GroupM: Five Rules for Realizing the Promise of Online Video - Brian Lesser - MediaBizBloggers

As online video has reached a growth inflection point, audience tastes have evolved too. It's no longer just about piano-playing cats (http://www.youtube.com/watch?v=TZ860P4iTaM, but also last night's episode of ABC's "Modern Family."

eMarketer estimates that 33 percent of online adults in the US, or 58.9 million people, will watch full-length television shows online this year on a monthly basis. Among people under 35, the share is likely to at least double that number.

In other words, consumers are increasingly embracing non-TV screens for immersive "lean back" content consumption experiences. This trend is accelerated by events like the advent of Hulu, the iPad and the millions of hours spent surreptitiously streaming soccer games on office computers all over the world during the 2010 World Cup.

As marketers are trying to catch up with consumers, online video is rapidly emerging as the new frontier in the digital ad buying space. eMarketer forecasts $1.5 billion will be spent on online video ads this year (six percent of total online spend) growing to $5.5 billion in 2014 (15 percent of total online spend).

But while most of the components are available to create a valuable online video offering for advertisers, we have yet to make the whole greater than the sum of its parts.

In theory, the promise of online video advertising is a great thing for brand marketers–it combines the efficiency and hyper-targeting capabilities of online ads with the immersive engagement and creative brilliance of brand-boosting television commercials.

Today's reality is somewhat less rosy, however. Video ads are much harder to deliver at scale and on target than conventional display ads and, unlike TV, there is no ratings standard like GRP, no guarantee of brand-friendly placement and not enough critical mass in terms of reach.

So how can agencies help develop this still nascent medium? The answer is to borrow from what has made display advertising efficient and effective, while not compromising the promise of online video as the evolution of television. Here are a few rules for the road:

1.ADHERE TO STANDARDS

Serving and tracking video ads is more complicated than serving display ad units. Until recently there were no standard formats, which caused frustration among advertisers and publishers alike. The IAB has now developed guidelines and standards called VAST and VPAID. While not perfect, at least these standards create uniformity around formats, data-capture, and reporting. While we recognize the need for standards to evolve over time, WPP's Media Innovation Group (MIG) encourages publishers to adhere to VAST and VPAID so we can collectively grow online video as an integral interactive medium.

2.DEFINE SUCCESS METRICS

Video's most exciting promise also is its most significant short-term obstacle – the ability to track multiple metrics, including user initiation, mouse-over, interaction time, click-through, and conversion. All of this leads to confusion for advertisers who would like to simply compare video to other online and offline media. For better or for worse, television has settled on the GRP as its standard metric. Our technology allows us to aim higher, and as a result we will be making a video metrics recommendation to our advertisers in the near future.

3.ENSURE BRAND SAFETY

More than any other digital media, video offers brand advertisers a true opportunity to engage their audiences. But with significant investment in brand advertising comes a heightened need for controlling ad adjacency, especially considering the significant long tail of user-generated video. Part of the solution will rely on technology (companies like AdSafe have led the charge in the display world), but we would also encourage publishers to focus on building more significant scale in high-quality video ad placements.

4.TAKE ADVANTAGE OF DATA AND TECHNOLOGY

Given the need for additional scale in the premium video market, the MIG and companies like it are busy building systems that allow advertisers to anonymously target their audiences based on their online and offline behaviors. This concept of 'buying audience' instead of 'buying context' is enabled using an advertiser's data (as well as various third-party sources of data). Technology is the key to combining audience buying with a safe contextual environment, which leads to higher reach and better engagement without compromising brand safety.

5.ENABLE CREATIVITY

Finally, let's not forget the tremendous creative opportunities enabled by video. While standards in technology and measurement are important, we must remember what makes television advertising effective – the ability to deliver compelling and engaging brand messages. Media planners and creative directors should work together to define the next big idea, which likely doesn't involve repurposing a 30-second television spot. The most effective creative will take advantage of the myriad targeting and interaction options available with online video.

GroupM, with the support of the MIG, is actively moving to create opportunities and address the challenges so our clients can tap into online video as a significant component of an integrated media plan.

Brian Lesser is General Manager of the Media Innovation Group, a unit of GroupM holding company WPP.

Read all Brian's MediaBizBloggers commentaries at Musings from GroupM - MediaBizBloggers.

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