How Video Advertising Can Drive Store Traffic
An Eyeview and Sequent Partners survey finds that marketers are growing more confident about the metrics to prove online-to-offline attribution.
While 65 percent of marketers regard digital video advertising as an “important” driver of offline sales, about half the 200 “senior brand managers” surveyed by Eyeview and Sequent Partners actually use some form of ROI to evaluate those efforts.
“Digital video is at its inflection point of the adoption curve, moving from simply branding to a sales tool,”Eyeview CEO and co-founder Oren Harnevo tells GeoMarketing. “More and more, marketers need to prove business results. Now, with the right tools, marketers can connect video ad spend to offline sales.”
And, as media buyers and their clients frequently say: if you can’t measure a a campaign against other ad placements, you can’t develop a marketing budget around it.
As one unidentified CPG brand manager told the survey researchers, “The drive to brick-and-mortar retail is the holy grail, but attributing our digital efforts to in-store is hard to do. We don’t have our arms around that yet — we’re one step removed from the traffic.”
Still, the problems in that area may be ebbing. The survey, which can be accessed here, found that 87 percent reported enjoying positive ROIs with regard to video ads.
Video Is Next
Other topline findings from the report:
- 56 percent see that video fits with the current emphasis on data, targeting, efficiency and programmatic.
- 54 percent believe it’s easy to track and prove digital video’s impact.
- Return on ad spend (ROAS) or sales lift per dollar will surpass traditional branding in importance as a measure of digital video success within the next one to two years. This shift from measuring success by media outputs like impressions and CPMs to business outcomes such as sales will drive a major step change with how marketers plan, activate and determine traditional linear TV and video success.
“Marketers are under pressure to demonstrate ROI from the marketing channels they use,” Harnevo says. “When it comes to digital video advertising, marketers have traditionally relied on video to deliver branding objectives with less of a focus on sales goals. Multi-billion dollar marketing categories, like search and display, have been built around performance based approaches proving ROI and sales. Video is next.”
While Eyeview as a video ad platform has an obvious bias when it comes to the medium, the company’s argument that digital video provides better targeting, more personalization capabilities, and most importantly, an opportunity to provide closed loop measurement on sales impact, nevertheless has resonance with marketers.
It’s not hard to find outside confirmation of Eyeview’s contention. For example, eMarketer calls 2017 “the tipping point” for mobile video, when advertisers will spend $3.89 billion on the category, which is expected to represented 51 percent of total programmatic ad spending in the US. (To put that in context, desktop-based video ad spending will reach $3.73 billion, dropping to 49.0 percent of total programmatic digital display ad spending in the US.)
When it comes to digital video advertising, marketers have traditionally relied on the medium to deliver branding objectives with less of a focus on sales goals. However, the following research reveals that digital video is at its inflection point of the adoption curve, moving from a branding to a sales tool,” said Jim Spaeth, former president of The Advertising Research Foundation (ARF) and co-author of the study. “Digital video has strong financial returns and unique capabilities to drive sales while still building brands. Indications are that this medium is poised and ready to mature in the next 1-2 years.”
Even with all that potential in mind, Harnevo notes that quality inventory can be more expensive. “Nonetheless, video provides capability to measure the ROAS,” he says. “This is a huge benefit while TV advertising is link ‘running blind.’ The future of television is at stake, the more digital video or advanced TV proves ROI, the more the future of TV advertising will be at risk.”
The Attribution Test
And that brings the question back to something the ad industry continues to wrestle with: what are the right metrics that allow for an apples-to-apples comparison of ad placements?
Traditionally, advertisers would use viewership metrics such as GRPs for TV or impressions for digital campaigns to measure them. There’s a need for both TV and digital video to be more accountable, Harnevo says.
“With Eyeview and our clients, the discussion around TV and digital focuses on ROAS or sales lift as the metric of success,” Harnevo says. “Both digital video and TV (through addressable TV) are measured on the sales lift impact, and therefore an advertiser can evaluate the effectiveness of each video channel and shift budgets accordingly.”
One of biggest advantages of emerging addressable TV options is how a campaign can all work together across desktop, mobile and TV and work with one partner which ultimately solves huge problems around scale, personalized creative and measurement, Harnevo notes.
The report does offer additional advice for online-to-offline marketers that want to know what role a video ad played in driving an in-store sale.
“Marketers have myriad tools to measure engagement, but they need to start considering how to measure actual sales driven from video marketing campaigns,” the report states. “Although expensive, third-party measurement providers are a great resource for determining in-store sales. Be sure to use test and control methods as they’re the most reliable for proving ROI with video.”