Interactive marketers can’t help but look to online video to take advantage of branding potential richer than that for previous online display ad formats. But like its static display counterpart, banner ads, online video advertising can appear in numerous ad sizes, placements and creative types, making it difficult for marketers to decide where to start.

Research from Yahoo! indicates certain video ad units are better at boosting advertiser and brand recall than others, providing marketers a tentative roadmap for increased online video advertising success. In Yahoo!'s study, video viewers recalled seeing pre-, mid- and post-roll ads more often than any other display ad type. More than half (53%) of respondents who recalled seeing some advertising remembered viewing these in-stream ads.

However, the pervasiveness of an ad unit type can still have a large influence on recall. For example, 35% of viewers were able to recall seeing static banner ads, one of the most common display ad types. In contrast, only 13% of viewers remembered seeing seemingly more eye-catching video banner ads.

This seems counterintuitive when comparing the dynamic nature of video to static creative. But users are much more commonly exposed to standard banner ads than online video banner ads; users can hardly recall ads they rarely or never see. The concept of exposure influencing recall is also echoed in the fact that in-stream units like pre-roll ads—the most recalled ad unit types—are also the most used video units by US marketers, according to Break Media. Viewers not only remember seeing these in-stream units, they also recall the ads’ subjects. Almost half (47%) of respondents said they remembered the brand or product advertised after viewing a pre-, mid- or post-roll video ad. This is not surprising given the often mandatory—and interruptive—viewing nature of these units.

Worth noting is the ability of expandable video banners and pop-up video ads to prompt user action: 39% of respondents reportedly acted after viewing an expandable video ad, compared to only 20% of pre-, mid- and post-roll video ad viewers.

Expandable and pop-up video ads were also more likely to aid users in purchase decisions than any other display ad type. Such findings hint at the potential use of these video ad units for direct response-related campaign objectives.

As the industry continues to mature and new formats undoubtedly emerge, video advertisers will be presented with new ways to engage viewers and enhance their brands. For now, brand marketers are best served leveraging the use of in-stream video ads and investing in the creation of professional, branded content to boost brand recall.

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Highest First-Quarter Revenue Level on Record According to IAB and PwC

23% Year-Over-Year Increase Demonstrates Growing Importance of Digital Marketing & Advertising

NEW YORK, NY (May 26, 2011) — Internet advertising revenues in the U.S. hit $7.3 billion for the first quarter of 2011, representing a 23 percent increase over the same period in 2010, according to figures released today by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC). This marks the highest first-quarter revenue level ever for the industry and a significant increase over last year’s first-quarter revenue level, which had been the highest on record to date.

“The consistent and considerable year-over-year growth we’re seeing demonstrates that digital media is an increasingly popular destination for ad dollars, and for good reason,” said Randall Rothenberg, President and CEO of the IAB. “As Americans spend more time online for information and entertainment purposes, digital advertising and marketing has emerged as one of the most effective tools businesses have to attract and retain customers.”

“The year-on-year 23 percent increase in first quarter revenues is not just impressive in its own right, but especially so when you take into account the fact that 2010 was a record-breaking year itself for Internet advertising revenue,” said David Silverman, a partner at PricewaterhouseCoopers LLP. “These numbers indicate that the interactive advertising field hasn’t simply bounced back since the recession; it’s growing with dynamic energy.”

The following chart highlights quarterly ad revenue since 1999; dollar figures are rounded.

The IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The results are considered the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertising on the Internet. The survey includes data concerning online advertising revenues from Web sites, commercial online services, free e-mail providers, and all other companies selling online advertising.

via: iab.net

Placements on smaller, niche sites increase response to ads

Many advertisers stick to the top sites on the web when planning an online campaign, but overlooking less-trafficked sites could be a mistake. A study by contextual targeting firm CONTEXTWEB of more than 1,000 ad campaigns across 18,000 publisher sites during the second half of 2010 found that ads placed on long-tail sites—those with an overall reach smaller than 1.5% of the internet population—had a significant lift in clickthrough rate compared with ads on larger web properties. Overall, long-tail sites lifted click rates by 24%. All advertiser verticals studied showed lift when ads were placed on sites in the long tail. Alcohol ads enjoyed the highest lift, at 50%, while automotive advertisers experienced a lift of only 12%.

The site categories that provided the biggest lift in the long tail were education, technology and computing, and hobbies and games. Some site categories, including pets, home and garden, arts and entertainment, parenting and family, and automotive had a negative lift.

However, accounting for the decreased cost of placing ads on long-tail sites, even a negative lift often translates into a more efficient ad.

Not only can the long tail provide greater efficiency in clicks for advertisers’ dollar, according to the report, it is critical in providing a truly mass reach for ad campaigns. The large crop of long-tail sites frequently provides access to a large audience unduplicated by top sites in the same category, and often with similar demographics as visitors to those top sites. And according to comScore, the vast majority of time spent on the web is spent with long-tail sites, while the lion’s share of ad dollars is spent on the short tail. Advertising on top websites is, of course, still critical, especially for major campaigns or for branding. But advertisers can use the long tail as a low-cost, efficient way to augment the reach and scale of their campaigns.

via emarketer.com

Trio of Web firms announce new initiative to simplify online ad measurement, metrics

Is the impression—the longtime currency of online advertising—on its way out?

It could be. Three major advertising/media trade organizations, IAB (Interactive Advertising Bureau), the ANA (Association of National Advertisers) and the 4A’s (American Association of Advertising Agencies), have announced a new initiative aimed at simplifying online ad measurement and metrics. The groups have hired management consulting firm Bain & Company and the strategic advisory firm MediaLink to help with the effort. And everything is on the table, including possibly ditching the impression as a currency. The new initiative, Making Measurement Make Sense—announced at the IAB’s Annual Meeting in La Quinta, Calif.—won’t necessarily have a lot of teeth. But the three groups are hoping their efforts carry enough influence to enact serious change in the online ad industry, which continues to struggle to pull in its fair share of brand advertising, according to many prominent executives.

What the effort will entail is still unclear. During a press briefing, leaders from each of the three groups spoke in vague but grandiose terms. According to Sherrill Mane, the IAB’s svp of industry services, the goal of the initiative is “to change everything we do when we transact digital media." Why? “To make it more brand hospitable.” The group acknowledged that digital media is still not hospitable enough to brands. Digital buyers are faced with half a dozen sources when planning campaigns, including Nielsen, comScore, Quantcast and Compete. Different sites and ad networks sell using varied definitions of ad impressions. Video is even more muddled and disorganized. “The supply chain is messy and ineffective,” said Mane.

Yet these industry groups won’t have a lot of authority, other than issuing guidelines or a whitepaper that they hope will guide brands, vendors and ad buyers. But Mane and her counterparts said that this issue has major momentum, particularly the support of the industry’s leaders. “This is about getting agencies, publishers [on board] with what is best for the industry,” said Bob Liodice, president and CEO of the ANA, who predicted the group would produce some sort of results in six to eight months. “This is a standard setting exercise.” Added 4A's evp Mike Donahue: ”This is not about being reflective. This is about being actionable.”  

 - By Mike Shields via http://www.adweek.com/