In the present economy, where the budgets are tighter, brands are relatively more observant about the intention of the content on which their campaigns are being placed. This results in increased pressure to justify ad spend and manifest returns on distributed advertising budgets which means more transparency is required by the brand.
Due to the growth of screens and smart devices, there’s greater pressure and attention put on video advertising to deliver better results. Before COVID19, video was estimated to account for a quarter of APAC’s whole video market by the year 2024 – nearly a 70% rise from 2019. At the moment, since more and more people are staying home, the on-demand video content has surged. Between 20th Jan 11th April, on-demand video providers like Netflix, Viu, iFlix and iQiyi have recorded 115%, 274%, 118% and 500% growth in consumption respectively, according to the research by AMPD.
Changed focus –
Along with this noval demand, there is a need for new measurement metrics to ensure that programmatic is useful. Shifting the focus toward engagement-based metrics like video completion rate or CPCV is the one solution to this demand.
Considering this, performance-based solutions are deemed to be the best for the marketers and agencies in order to maximise advertising budgets going forward since they allow buying on the outcome as a currency. This especially holds true for the agencies and marketers who’re looking to maximise the performance and minimise the financial risk while bettering the operational efficiency.
Making it valuable –
Better buying platforms can give real value in this case. While operating, these platforms are ideal to make decisions as to which impressions to bid on while relying on the KPIs and targeting settings propelled by the brands. Since video is a comparatively new platform for the marketers, the measurement for this is of a noticeable challenge. With the help of predictive ML, solutions were emerged to automatically optimize bids based on predicted completion rate of the available inventory.
This explains that the agencies and marketers are only paying for the impressions that were played through 100% completion across the open internet. This turn as to how ROI can and should be measured in the contemporary age of evolving consumption habits is serving results. By moving from the pay per impression to pay per completed view, buyers in the APAC region can enjoy significant reductions in CPCVs along with improved operational efficiency.
To go by the numbers, the buyers in Singapore have witnessed more than 90% of reduction in the CPCV as compared to making the use of social platforms. On the operational efficiency front, traders are released from the manual process of extracting the reports and optimizing to completion rate or CPCV-related metrics which can save up to 20% of their time.
As the COVID19 situation evolves, marketers and agencies will be required to helm a changing landscape. Brands will be on a lookout for even more effective and worthy engagements and consequences will lead to a tangible return for business investments. If the technology will be deployed thoughtfully, the ad tech industry will be able to support the evolving needs of the brands. Here, data-led and well-executed strategy is the key. This will ensure that there is a fathomable ROI on the bottom line of businesses.
Source – Thedrum