[opendtv] Re: Ad effectiveness
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Mon, 10 Mar 2014 08:02:48 -0400
This makes sense. As I said yesterday, when you request the content you are
obviously interested. When you turn on the TV for background noise not so much.
But forcing people to watch ads is not necessarily a good measure of their
effectiveness. Most advertising misses the mark because we are not interested
in buying the product in most cases. Ads can do a good job of building brand
image and product awareness; they rarely stimulate a purchase.
The move to OTT TV offers advertisers the potential to do two things that have
been nearly impossible with TV in the past.
1. Verifiable ratings. With the Internet, it is possible to know exactly how
many homes are watching, and in some cases who is watching. For example,
Netflix creates a log-in profile for each family member and stores their
preferences and viewing history.
2. The "Holy Grail" of advertising - the ability to target ads to individuals.
This is going to be the major sea change with OTT TV.
Google is already doing this with ads in websites and wants to do the same with
TV. They mine data about the sites you visit and then sell this to advertisers.
I often see ads for products I have looked at on E-commerce sites. Amazon knows
when you are shopping and what you look at; they could easily use this data to
insert ads in video, but they do not run ads in Prime Instant Video.
Some day in the not too distant future you may get "barter offers" from
businesses trying to sell you stuff. For example, you go to a car dealership
and take a test drive. When you get home, you may get an e-mail with an
authorization code to watch a free movie from a OTT service. All you need to do
is watch the pre roll ad from the car dealership...
Regards
Craig
> On Mar 10, 2014, at 3:08 AM, Albert Manfredi <albert.e.manfredi@xxxxxxxxxx>
> wrote:
>
> I made this comment in my last:
>
> "TV ads are the MOST effective, and by far."
>
> Unfortunately, I couldn't find the graphic I was remembering. Must have been
> some article I didn't end up posting.
>
> So I looked it up. It's probably not actually "TV ads," but rather ads that
> are transmitted embedded in full-length TV episodes online, that are the most
> effective. As opposed to other Internet ads. And when these ads are also
> repeated on TV, it makes the TV ads easier to remember.
>
> Here's one article that compares online full-length episode ads with other
> ads:
>
> http://www.clickz.com/clickz/news/1711666/online-video-ads-more-effective-than-tv-among-us-viewers
>
> Another more elaborate article that makes the same point:
>
> www.iab.net/…dget-Share-Shift-and-Effectiveness.pdf
>
> These aren't what I was remembering exactly, but they still make the point I
> was trying to make. Ads embedded in OTT TV shows happen to be the most
> effective, which makes a good case for FOTI.
>
> (Perhaps, if online episode ad breaks increase in length to the same as TV
> ads, that effectiveness will drop.)
>
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