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Video advertising myths debunked

Gretchen Hyman
Video advertising myths debunked Gretchen Hyman

There is no question in the digital world that video has become a hot commodity. Consumer consumption patterns have shifted dramatically to a more screen-agnostic environment, and expectations that content should be available when we want it, and on the screen of our choosing, are quickly becoming the norm.

According to Mukund Ramachandran, general manager, brand, for DataXu, this stage of hyper growth will account for $7 billion in ad spend by 2015, and RTBs are playing a leading role in supporting brand objectives.

In his Spotlight presentation at the iMedia Video Summit, Ramachandran said that in 2012, $1 in $12 currently goes toward online advertising, whereas by 2015, that spend will be $1 in $6.

To support this unprecedented growth, Ramachandran introduced DataXu's first fully-integrated digital marketing management platform, DX, which provides access to 100 percent of U.S. exchange-traded in-stream inventory, plus brand safety, full site transparency, and best-in-breed prospecting, targeting, retargeting, and audience management.

But in order to fully embrace growth and ensure advertiser confidence, there are four myths that need debunking:

Myth No. 1: Video can't scale

And yet:

  • 89 million people in the U.S. watch online video daily

  • There are 1.2 billion video search queries in a day

  • We are in a phase of mass consumer adoption

  • All demographics online are watching video

  • RTB video inventory is driving this growth

  • RTBs dispel the notion that you can't buy video via this channel

  • RTBs provide impactful scale to any video campaign

  • RTB pre-roll video inventory players include Adap.TV, Google, AdBrite, LiveRail, BrightRoll, and spotXchange

Myth No. 2: Video doesn't work at the local level

And yet:

  • DataXu partnered with a large auto brand in a hyperlocal video case study that helped convert its hyperlocal newspaper buy into video

  • Previous efforts to buy sites directly did not achieve reach

  • The challenge was the capability and reach to hit 86 DMAs, 86 regional budgets, and 86 geo-qualified monthly campaigns targeting auto-intenders

  • Regional dealers were able to spend all of their ad dollars on impressions within their respective areas and achieved:

  • A single-sourced partner instead of going to multiple partners for DMA buys

  • Zero dollars wasted on out-of-area impressions

  • Granular tracking, budgeting, and reporting options custom to each DMA

Myth No. 3: Video can't be optimized like display

And yet:

  • It absolutely can be

  • Optimizing your campaign across video RTB is key

  • Optimize for clicks, completions, acquisitions, and brand performance

  • A clinical trial set-up underlies the DX brand approach

  • DX brand builds customer intelligence

  • DX brand builds your brand by using digital

  • Know your customers, identify opportunities, compare segments

Myth No. 4: Online video is not cost effective

And yet:

  • Online video provides a robust ecosystem of providers, portals, ad networks, and exchange

  • Online video advertising is no longer expensive

  • It provides the advertiser with vastly differing scale for the same investment

  • Online video can provide impactful scale at the local level and be optimized for performance and brand metrics

  • Online video is a cost-effective medium to achieve high ROI for performance and brand campaigns

Gretchen Hyman is Editor-in-Chief for iMedia Connection.

On Twitter? Follow iMedia Connection at @iMediaTweet.

Gretchen Hyman

Gretchen Hyman is Director of Marketing for UberMedia, a mobile ad tech platform that helps brands locate, engage, and motivate active consumers. Gretchen is the former Editor-in-Chief for iMedia Connection, where she oversaw the media property and...

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