Measuring True Financial Impact of Online Video Advertising

August 19, 2012 by Larry Kless

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?

Photo credit: Zoom U » Online Video Advertising | Calgary Video Production Blog

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Videos Show You How To Install Performance Parts

August 5, 2012 by Larry Kless

Guest post by Alex @ Redline360.com

The do-it-yourself automotive trend is growing every day, and especially in a down economy, people want to save money by installing performance parts themselves so they can save hundreds of dollars on labor. There is no better way for a manufacture of performance parts to connect with their potential customers than to create videos such as the one below that give you a background and step by step installation guide so you feel comfortable doing the job yourself. For example, in the video below, Mishimoto, a brand popular for radiators and cooling parts, demonstrates how to install their parts into a Subaru Impreza WRX.

It also helps that the video has a professional race car driver, Matt Waldin, to give credibility to the brand and entice customers to continue watching the video. The video goes step-by-step in explaining not only the benefits of the part, but what tools you need to do the job so you can be sure you have everything necessary to get the job done.

Some customers like to make their own product videos, and they gain a following and recognition on automotive forums of their knowledge and experimentation of the products. Lots of times, especially with newer cars, people like to hold off on buying parts until someone in the community buys it first and then reviews it for quality, ease of installation and performance gains.

Some how-to’s can get very technical, and some customers even do mechanical comparisons on a dynamometer to determine effectiveness of parts, such as a comparison of the difference between a short ram intake and a cold air intake. Information such as this isn’t so straight forward, so there needs to be testing done that can only be given credibility with a video posted online, or dyno sheets that show power gains. As customers get more savvy, online videos are going to be playing a bigger part in the automotive performance market.

How You Should Be Measuring Business Video Impact

July 21, 2012 by Larry Kless

This article originally appeared on The SmartVideo Blog as How You Should Be Measuring Business Video Impact posted by James Dicso on April 18, 2012, and is republished here through a content partnership with SundaySky

Companies want to prove that business video delivers a measurable financial impact to justify the investment.

In the current online business environment, all companies need to invest in solutions that have a clear and measurable ROI and payback period. Sure, vendors of business video solutions tout the impact of video on targeted business metrics, such as conversion rate, churn rate, engagement rate, call rate, and customer satisfaction as drivers of ROI. But, do they prove that business video is actually delivering these results? If vendors only compare the metrics of video viewers to non-viewers, without controlling for volume of video views and the effects of self-selection bias, the actual ROI results will be inaccurate.

True SmartVideo solutions are designed to address these concerns. Every program starts with defined goals that are measurable. The initial phase of the program includes a persistent control group that separates visitors into a test group (has access to video) and control group (no access to video). Performance of the video group vs. the control group is measured for each metric. This addresses the volume of video views on the total performance and also controls for self-selection bias. The aim is to measure transactional impact (short term) and lifetime impact (longer term) on key metrics.

I’ll use an example to illustrate these points.

A common statement is that “video-viewers convert at 3x the rate of non-viewers”. If non-viewers convert at 2%, this means that video viewers convert at 6%. Without using a control group to address video view rate and self-selection bias, the ROI projections would not be accurate or realistic. Consider the below visual.

This illustration demonstrates the impact of self-selection bias on the test visitors who don’t view video (slightly lower conversion rate) and also reflects the impact of scale of visitors who choose to view the video. Although video viewers convert at 3X non-viewers, the actual lift in conversion is 5% when comparing total video group vs. control group (2.1% conversion rate for the video group vs. 2.0% for the control group).

To effectively measure impact of business video, it is critical to define the success criteria and metrics before kicking off the program. Then, establish a control group to measure the overall effect of video on the target metrics, instead of measuring only actions of video viewers vs. non-viewers.

Is your business video program delivering measurable financial impact? If not, consider adopting a SmartVideo approach.

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SmartVideo delivers a compelling, personalized, real-time video experience designed to reach people with what they need to know in the most engaging, entertaining and informative way possible. SundaySky’s innovative convergence of technology and creativity has advanced the use of SmartVideo to more effectively engage people at every step of the customer lifecycle. Our platform generates hundreds of thousands of SmartVideos daily that attract traffic, retarget prospects, convert prospects to customers, support customers and enhance customer relationships. SundaySky SmartVideo users include leading consumer-facing organizations like AT&T, Office Depot and Tiger Direct. Follow SundaySky on Twitter and Facebook.

5 Rookie Mistakes When Investing In Business Video Initiatives

July 16, 2012 by Larry Kless

This article originally appeared on The SmartVideo Blog as 5 Rookie Mistakes When Investing In Business Video Initiatives posted by Shmulik Weller on April 17, 2012.

Online Video Publishing [dot] com welcomes SundaySky as a new blog content partner.

There’s lots of enthusiasm in the market among marketers, advertisers and customer care executives for use of business video (see recent Forrester-ANA study). Video has become a necessity, particularly for online brands, in order to create or maintain an “innovator” perception. However, many settle for just “checking the box” when adopting video for certain business initiatives without paying enough attention to the question – how can video truly have a meaningful impact on my business?

Here are some common rookie mistakes made by online brands that just check the video box, and hence miss the true potential and impact of business video:

Video production and distribution without attaching measurable business value. Creating and posting videos is not enough. Make sure they are measured and optimized to your business needs. For example, if you wish for your videos to increase your site stickiness and the number of repeat visits, make sure your videos refresh frequently to make it enticing for viewers to return and find out what’s new. Measure performance with each refresh. Or perhaps you would like for videos to drive higher conversion rates, in which case you need to establish a control group to measure the overall effect of video on your target metrics.
Selective placement of videos. What’s the point in investing in such a rich asset if it is not going to be prominently featured in your online presence? For example, if your play buttons and your video calls-to-action are big and clear, you will see greater click-to-play rates and hence more significant impact. In many cases only small percentage (single digit) of visitors actually watch the videos. Aim for at least 25% of unique users to play your videos.

Static videos. The Web is a dynamic medium where content is ever-changing. Your video content and creative should be ever-changing and be continually updated, too. Videos should feature the latest products, news, deals and offerings. Low video count and static videos that do not update over time quickly become a ghost town on your site. This is not the innovator message you want to send to your customers. See example below.
Use of generic video content. One-size-fits-all content is less effective, than personalization, particularly when it comes to engaging with your prospects and customers. Personalized video takes your engagement strategies to another level.
DIY. Online video, and especially online video for business, requires unique expertise (vs. traditional video production). Tap into online video experts who can help you not only strategize, but also navigate the nuances around what works and doesn’t work, how to make it dynamic and continually optimize it to deliver desired business outcomes, how to ensure usage. Clearly someone with domain experience can share best practices and help you achieve your goals, and execute on your video strategy. These questions are key to a successful business video deployment.

Video can be a very impactful medium. However, these common mistakes can prevent online brands from realizing its true potential. Don’t just check the video box – master it and make the best out of it.

AT&T is an example innovator who is mastering use of video to further strategic customer care initiatives. View this video to learn about their video strategy.

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Online Video Sets Automotive Trends such as Hellaflush

August 15, 2011 by Larry Kless

If you are an automotive enthusiast, you will quickly recognize the phrase “Hellaflush“. It has become synonymous with modified cars and trucks that have aftermarket wheels that are flush with the fender. This might not seem like a big deal to the average Joe, but to the auto enthusiast, especially import enthusiasts, Hellaflush has become a trend that looks like it’s here to stay.

Online Videos posted to YouTube, Vimeo and others, show the trend at work that drives up interest, excitement, and viral videos. Here is an example of a video dedicated to the Hellaflush movement that has been posted to YouTube:

As you can see from the above video, this automotive trend is very popular, and is catching on every day. Online Videos like these give inspiration to average enthusiasts to turn their cars into something special.

Getting your car Hellaflush requires a lot of research to ensure that the wheels and tires you purchase are the correct offset to make it sit just right when lowered. The tires also come in to play as each tire manufacture has different tire designs and this can make or break the stance of your car. The suspension is also very important and needs to give your car proper clearance. Popular suspension setups such as KSport Kontrol Pro Coilovers and Blackworks Coilovers have been used to create optimal stances. Seeing a video of the same car you have that is hellaflush gives you creative ideas on creating that look for your car or truck.

About the author – Alex Polonsky

Alex Polonsky is an automotive enthusiast that blogs over at APtuned (http://www.aptuned.com/blog/) where he talks about the latest trends in automotive high performance. Alex has been in the automotive industry since 1999 and has a passion for online video, technology, and social media. Alex is also co-founder of VidCompare.

See his recent post on this blog here: Online Video for Motorsports made easy with the GoPro HD and on Reel SEO: Automotive Video Drives Sales for Auto Performance Parts Industry

Strategies, tips, how to's and best practices for online video publishers

Online Video Publishing [dot] com by Larry Kless

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