One of the standout buzzwords of the moment in online advertising seems to be "personalization." Marketers are constantly looking for novel ways to scrap the one-to-all marketing approach for an individualized, one-to-one model. Today, mass-market ads are seen as being out of fashion, not relevant to the ad-weary consumer, and not taking advantage of the possibilities opened up by CRM systems, behavioral targeting, and other sources of information about visitors to a website. This one-to-one, personalized approach to marketing has, time and again, been proven to deliver increased conversion and ROI.
According to the 2008 Personalization Survey announced in January 2009 by ChoiceStream, 39 percent of consumers overall are more likely to click on an ad if it is personalized; that number rises to 58 percent among those who shop online at least several times a month. Overall, 41 percent of consumers specified that they would pay more attention to advertising if it were personalized based on their interests.
Let's dissect three different options available to marketers for customization on the market -- motion tracking, hot spots, and personalized video -- to find the best ways to make online video ads more effective.
Motion tracking
This technique, sometimes called match motion, overlays personalized text or graphics on top of a main video frame. Using this technology, marketers are able to tailor the overlay message to the viewer, but cannot alter the main video content. This is used widely in online ads -- typically when someone's name or a product price appears in a video. An example of a company that's making motion tracking technology is Innovid, which can insert different objects in each frame without rendering an entirely new video each time.
How it works. Several specific points on the video are targeted in each frame of the video. The text or graphics are moved to follow those points, frame by frame. These videos tend to feature picture frames, whiteboards, or signs -- spaces with a solid border and easily identifiable points (corners, screws, bolts) for the viewer to follow.
Results. The upside to this technique is that it's a relatively simple way of offering personalization at a low cost. However, each video looks exactly the same, except for the text or graphics that are moving around, which achieves a low level of personalization. Also, advertisements are limited to a few customized words or pictures.
Hot spots
Consumers have been familiar with the idea of product placement in movies since 1982, when Steven Spielberg's "E.T. The Extra-Terrestrial" shined light on the concept with its prominent placement of Reese's Pieces in the film. Online video has expanded on this concept by adding a level of interaction between the consumer and the video advertisement.
Using hot spots, consumers can just scroll over any product in a video to view an ad, or ecommerce link, with details. Clikthrough is an online video solution company that is currently working with bands and advertisers to embed hot spots into products used in music videos. In its latest music video partnership with Phonogenic Records for The Script's single, "Breakeven," Clikthrough has highlighted a total of 242 product hot spots.
How it works. In this case, the video features active hot spots, highlighting products or brands within the video, that link directly to the websites where the items can be purchased. Captions appear over the products whenever the user rolls over an active hot spot with the mouse cursor. The caption can include details on the item, such as name, price, details, and URL or location for purchasing.
Results. For marketers, this is a great way to reach audiences through the videos that they already watch by allowing customers to learn more or buy simply by clicking inside the video. The downside is that it this technique is anchored to the existing content in the video and requires more of a pull for information from the consumer.
Personalized video
This approach does something much more realistic -- assimilating the video to a user's preferences. Reaching the nirvana of true one-to-one personalization can only be achieved by changing the video content itself, and tailoring the pitch to pique the viewer's interests. It's the difference between an ad meant to drive mass appeal and one truly made for the individual.
Instead of one generic video, you can have literally thousands of ad variations, each made specifically to resonate with each viewer. Leading brands like Manchester United and Nationwide Building Society have used personalized video technology with existing content to create a customized environment where they can directly engage with the consumer.
How it works. Video clips are segmented, tagged, and categorized based on the goals of the ad campaign. Based on the aggregated data on the viewer, the appropriate video clips are edited together in real time. Personalized video delves into the content, changing every frame of the video so that it is relevant and resonates with the targeted individual on a one-to-one level.
Results. The upside is that each video is different and highly targeted to the individual; this increases ROI by providing viewers with content they are genuinely interested in. Of course, true real-time personalization requires a bit of upfront work around tagging the content, so that the technology can appropriately match the content to the consumer. Recent personalized video campaigns have resulted in more than double the click-through rates and 50 percent more sales conversions than non-personalized video campaigns.
Nationwide, a leading U.K. financial services company with more than $480 billion in assets, recently executed a personalized video campaign to help increase the effectiveness of online advertising campaigns on its own website, as well as on third-party portal sites. The personalized video campaign resulted in a 300 percent higher click-through rate for product offerings and 100 percent increase in sales conversions, when compared to the standard video campaigns the company had executed. It also resulted in more than 8 million impressions and served more than 100,000 personalized video advertisements.
There are many different technologies that marketers are using to maximize their connection with the consumer, increase their conversions, and boost ROI. Of course, there isn't a one-size-fits-all approach in choosing the technology that's most appropriate for a specific campaign. The ultimate goal is to achieve a depth of personalization that fully engages the customers' interests.
Naj Kidwai is CEO of Real Time Content.
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