When it comes to video, there’s a lot at stake, both in terms of costs and the impacts on your business. The good news is that video analysis doesn’t have to be daunting—that is, if you’re clear about your criteria for success. Whether long-form or short-form video, everything begins and ends with identifying and measuring the intended function of your video. Is your goal increased engagement, advertising CTR, or minimizing bounce rates? Or a combination of one or more of these things?
To establish the criteria right for your business KPIs, you need to answer three questions:
- How is video being used—to drive tune-in or brand awareness?
- How is video being monetized—video advertising, bounce rates, video CTR?
- How is video data being presented to the broader business, such as by visualizing data in dashboards?
Steps to Success
Whether your key metrics are supporting other channels of video distribution (broadcast, theatrical release, video on demand, or home entertainment), establishing success measurements up front will transform the actions taken across your organization. For example, if brand affinity is a top priority, then gauging video start and drop off times are essential. In the case of home entertainment, converting the customer visit into a purchase of DVDs might be the single most important metric. Regardless of the goal, every user experience will need to be optimized to enhance personalization and drive conversion.
Understanding the complexity that video can present to digital marketers, Adobe has established a “default” set of video criteria to move video strategies forward. Our default criteria can be viewed as a foundation from which to build on based on the events and metadata you’re looking to capture. Secondly, the default criteria can also be used to align with measurement KPIs.
Measuring Video Advertising Effectiveness
Demand for digital video advertising continues to outpace other digital advertising formats, as highlighted in industry conversations. A recent article in eMarketer underscores the trend, stating that “U.S. digital video ad spending will nearly double in only four years, climbing from $4.14 billion this year to $8.04 billion in 2016.”
Not surprisingly—like other digital marketing trends—there’s often a rush to invest, sometimes before important upfront work is done (such as answering the “criteria” questions above). After all, it seems clear that all that is needed to optimize your digital video investment is to combine the right advertising with the most relevant content and deliver it to right audience. As any experienced digital marketer knows, this is anything but simple without the right tools on hand.
It’s also helpful to understand that traditional approaches to measuring impacts are changing, with CPM metrics giving way to new “cost per engagement” and “cost per completion”. This has been covered in recent Digital Newfronts, as well as in other forums.
In looking closer at online video advertising, an eMarketer article cited a
“somewhat rough estimate from Credit Suisse. The CPM for midtier sites and placements in 2013 will be approximately $25 and reach nearly $33 for premium destinations. The Credit Suisse data focused on traditional CPMs, but many advertisers are looking for engagement and prefer cost-per-click or cost-per-completion arrangements. And several marketers are moving toward some kind of cost-per-action pricing.”
To really understand video’s impact on consumer interactions, visualizing data is just as critical as knowing what to measure. Real-time video analytics supported by Adobe Analytics provides a framework to visualize video data. Creating role-based dashboards, for instance, will help executives to quickly assess how video assets are used and how video advertising affects a business unit’s P&L and ultimately the company’s bottom line; this is especially true where ad load metrics impact engagement. Adobe Analytics can also segment audience consumption across multiple regions to provide a global view.
Let’s recap. Regardless of where you are with your video strategy, consider these four steps:
- Set clear KPIs that align with your business goals.
- Decide if video monetization or companion video for marketing purposes will drive programming decisions.
- Organize and report around key video metrics to ensure alignment and agreement on what constitutes success.
- Participate in “standardized” metrics discussions and workgroups, where companies can compare their results to industry trends and be sure that metrics are collected and measured in the same way.
These steps will help you determine how and where to deploy resources to increase video engagement and your video advertising effectiveness.