Friday, January 6, 2012 | Edited by Daniel Moores
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Pre-Roll, Mobile Top Video Ad Formats for 2012 Online video has reached critical mass among U.S. Internet viewers. eMarketer predicts 169 million people, or 71% of U.S. Internet users, will be watching online video each month by the end of 2012. Such a healthy, sizeable audience can't help but capture advertiser attention. eMarketer estimates U.S. online video ad spending (not all of which is placed against video) will enjoy an aggressive 40% year-over-year increase from 2011, topping $3.1 billion in 2012. Findings from Break Media highlight areas of online video advertising North American companies are looking to leverage in the next 12 months. According to the digital video publisher, pre-roll will continue to be a favored ad format: 63% of advertising decision-makers plan to place pre-roll ads in 2012. More than half (53%) of respondents will also maintain their use of in-banner ads, down slightly from 59% in 2011, a likely result of growing interest in newer ad formats such as mobile video and connected TV. Though only roughly a quarter of respondents plan to run connected TV ads in the coming year, that percentage is double what it was in 2011. As consumers look to consume video across multiple devices and platforms, interest in connected TV and mobile ads is likewise growing. Advertising decision-makers run video ads in conjunction with non-video display such as banner ads (67%), and almost half (48%) run online video ads in tandem with TV ads to better align consumers' brand experience online and offline. Break Media also showed evidence of an impending crossroads for online video advertisers and ad sellers. Though the majority of online video ads are sold on a cost-per-impression (CPM) or cost-per-click (CPC) model (69% and 53%, respectively), advertisers increasingly look to purchase online video ads based on metrics that hold sellers more accountable to consumer-advertiser engagement, such as cost per acquisition or cost per engagement. Cost per acquisition was the most desired pricing model, followed by cost per engagement. Cost per view was also mentioned by 17% of respondents, only slightly behind CPM, at 18%. The fact that advertisers did not entirely abandon their desire to purchase ads using a CPM model points to the common purchase and measurement of online video for branding objectives. Yet favoring more meaningful engagement metrics does not suggest those campaigns lack a branding focus; rather, it shows growing use of online video advertising to generate both brand awareness and measurable direct-response, a trend marketers should watch closely in the coming year. (Source: eMarketer, 12/29/11) |
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Newspapers' Digital Audience Skews Younger, More Affluent People who read newspapers' digital content tend to be younger, better-educated and more affluent than the print audience for newspapers, according to a new national survey of 5,034 households by Pulse Research conducted from July-September of this year. The research confirms newspapers' success in building a substantial, and desirable, online audience. Pulse found that the average age of digital newspaper readers is 44, compared to an average age of 51 for print readers, with disproportionate representation for young adults in digital readership. Among adults 30 and under, there are 60% more digital readers than print readers, for a breakdown of approximately 61% digital versus 39% print in this age set. In terms of income, the average household income of digital readers was $65,480, compared to $53,776 for print readers, and the proportion of digital readers in households with incomes over $100,000 per year was 82% higher than print readers. Turning to education, digital readers are 22% more likely to have a college or post-graduate degree than print readers. They are also more likely to have families, with 48% of digital readers reporting they have children at home, compared to 32% of print readers -- perhaps reflecting the fact that older print readers' children have already left home. Higher average household income is accompanied by greater likelihood to make big-ticket items, with 7.6% of digital newspaper readers planning to buy a home in the next year, versus 5.2% of print households. Similarly, 8.4% of digital readers plan to buy a new car in this time frame, compared to 6.8% of print readers, while 24.4% of digital readers plan to buy furniture, compared to 16.2% for print readers. (Source: Media Daily News, 12/14/11) |
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2012: Rise of Metrics, End of Click-Through Rates Metrics and measurement will become a major tool in 2012 for advertisers looking to quantify campaigns. Industry execs have been talking about it for years, but Solve Media CEO and cofounder Ari Jacoby believes the movement will begin to materialize next year. "At least one major industry will do away with the click-through rate for brand campaigns," Jacoby said. "For display, I get the sense that all the exchanges that have cropped up will have challenges. They will continue to be measured on the delivery of the click-through rate, but there won't be enough to go around and prices will drop precipitously." Jacoby believes brands will begin hearing more about "cheap CPMs" for non-viewable commodity inventory -- the type of ad space that serves up below the online fold on a Web page where the person viewing the page must scroll down to see the advertisement. While it is counted as an impression, no one sees it because the ad unit literally sits at the bottom of the page or too far off to the side. Ad rates will come down significantly in 2012 because the units aren't valuable. There are only so many top positions on a publisher's Web site. Buyers will increasingly require audience participation far beyond what the industry refers to as "engagement," Jacoby said. The ad industry will move toward brand lift metrics in 2012, as a replacement for click-through rates. These are around user engagement behavior, brand awareness and purchase intent, along with other measures of perception and persuasion. (Source: Media Post, 01/02/12) |
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