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How Do You Combine TV and Digital Video?

6/24/2014

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When blending the two, use TV for reach and digital video for frequency

Digital video advertising will make up nearly 12% of all digital ad spending in the US this year and is projected to grow significantly faster than search or overall display advertising for the next several years, according to a new eMarketer report, “50 Best Practices for Digital Video: Do’s and Don’ts for More Effective Advertising.”

Even though digital video advertising is in some ways well established, it is still new to many marketers and is still evolving for the experienced ones.

For this report, designed primarily for ad buyers, whether agencies or brands, eMarketer gathered insights from dozens of experts in the space—executives at brands and ad agencies, publishers, ad networks, and technology support companies. Here are the tips and suggestions from these thought leaders on integrating video ads with TV, one section of digital video advertising we focused on:

Use video to reinforce the larger TV campaign. “We know that when we’re out with a digital video buy, there’s greater recall when our [TV] spot actually airs.” (Amy Peet, Chrysler Group)

Use TV for reach and digital video for frequency. “As a cross-media planner, if you’re able to sequence these two things together, you can have them both working in unison—one for reach, one for frequency. TV advertising typically raises the profile and creates a lot of impact. Then it’s supplemented by high frequency, much cheaper inventory bought through video networks, for example, or any programmatic video buy.” (Matthew Waghorn, Huge)

Don’t expect a panacea—it doesn’t exist. There’s no simple or single formula for budgeting sight-sound-motion ads across TV and digital. “It’s going to depend by brand, by objective of what you’re trying to accomplish, by results over time and refining and tweaking those.” (Doug Knopper, FreeWheel)

Come together. Best practices are established by corporate silos—or the absence of them. “The next step will be around organizational structure. We hear a lot from agencies that the digital and linear sides are slowly coming together, and the same thing is happening with publishers. And the more these discussions happen and these groups come together, the easier it will be for the industry to start transacting on more of a converged space. So another best practice is to really think about how you merge those two sides of the house.” (Brian Dutt, FreeWheel)


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Native Advertising Predicted To Dominate Digital In 2014

1/13/2014

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by Gavin O'Malley, Thursday, January 9, 2014

Say goodbye to the stigma associated with native advertising.
 
Following The New York Times’ official embrace of the once-controversial ad format, J.P. Morgan is predicting that native will take over digital channels in 2014.
 
“We believe native ads are quickly becoming the de facto ad format on mobile and increasingly moving into desktop,” lead analyst Doug Anmuth wrote in J.P. Morgan’s annual “Nothing But Net” report, released on Thursday.
 
It is significant that Anmuth and his colleagues are tying the success of native to mobile, considering that they expect ad dollars devoted to the channel to overtake desktop dollars this year.
 
As for what makes native ads so special, J.P. Morgan calculates that they deliver a huge bang for the buck. Indeed, according to the securities firm, native ads represented just 5%-to-10% of Facebook’s impressions in 2013, but accounted for more than 60% of the company’s revenue.
 
“We think native ads also have significantly higher click-through rates than traditional display ads, which leads to higher pricing over time,” according to Anmuth.
 
But, what makes native so well-suited for the mobile medium? “Native ads are ads embedded in a [Facebook] NewsFeed or [Twitter] stream and in many cases closely resemble organic content, making them much more likely to get clicked on compared to historical banner display ads,” according to Anmuth and his team.
 
As a result, “we believe a growing interest in mobile advertising from brand advertisers coupled with improving mobile ad formats suited for smaller screen sizes should help to bridge the gap between time spent on mobile and mobile marketing spend.”
 
Moreover, “while the majority of Facebook and Twitter ad revenue is now generated through native or feed ads, we believe other publishers, such as LinkedIn and Yahoo, are also increasingly shifting inventory to the format.”
 
Last year, eMarketer predicted that the native niche would hit $2.85 billion by 2014. Yet industry thought leaders have implored publishers and brands to rethink their use of native advertising.
 
“Publishers should say ‘no,’ more than ‘yes’ to native,” Steve Rubel, executive vice president of global strategy and insights at Edelman, told attendees an the OMMA Native conference, in November. “As an industry, we’re going way too fast.”


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Are Marketers' Campaigns Misaligned with Consumer Expectations?

11/18/2013

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A fundamental gap remains between marketers’ and consumers’ ideas about various messaging channels
With an ever-growing list of channels for brands to connect with their audiences, it seems rational to expect that advertising and marketing campaigns are in a constant state of improvement. But what if these campaigns are fundamentally misaligned with consumer expectations? That was the question asked by marketing technology company x+1 and marketing research firm Research Now in their report, “The Marketer’s Playbook: Aligning market strategies with consumer expectations.” The companies surveyed consumers and marketers from companies of all sizes in the US in July 2013.

The poll found that one-quarter of consumers indicated they got the most help in making purchase decisions from messages delivered via email, making it the most valuable channel overall. But there was a sharp dropoff in the next channel, with only 16% of consumers seeing utility in messages coming through a personalized web experience. Mobile channels fared even worse in consumers’ estimation—6% thought mobile ads were useful, 5% said the same about mobile apps and only 2% thought SMS messages were helpful.

Marketers, meanwhile, appear to have significantly overestimated the value that various channels provide to customers and prospects. Fully 82% thought email was useful, while 87% saw the personalized web experience as helpful to customers—a far cry from the 16% of customers who felt that way. There were also significant gaps between marketers’ expectations about the usefulness of mobile apps, mobile ads and SMS as messaging channels, and the value that customers saw in them.

As staid as it may seem, email seems to serve marketers extremely well, as evidenced by consumers’ perceptions of it. Almost one-third of consumers thought email delivered relevant marketing messages, while three in 10 thought email messages were accurate, and just over one-quarter considered them memorable. While less consumers thought the personalized web experience was as memorable as email, a higher percentage of respondents thought personalized web was both more accurate and more memorable than email.

Clearly there exists a significant gap between marketers’ conceptions of the usefulness of various messaging channels and consumers feelings about them. In order to better bring the two into alignment, marketers can try to take advantage of various tools that allow them to solicit feedback and extract consumer usage data to help guide them in the right direction.


©2013 eMarketer Inc. All rights reserved. www.emarketer.com

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Instagram Launches Advertising

10/7/2013

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by Mark Walsh, Thursday, October 3, 2013

Instagram on Thursday announced that the popular photo-sharing app will begin running ads in the “next couple of months” as it seeks to build a sustainable business.

The Facebook-owned company said U.S. users would begin seeing “an occasional ad” in their Instagram feeds from brands they don't necessarily follow through the service. To help ensure against a potential negative reaction from its 150 million monthly active users, the company assured it would move slowly in introducing advertising.

“We'll focus on delivering a small number of beautiful, high-quality photos and videos from a handful of brands that are already great members of the Instagram community,” stated a company blog post today. The company sparked a user backlash (and litigation) and late last year after it changed language in its terms of service that appeared to reserve the right to license people's photos to advertisers.

After restoring the old terms of service in December, Instagram CEO Kevin Systrom stated that when the company did introduce ad products, it would “come back to our users and explain how we would like our advertising business to work.”

In an effort to give users some control over the ads they see, Instagram today said it would allow people to hide ads they don’t like and the opportunity to provide feedback “about what didn't feel right.” It also reiterated that users “own their own photos and videos” and that the launch of advertising would not change that policy.

Instagram only debuted video capability on the service in June, allowing users to create 15-second clips, in response to the growing popularity of six-second videos on Vine. Marketers then were already speculating about the possibility of creating paid 15-second spots on Instagram, aside from posting videos to their own accounts.

Facebook itself has long been rumored to roll out video advertising, planning to charge between $1 million and $2.4 million for TV commercial-style ads that would run in users' news feeds. But the company has delayed the expected fall launch of video ads as it continues to work on a format that users won’t find disruptive, according to an Ad Age report. 

Instagram on Thursday didn’t provide details on the things like specific formats, frequency or pricing of image-based or video ads, and the company did not respond to a media inquiry late Thursday. But in its blog post, it told users to "stay tuned" for more details on its advertising plans.


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