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Measurement Remains Chief Obstacle for Online Video Advertising

January 14, 2015

Last week at CES in Las Vegas, Mediaocean hosted a Connect Series session titled "Reaching the Next Gen Consumer on TV & Video", featuring thought leaders from GroupM, ABC, Mediaocean, and Videology. During the discussion, panelists agreed that measurement is a huge challenge the industry currently faces. The panel was featured on OnlineVideo.net in the following article written by Troy Dreier.

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by Troy Dreier, OnlineVideo.net

While the panelists agreed on little, on one fact they were completely aligned: Online video advertising needs comprehensive measurements across all devices that align with the TV metrics advertisers already get from Nielsen.

The panel, “Reaching the Next Gen Consumer on TV & Video,” was part of C-Space, the new marketing and advertising conference within International CES in Las Vegas, Nevada. Bill Wise, CEO of Mediaocean, led a discussion with Scott Ferber, chairman and CEO of Videology, Irwin Gotlieb, global chairman of GroupM, and Debra Oconnell, president of ABC national television sales.

The infrastructure to create effective cross-platform IPTV measurement is still three to five years away, Ferber said. At the moment, advertisers can take measurements on some platforms that they can’t do on others.

“Its going to take a while to provide the same level of scale about what we call addressability,” Ferber said.

Taking issue with the “three to five years” estimate, Gotlieb broke in and said he thought it was more like seven years away. It wouldn’t be the only time in the panel that Gotlieb shot down Ferber’s comments: He later said he thought it was a mistake for advertisers to ever use third-party infrastructures, but should build their own in-house as GroupM had done.

Advertisers are seeing valuable incremental reach by showing their ads across devices, Ferber said. “Their definition of TV has changed.” In Videology’s research, brands get between a 50 and 100 percent lift in offline sales when showing ads across devices. “Challenger brands” are especially quick to adopt online video, he added, since they needed to make their smaller budgets work harder.

Ferber highlighted other Videology research that found addressable (or targeted) online video ads on broadcast-quality content showed a two to four times better return on investment even when reaching the same audience.

Creating the infrastructure to manage addressable advertising is also a challenge. While advertisers are getting a great yield from some addressable buys, they can’t monetize the rest of their inventory. Technological improvements are needed to grow that yield.

“TV is great. It’s still the most powerful medium,” Ferber said. “We don’t want to throw the baby out with the bathwater.” Instead, it’s Videology’s goal to take what’s best about TV advertising and help it evolve. One company alone won’t solve the measurement problem, he added; it will take several companies working together to make it happen.