November 2012

Video Advertising Benchmarks: Key Data, Trends and Metrics

David Hallerman [email protected] Contributors Lauren Fisher, Mitch Winkels, Tracy Tang

Executive Summary: The valuable digital video audience is growing in both number and time spent viewing content. Much of that content is increasingly ad-supported, which puts an ever-greater focus on the metrics used to measure results. 137376

US Digital Video Viewers, 2010-2016 millions and % of internet users

145.6 65.0%

158.1 68.2%

169.3

70.8%

178.7

72.9%

187.6

74.7%

195.5

76.0%

201.4

76.9%

The data gathered from a variety of advertising campaigns during different time periods by several video-ad firms should best be viewed as basic indicators of larger trends. That’s because a plethora of factors will color the results of any single metric, such as completion rate, for a specific campaign. Those factors include everything from the time of day an ad runs to the nature of the creative. But to orient marketers, this benchmarks report offers an overview of the latest data about several core, interrelated categories: ■■ Digital

video ad metrics, including completion rate, engagement and brand health

2010

2011

2012

Digital video viewers

2013

2014

2015

2016

% of internet users

Note: internet users who watch video content online via any device at least once per month Source: eMarketer, March 2012; confirmed and republished, Aug 2012 137376

Video Ad Metrics

■■ Video ■■ Ad

spending forecasts, for both computers and mobile

■■ Video

audience, including size, time spent, favorite destinations and usage of video content and associated advertising

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ad types, such as pre-roll and in-banner

The sheer size of the digital video viewing audience will compel more marketers to invest more ad dollars to reach it. The latest eMarketer projection shows that by 2014, nearly three-quarters of all US internet users will watch video online at least once per month.

Types of Video Ads

8

Video Ad Spending

10

The Digital Video Audience

12

Key Questions

Conclusions

18

Related Links

18

■■ Which

metrics best indicate video advertising effectiveness?

■■ How

will digital video ad spending proceed over the next few years?

■■ What

are the most salient characteristics of the video audience?



Copyright ©2012 eMarketer, Inc. All rights reserved.

Video Ad Metrics The metrics used to measure video advertising’s results are influenced by a host of factors. That’s why the examples given in this benchmarks report are best used as guidelines, not absolute rules, for any campaign.

Clickthrough and Completion Rate of Digital Video Ads Served to US-Based Audiences, by Content Length and Site Type, Q2 2012 Clickthrough rate

Completion rate

Long-form

0.63%

91%

Short-form

0.85%

73%

Content length

Site type

The elements that color nearly all online video ad metrics include:

Full episode player

0.64%

93%

Video portal

1.75%

84%

Business/news

1.04%

83%

■■ The

Portal

0.66%

74%

Lifestyle

0.96%

73%

Ad network

0.73%

68%

length and nature of the content an ad runs against

■■ The

type of site where an ad is viewed

■■ The

device used to view the video

■■ The

time of day or day of the week when an ad runs

■■ The

degree to which the audience is habituated to digital video advertising

■■ The

advertising creative itself

For digital video advertising—on computers, mobile devices and connected TVs—the core metrics include: ■■ Clickthrough ■■ Completion

rate

rate

views, interactivity and the degree of attention paid to the advertising

Source: VINDICO, "Insights 2012 Q2," Oct 5, 2012 146267

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146267

It’s important to reiterate, though, how much these measures can vary. For instance, VINDICO’s data from the first quarter of 2012 showed clickthrough rates on video portals of 2.38%, a CTR more than half a percentage point higher than during the second quarter. The variability of the data shows how metrics from diverse ad campaigns can only roughly indicate market trends. Your mileage may vary—and likely will.

■■ Engagement, including

Completion Rates

■■ Brand

health, such as awareness or favorability

■■ Gross

rating points (GRPs) and target rating points (TRPs)

Completion rates are a core metric for audience engagement. When a user views a video ad for its full length, marketers can be more confident that their message got across.

Clickthrough Rates Clickthrough rates for online video ads can vary widely due to the factors above.

One would assume that shorter ads would have higher completion rates, and data from video ad network YuMe supports that assumption. In each of the quarters in the chart below, shorter ads saw higher completion rates.

For example, in one study from VINDICO, a video ad serving and tracking company, ads in short-form content (i.e., less than 10 minutes long) garnered slightly higher CTRs than in long-form content during Q2 2012. It also found that ads in video portals were clicked more often than ads in business/news sites.

Average Completion Rate for US Online Video Pre-Roll Ads, by Video Ad Length, Q1 2011, Q1 & Q2 2012

Ads run against shorter videos likely get a higher CTR because the audience isn’t really invested in the content; a longer video indicates a deeper commitment to the content. Similarly, CTRs on portals (such as YouTube) likely reflect audience behavior on those sites—users have an expectation of viewing multiple smaller pieces of content and may be less averse to the idea of interrupting the experience by clicking on an ad.

Video Advertising Benchmarks: Key Data, Trends and Metrics

Q1 2011

Q1 2012

Q2 2012

15 seconds

69%

74%

76%

30 seconds

66%

62%

65%

30+ seconds

50%

37%

40%

Total

67%

68%

69%

Note: among 2,000+ publishers in the YuMe network Source: YuMe, "Q1 2012 Video Advertising Metrics Report" & "Q2 2012 Video Advertising Metrics Report," Aug 2012 147041

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147041

Besides the length of the ad, several additional factors influence completion rates—in particular, the length of the content the ad is attached to. Research from FreeWheel, a video-content management company, makes that abundantly clear. In a study of digital video ad completion rates during the first half of 2012, FreeWheel found completion rose noticeably as the length of content grew.

Copyright ©2012 eMarketer, Inc. All rights reserved. 2

Video Ad Metrics

Consider the implications of the data from a February 2012 study from Videology, a video ad platform:

Completion Rate for Digital Video Ads Among US-Based Audiences, by Content Length, Q1 2011-Q2 2011 Long-form content (20+ minutes)

Mid-form content (5-20 minutes)

Short-form content (