This article originally appeared on The SmartVideo Blog as Measuring True Financial Impact of Online Video Advertising posted by James Dicso on April 27, 2012, and is republished here through a content partnership with SundaySky
Online video is the fastest growing advertising medium with over 8.3B video ads in March, according to comScore’s latest online video rankings. As inventory grows and online video advertising strategies mature, this trend should not only continue, but accelerate.
As noted in eMarketer, Video Ad Performance measurement remains a challenge. Some advertisers use traditional TV metrics, such as Gross Rating Point, while others focus on click through rates or completion rates to measure performance. The challenge with each of these metrics is that it misses the larger goal of delivering (Return on Ad Spend (RoAS). Most other online advertising categories are performance based with a focus on delivering measurable incremental visits, conversions and revenue.
We believe a smart video advertising strategy should incorporate RoAS as the primary metric to measure true financial impact, while ensuring that the video ads also deliver positive brand experience and engagement. This requires the ability to both report on these metrics and use a control-group approach to measure how much of this performance is incremental.
Assuming an advertiser buys into the idea of using RoAS as the performance metric of choice, the whole video advertising program should be designed around the idea of visitor targeting and performance optimization to maximize RoAS. This includes optimizing the media buy, as well as optimizing the video ad. (Video ad targeting and performance optimization will be the subject of several future blog posts.)
There are many ways to measure performance of video advertising programs. Our belief is that RoAS measured via control group is the smart way to go.
Is your video advertising program delivering measurable financial impact?
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