At the recent iMedia Video Summit, I gave an insight address on the importance of standard metrics and end-to-end measurement in understanding cross-platform video advertising effectiveness.
The following is a re-post of Kyle Montero’s blog post entitled “Nielsen’s Simple Formula for Measuring Ad Effectiveness” which summarizes key points of my speech.
At the (ridiculously beautiful) Terranea Resort, during the iMedia Video Summit, Randall Beard, the global head of advertising solutions at Nielsen, shared some fascinating insights in his address entitled, “Cross-Platform Measurement: The Current State and Future Opportunities.”
In today’s multi-device world, where consumers view content on several platforms, a marketer’s ability to understand who is viewing ads and how the ads resonate with viewers is becoming more and more of a challenge.
To begin to address this issue, Nielsen identified the top three questions clients ask regarding cross-platform campaign management, also known as “client pain points”:
- How much should I spend?
- How do I allocate across platforms?
- How do I optimize in real time?
- Reach: The initial goal of advertising is to reach the intended audience.
- Resonance: After delivering the impression, the advertisement must break through to actually communicate with the audience and influence opinion.
- Reaction: If the advertisement reaches and resonates with the consumer, a behavior change will occur likely resulting in an increase in sales.
- Traditional TV still dominates viewership (Americans watch nearly five hours of video each day, 98 percent of which they watch on a traditional TV set), but cross-platform viewing is growing (85 percent of mobile owners use their tablet or smartphone while watching TV at least once per month, while 40 percent do so daily).
- Advertisers are still struggling with cross-platform allocation.
- The main goals of clients are to extend reach and/or increase overlap.
- There is a large opportunity to improve online audience delivery.
- Cross-platform execution is not meeting marketers’ needs.