Videology Research Shows TV-like Sales Accountability for Video
- Digital Video Drives Up to 35% Sales Lift for CPG Brand Advertisers
-Highlighting power of data—advanced targeting drives 20% higher lift than traditional demo targeting
NEW YORK, May 14, 2013 /PRNewswire/ -- Videology—a digital advertising platform and solutions provider— recently released a report showcasing research on the link between digital video advertising and offline sales results for consumer packaged goods (CPG) brand advertisers. CPG is an extremely important category for digital video, comprising 22% of total video ad impressions—more than any other sector—according to a Videology Q1 2013 analysis.
"After 50 years of television-centric marketing, (CPG advertisers) know the right television equation to move product off the shelves. But data has the potential to bring this same level of ROI confidence to other media—including digital video, the natural complement to a brand's television spend," the report stated.
"Television is still king for CPG advertisers because they know what works and what doesn't to move product off the shelves," added Scott Ferber, CEO and Chairman, Videology. "We need to similarly define video's value by showing how video ad exposure equates to sales success. And, as this study proves, we can."
Videology analyzed over 186 million video impressions served across online and mobile video for CPG advertisers to determine digital video's ability to drive key sales metrics including Penetration Lift, Unit Velocity Lift and Sales Velocity Lift using Kantar Shopcom data.
"The proliferation of media platforms offers brands more choice for when, where and how to capture consumers' attention," says Katie Casavant, CEO, Kantar Shopcom. "Brand marketers from across the CPG landscape use Shopcom audience data and campaign impact measurement to optimize their media planning, buying and execution for maximum conversion return."
Report highlights include:
- All online video campaigns analyzed drove an increase in Sales Velocity Lift from 4% to an impressive 35%.* However, since ad campaigns often correspond to promotional pricing efforts, Sales Lift on its own does not tell the whole story.
- Lift in household penetration is perhaps a truer gauge of performance. An increase in the number of households purchasing a product after exposure to a brand's video ads ranged from 9% to 28%.*
- When the number of households buying the brand increases (Penetration Lift), more units are sold (Unit Velocity). In the study, lift in Unit Velocity ranged from 8.5% to as high as 30%.*
- Audience targeting based on purchase data performed 20% better than demo targeting.
- Demo targeted ads, however, still drove stronger lift than the control group. Overall, both targeting sets play a role in successful online video campaigns, with demo targeting providing scale and purchase-data targeting driving specific lift metrics.
- Completed views and total reach were the two most important metrics for increasing product penetration and driving units sold. Click through rate was not associated with a higher lift in sales.
*Compared to the control group not exposed to the ad.
This research was conducted using Sales ImpactSM, Videology's ROI attribution and tracking tool for brand advertisers. Through partnerships with major data providers, Videology can connect in-stream video advertising, as well as mobile video and display advertising, to specific offline purchases in the CPG, retail and automotive sectors. Sales Impact allows advertisers to determine how many users who saw an advertisement actually purchased the product and how different engagement metrics influenced sales. Download the full report here.
Videology (videologygroup.com) is an enterprise technology and leading video advertising platform. Videology provides end-to-end, cross-device and cross-format solutions to maximize media value for advertisers, agencies and publishers.
Videology, Inc., is a privately-held, venture-backed company, whose investors include NEA, Valhalla Partners and Comcast Ventures. Videology is headquartered in Baltimore, MD, with key offices in New York, Austin, Toronto, London, Paris, Madrid, Singapore, Sydney and sales teams across North America.
For more information, contact Michele Skettino at Michele@videologygroup.com or 917-653-0073.