next challenge is to advertisers: design advertising that capitalizes on this medium and the improving video environment. Understand that the online experience is different than the television experience. Search for new ways to present video advertising, and demonstrate to consumers that forward-thinking brands are conscientious enough to invest in innovative online creative.

If handled appropriately, performance metrics for online video can be even stronger a year from now.

Andrew Snyder is Director, Ad Sales for ESPN.com.

What Is Yet to Come Using Video

By Karim Sanjabi

We at Carat believe that the high effectiveness of video online, as this study shows, is only the tip of the iceberg in both brand and direct measurements. Client demand for online video advertising is at an all time high and without exception, we have seen campaign results that have blown past expectations. This comes as no surprise, given how engaging video can be, and how inexpensive to test online with existing :15's and :30's - as long as you have secured the digital rights for talent, a gotcha you have to look out for.

We believe the most exciting part of video online is what is yet to come: video plus interaction. Video-based creative developed specifically for the Internet opens up a new world of opportunity to interact with customers. It can pick up where TV ends. 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 an entirely new level.

If done correctly, creative formats that combine video and interactivity will absolutely outstrip brand and direct measurement expectations, setting a new bar entirely.


Karim Sanjabi is Executive Vice President, Innovation at Carat Interactive, and works on ensuring that creative, technology, and media blend together on every client project, guided by a higher-level strategy. He serves account teams by being a catalyst for new ideas on clients such as EA, EarthLink, Macromedia and RadioShack.