Without a doubt, online video is on the rise. A recent report by Celtra found that half of all browsing traffic on mobile devices is video-related and predicts that video will comprise 55% of Internet traffic across devices by 2016. This is obviously great news for online video advertising, which eMarketer predicts will be a $9 billion industry by 2016.
Marketers are scrambling to catch up, but in the process, we’re seeing a troubling trend—they’re not seeing how programmatic can play into their online video ad campaigns. Let’s take a look at five misconceptions about programmatic video that’s plaguing marketers.
Misconception #1: Programmatic can’t power video campaigns.
Like the boys locker room after prom, the marketing world is filled with false rumors. One of the big ones is that you can only use programmatic for direct marketing spends. It’s easy to see how that misconception came about, since programmatic has been touted for years as a great way to measure the impact you have towards a specific goal. But with programmatic, brand dollars can be put to use towards acquiring desired audiences, not just existing or similar ones. The tools of programmatic—third-party data, look-alike modeling, intent-based targeting—translate well to brand spends and to video spends in particular.
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Misconception #2: You can’t use search data in video campaigns.
Many marketers overlook how effective search data can be in leveraging the power of intent to find new customers. And sometimes, even those who know how incredibly effective Search Retargeting can be think that it doesn’t also work for video. It does.
When you work with a vendor, such as Chango, that has the kind of robust pool of search data that allows you to target, expand and optimize campaigns based on your goals, you get three big benefits. First, you’re able to target individuals with video terms based on the highly-relevant terms they’re searching for. Based on visitors coming to your site, you’re able to expand targeting to other similar audiences using Look-alike audiences. And finally, based on what those people are searching, you learn more about what kind of audience is relevant to you, allowing you to optimize your audience-level targeting.
Misconception #3: You don’t need a ton of data to make video campaigns work.
The simple truth: the more data you have, the better. Search is one important component but you need a large amount of data to reach the right audiences. Don’t be fooled by the fact that video inventory traditionally has a higher sell-through rate; that doesn’t mean that it’s reaching the right audience. After all, if you’re placing Chik-fil-A ads on a vegetarian website, or female beauty product ads on Men’s Health, you’re probably wasting impressions. Programmatic will enable you to ensure that your impressions are reaching truly relevant audiences.
Misconception #4: Programmatic won’t help your video analytics.
Have you been receiving detailed reports on where your video ads ran and who they reached? Probably not. The vast majority of in-house analytics don’t include these insights, and many other brand lift studies reveal murky findings at best. To get truly transparent insights, you need the kind of big data insights that programmatic provides.
Misconception #5: You need to accept standard pricing models.
Marketers have long loved results-based pricing. It used to be CPC, and now it’s CPCV—cost per completed view. However, companies, including Google, are giving users more choices in their video viewing experiences, including the ability to skip and interact with videos in different ways. An emphasis on completed views encourages companies to implement tactics that may be counterproductive to your campaign, such as stuffing annoying auto-play videos in banner ads, or, even more annoying, auto-play ads that aren’t even in view.
In addition, it’s been proven time and time again that skipped or partially-viewed ads still drive value—whether it’s brand recall, lift or another form of interest. An irrational attachment to CPC has plagued the display industry for years. Don’t make a similar mistake with CPCV. Select a pricing model that works for your objectives instead.