In 2011, video is evolving from a standalone marketing channel to an integral part of an advertiser’s overall online campaign strategy. By harnessing the power of multi-channel targeting, advertisers can more effectively reach custom audiences as compared with taking a single-channel approach. The most successful campaigns target customers across multiple channels by using both display and video advertising to complement each other and drive overall ROI. And now that audiences can be targeted directly via real-time bidding (RTB) on ad exchanges, selecting the right metrics has become job number one when planning a new campaign.
The objective of any ad impression can be to drive either upper funnel (branding) or lower funnel (performance) activity. Because video ads are more engaging and typically are played to a captive audience, video has particularly strong potential for branding objectives. But how should you measure video advertising effectiveness and performance? In part one of this discussion, we’re going to look at the different measurement strategies available for video advertising. Each has pros and cons that are important to understand and tailor to your specific needs:
- Rating point:This is the traditional measure of broadcast video success, but does it work online? Rating point comes in the form of gross rating point (GRP) or target rating point (TRP) that measures the reach and frequency of a video ad. The advantage of being an absolute measure is that you can compare different ad campaigns directly. The problem is that the standard formula makes frequency and reach interchangeable. For online video, there’s an optimal frequency for viewing an ad for every user and deviating too far from that optimal frequency – especially going over – can be very wasteful and even detrimental to a campaign. A frequency-capped GRP/TRP is the first step in the right direction. The ideal solution is a frequency-optimized GRP/TRP where deviation from optimal user frequency is discounted or penalized.