A CRM is a media measure that values the cost-per-mille (or cost-per-thousand impressions) for an ad campaign buy.
It’s a legacy from radio and TV advertising. Networks estimated the size of their audiences so they could calculate how many times ads were exposed to listeners and viewers (impressions) and place a dollar value on that number (CPMs).
The challenge was they had no way to determine thequalityof impressions. Even today, when a network or station runs a TV commercial, no one really knows for certain how many people actually watch it, or whether they are viewers that the advertiser really wants to target. Still, CPMs remain the primary units for selling and buying TV and radio.
A Whole New View
As digital media have evolved (initially, online display but more recently, video), they have followed in the footsteps of traditional media in using impressions and CPMs for selling ads. Most brands and agencies today buy display and video ads on a CPM basis.
However, ad technology companies have been steadily innovating more precise ways to measure the size and character of ad audiences, as well as their engagement with ads. And this insight has prompted a new focus on a much more valuable metric—the view.
The good news for video advertisers is that, in time, most of the digital media market will trade on the true value of a video campaign:how many people actually watch your entire ad—and who they are, specifically.
The Hot-Hot-Hot Button
Viewability remains the hot-hot-hot button issue of the day as more brands and agency media planners realize just how few of the video ad CPMs they pay for are ever seen.
Many video ad publishers and networks built their systems on legacy display ad technology and in many cases, it can’t distinguish between user-initiated and forced-view video ads, tagging both as impressions.
How bad is it? Integral Ad Science recently reported that,viewers never see60% of the video ads that brands and agency media planners purchase outside of YouTube.1
And despite industry commitment to address this situation, the past 18 months has produced only a 1% improvement in viewability.
A Clear and Better Alternative
In December, 2010, YouTube introduced its skipable ad format called TrueView, along with a different value model than CPMs.
The new media measure called “CPV” values thecost-per-viewfor a skipable video ad campaign. This model charges advertisers only when a viewer chooses to watch a full ad, or 30 seconds, whichever is shorter.
Writing in Ad Age at the time, Baljeet Singh explained why YouTube defined TrueView this way:
“Viewer intention to watch an ad is widely seen as a proxy for whether a brand message is being delivered and consumed.”2
Indeed, YouTube ad revenue has climbed steadily since then, surpassing cable networks like AMC and ESPN ad revenues, and approaching the traditional broadcast networks like NBC and CBS.
The Full Value of the View
Buying media on a cost-per-view basis produces tremendous value for brand stewards both in terms of engagement and bang for the buck.
For example, a platform like Sightly’s TargetView™ optimizes YouTube TrueView campaigns tomaximize views at the most cost effective CPV. The major benefits of this approach are:
100% of the ad spend generates full views. In other words, every ad spend dollar goes toward delivering the most relevant, highest quality video advertising engagements possible—hyper-targeted viewers who choose to watch the full ad.
Significant added value fromfree partial viewsworth an additional100% or more return on ad spend (ROAS). With the data generated from TrueView campaigns, we can calculate a dollar value for all the free partial views they produce—i.e., all the impressions that don’t result in full views but still create significant awareness.
Premium engagementswhere the ad unit is nearly 100% viewable. By targeting in-stream skipable TrueView inventory first and foremost, we deliver viewability that far exceeds industry standards. Ad viewability on YouTube overall is 91% but when you factor out forced-view ads and those that run in-display, it’s likely even higher. (Unfortunately, YouTube doesn’t publish viewability numbers for its particular ad formats.) Compare that to the 40% viewability that Integral Ad Science reports for the rest of video ad industry and you can see why TrueView’s CPV-based ads are so much more attractive to advertisers.
As advertisers and media planners learn more about high-value CPV-based video ads like YouTube’s TrueView skipable format, the day isn’t far off when CPMs are laid to rest.
Three Things You Should Look For in a Video Ad Provider
July 25, 2016
What should you look for when it comes to a video advertising solution?
There seems to be a lot of confusion about what to expect from video, especially as it differs from other media you may buy such as TV and digital display. And with every new buzzword that emerges, it becomes harder to distinguish which factors matter most in choosing a video ad provider.
To help de-clutter the process, we’ve put together a list of 10 things you should look for—based on our research into what advertisers and agencies want—and packaged them in new guide.
Here are three of the ten things you should look for in a video advertising partner:
Face it, you’re paying to get the right people to watch your message and engage with it. So, can your provider deliver on that and buy completed views?
If so, ask how they define completed views. In some cases, it’s a few seconds with or without sound.
Another question you should ask is, are the ads forced on viewers or do they get to choose whether to watch? Viewers are 75% less engaged with forced view ads than those they choose to watch.
The gold standard is YouTube’s TrueView ad format, which allows viewers to skip ads after five seconds. A complete view is counted when a viewer watches your full ad or 30 seconds of it, whichever is shorter.
Advertisers and agencies want more than a “place it and spend it” approach to video ad campaigns today. That’s why a provider’s strategic competence is such a big deal.
Great online video ad campaigns integrate several strategies including:
Campaign structure—i.e., integrating your objectives, distribution structure and budget spend rules
Reaching viewers in every phase of the purchase funnel
Audience hyper-targeting, including moments and devices
Personalizing or localizing creative
Be sure to look into how providers incorporate these strategies into their solutions.
Programmatic Campaign Scalability
Does your provider have the ability to execute on all those strategies programmatically, creating and integrating multiple versions of your ad for as many different audiences and locations as your objectives, business structure and budget rules demand?
Can their service or platform create as many as hundreds of micro-campaigns across all your service areas or locations in different flights, then turn around and run a completely different broad national campaign with a different messages, designed to define your precise audience and then optimize to it?
Get It Now: 10 Things to Look for in a Video Advertising Platform
These are just a few of the key characteristics to look for in a video advertising partner. Now you can get our complete guide that includes the full list of 10 things to look for—a snapshot of everything you need to vet and choose a winning video advertising partner:
Going-the-extra-mileServiceis still a key differentiator among providers
How toStrategizefor killer video ad campaigns
How Data & Insights are key to getting the most out of each campaign