ROI Is the Chief Concern for Brands Investing in Digital Video
At its 2015 newfront presentation, marketing agency DigitasLBi—the company that created the newfront back in 2008—released the results of a survey with senior-level brand decision-makers that shows that justifying return on investment (ROI) is their biggest challenge when advertising with online video.
The survey is called "Content Revelations," and is a research supplement to a digital video spending study the Interactive Advertising Bureau (IAB) released on Monday.
The survey found that the importance of digital video is growing for marketers, who see it as a way to build authentic relationships with consumers. One marketer surveyed said that original video is a way to create a world for the brand, something that exists separate from the product itself. As online video's prominence is growing, so are the budgets that support it.
But while original online video is seen as important for driving awareness, marketers struggle to justify its costs. What they need are ways to show how online video impacts difficult to quantify measures, such as engagement, brand awareness, and brand favorability.
The survey quotes the director of a beverage company's digital engagement group as saying, "We try to attribute [original digital video] to sales. We have a hard time doing that. We know it works from an awareness perspective. There's a big opportunity for this industry…to figure out collectively how we measure this type of program. We need that to help justify all the things that we do."
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