IAB Guide to video advertising online

Internet Marketing Handbook Series

VIDEO ADVERTISING

A Guide to

Online

Sponsored by

introductioniab Television

GETTINGSTARTED

ACKNOWLEDGEMENTS

Video Handbook

1

IAB Handbook: A Guide To Video Advertising Online

Introduction 2

Jargon buster 4

Getting started 6

How online video fits with other media 10

Strategy, planning and setting objectives 14

Guidelines for online video advertising 18

Creativity and execution 26

Filming an online video advert 30

Booking, buying and delivery 33

Targeting 36

Measuring success 38

Conclusion 42

Acknowledgements 44

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introduction

By Jack Wallingtonsenior programmes manager, IAB

Traditionally, television and cinema were the only two channels to engage people using film. Now, the internet offers a third prong, combining film with all of the extra advantages of the internet. People can access on-demand video when they want, how they want and advertisers can make the most of the targeting, interactivity and accountability this brings.

YouTube introduced the world to the phenomenon of bite size video clips on the internet with a plethora of other websites joining in (Yahoo!, Microsoft, AOL, Telegraph TV etc). Thanks to the broadcasters ITV, Channel 4, Sky, the BBC and the likes of LoveFilm, longer programmes and films are now being watched through the internet too.

29.6 million people in the UK accessed online video in January 2009 (comScore). That’s 8 out of 10 internet users, 10% more than the year before and that number continues to grow. 1 in every 35 internet visits in February was to a specialist video website too (Hitwise). The online video revolution is upon us.

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While you can’t advertise on it, BBC’s iPlayer is a good indicator of people’s appetite for longer online video. In 2008, 271 million requests were made to watch a program through it. Then consider that only 2.5% of total video watched is through the five main broadcasters (BBC, ITV, Channel 4, Five and Sky), it paints an immense picture of the scale of online video consumption. People in the UK watched over 280 million hours of online video content in January 2009 alone (comScore).

Broadband made online video instant and because people specifically look for and choose to watch a clip at their desk, on their laptop at home or, for the more technically minded, even through their televisions, they are 100% engaged. Faster speeds also mean crystal clear high definition - pixelated or blurry video is a thing of the past.

As well as branding and impact, online video advertising has unique advantages too. Not only is it far more accountable than TV, making videos interactive is also possible. People can pause video, click on products for more information, even buy something all in the same session with a seamless experience. Add branding around a video player, product placement, user generated content and targeting and you have a formidable array of tools at your disposal exclusive to online.

Running an online video campaign is simple. Publishers deliver quality content and audiences while planning agencies, sales houses and networks make the process of running broad, wide reaching campaigns possible.


Online video is a new and exciting proposition that will enable you to deliver brand messages in unique ways, helping your brand to stand out. This handbook, produced by leading industry experts who make up the IAB Video Council, takes you through the video advertising process step-by-step, helping you to deliver your own campaigns.

Have a read, understand online video, then go and engage with your audiences. They’re ready and watching!

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Brand engagement - the process by which a consumer develops an attachment to, or relationship with, a brand either through advertising or other means, such as years of reliable service. The attachment could be emotional, rational or both.

Clickthrough - when a consumer interacts with a link in a webpage or advert and clicks through to another website.

CPM (cost per mille/thousand) - the price an advertiser pays for an advert to be shown 1,000 times. This is the benchmark used for most online display advertising including video.

Direct response - advertising that requires a consumer to respond immediately either through interaction (clicking a link), telephone, email or other.

Interactive video - online video can be made that allows consumers to manipulate video content by clicking on it. For instance a user could click to watch from different angles, click on a product in a programme to find out more information or to buy it and more.

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In-stream - most online video is now streamed played directly off of a server on the internet. You can show advertising before, after or even over the top of streamed video, thus the name in-stream advertising.

Long form video - video clips over 5 minutes in length. When people refer to long form video, they usually refer to full length content like TV programmes or films.

Pre/mid/post-roll - video adverts that are shown before, in the middle or after video content.

Short form video - video clips of less than 5 minutes in length. However short form video is usually between 30 seconds and 3 minutes in length. Short form video makes up the bulk of video content on the internet today.

Video on-demand - a service that allows people to watch a programme or video clip at any time by streaming it or downloading it.

Viewthrough - specific to online video advertising, this is a metric that tells when people have viewed an entire advert from beginning to end.

Viral video advert - an advert that consumers pass on to one another, thus spreading the number of people it reaches, like a virus! Viral adverts must be entertaining or informative.

For more definitions see: www.iabuk.net/jargonbuster

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iab Television

GETTINGSTARTED

By Jack Wallingtonsenior programmes manager, IAB

i) Video content

On the internet there are different types of video clips and programmes, known as video content. You must think about the audience you would like to reach, and the type of video content you will advertise around to reach them. Consider two important aspects:

Quality and Length

The quality and length of video content will affect how receptive a consumer is to advertising in the same way as TV or written web pages. With online video, the higher the quality or the longer the clip, the more receptive a consumer will be to longer adverts. Think about what you want to achieve, short ads or different formats can be effective for your particular objectives.

This section explains two fundamental aspects of online video advertising that you must understand before considering a campaign: the video content you will be placing adverts around and the value chain of companies you will need to work with.

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What types of video are consumers engaging with?

The below tables show what types of video people watch, why they watch it and how they watch it. It is categorised as three types of video content called snippets, boutique and programmes and film.

• Short form: from 5 seconds to 5 minutes

• Amateur content

• Social: shared, forwarded, watched with friends

• Needset is experimentation, discovery, entertainment

• Anytime media-work, home, mobile

• Mini videos: from 2 to 5 minutes

• Independent professional content

• Privately consumated: cult, niche, obscure, watched in private

• Needset is task based

• Evenings, weekends in home

• Longer form: from 5 minutes to feature length

• Professional/owned content

• PC becomes 2nd TV: private, comfortable, relaxed

• Needset is functional/ convenient, indulgent/ empowered

• Peak time in home

Snippets Boutique Programme and film

• Amusement

• Entertainment

• Discovery

• Following links

• Communal and peer driven

• Killing time

• Full attention

• But also normal web behaviours

• Multi tasking, surfing

• Interaction an important element

• Sharing, forwarding reviewing

• Information

• Discovery

• Something extra

• Task driven

• Indulgence of interests

• Full attention

• Task driven attitude

• Dislike distractions and interruptions

• Interaction limited to reviewing

• And impatient, esp. when things download slowly

• Catch ups

• Entertainment (mainly)

• Indulgence of interests

• Convenience

• Reclaiming TV time

• Full attention

• But also normal TV behaviours

lean back, comfortable, low involvement processing

• Pause facility allows breaks

• And impatient, esp. when things download slowly

Snippets

Snippets

Boutique

Boutique

Programme and film

Programme and film

Why are they watching it?

How are they watching?

(adapted from Simply TV / Work Research, March 2008)

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Quality

Obviously, advertising around higher quality, professionally produced boutique, programme and film content will come at a premium cost because they have greater brand association and a large number of people from certain demographics will return regularly.

People that choose to watch high quality content will be more receptive to advertising. For instance, if someone chooses to watch a professionally produced episode of Lost on Channel 4’s website, they will be more receptive to an advert break at the beginning, middle and end of the programme, largely because they are used to it on TV.

Equally, if it’s the world premiere of the latest music video from the Kings of Leon or Lady Gaga, people will be more willing to sit through a short advert to watch it. If someone clicks to watch a homemade clip on YouTube, they may be less likely to accept lengthy advertising beforehand because it doesn’t seem worth the wait.

You will be able to judge quality based on your own knowledge of the content, and on information provided by publishers and agencies.

Length

On the internet, very short video content (clips of usually 1 – 3 minutes) is extremely popular, forming the bulk of video consumed. Advertising around this short form content must be approached differently to long form content (programmes usually 15 – 60 minutes). Like quality, you will be able to find out more information from publishers and agencies. Rules to consider for length:

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ii) Value chain Online video advertising has a unique value chain of companies when making a campaign. Below is a diagram showing that workflow. Always consider how each company will work together.

Online Video value chain

Short form(snippets and boutique)

5 mins or less

• Suitable for all forms of video advertising.

• Consider formats like companion banners, in-stream overlays and branded skins (see chapter five).

• If pre-roll is used, 15 – 20 sec is suitable but preferably edit your advert to make it even shorter.

• The shorter the content, the shorter the ad.

Long form(programme and film)

5 mins and above

• Suitable for all forms of video advertising (see chapter five).

• More appropriate for longer, 15 – 30 sec pre-roll and mid-roll.

• If of significant length the content can handle longer and even multiple adverts, much like traditional TV.

For a longer list of companies in the online video industry, please see: www.iabuk.net/videocompanies

Advertiser

Video producersand directors

Online creativeagency

Media planningagency

Sales house /network

PublishersBroadcasters

(e.g.Channel 4,

Sky)

Mediaowners

(e.g.Guardian,

AOL,Yahoo!)

UGCmediaowner (e.g.

YouTube)

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By Simon Kendrickcommercial research consultant, ITV

Sharon Braudegroup account director, Media Contacts

Daniel Daynesaccount manager, Media Contacts

Broadcaster research from September 2008 highlighted that online video is no longer the sole preserve of tech-savvy students – 65% of the online audience aged 55 or older have watched a video clip, while 31% have watched a full length TV programme. As discussed in chapter one, the distinction between clips and full length content is an important one to make, as each offers a different proposition.

Online video acts as a strong complement to traditional broadcast TV. It can be used to increase both reach and frequency, and the highly immersive environment offers multiple benefits. Faster and more reliable broadband has helped fuel massive growth in video consumption, both in long form and short form. As online video consumption becomes more common, we are seeing an increase in diversity among those viewing.

TV and online video

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Long form content

People watching TV shows online do so because they are taking control of the schedule. People catch up on content they missed – either because they were away from their TV or watching something else. This suits some content better than others. Sport and reality entertainment are about the live experience; while the frequency and habitual nature of soaps are also best suited to TV. However, entertainment and drama flourish, particularly shows that have a strong word-of-mouth following or ones that are aimed at an active segment difficult to pin down to a TV schedule. Ultimately, catch-up is about improving reach.

Short form content

Short form content, such as clips of outtakes or interviews, is about increasing engagement. Those who watch additional content online are likely to be the biggest fans of a TV show and heavily invest in the plot and characters. Short clips, with instant gratification, can be enjoyed multiple times and are very social, with people sharing links and commenting on them. This level of social recommendation adds further interest for the viewer.

Effectiveness of online video

Online video is a different platform to broadcast television, and thus the effects of advertising change. TV benefits from the power of event broadcasting – shared experiences among masses of people at the same point in time, creating water cooler moments. Online viewing is just as social, but it is asynchronous. With closer proximity to the screen and people actively choosing to interact with certain content, levels of attention are generally high. This extends to video advertising, with its shorter and less cluttered ad breaks that give viewers the opportunity to interact with them.

Preliminary lab tests carried out by broadcasters indicate that adverts around short form clips perform stronger than long form content in traditional advertising metrics such as awareness, affinity and purchase propensity. Furthermore, advertising around identical long form content performed stronger when broadcast online than when broadcast on TV. This doesn’t mean that online video is better than broadcast TV. It simply means it is different. It also highlights their complementary nature.

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Integrated approach This encourages an integrated approach to planning advertising campaigns. Timing bespoke online video creative of a shorter length to coincide with the main TV campaign can reinforce or build upon the main messages, with the interactive element providing an outlet for further information. Integrated sponsorships – owning the association across all touch points among the widest possible audience – are increasingly prevalent. Furthermore, some advertisers upload their adverts onto YouTube. This turns viewers into agents – giving them the opportunity to share, comment, remix and repurpose the original advert and amplify the message through social connections.

Print, outdoor and radio Like any element of the marketing mix, it is best to plan your online video advertising alongside all other elements (including print, outdoor and radio) right from the beginning to make sure your messages and creative compliment each other and that your messages are consistent. As with any multi-channel campaign, think about how the consumer will be exposed to the different ads and how they will help develop the campaign message.

Other forms of internet advertising Video search If an advertiser has video content, they can host it on Google Video, YouTube, or a number of other video hosting providers. If the video is a relevant result for the search query, searchers can play the video directly from the search results page (for Google Video and YouTube) or can view a thumbnail of the video and click to the player for other hosting providers. You can easily upload videos to Google Video or to YouTube. Google have beta tested their paid-for video search in 2009, which could prove to be very useful for those advertisers who want to promote their own content.

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Behavioural video advertising This refers to the combination of behavioural targeting with video advertising. The same behavioural targeting practices that are used for online display advertising also apply to video. Behavioural advertising identifies users’ interests, patterns and behaviours allowing advertisers to build their audience and message according to relevancy. It is an advertising methodology by which users are served video advertising based upon their recent behaviour online. Advertising therefore becomes far more relevant to the consumer.

Five steps to online video advertising heaven

Understand what success looks like

Brand positioningand characteristics

Audience insights

Post campaign

analysis

Booking, buying

and delivery

Tracking and reporting

Creativity and execution

Video filmingand production

Setting objectives

Format selection

Video length

Site selection

Advertising and measurement

Multimediaplanning

1. STRATEGY

3. CREATIVE

5. EVALUATE

2. PLAN

4. LIVE!

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By Bryan Mageebusiness director, Mindshare

Sharon Braudegroup account director, Media Contacts

Daniel Daynesaccount manager, Media Contacts

Once you have established that your media strategy requires online video to achieve its goals you must understand what success looks like, gain insights into your audience and decide your brand’s positioning and characteristics.

2. Planning Once the strategy has been agreed between all relevant parties, the next step is to begin the planning process. Online video campaigns work best when planned in conjunction with other media (see the earlier integration chapter).

Online video is no different to any other discipline and should be a seamlessly integrated part of the campaign. This means that video adverts, in the same way as other parts of an advertising campaign, should be created with each other in mind. For example, use similar imagery, branding or wording.

1. Strategy

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i) Site selection

Various factors are involved when selecting sites for a campaign. Firstly, website audience research data explored prior to developing the strategy will provide a guideline. This enables you to decide how best to target the audience by their viewing habits. Secondly, areas within these sites allow you to target accurately and reach the right audience efficiently. Thirdly, and importantly, you can choose the type of programmes/video content to advertise around and associate your brand with. Other levels of targeting can be added depending on the publisher’s capabilities - for example, geographic, age, gender, industry sector and behaviour. The key when selecting sites is to evaluate how relevant the sites and placements will be to the target audience and the strategy of the campaign.

ii) Format selection

Once the site selection has been established, the creative formats need to be selected. This will heavily relate to the role of video within the overall strategy of the campaign. For example, if you would like to run video advertising before a new TV show starts, you could run pre-rolls across relevant areas to generate awareness online, or if you want people to learn more about a product you could use interactive video that incorporates more information. Once again, you must evaluate how effective each format will be in targeting its audience and how well it fits with the strategy of the campaign. Listen to the advice of your agencies.

iii) Adserving and measurement

At the moment, pre/mid/post-roll adverts are usually hosted and served by publishers. For video in display banner adverts you will usually pay for a third party adserver (where the advert files are stored online). Adservers are generally used to provide unbiased results to the client. The specialist third party adservers enable you to serve heavier files, such as video, and can provide deeper levels of reporting than a standard adserver.

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There are various types of offerings from adservers. Most can provide both standard and rich media advertising (e.g. DoubleClick, Eyeblaster, and Flashtalking). You can also employ rich media adservers to only serve the video element of the campaign. These suppliers can incorporate their results with an existing standard adserving system, so that the reporting is in one location. Rich media adservers also offer various levels of measurement beyond standard advertising measurement metrics i.e. interaction rate, complete video plays, video replays.

The type of adserver to use is down to your own discretion, although at the moment pre/mid/post-roll is usually served by the publisher. One decision making factor will be the level of measurement that a) the adserver offers, and b) the campaign needs. This decision needs to be assessed on the measurement criteria decided in the strategy.

iv) Video length

Video length can vary by platform. Each publisher will have their own guidelines for video content. Buying across these platforms means a combination of buying catch-up TV, long form (films, documentaries, soaps etc.) and short form (clips, music videos etc.) made for online. The length of your creative will usually help you decide on what length of content you should be planning (shorter time lengths suit short form content).

The current trend is to take a 15 to 30 second ad that has been used for TV and run it online, but ads made or edited specifically for online are better. The best solution is to brief the creative agency as early as possible so that the online version of the creative is created at the same time and not an afterthought.

v) Multimedia planning

Make sure the online video plan reflects what is happening with other media and that the look and feel of the campaign is seamless. Consistency of the campaign message, look and feel is very important if multiple mediums are being planned. Are there any opportunities for the other media to work harder together, e.g. cross platform deals?

vi) Setting objectives

Once you know what you want to achieve from your online video campaign and how to measure that, you can set the final objectives. Due to the detailed measurement metrics of online video, you should set objectives on a campaign by campaign basis.

Some of the objectives that online video can help to deliver are:

• High frequency at a low cost: achievable through video networks.

• Communicate a brand or specific product message: video content can be tailored to different environments.

• High interaction rates: video creative has performed well in direct response (DR) campaigns.

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By Alfred Ruthproduct manager, Videoplaza

Robert Blackrain maker, UTarget.FOX

Russell Goldsmithdigital media director, markettiers4dc

Lindsay MillerUS marketing manager, Vibrant

Patrick Knightdirector, InSkin

The ad format grants use of both sound and moving images to convey the message. Most commonly this is done with a video file, but the ad may just as well be a regular banner file.

Pre-rolls are inserted prior to content; mid-rolls in commercial breaks within the content while post-roll ads are inserted after content is completed.

Pre-roll, mid-roll, post-roll

The pre-roll, mid-roll and post-roll ad format is the online video ad format that closest resembles regular TV spot ads. The ad format is linear in the sense that it takes over the full experience of the viewer for a limited amount of time.

Advertising in and around on-demand video

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The pre/mid/post-roll ad format allows for different levels of interactivity, but should at least be clickable.

Guidelines

Insertion: Before (pre), in-between (mid) or after (post) content.Duration: 15 - 30 seconds depending on length of clip or program. If

advertising around short form, the IAB highly recommends that you make or edit adverts for online use that are shorter than this because they are better received by consumers.

Click event: Should be clickable with link to advertiser site.Dimensions: 800x600px (4:3) or 800x450px (16:9). The ad will be scaled to fit

the video player dimensions.

It is also typically used with a companion ad that runs adjacent to the player and allows user interaction after the spot ad is completed. More on this can be found in the companion ad and interactivity pages that follow.

Interactivity

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Pre/mid/post-roll ads are comparable to regular TV ads, taking over the full user experience for a limited amount of time. On the internet the ad format can be enhanced to allow user interaction.

Interaction can take the form of hot spots that hover over an item or product in the video that can be clicked. In this case, the best practice is to pause the video and display more information on the product in the video player giving people the option to either buy it or sign-up for more information. Importantly, people should be able to click back to the video clip they were watching easily.

A good example of this is an advertisement for an upcoming movie. While the pushed message is restricted in duration allowing only a short trailer, the advertiser may show the full trailer by offering a clickable area.

In-stream overlay

If the banner is clicked, the user may either be sent directly to the advertiser site, or the banner may expand to show a video file or interactive content. The original content should be paused whenever the overlay banner is clicked.`

Since the user chooses further information by clicking the banner, there are no restrictions to duration of the ad content that is shown after the banner is clicked, as long as the user is able to close the ad and get back to the content.

Each overlay banner can be shown for 15 seconds after which it will close again. On longer video clips, you can show more than one overlay banner. Each overlay banner must include a clear button for people to click to close it.

The overlay banner ad format is a non-linear interactive ad format. In contrast to the pre/mid/post-roll ad format, the overlay doesn’t take over the full user experience, instead it is shown concurrently with the content by overlaying part of the video frame.

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The overlay banner may be connected to a companion ad (see below) adjacent to the video player to maximise impact.

Branded video player skins

Guidelines

Insertion: During content playback.Duration: Max 15 seconds per banner.Frequency: Max 1 banner per 3 minutes.Click event: Click may expand banner to auto-initiated video, interactive ad or take

user to advertiser’s site.Dimensions: 800x100px. The ad will be scaled to fit the video player dimensions and

may use max 1/5 of the player’s height.

Branded skins add a box around a video player on a website that can be filled with advertising images or animation. Recent developments in this area allow you to dynamically rebrand the video player of almost any publisher with an animated and clickable skin.

Branded skins allow you to become an integral part of the consumer’s viewing experience for the whole video. A campaign can be set up to be between two to five minutes per impression.

On top of branding, skins allow for interaction. If a skin is clicked, the consumer may either be sent directly to your site, or be presented with a large expandable layer offering interactive content. The original video is paused whenever the skin is clicked.

Branded skins are ad-served and sold on a cost-per-thousand (CPM) basis and can be targeted to multiple players/sites. Early results have shown very good interaction rates as well as brand dwell time measured in minutes rather than seconds.

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Companion ads

The companion ad can be placed anywhere adjacent to the video player and be of any standard IAB banner format. In fact, some publishers may even use multiple companion ads.

Companion ads should always be loaded in sync with pre/mid/post-rolls or overlay banners. If the companion banner contains user-initiated sound, the playback within the video player must be paused whenever a user interacts with the companion banner.

Guidelines

Insertion: At the start and throughout content playback.Duration: Visible for entire content duration.Click event: Video pauses and either takes consumer to your site, or opens large

expandable layer offering interactive content.Dimensions: 800x600px (4:3) or 800x450px (16:9). The ad will be scaled to fit the

video player dimensions. Expandable layer: 900x600px.

Guidelines

Insertion: In sync with in-stream pre/mid/post-rolls or overlays.Duration: Stays present until swapped to another companion ad.Click event: Interactive content or take user to advertiser’s site.Dimensions: Any standard IAB banner format (www.iabuk.net/standards).

Companion ads are not considered a stand-alone online video ad format. Instead they are intended to be used to enhance impact of the in-stream ads and allow user interaction throughout video playback.

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Product placement in video and brand funded video

Video on the internet isn’t covered by Ofcom’s regulations, instead quality content is tightly controlled by publishers. This offers a huge opportunity for brands to get directly involved in the actual content of the videos that people are watching, as well as the adverts and sponsorship around them. This allows for direct engagement with the audience, especially when viewers can actually interact with the video itself. Clicking on products featured for more information, sign-up for vouchers or mailing lists, or even click-to-purchase them instantly.

The two routes that brands can take in this instance are to either:

1. Place products in videos produced by media owners E.g. P&G’s Pantene shampoo was placed in episodes of the Bebo produced

program, Kate Modern.

2. Fund their own video featuring their products E.g. Fashion retailer Oli ran videos produced by HowTo.tv, where users

could click on the designer clothes and add them to their shopping basket on oli.co.uk.

Other uses of video in online display advertising

Video in social media

All the standard video advertising units in this section can be run on social media sites like MySpace, Bebo and Facebook in the same way as any other publisher sites. However, applications or widgets give context to social media sites, making the advert part of the experience instead of existing outside it.

Applications (or widgets) offer additional direct brand integration to the user experience on social media. You can either create a branded application that incorporates video ads, or place your ad within an existing application. Movie or game trailers are particularly suitable for this kind of support.

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Video subsites

The advert can also be targeted by audience through careful selection of the host sites. It offers benefits to users by being non-interruptive and to advertisers because it loads in such high quality.

Video subsites offer advertisers the opportunity to stream large format, targeted TV and video ads via a bespoke designed page. The video subsite launches behind the host site, allowing the advert to be delivered with sound and at full screen for maximum impact.

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The video subsite starts playing when the host site is closed and the video subsite becomes the focus of the page. The unit allows duration to be longer than pre-roll with average campaign lengths being between 30 and 60 seconds.

Upon completion of the video stream the user is then delivered to the advertiser’s landing or splash page offering call to action opportunities for branding and direct response, consumer testing and sampling and user data capture. The video subsite is delivered direct to the user meaning campaigns can reach a volume audience.

The advertiser’s campaign report will include VTR (view through rates) and how many users are delivered to their campaign page or splash page.

In-text video advertising

In-text video advertising enables marketers to highlight words in web content and deliver a highly relevant video advertising experience. In-text advertising highlights over 3.5 billion words, reaching 1 in 3 internet users across the UK (comScore UK, Feb 2009).

Each in-text video ad impression is pre-qualified and user-initiated. A user can choose to view the ad by moving their mouse over a double-underlined word or phase of interest. Once the video is launched the user can click to visit your corresponding landing page to learn more.

GuidelinesInsertion: Double underline relevant words in written content.Duration: Recommended: 10 - 30 seconds.Rec. assets: High resolution video files. You should supply a backup image

(.jpeg or .gif) for users without flash capability. Click event: Link to relevant landing page.Dimensions: 180x150 pixels (standard) 300x172 pixels.

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By Kristof Harlingaccount director, Syzygy

Camilla Dayhead of video on demand, PHD

There are now so many marketing channels available that brands have had to bear an overwhelming array of choice in where to broadcast. This is against a backdrop of consumers becoming increasingly fussy about the advertising they engage with. The result is that brands have needed to think smarter, deeper and wider on how to create effective advertising across the marketing mix and in context to online video advertising; this has driven some interesting creative delivery.

Tailored adverts for online

With a clear vision of video on-demand’s role and where it sits within the media mix, creative can be tailored at little or no additional cost. Exclusive footage for online video can be included in the original shoot to create either the pre/mid/post-roll, for display or to reward the consumer on a brand website.

The benefit of film as a medium is that it enables a brand to tell a visual story. Like all stories, the way it is told is crucial to how the message is received, understood and accepted.

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Adverts before and in the middle of content

Advertising ahead of content (pre-roll) or in the middle (mid-roll) can be very powerful in terms of driving positive brand associations and purchase intent. However, in this environment the creative must be relevant to the viewer and only interrupt if long form, like a traditional TV experience.

Adverts before and in the middle of contentIn considering the consumer experience, the highly targeted nature of video-on-demand means that you can deliver more tailored messaging than on TV and engage the consumer in deeper brand conversations. What really sets online video apart from traditional media channels is that for the first time you can benefit from true interaction.

The following questions need to be answered:

• What journey are you taking the consumer on? What messages do you want to deliver? What do you want the end result to be? What do experience do you want the consumer to have?

• What do you want the consumer to do once they have interacted? Do you want them to read more in depth information? View different images of a product? Request for consumers to call you?

• How do you encourage the user to interact? Will you offer an incentive? Offer enticing copy?

To harness this interactivity to optimum effect, creative execution is key and it is more important than ever that creative and media agencies work together from the early planning stages.

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In creating interactive online marketing campaigns, the concept of visual interaction via a website’s interface has become a powerful component within online campaigns. From Volkswagen Golf’s Night Drive in 2007 (www.night-driving.com), Wario Land’s You Tube video ad in 2008 (http://uk.youtube.com/experiencewii), to Mazda’s behind the scenes interviews in 2009 (www.newmazda3.com/en-GB/explore/?section=1&sub=2), brands have been experimenting on taking digital interaction and TV advertising to a new level. This is not to say that the rules have been completely re-written as most, if not all, online video ads follow the principle of either being interesting, funny or informative with the successful ones also being relevant to the target audience.

Companion adverts

Companion MPUs or banners that sit alongside the player can drive interaction with a simple and compelling call to action. New interactive video formats such as branded player skins around the video player itself can also be considered to drive interaction and brand engagement.

Communicating across multiple channels

Today’s marketing strategy requires creative ideas that communicate across multiple channels. In doing so, creativity can be executed to great effect. On a simple level this would explain

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younger audience with the Where Are The Joneses (WATJ) campaign (http://wherearethejoneses.com/).

The campaign got young people via social networks and the WATJ blog to send in stories for an episode. Ford then selected the best one and filmed it with a professional crew and then posted it on the blog letting all who participated to view it. There are currently 94 episodes and each video finds a way of including a Ford car though the product placement is the only brand messaging. This creative idea has been hugely popular and effective in creating relevance for a corporate and American brand into a young UK audience.

The main take out from this is that the participants didn’t feel marketed to by intrusive advertising but felt invited to engage and contribute to an idea and community. This is the similar thinking of the Stockholm based agency Far Far, which says it’s a group of time bandits as “in today’s chaotic marketplace of brands trying to break through the clutter, consumers want to be in command of their own time, interacting with media on their own terms”. This philosophy was formed from the agency’s founder, Matias Palm-Jensen, who thinks that good creative execution creates time rather than intrudes on it. As online video marketing continues to improve within the marketing mix, the best creative executions will certainly take advantage of this new form of brand interaction.

the online success of the Cadbury Gorilla, which at this time has had an engaged and active audience of over 4 million people via YouTube. At a more sophisticated level, Ford made online video as an integral part of their strategy in engaging with a

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By Jo Rae-Chodaninteractive film producer, Dare

• “Can’t you just use the company handy-cam and shoot a viral for our client; it’s not a feature film you know.”

• “This isn’t a TV ad, so why is it costing so much?”

Online film producers are likely to have heard comments like these more times than they care to remember. This is usually down to a lack of understanding across the TV and digital industries when shooting a video ad for online. In reality, many of the processes remain the same for online video adverts as they are when filming for a TV advert.

Whether you are a digital advertiser learning about filming video ads for the first time, or an experienced TV advertiser learning about digital, we are all a part of this new digital film industry. Bringing the two worlds together will lead to success.

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The IAB’s top twelve tips for filming online video advertsBy Jack Wallington, senior programmes manager, IAB

1. TV and online: work better together. If you’re filming for TV, incorporate the online shoot into the TV shoot, and make sure it does not get pushed aside in favour of TV. Online video and TV audiences are the same, the quality of your ad should be too.

2. Length: the IAB recommends making online video ads of 10 to 15 seconds long. If you’re only advertising around long form content you can make your ad longer, perhaps using an edited version of your TV advert.

3. Branding: include your brand, packaging or logo throughout the advert to aid recall.

4. Player size: the vast majority of online video is viewed in a smaller player, so make sure text is readable and that you use shots that don’t look cluttered in a smaller viewing space.

5. Get creative and entertain: video is about entertainment. You may not have much time in a 10 second advert but that’s plenty of time to entertain.

6. Sound: in video players the sound will be on automatically when someone clicks to view a video. Sound effects and music can make or break your advert. Car adverts use music to great effect, while annoying sound effects can irritate but be memorable.

7. Interaction: if you want people to interact with your advert make sure the ad includes scenes that show what you want people to click on (e.g. your product), allowing enough time for them to do this. You can include multiple scenes to really show off your product, but you’ll need to plan for this.

8. Actors: if you’re using them, don’t skimp on talent. Watch previous work by professional actors and get multiple opinions to make sure they’re suitable.

9. Pacing: use lots of short clips to give the impression of a fast paced scene. For slow paced ads, use few fewer, longer clips.

10. Call to action: if you want people to do something, make it obvious, simple and eye catching. Use graphics that stand out against the video clip.

11. Engagement: online viewers can lose interest quickly. Entertain, engage and make sure your message is delivered quickly and clearly to a relevant audience.

12. Cut cost, not quality: just because you are online doesn’t mean you can cut production quality, but given the reduced screen size there are tricks of the camera to reduce cost. E.g. to show a crowd at a concert you just need the crowd, you don’t need to hire the O2 arena!

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First steps to online film production

The secret to success in the filming of any online advert or programme is to involve the producers at a very early stage. Involving the producer with agency planning and creative teams along with the account and technical teams is often essential. This makes it possible to work out what can be achieved within the time, money and technical requirement constraints. Often the end product will be shaped by these specifications. Below are some basic questions you should be asking:

What is your budget for filming and post-production?

Discuss what can be achieved for your budget with your agency early in the process. It may be better to spend more time and money on a video advert if it’s the best method of delivering your message and reaching your audience.

What is technically possible?

You and your agency must make sure the head of technology is involved right at the start. If you are including interactive video, it is even more important for the head of technology to be involved during the scripting process. If advertising outside the UK, understand the technical restraints. Some countries outside of the UK do not share the same broadband capacity. Therefore a Flash designed set of animated display adverts may be the more sensible path.

What is the process for filming?

Once you have signed-off the script, concept and budget, online video production by your agency and production team will begin. This involves:

1. Pre-production: approval of script and director plus a pre-production meeting for any last minute items.

2. Shoot: filming will take place. If you’re filming alongside TV, remember not to let the time for online production be pushed aside.

3. Post-production: first a rough cut will be made for comments, then the final cut of the film. Following this, sound and graphic production will take place before the final advert is ready.

By Derrick Faulknerhead of digital delivery, Bauer Media

Robert Blackrain maker, UTarget

1) Direct with the site publisher: who vary in size and targeting options but include sites from the following sectors – TV, radio, print, portals, lifestyle, entertainment, finance, travel and automotive (to name a few).

2) Sales houses: who act as agents for a collection of websites which can be small in size or represent niche markets.

3) Networks: who buy unsold inventory from a number of suppliers and then re-sell this inventory.

Booking direct with a recognised publisher allows you to choose exactly what type of content your ad will appear next to.

Booking options

There are thousands of websites offering video content. You can choose one or a combination of the following outlets for buying video advertisements online:

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What is technically possible? Cost per thousand (CPM): a price per thousand ad impressions is the standard currency. On demand video content is regarded as premium inventory so most publishers will use this currency as the definitive trading currency for buying online video. Higher CPMs will apply for more highly targeted advertisements (i.e. content specific, geo targeting, profile/behavioural targeting, etc). A £20 cpm, will mean that you pay £20 for every thousand impressions ordered/delivered. You will know exactly how many impressions are bought and from this, reach can be predicted.

Sponsorship/tenancy: some publishers may offer the opportunity to sponsor a section of a video channel, or specific video content. This will typically include

Working with networks

Sales houses and networks give the benefit of saving the planner / buyer time and thus, in the long-term, money. Instead of approaching five to ten publishers you use one point of contact called a sales house. The results of the campaign benefit too because collecting results is done by the sales house and presented in one document.

When working with sales houses and networks please ensure the following:

• Insertion orders are agreed upon and signed before the campaign starts. This should cover the standard criteria for running the campaign such as number of impressions to be delivered, the targeting that is required and cost.

• The insertion order may also cover the way that the sales house or network does business and could also include clauses on the following points (these should all be

read and agreed upon before the campaign commences).

1. Ensure the delivery of creative and urls are delivered within the agreed timeframe before

the start of the campaign, thus ensuring that the campaign should start on time.

2. Agree on any promotion of the campaign that may be required during negotiation. 3. The client or agency should agree with the sales house or network upon the reporting

of the campaign statistics, whose statistics have precedence for billing and the degree

of discrepancy that is acceptable.

4. How the publishers that run the advertising will be paid.

5. Cancellation clauses.

6. Confidentiality clauses.

7. Warranties and liability.

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placements around and within the video content. The pricing model is worked out on a tenancy basis applying an average CPM against an estimated number of impressions the sponsored section will deliver over the agreed timeframe.

Cost per click (CPC): a price for a single click on an advertisement that either brings a user to a website or plays the video within the unit (click-to-play). Not all publishers will offer this and it isn’t appropriate for all video ad formats, but it is a currency available for a range of interactive video advertising formats.

Delivery

Publisher ad serving system: this is a sophisticated piece of software used to deliver the video advertisement to the web page including in and around video content. The adserver software will count impressions and clicks on the advertisement and provide detailed reports on these metrics as well as campaign performance over time.

Most adservers can also offer post click tracking, where you will place a ‘beacon’ on their site to track user activity on the incumbent site. Again, all this activity can be reported by the adserver over time. The great benefit for post click tracking is that you can monitor post clickthroughs on the ads which lead to sales/conversions. This is particularly useful for monitoring return on investment (ROI).

Third party ad serving and tracking: at the moment pre/mid/post-roll adverts aren’t usually served by third party adservers, while video adverts in display banner adverts are. However, both formats can be tracked by third parties. Third party ad tracking technology is used to

1. Manage the delivery of video ads into media placements.2. Measure the number of ads delivered and clicks received through an independent

specialist. The publisher is sent a piece of code by the third party adserving vendor, which in turn the publisher loads as the creative asset into its adserving system (see above). The benefits of using this functionality are that it provides you with an independent view of the campaign performance, especially when the video ads are placed on multiple websites. Reach and frequency can also be monitored via this system (and a view is given for all the publishers who are serving the ads). Another great benefit of using this method is that creative changes can take place in the third party system (for instance for campaign optimisation, ‘offer’ changes or creative rotation) and the publisher(s) will not have to make any campaign changes at their end. Finally, as with publisher-side adserving, you can monitor post clickthroughs on the ads, leading to sales/conversions.

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By Dean Donaldsondigital experience strategist, EyeBlaster

Vaughan Dennyhead of rich media sales EMEA, DoubleClick Rich Media and Video

Preventing waste

One of the big promises of online advertising is that by using clever targeting, budgets can be used more efficiently as advertising isn’t wasted on those that a) can’t see it or b) are unlikely to respond to it.

This is especially important for video advertising, as it is usually more engaging than standard display advertising so a positive experience is more important. Video advertising has existed since the dawn of commercial television. While the way it is delivered may have changed, the aim hasn’t. You can use video to increase brand engagement and measuring this is where online video advertising excels.

For an example, if you are promoting a horror film, you are unlikely to reach a receptive audience by advertising on a mother and baby website. It is better to target the audience to make your advertising more efficient.

Bandwidth

If you are running a campaign featuring a beautiful video that has high production values and where the feeling of quality is essential, there is very little point trying to show these ads to someone who barely has enough bandwidth to download their email. They won’t respond positively and you will waste your efforts.

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The desired quality of video footage in an ad has a huge impact on the technical specifications. The higher the quality, the higher the file size and the larger the impact on the viewer, both in terms of advertising impact and the technical demands upon the viewer’s machine.

Technical targeting

The technical aspects of targeting which affect the success of a campaign include, but are not limited to:

• Geographical targeting: allows you to deliver an ad against a person’s location. This is especially true when running multinational campaigns as delivering a video in the correct language with the correct information will increase its effectiveness.

• Browser and operating system targeting: allows you to target against the technology that a person is using. There may be little point in delivering a video ad to someone who hasn’t updated their browser for four years as the video probably won’t play.

• Connection speed: has particular impact upon video advertising as trying to squeeze a large video creative down a slow connection is frustrating to the consumer and is a waste of effort for you. This doesn’t mean that a user on a slow connection should be excluded from seeing the ad – just that they should see it in a different fashion – as a download rather than a stream for instance.

• Time of day targeting: allows ads to be delivered to someone at an appropriate point of the day. If you have a video ad that has the aim of driving people to a particular fast food chain then it will be better to show this to them in the two hours running up to lunch rather than first thing on a Sunday morning.

• Targeting against site content: is a technique that allows an advertiser to show ads to different users of a site. There is little point showing a video ad for the new VW Golf to someone who is searching for a second hand Ford Fiesta. Using keywords to target an ad means that the marketing spend works a bit harder.

• Behavioural targeting of video: isn’t available for all pre/mid/post-roll advertising but it will become more important in the future. Video in display banner advertising can be behaviourally targeted. Behavioural targeting places people anonymously into large groups that have shown an interest in a certain subject based on the websites they have visited. It is often shown to deliver higher clickthrough or engagement because it increases relevancy.

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By Alfred Ruthproduct manager, Videoplaza

Camilla Dayhead of video on demand, PHD

The type of ad format you use will also be important. A pre-roll is best measured on the number of people that see it and brand tracking. Interactive ads or a player skin can be measured on dwell time and interaction rates. Use this section to help pick two or three relevant metrics that are linked to your objectives. Brand tracking

Video advertising, particularly advertising around on-demand clips and programs, can be measured in a similar way to TV and cinema. Research companies like DynamicLogic can measure brand uplift (increases in the relationship between your brand and your consumers). Therefore, you should consider using the following:

What is the best way of tracking and measuring video advertising?

The way you track, measure and report your campaign must be decided upfront and depends on your campaign objectives. You can use brand tracking, online metrics or both.

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• Awareness: shows if there has been uplift in the number of people that know about your brand or product.

• Favourability / perception: shows if there has been a positive uplift or change in consumer opinion.

• Consideration: shows if there has been an increase in the number of consumers thinking about buying or using your brand.

• Message association: shows if there has been uplift in the association of a message to your brand. E.g. when fuel companies advertise about their environmental credentials.

Online metrics

Online metrics are vital for measuring delivery and reach. Video ads are served through ad servers in the same way display banner ads normally are, and hence, a few metrics derived from banner ads are still relevant.

• Delivery / impressions: the number of unique browsers / computers that an ad has been served to.

• Reach: the number of individuals in an audience reached by an advert. Offline, this is an estimate, online is far more accurate.

• Clickthrough rate: the share of impressions that led to a click that redirected the user to the advertiser’s site.

Besides these standard metrics, there are a few more metrics unique to online video advertising:

• Frequency: while you can set the number of times an advert is repeated in a set time period on TV, uniquely to the internet, you can limit the number of times an individual sees the ad too.

• Dwell time: total amount of attention in seconds that an ad has generated from users. This can be measured since the ads are served one at a time.

• Drop-off time: how much of the ad did the user see? The data should be broken down at least into quarters of the content duration. You should, for instance, be able to tell what share of the users saw at least half of the ad or more.

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Further, several types of online video ads are interactive which means that users can interact with the ads without leaving the video player. There are too many variations to list them all, but some are worth mentioning.

• Interaction rate: adverts that have additional functionality in them like buttons, animations or forms that require people to interact can be measured by interaction rate. You can compare the number of impressions to interactions to find out how successful your ad was at engaging the consumer.

• In-stream overlay click rate: in-stream overlay ads allow people to click on them which can trigger a number of actions such as directing people to the brand website, or opening up more information within the player while pausing the content. The first click of an overlay banner cannot be considered a clickthrough since the user is not always redirected to the advertiser’s site immediately. Hence, the clicks on the overlay banner must be counted separately and calculated to reflect the share of impressions that led to a click on the overlay banner.

How do you choose which metric to use?

The type of campaign and its objectives will decide the metrics you need to use:

• Branding campaign: how do you want the relationship between your brand and consumers to change? Do you want more people to know about your brand? Is it your aim to change opinions? Are you looking to increase the likelihood to purchase? Depending on your branding objective, you can use a combination of online metrics (e.g. for reach) and brand tracking (e.g. for brand uplift).

• Response campaign: what type of response do you want, sales, interactions, leads or more people visiting your shops? Response has many different forms. Depending on your response objective, the type of measurement will change. For instance, if you have an interactive ad you can measure the number of times a consumer interacts. If you’re driving leads, you can measure increase in phone and in-shop enquiries as well as online. Don’t rely solely on clickthrough.

PHD set out to test the impact of exposing consumers to both TV and pre-roll messaging for the McCain Home Fries brand. The online video ad campaign ran simultaneously with the TV campaign. Consumer exposure to both TV and online video campaigns led to the following results:

• 22% increase in purchase intent• 13% increase in brand favourability• Perceptions surrounding McCain Home Fries ingredients such as “specially

selected potatoes” and “made from British potatoes” were particularly enhanced with the addition of online video

The future of video advertising measurement

Advertising in and around video content is still a relatively new format, and while it is building on two established mediums – online and TV – the way in which it is measured will continue to improve in the coming years. For instance, at the moment publishers can measure video and while agencies can add tracking pixels to their adverts, there is still room for improvement. Third party adserving allows online measurement at the client side and it is beginning to be adopted for video on demand, following several years of successful implementation for other video formats.

Case study: McCain Home Fries

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Aided advertising awareness

Brand favourability

Likelihood to consider

Likelihood to purchase

4.4

3.3

.2

2.3

20.8

12.7

21.6

11.4

TV only Incremental VoD

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By Mike Nicholsontv manager, Telegraph Media Group

This powerful mix has already helped countless brands make a real connection with audiences, and the examples within this guide, along with many others, are proof of these successes.

Video consumption is on the rise, and in response I think publishers will continue to increase and improve both the quality and quantity of the video they offer. This is great news for brands as they will have a larger selection of sites that are able to offer targeted solutions.

Video advertising allows brands to harness the power of their advertising campaigns while the user is both fully engaged, and in the enviable position of being able to react to that message immediately online.

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As the medium continues to evolve I encourage advertisers to think creatively about how they can get the most out of this powerful medium. Think beyond traditional broadcast advertising norms, and create online video campaigns that literally pull consumers in and connect them to your brand.

I think it’s safe to say that video advertising is here to stay, and it is a tremendously exciting time to be working in this space.


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ACKNOWLEDGEMENTS

Video Handbook

Jack Wallington,senior programmes manager, IAB

Amit Kotecha,project executive, IAB

Amy Kean,senior pr & marketing manager, IAB

The iab would like to thank the proud sponsor of this Guide to Video Advertising Online.

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This handbook was produced by members of the IAB Video Council. Chaired by Robert Black, rainmaker of UTarget.Fox, the council is a panel of leading media owners (including broadcasters), agencies and technology providers. If you would like to know more about the Video Council, please contact [email protected].

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