January 2007   

All Online Video Ads Are Not Created Equal

As marketers and media companies try to better utilize 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 favorable 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 favorability or Purchase Intent.

Note: Most/Least noticed defined as top/bottom 20 percent sorted by Online Ad Awareness delta;
Delta = Exposed - Control
Source: Dynamic Logic's MarketNorms through Q3/2006, Video N=108 campaigns, n=125,733 respondents

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 utilized 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 favorite recipes online and join discussion groups sharing helpful tidbits 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 kept the brand constant and provided an additional branding opportunity while the video was 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 behavior 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.

Advertisers, publishers and agencies use MarketNorms^® to understand which aspects of online advertising have the greatest impact on brand lift. The MarketNorms database developed by Dynamic Logic of nearly 2,900 campaigns across more than a dozen industries has branding lift metrics, ad and brand attributes, environmental/site data, audience data and other campaign information collected in over 4.2 million surveys.
www.marketnorms.com

Dynamic Logic's AdIndex^® is a research tool used by online advertisers to measure the effectiveness of their campaign beyond click-through. By providing real-time metrics on brand awareness, purchase intent, message association, and creative evaluation, AdIndex empowers online marketers to optimize their campaigns and get a true measure of the campaign's impact.

AdIndex was developed by Dynamic Logic and is patented technology.
www.adindex.com

Dynamic Logic's CrossMedia Research^™ measures the value of integrated media packages and quantifies the success of a cross-media campaign with any combination of online, print, television or radio. CrossMedia Research allows advertisers, agencies and publishers to understand cost effectiveness of different media in the mix.

DigitalLink^™, an online copy-testing solution developed jointly with Millward Brown, provides advertisers, agencies and publishers with consumer feedback on their creative executions before the campaign goes live. Online ads must be memorable, communicate your message, and be persuasive. DigitalLink provides diagnostic and evaluative insight into which creative performs best.

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