Join eMarketer Principal Analyst David Hallerman to learn best practices, trends, and latest strategies for video advertising in this eMarketer webinar.

1. David Hallerman Principal Analyst O C T O B E R 2 1 2 0 1 0 N E W Y O R K NY Video Advertising Engagement

3. Troy Young, president, SAY Media (formerly VideoEgg) “ What we saw was the overwhelming power of engagement to change metrics. The takeaway here is: If you want your propaganda to work, get people to engage with it.” Twitter Hashtag – #eMwebinar

5. Encouraging brand engagement is a key reason why marketers use online video advertising

7. Rules of Engagement

8. Rule #1 Q: How can spending levels improve video ad engagement? A: Connecting with consumers often relies on classic advertising…

9. US Online Video Advertising Spending, 2008 - 2014 (billions and % change) Source: eMarketer, May 2010 127% 39% 48% 43% 43% 35% 33%

10. One-third of marketers want to use cost per engagement to budget for video ads

11. Rule #2 Q: Which video ad metrics best indicate engagement? A: Once you define engagement for your current needs…

14. What makes engagement both significant and difficult to measure is how it blends several distinct types of metrics

15. Boosting brand awareness key element for creating engagement

16. Joe Zahtila, chief operating officer, Dynamic Logic “ Understanding how brand perceptions have changed doesn’t say how much you can sell. That gets you to the 10-yard line, but it doesn’t give you the touchdown.” Twitter Hashtag – #eMwebinar

17. Rule #3 Q: When audience members just watch the video ad, does that deliver engagement? A: Metrics such as start rates or completion rates carry more weight than…

18. Start rate for video advertising, by site section or environment Source: MediaMind (Eyeblaster), November 2009

19. Completion rates will vary based on several factors, including the source of the video ad’s creative — either repurposed or original

20. The usefulness of completion rates vs. click rates for video ads is clear

21. However — and this is why the 12 rules are questions — video clicks can work

22. Rule #4 Q: How much do marketers need HD video ads to create engagement? A: Never under-estimate simply getting the audience to watch…

23. Consumers won’t cut costs by cutting HD (quality matters) Source: Yankee Group, August 2010

24. Rule #5 Q: How important is user traffic for gauging engagement? A: Can give insight into engagement, but results are not always immediate…

25. YouTube gets the most audience, viewing sessions, and time — but other factors on other sites facilitate engagement

26. Hulu leads the pack in ads per viewer because many brand marketers look for what they already know (TV counts)

27. Rule #6 Q: How much does time of day or day of the week affect engagement? A: All targeting elements need to be factored in…

28. Main reason for video ad networks? Targeting more than reach or price

29. Traditional types of targeting encourage engagement ( imagine great ad on wrong site )

30. Rule #7 Q: Can longer video ads offer greater engagement? A: Yes, sometimes, maybe, depends on…

31. Branded content, mainly video, is an effective way to engage Source: CMO Council, October 2010

32. Doug Chavez, director digital marketing, Del Monte Foods “ We have some very emotional brands, such as with Milk-Bone, where we don’t just use a repurposed 30-second spot. Whether on publishers’ sites or our Facebook page, we look at how much people engage with the brand besides the video ad itself .” Twitter Hashtag – #eMwebinar

33. Rule #8 Q: Is experience a form of engagement? A: Certainly, but it’s hard for advertisers to generate experience, at least consistently…

34. Brand experience and engagement are linked by emotional connections

35. Brand experiences encourage engagement and marketers encourage experiences

36. Rule #9 Q: How does consumer control contribute to engagement? A: The more choice and communication, the more likely people are to…

37. Consumer feelings about getting information ( high-to-low scale ) Source: Jack Morton, May 2010

38. How much attention do consumers pay to recent information about brands? Source: Jack Morton, May 2010

39. Rule #10 Q: Are viral video ads more engaging? A: Perhaps. It’s not that simple. Only a small share of ads go viral—plus typically need blend of paid, owned, earned…

40. Old Spice Man lessons: More than meets the eye or any other sense

41. Various YouTube marketing tactics: vital venue for viral video Source: MarketingProfs, December 2009

42. Rule #11 Q: Does the mix of video and social media offer more engagement? A: You’d like to think it always does, however…

43. When it all comes together, social media is a great environment for audience engagement

44. Bob Hoffman, chief executive officer, Hoffman/Lewis “ If your social media marketing strategy is contingent on the idea that consumers want to have a conversation with you, create a relationship with your company and engage with your brand , you may be living in a dream world.” Twitter Hashtag – #eMwebinar

45. Social media engagement often depends on brand advertising first

46. Nicole Haygood, vice president interactive media director, Draftfcb “ Within video, engagement is important. Is the window active? Are they muting it? How much time are they spending with the ad? Are they passing it along to friends? Are they commenting about the ad on YouTube?” Twitter Hashtag – #eMwebinar

47. Marketers typically cannot control social media engagement, oftentimes they need just to listen

48. Rule #12 Q: How might TV and online together help marketers create greater engagement? A: When one medium feeds into the other, holistic campaigns…

49. Brand engagement is anti-silo, much better done cross-channel

50. When engagement is defined differently, more consumers prefer TV over online Source: Nielsen Online, July 2009

51. Takeaways

52. Ian Schafer, chief executive officer, Deep Focus “ When marketers choose to truly engage audiences (and that means something different for every brand ), it requires more custom thinking, more custom execution, more attention paid at every turn…” Twitter Hashtag – #eMwebinar

56. Video Scores for CPG Advertisers Gatorade G Series Before During and After Campaign

58. Presented by: David Hallerman Principal Analyst, eMarketer, Inc. Twitter Hashtag – #eMwebinar Sponsored by: Video Advertising Engagement – What Marketers Need to Know Questions & Answers Registrants will receive a copy of the slide deck and the playback link in a follow-up email within 24 hours of this presentation. To learn about eMarketer Total Access please visit www.emarketer.com /products or contact us: (800) 405-0844 [email_address]