IAB Guide to video advertising online

Internet Marketing Handbook Series

A Guide to
VIDEO
ADVERTISING Online
Sponsored by

GETTING
introduction
iab Television
STARTED

Video
Handbook

ACKNOWLEDGEMENTS

IAB Handbook: A Guide To Video Advertising Online

Introduction 2
Jargon buster 4
Getting started 6
How online video fits with other media 10
Strategy, planning and setting objectives 14
Guidelines for online video advertising 18
Creativity and execution 26
Filming an online video advert 30
Booking, buying and delivery 33
Targeting 36
Measuring success 38
Conclusion 42
Acknowledgements 44

1

introduction
By Jack
Wallington
senior programmes
manager, IAB

29.6 million people in the UK accessed online video in January
2009 (comScore). That’s 8 out of 10 internet users, 10% more
than the year before and that number continues to grow. 1 in
every 35 internet visits in February was to a specialist video
website too (Hitwise). The online video revolution is upon us.

Traditionally, television and cinema were the only two channels to engage
people using film. Now, the internet offers a third prong, combining film with
all of the extra advantages of the internet. People can access on-demand
video when they want, how they want and advertisers can make the most
of the targeting, interactivity and accountability this brings.

YouTube introduced the world to the phenomenon of bite size video clips on
the internet with a plethora of other websites joining in (Yahoo!, Microsoft,
AOL, Telegraph TV etc). Thanks to the broadcasters ITV, Channel 4, Sky, the
BBC and the likes of LoveFilm, longer programmes and films are now being
watched through the internet too.

2


While you can’t advertise on it, BBC’s iPlayer is a good indicator of people’s
appetite for longer online video. In 2008, 271 million requests were made
to watch a program through it. Then consider that only 2.5% of total video
watched is through the five main broadcasters (BBC, ITV, Channel 4, Five and
Sky), it paints an immense picture of the scale of online video consumption.
People in the UK watched over 280 million hours of online video content in
January 2009 alone (comScore).

Broadband made online video instant and because people specifically look
for and choose to watch a clip at their desk, on their laptop at home or, for
the more technically minded, even through their televisions, they are 100%
engaged. Faster speeds also mean crystal clear high definition - pixelated or
blurry video is a thing of the past.

As well as branding and impact, online video advertising has unique
advantages too. Not only is it far more accountable than TV, making videos
interactive is also possible. People can pause video, click on products for
more information, even buy something all in the same session with a seamless
experience. Add branding around a video player, product placement, user
generated content and targeting and you have a formidable array of tools at
your disposal exclusive to online.

Running an online video campaign is simple. Publishers deliver quality content
and audiences while planning agencies, sales houses and networks make the
process of running broad, wide reaching campaigns possible.

Online video is a new and exciting proposition
that will enable you to deliver brand messages
in unique ways, helping your brand to stand out.
This handbook, produced by leading industry
experts who make up the IAB Video Council,
takes you through the video advertising process
step-by-step, helping you to deliver your own
campaigns.

Have a read, understand online video, then go
and engage with your audiences. They’re ready
and watching!

3

Brand engagement - the process by which a consumer develops an
attachment to, or relationship with, a brand either through advertising or
other means, such as years of reliable service. The attachment could be
emotional, rational or both.

Clickthrough - when a consumer interacts with a link in a webpage or
advert and clicks through to another website.

CPM (cost per mille/thousand) - the price an advertiser pays for an
advert to be shown 1,000 times. This is the benchmark used for most
online display advertising including video.

Direct response - advertising that requires a consumer to respond
immediately either through interaction (clicking a link), telephone, email
or other.

Interactive video - online video can be made that allows consumers to
manipulate video content by clicking on it. For instance a user could click
to watch from different angles, click on a product in a programme to find
out more information or to buy it and more.

4

In-stream - most online video is now streamed played directly off of a
server on the internet. You can show advertising before, after or even
over the top of streamed video, thus the name in-stream advertising.

Long form video - video clips over 5 minutes in length. When people
refer to long form video, they usually refer to full length content like TV
programmes or films.

Pre/mid/post-roll - video adverts that are shown before, in the middle
or after video content.

Short form video - video clips of less than 5 minutes in length.
However short form video is usually between 30 seconds and 3 minutes
in length. Short form video makes up the bulk of video content on the
internet today.

Video on-demand - a service that allows people to watch a programme
or video clip at any time by streaming it or downloading it.

Viewthrough - specific to online video advertising, this is a metric that
tells when people have viewed an entire advert from beginning to end.

Viral video advert - an advert that consumers pass on to one another,
thus spreading the number of people it reaches, like a virus! Viral adverts
must be entertaining or informative.

For more definitions see: www.iabuk.net/jargonbuster

5

GETTING
sion
STARTED
By Jack
Wallington
senior programmes
manager, IAB

This section explains two fundamental aspects of online video
advertising that you must understand before considering a
campaign: the video content you will be placing adverts around
and the value chain of companies you will need to work with.

i) Video content

On the internet there are different types of video clips and programmes,
known as video content. You must think about the audience you would
like to reach, and the type of video content you will advertise around
to reach them. Consider two important aspects:

Quality and Length
The quality and length of video content will affect how receptive a consumer
is to advertising in the same way as TV or written web pages. With online
video, the higher the quality or the longer the clip, the more receptive a
consumer will be to longer adverts. Think about what you want to achieve,
short ads or different formats can be effective for your particular objectives.
6


What types of video are consumers engaging with?

The below tables show what types of video people watch, why they watch it
and how they watch it. It is categorised as three types of video content called
snippets, boutique and programmes and film.

Snippets Boutique Programme and film

• hort form: from 5 seconds
S • ini videos: from 2 to 5
M • onger form: from 5 minutes
L
to 5 minutes minutes to feature length
• mateur content
A • Independent professional
• rofessional/owned content
P
• ocial: shared, forwarded,
S content • C becomes 2nd TV: private,
P
watched with friends • Privately consumated: cult,
comfortable, relaxed
• eedset is experimentation,
N niche, obscure, watched in • eedset is functional/
N
discovery, entertainment private convenient, indulgent/
• nytime media-work, home, • Needset is task based
A empowered
mobile • venings, weekends in home • eak time in home
E P

Why are they watching it?


• musement
A • Information
• atch ups
C
• ntertainment
E • iscovery
D • ntertainment (mainly)
E
• iscovery
D • omething extra
S • ndulgence of interests
I
• ollowing links
F • Task driven
• onvenience
C
• ommunal and peer driven
C • ndulgence of interests
I • eclaiming TV time
R
• illing time
K

How are they watching?


• ull attention
F • ull attention
F • ull attention
F
• ut also normal web
B • ask driven attitude
T • ut also normal
B
behaviours • islike distractions and
D TV behaviours
• ulti tasking, surfing
M interruptions ean back, comfortable, low
l
• nteraction an important
I • Interaction limited to
involvement processing
element reviewing • ause facility allows breaks
P
• haring, forwarding
S • nd impatient, esp. when
A • nd impatient, esp. when
A
reviewing things download slowly things download slowly

(adapted from Simply TV / Work Research, March 2008)
7

Quality

Obviously, advertising around higher quality, professionally produced
boutique, programme and film content will come at a premium cost because
they have greater brand association and a large number of people from
certain demographics will return regularly.

People that choose to watch high quality content will be more receptive
to advertising. For instance, if someone chooses to watch a professionally
produced episode of Lost on Channel 4’s website, they will be more receptive
to an advert break at the beginning, middle and end of the programme,
largely because they are used to it on TV.

Equally, if it’s the world premiere of the latest music video from the Kings
of Leon or Lady Gaga, people will be more willing to sit through a short
advert to watch it. If someone clicks to watch a homemade clip on YouTube,
they may be less likely to accept lengthy advertising beforehand because it
doesn’t seem worth the wait.

You will be able to judge quality based on your own knowledge of the
content, and on information provided by publishers and agencies.

Length

On the internet, very short video content (clips of usually 1 – 3 minutes) is
extremely popular, forming the bulk of video consumed. Advertising around
this short form content must be approached differently to long form content
(programmes usually 15 – 60 minutes). Like quality, you will be able to find
out more information from publishers and agencies. Rules to consider for
length:

8


Short form Long form
(snippets and boutique) (programme and film)

5 mins or less 5 mins and above

• uitable for all forms of video
S • uitable for all forms of video
S
advertising. advertising (see chapter five).
• onsider formats like companion
C • ore appropriate for longer, 15 –
M
banners, in-stream overlays and 30 sec pre-roll and mid-roll.
branded skins (see chapter five).
• f of significant length the content
I
• f pre-roll is used, 15 – 20 sec is
I can handle longer and even
suitable but preferably edit your
multiple adverts, much like
advert to make it even shorter.
traditional TV.
• he shorter the content, the
T
shorter the ad.

ii) Value chain

Online video advertising has a unique value chain of companies when making
a campaign. Below is a diagram showing that workflow. Always consider how
each company will work together.

Online Video value chain
Advertiser

Video producers Online creative Media planning
and directors agency agency

Publishers Sales house /
network
Broadcasters Media UGC
(e.g. owners media
Channel 4, (e.g. owner
Sky) Guardian, (e.g.
AOL, YouTube)
Yahoo!)

For a longer list of companies in the online video industry, please see:
www.iabuk.net/videocompanies
9

By Simon Kendrick
commercial research consultant, ITV

Sharon Braude
group account director, Media Contacts

Daniel Daynes
account manager, Media Contacts

TV and online video

Online video acts as a strong complement to traditional
broadcast TV. It can be used to increase both reach and
frequency, and the highly immersive environment offers
multiple benefits. Faster and more reliable broadband has
helped fuel massive growth in video consumption, both in long
form and short form. As online video consumption becomes
more common, we are seeing an increase in diversity among
those viewing.

Broadcaster research from September 2008 highlighted that online video
is no longer the sole preserve of tech-savvy students – 65% of the online
audience aged 55 or older have watched a video clip, while 31% have
watched a full length TV programme. As discussed in chapter one, the
distinction between clips and full length content is an important one to
make, as each offers a different proposition.

10


Long form content

People watching TV shows online do so because they are taking control
of the schedule. People catch up on content they missed – either because
they were away from their TV or watching something else. This suits some
content better than others. Sport and reality entertainment are about the live
experience; while the frequency and habitual nature of soaps are also best
suited to TV. However, entertainment and drama flourish, particularly shows
that have a strong word-of-mouth following or ones that are aimed at an
active segment difficult to pin down to a TV schedule. Ultimately, catch-up is
about improving reach.

Short form content

Short form content, such as clips of outtakes or interviews, is about increasing
engagement. Those who watch additional content online are likely to be the
biggest fans of a TV show and heavily invest in the plot and characters. Short
clips, with instant gratification, can be enjoyed multiple times and are very
social, with people sharing links and commenting on them. This level of social
recommendation adds further interest for the viewer.

Effectiveness of online video

Online video is a different platform to broadcast television, and thus the effects
of advertising change. TV benefits from the power of event broadcasting
– shared experiences among masses of people at the same point in time,
creating water cooler moments. Online viewing is just as social, but it is
asynchronous. With closer proximity to the screen and people actively
choosing to interact with certain content, levels of attention are generally high.
This extends to video advertising, with its shorter and less cluttered ad breaks
that give viewers the opportunity to interact with them.

Preliminary lab tests carried out by broadcasters indicate that adverts
around short form clips perform stronger than long form content in traditional
advertising metrics such as awareness, affinity and purchase propensity.
Furthermore, advertising around identical long form content performed
stronger when broadcast online than when broadcast on TV. This doesn’t
mean that online video is better than broadcast TV. It simply means it is
different. It also highlights their complementary nature.

11

Integrated approach

This encourages an integrated approach to planning advertising campaigns.
Timing bespoke online video creative of a shorter length to coincide with
the main TV campaign can reinforce or build upon the main messages, with
the interactive element providing an outlet for further information. Integrated
sponsorships – owning the association across all touch points among the
widest possible audience – are increasingly prevalent. Furthermore, some
advertisers upload their adverts onto YouTube. This turns viewers into agents
– giving them the opportunity to share, comment, remix and repurpose the
original advert and amplify the message through social connections.

Print, outdoor and radio

Like any element of the marketing mix, it is best to plan your online video
advertising alongside all other elements (including print, outdoor and
radio) right from the beginning to make sure your messages and creative
compliment each other and that your messages are consistent. As with any
multi-channel campaign, think about how the consumer will be exposed to
the different ads and how they will help develop the campaign message.

Other forms of internet advertising

Video search

If an advertiser has video content, they can host it on Google Video, YouTube,
or a number of other video hosting providers. If the video is a relevant result
for the search query, searchers can play the video directly from the search
results page (for Google Video and YouTube) or can view a thumbnail of
the video and click to the player for other hosting providers. You can easily
upload videos to Google Video or to YouTube. Google have beta tested their
paid-for video search in 2009, which could prove to be very useful for those
advertisers who want to promote their own content.

12


Behavioural video advertising

This refers to the combination of behavioural targeting with video advertising.
The same behavioural targeting practices that are used for online display
advertising also apply to video. Behavioural advertising identifies users’
interests, patterns and behaviours allowing advertisers to build their audience
and message according to relevancy. It is an advertising methodology by
which users are served video advertising based upon their recent behaviour
online. Advertising therefore becomes far more relevant to the consumer.

Five steps to online video advertising heaven

4. L
IVE
g !
buyin
Understand what ing,
Book delivery
success looks like and
Tracking and
reporting
Audience insights Brand positioning 3. CREATIVE
and characteristics

1. S Creativity and
TRA execution
T EGY

Video filming
and production
LAN
2. P
Setting objectives
E
U AT
Advertising and Format selection
AL
measurement EV
5. Post cam
paign
analysis
Multimedia Video length
planning

Site selection

13

By Bryan Magee
business director, Mindshare

Sharon Braude
group account director, Media Contacts

Daniel Daynes
account manager, Media Contacts

1. Strategy

Once you have established that your media strategy requires online video to
achieve its goals you must understand what success looks like, gain insights
into your audience and decide your brand’s positioning and characteristics.

2. Planning

Once the strategy has been agreed between all relevant parties, the next
step is to begin the planning process. Online video campaigns work best
when planned in conjunction with other media (see the earlier integration
chapter).

Online video is no different to any other discipline and should be a seamlessly
integrated part of the campaign. This means that video adverts, in the same
way as other parts of an advertising campaign, should be created with each
other in mind. For example, use similar imagery, branding or wording.

14


i) Site selection

Various factors are involved when selecting sites for a campaign. Firstly,
website audience research data explored prior to developing the strategy
will provide a guideline. This enables you to decide how best to target the
audience by their viewing habits. Secondly, areas within these sites allow
you to target accurately and reach the right audience efficiently. Thirdly, and
importantly, you can choose the type of programmes/video content to
advertise around and associate your brand with.

Other levels of targeting can be added depending on the publisher’s capabilities
- for example, geographic, age, gender, industry sector and behaviour. The
key when selecting sites is to evaluate how relevant the sites and placements
will be to the target audience and the strategy of the campaign.

ii) Format selection

Once the site selection has been established, the creative formats need to be
selected. This will heavily relate to the role of video within the overall strategy of
the campaign. For example, if you would like to run video advertising before a
new TV show starts, you could run pre-rolls across relevant areas to generate
awareness online, or if you want people to learn more about a product you
could use interactive video that incorporates more information. Once again,
you must evaluate how effective each format will be in targeting its audience
and how well it fits with the strategy of the campaign. Listen to the advice of
your agencies.

iii) Adserving and measurement

At the moment, pre/mid/post-roll adverts are usually hosted and served
by publishers. For video in display banner adverts you will usually pay for a
third party adserver (where the advert files are stored online). Adservers are
generally used to provide unbiased results to the client. The specialist third
party adservers enable you to serve heavier files, such as video, and can
provide deeper levels of reporting than a standard adserver.

15

There are various types of offerings from adservers. Most can provide
both standard and rich media advertising (e.g. DoubleClick, Eyeblaster,
and Flashtalking). You can also employ rich media adservers to only serve
the video element of the campaign. These suppliers can incorporate their
results with an existing standard adserving system, so that the reporting is in
one location. Rich media adservers also offer various levels of measurement
beyond standard advertising measurement metrics i.e. interaction rate,
complete video plays, video replays.

The type of adserver to use is down to your own discretion, although at the
moment pre/mid/post-roll is usually served by the publisher. One decision
making factor will be the level of measurement that a) the adserver offers,
and b) the campaign needs. This decision needs to be assessed on the
measurement criteria decided in the strategy.

iv) Video length

Video length can vary by platform. Each publisher will have their own
guidelines for video content. Buying across these platforms means a
combination of buying catch-up TV, long form (films, documentaries, soaps
etc.) and short form (clips, music videos etc.) made for online. The length
of your creative will usually help you decide on what length of content you
should be planning (shorter time lengths suit short form content).

The current trend is to take a 15 to 30 second ad that has been used for
TV and run it online, but ads made or edited specifically for online are
better. The best solution is to brief the creative agency as early as possible
so that the online version of the creative is created at the same time and not
an afterthought.

v) Multimedia planning

Make sure the online video plan reflects what is happening with other media
and that the look and feel of the campaign is seamless. Consistency of
the campaign message, look and feel is very important if multiple mediums
are being planned. Are there any opportunities for the other media to work
harder together, e.g. cross platform deals?

16


vi) Setting objectives

Once you know what you want to achieve from your online video
campaign and how to measure that, you can set the final objectives.
Due to the detailed measurement metrics of online video, you should
set objectives on a campaign by campaign basis.

Some of the objectives that online video can help to deliver are:

• igh frequency at a low cost: achievable through video
H
networks.

• Communicate a brand or specific product message: video

content can be tailored to different environments.

• igh interaction rates: video creative has performed well in direct
H
response (DR) campaigns.

17

By Alfred Ruth
product manager, Videoplaza

Robert Black
rain maker, UTarget.FOX

Russell Goldsmith
digital media director, markettiers4dc

Lindsay Miller
US marketing manager, Vibrant

Patrick Knight
director, InSkin

Advertising in and around on-demand video
Pre-roll, mid-roll, post-roll

The pre-roll, mid-roll and post-roll ad format is the online
video ad format that closest resembles regular TV spot ads.
The ad format is linear in the sense that it takes over the full
experience of the viewer for a limited amount of time.
The ad format grants use of both sound and moving images to convey the
message. Most commonly this is done with a video file, but the ad may just
as well be a regular banner file.

Pre-rolls are inserted prior to content; mid-rolls in commercial breaks within
the content while post-roll ads are inserted after content is completed.
18


The pre/mid/post-roll ad format allows for different levels of interactivity,
but should at least be clickable.

It is also typically used
with a companion ad
that runs adjacent to the
player and allows user
interaction after the spot
ad is completed. More
on this can be found in
the companion ad and
interactivity pages that
follow.

Guidelines
Insertion: Before (pre), in-between (mid) or after (post) content.
Duration: - 30 seconds depending on length of clip or program. If
15
advertising around short form, the IAB highly recommends that
you make or edit adverts for online use that are shorter than this
because they are better received by consumers.
Click event: Should be clickable with link to advertiser site.
Dimensions: 800x600px (4:3) or 800x450px (16:9). The ad will be scaled to fit
the video player dimensions.

Interactivity

19

Pre/mid/post-roll ads are comparable to regular TV ads, taking over the full
user experience for a limited amount of time. On the internet the ad format can
be enhanced to allow user interaction.

Interaction can take the form of hot spots that hover over an item or product in
the video that can be clicked. In this case, the best practice is to pause the video
and display more information on the product in the video player giving people
the option to either buy it or sign-up for more information. Importantly, people
should be able to click back to the video clip they were watching easily.

A good example of this is an advertisement for an upcoming movie. While
the pushed message is restricted in duration allowing only a short trailer, the
advertiser may show the full trailer by offering a clickable area.

In-stream overlay

The overlay banner ad format is a
non-linear interactive ad format. In
contrast to the pre/mid/post-roll ad
format, the overlay doesn’t take over
the full user experience, instead it is
shown concurrently with the content by
overlaying part of the video frame.

If the banner is clicked, the user may either be sent directly to the advertiser
site, or the banner may expand to show a video file or interactive content. The
original content should be paused whenever the overlay banner is clicked.`

Since the user chooses further information by clicking the banner, there are no
restrictions to duration of the ad content that is shown after the banner is clicked,
as long as the user is able to close the ad and get back to the content.

Each overlay banner can be shown for 15 seconds after which it will close
again. On longer video clips, you can show more than one overlay banner.
Each overlay banner must include a clear button for people to click to close it.

20


The overlay banner may be connected to a companion ad (see below) adjacent
to the video player to maximise impact.

Guidelines
Insertion: During content playback.
Duration: Max 15 seconds per banner.
Frequency: Max 1 banner per 3 minutes.
Click event: Click may expand banner to auto-initiated video, interactive ad or take
user to advertiser’s site.
Dimensions: 800x100px. The ad will be scaled to fit the video player dimensions and
may use max 1/5 of the player’s height.

Branded video player skins

Branded skins add a box around a video
player on a website that can be filled
with advertising images or animation.
Recent developments in this area allow
you to dynamically rebrand the video
player of almost any publisher with an
animated and clickable skin.

Branded skins allow you to become an
integral part of the consumer’s viewing
experience for the whole video. A
campaign can be set up to be between
two to five minutes per impression.

On top of branding, skins allow for interaction. If a skin is clicked, the consumer
may either be sent directly to your site, or be presented with a large expandable
layer offering interactive content. The original video is paused whenever the skin
is clicked.

Branded skins are ad-served and sold on a cost-per-thousand (CPM) basis and
can be targeted to multiple players/sites. Early results have shown very good
interaction rates as well as brand dwell time measured in minutes rather than
seconds.

21

Guidelines
Insertion: At the start and throughout content playback.
Duration: Visible for entire content duration.
Click event: Video pauses and either takes consumer to your site, or opens large
expandable layer offering interactive content.
Dimensions: 800x600px (4:3) or 800x450px (16:9). The ad will be scaled to fit the
video player dimensions.
Expandable layer: 900x600px.

Companion ads

Companion ads are not
considered a stand-alone
online video ad format.
Instead they are intended
to be used to enhance
impact of the in-stream ads
and allow user interaction
throughout video playback.

The companion ad can be placed anywhere adjacent to the video player and
be of any standard IAB banner format. In fact, some publishers may even use
multiple companion ads.

Companion ads should always be loaded in sync with pre/mid/post-rolls or
overlay banners. If the companion banner contains user-initiated sound, the
playback within the video player must be paused whenever a user interacts
with the companion banner.

Guidelines
Insertion: In sync with in-stream pre/mid/post-rolls or overlays.
Duration: Stays present until swapped to another companion ad.
Click event: Interactive content or take user to advertiser’s site.
Dimensions: Any standard IAB banner format (www.iabuk.net/standards).

22


Product placement in video and brand funded video
Video on the internet isn’t covered by Ofcom’s regulations, instead quality
content is tightly controlled by publishers. This offers a huge opportunity for
brands to get directly involved in the actual content of the videos that people
are watching, as well as the adverts and sponsorship around them.

This allows for direct engagement with the audience, especially when viewers
can actually interact with the video itself. Clicking on products featured for more
information, sign-up for vouchers or mailing lists, or even click-to-purchase
them instantly.

The two routes that brands can take in this instance are to either:

1. Place products in videos produced by media owners

E.g. PG’s Pantene shampoo was placed in episodes of the Bebo produced

program, Kate Modern.

2. Fund their own video featuring their products

E.g. Fashion retailer Oli ran videos produced by HowTo.tv, where users

could click on the designer clothes and add them to their shopping basket
on oli.co.uk.

Other uses of video in online display advertising
Video in social media

All the standard video advertising units in this section can be run on social
media sites like MySpace, Bebo and Facebook in the same way as any other
publisher sites. However, applications or widgets give context to social media
sites, making the advert part of the experience instead of existing outside it.

Applications (or widgets) offer additional direct brand integration to the user
experience on social media. You can either create a branded application that
incorporates video ads, or place your ad within an existing application. Movie
or game trailers are particularly suitable for this kind of support.

23

Video subsites

Video subsites offer advertisers
the opportunity to stream large
format, targeted TV and video
ads via a bespoke designed
page. The video subsite
launches behind the host
site, allowing the advert to be
delivered with sound and at full
screen for maximum impact.

The advert can also be targeted by audience through careful selection of the
host sites. It offers benefits to users by being non-interruptive and to advertisers
because it loads in such high quality.

24


The video subsite starts playing when the host site is closed and the video
subsite becomes the focus of the page. The unit allows duration to be
longer than pre-roll with average campaign lengths being between 30 and
60 seconds.

Upon completion of the video stream the user is then delivered to the
advertiser’s landing or splash page offering call to action opportunities for
branding and direct response, consumer testing and sampling and user
data capture. The video subsite is delivered direct to the user meaning
campaigns can reach a volume audience.

The advertiser’s campaign report will include VTR (view through rates) and
how many users are delivered to their campaign page or splash page.

In-text video advertising
In-text video advertising
enables marketers to
highlight words in web
content and deliver a
highly relevant video
advertising experience.
In-text advertising
highlights over 3.5 billion
words, reaching 1 in 3
internet users across
the UK (comScore UK,
Feb 2009).

Each in-text video ad impression is pre-qualified and user-initiated. A user
can choose to view the ad by moving their mouse over a double-underlined
word or phase of interest. Once the video is launched the user can click to
visit your corresponding landing page to learn more.

Guidelines
Insertion: Double underline relevant words in written content.
Duration: Recommended: 10 - 30 seconds.
Rec. assets: High resolution video files. You should supply a backup image
(.jpeg or .gif) for users without flash capability.
Click event: Link to relevant landing page.
Dimensions: 180x150 pixels (standard) 300x172 pixels. 25

By Kristof Harling
account director, Syzygy

Camilla Day
head of video on demand, PHD

The benefit of film as a medium is that it enables a brand to
tell a visual story. Like all stories, the way it is told is crucial
to how the message is received, understood and accepted.

There are now so many marketing channels available that brands have
had to bear an overwhelming array of choice in where to broadcast. This
is against a backdrop of consumers becoming increasingly fussy about the
advertising they engage with. The result is that brands have needed to think
smarter, deeper and wider on how to create effective advertising across
the marketing mix and in context to online video advertising; this has driven
some interesting creative delivery.

Tailored adverts for online

With a clear vision of video on-demand’s role and where it sits within the
media mix, creative can be tailored at little or no additional cost. Exclusive
footage for online video can be included in the original shoot to create
either the pre/mid/post-roll, for display or to reward the consumer on a
brand website.
26


Adverts before and in the middle of content

Advertising ahead of content (pre-roll) or in the middle (mid-roll) can be
very powerful in terms of driving positive brand associations and purchase
intent. However, in this environment the creative must be relevant to the
viewer and only interrupt if long form, like a traditional TV experience.

Adverts before and in the middle of content
In considering the consumer experience, the highly targeted nature of
video-on-demand means that you can deliver more tailored messaging
than on TV and engage the consumer in deeper brand conversations.

What really sets online video apart from traditional media channels is that
for the first time you can benefit from true interaction.

To harness this
interactivity to
optimum effect,
creative execution
is key and it is
more important
than ever that
creative and
media agencies
work together
from the early
planning stages.

The following questions need to be answered:

• hat journey are you taking the consumer on? What messages do
W
you want to deliver? What do you want the end result to be? What do
experience do you want the consumer to have?

• hat do you want the consumer to do once they have interacted?
W
Do you want them to read more in depth information? View different
images of a product? Request for consumers to call you?

• ow do you encourage the user to interact? Will you offer an
H
incentive? Offer enticing copy?
27

In creating interactive online marketing campaigns, the concept of
visual interaction via a website’s interface has become a powerful
component within online campaigns. From Volkswagen Golf’s Night
Drive in 2007 (www.night-driving.com), Wario Land’s You Tube video
ad in 2008 (http://uk.youtube.com/experiencewii), to Mazda’s
behind the scenes interviews in 2009 (www.newmazda3.com/en-
GB/explore/?section=1sub=2), brands have been experimenting
on taking digital interaction and TV advertising to a new level. This is
not to say that the rules have been completely re-written as most, if not
all, online video ads follow the principle of either being interesting, funny
or informative with the successful ones also being relevant to the target
audience.

Companion adverts

Companion MPUs or banners that sit alongside the player can drive
interaction with a simple and compelling call to action. New interactive
video formats such as branded player skins around the video player itself
can also be considered to drive interaction and brand engagement.

Communicating across multiple channels

Today’s marketing strategy requires creative ideas that
communicate across multiple channels. In doing so, creativity can
be executed to great effect. On a simple level this would explain

28


the online success of
the Cadbury Gorilla,
which at this time has
had an engaged and
active audience of over
4 million people via
YouTube. At a more
sophisticated level,
Ford made online
video as an integral
part of their strategy
in engaging with a
younger audience with the Where Are The Joneses (WATJ) campaign
(http://wherearethejoneses.com/).

The campaign got young people via social networks and the WATJ blog
to send in stories for an episode. Ford then selected the best one and
filmed it with a professional crew and then posted it on the blog letting
all who participated to view it. There are currently 94 episodes and each
video finds a way of including a Ford car though the product placement
is the only brand messaging. This creative idea has been hugely popular
and effective in creating relevance for a corporate and American brand
into a young UK audience.

The main take out from this is that the participants didn’t feel marketed to
by intrusive advertising but felt invited to engage and contribute to an idea
and community. This is the similar thinking of the Stockholm based agency
Far Far, which says it’s a group of time bandits as “in today’s chaotic
marketplace of brands trying to break through the clutter, consumers
want to be in command of their own time, interacting with media on
their own terms”. This philosophy was formed from the agency’s founder,
Matias Palm-Jensen, who thinks that good creative execution creates time
rather than intrudes on it. As online video marketing continues to improve
within the marketing mix, the best creative executions will certainly take
advantage of this new form of brand interaction.

29

By Jo
Rae-Chodan
interactive film
producer, Dare

Whether you are a digital advertiser learning about filming video
ads for the first time, or an experienced TV advertiser learning
about digital, we are all a part of this new digital film industry.
Bringing the two worlds together will lead to success.

• Can’t you just use the company handy-cam and shoot a viral for our
“
client; it’s not a feature film you know.”

• This isn’t a TV ad, so why is it costing so much?”
“

Online film producers are likely to have heard comments like these more times
than they care to remember. This is usually down to a lack of understanding
across the TV and digital industries when shooting a video ad for online. In
reality, many of the processes remain the same for online video adverts as
they are when filming for a TV advert.

30


The IAB’s top twelve tips for filming online video adverts
By Jack Wallington, senior programmes manager, IAB

1. TV and online: work better together. If you’re filming for TV, incorporate the

online shoot into the TV shoot, and make sure it does not get pushed aside
in favour of TV. Online video and TV audiences are the same, the quality of
your ad should be too.
2. Length: the IAB recommends making online video ads of 10 to 15 seconds

long. If you’re only advertising around long form content you can make your
ad longer, perhaps using an edited version of your TV advert.
3. Branding: include your brand, packaging or logo throughout the advert to

aid recall.
4. Player size: the vast majority of online video is viewed in a smaller player, so

make sure text is readable and that you use shots that don’t look cluttered in
a smaller viewing space.
5. Get creative and entertain: video is about entertainment. You may not have

much time in a 10 second advert but that’s plenty of time to entertain.
6. Sound: in video players the sound will be on automatically when someone

clicks to view a video. Sound effects and music can make or break your
advert. Car adverts use music to great effect, while annoying sound effects
can irritate but be memorable.
7. Interaction: if you want people to interact with your advert make sure the

ad includes scenes that show what you want people to click on (e.g. your
product), allowing enough time for them to do this. You can include multiple
scenes to really show off your product, but you’ll need to plan for this.
8. Actors: if you’re using them, don’t skimp on talent. Watch previous work by

professional actors and get multiple opinions to make sure they’re suitable.
9. Pacing: use lots of short clips to give the impression of a fast paced scene.

For slow paced ads, use few fewer, longer clips.
10. all to action: if you want people to do something, make it obvious, simple
C
and eye catching. Use graphics that stand out against the video clip.
11. ngagement: online viewers can lose interest quickly. Entertain, engage
E
and make sure your message is delivered quickly and clearly to a relevant
audience.
12. ut cost, not quality: just because you are online doesn’t mean you can cut
C
production quality, but given the reduced screen size there are tricks of the
camera to reduce cost. E.g. to show a crowd at a concert you just need the
crowd, you don’t need to hire the O2 arena!

31

First steps to online film production
The secret to success in the filming of any online advert or programme is to
involve the producers at a very early stage. Involving the producer with agency
planning and creative teams along with the account and technical teams is
often essential. This makes it possible to work out what can be achieved within
the time, money and technical requirement constraints. Often the end product
will be shaped by these specifications. Below are some basic questions you
should be asking:

What is your budget for filming and post-production?
Discuss what can be achieved for your budget with your agency early in the
process. It may be better to spend more time and money on a video advert if
it’s the best method of delivering your message and reaching your audience.

What is technically possible?
You and your agency must make sure the head of technology is involved right at
the start. If you are including interactive video, it is even more important for the
head of technology to be involved during the scripting process. If advertising
outside the UK, understand the technical restraints. Some countries outside of
the UK do not share the same broadband capacity. Therefore a Flash designed
set of animated display adverts may be the more sensible path.

What is the process for filming?
Once you have signed-off the script, concept and budget, online video
production by your agency and production team will begin. This involves:

1. re-production: approval of script and director plus a pre-production
P
meeting for any last minute items.
2. hoot: filming will take place. If you’re filming alongside TV, remember not to
S
let the time for online production be pushed aside.
3. ost-production: first a rough cut will be made for comments, then the final
P
cut of the film. Following this, sound and graphic production will take place
before the final advert is ready.

32

By Derrick Faulkner
head of digital delivery, Bauer Media

Robert Black
rain maker, UTarget

Booking options
There are thousands of websites offering video content. You
can choose one or a combination of the following outlets for
buying video advertisements online:

1) irect with the site publisher: who vary in size and targeting options
D
but include sites from the following sectors – TV, radio, print, portals,
lifestyle, entertainment, finance, travel and automotive (to name a few).

2) ales houses: who act as agents for a collection of websites which can
S
be small in size or represent niche markets.
3) etworks: who buy unsold inventory from a number of suppliers and
N
then re-sell this inventory.

Booking direct with a recognised publisher allows you to choose exactly
what type of content your ad will appear next to.

33

Working with networks
Sales houses and networks give the benefit of saving the planner / buyer time and thus, in
the long-term, money. Instead of approaching five to ten publishers you use one point of
contact called a sales house. The results of the campaign benefit too because collecting
results is done by the sales house and presented in one document.

When working with sales houses and networks please ensure the following:

• nsertion orders are agreed upon and signed before the campaign starts. This should
I
cover the standard criteria for running the campaign such as number of impressions to
be delivered, the targeting that is required and cost.
• he insertion order may also cover the way that the sales house or network does
T
business and could also include clauses on the following points (these should all be
read and agreed upon before the campaign commences).

1. nsure the delivery of creative and urls are delivered within the agreed timeframe before
E
the start of the campaign, thus ensuring that the campaign should start on time.

2. gree on any promotion of the campaign that may be required during negotiation.
A
3. he client or agency should agree with the sales house or network upon the reporting
T
of the campaign statistics, whose statistics have precedence for billing and the degree
of discrepancy that is acceptable.

4. ow the publishers that run the advertising will be paid.
H

5. ancellation clauses.
C

6. onfidentiality clauses.
C

7. Warranties and liability.

What is technically possible?
Cost per thousand (CPM): a price per thousand ad impressions is the standard
currency. On demand video content is regarded as premium inventory so most
publishers will use this currency as the definitive trading currency for buying
online video. Higher CPMs will apply for more highly targeted advertisements
(i.e. content specific, geo targeting, profile/behavioural targeting, etc). A £20
cpm, will mean that you pay £20 for every thousand impressions ordered/
delivered. You will know exactly how many impressions are bought and from
this, reach can be predicted.
Sponsorship/tenancy: some publishers may offer the opportunity to sponsor
a section of a video channel, or specific video content. This will typically include
34


placements around and within the video content. The pricing model is worked
out on a tenancy basis applying an average CPM against an estimated number of
impressions the sponsored section will deliver over the agreed timeframe.

Cost per click (CPC): a price for a single click on an advertisement that either
brings a user to a website or plays the video within the unit (click-to-play). Not all
publishers will offer this and it isn’t appropriate for all video ad formats, but it is a
currency available for a range of interactive video advertising formats.

Delivery
Publisher ad serving system: this is a sophisticated piece of software used
to deliver the video advertisement to the web page including in and around
video content. The adserver software will count impressions and clicks on the
advertisement and provide detailed reports on these metrics as well as campaign
performance over time.

Most adservers can also offer post click tracking, where you will place a ‘beacon’
on their site to track user activity on the incumbent site. Again, all this activity can be
reported by the adserver over time. The great benefit for post click tracking is that
you can monitor post clickthroughs on the ads which lead to sales/conversions.
This is particularly useful for monitoring return on investment (ROI).

Third party ad serving and tracking: at the moment pre/mid/post-roll adverts
aren’t usually served by third party adservers, while video adverts in display banner
adverts are. However, both formats can be tracked by third parties. Third party ad
tracking technology is used to

1. Manage the delivery of video ads into media placements.
2. easure the number of ads delivered and clicks received through an independent
M
specialist.

The publisher is sent a piece of code by the third party adserving vendor, which in
turn the publisher loads as the creative asset into its adserving system (see above).
The benefits of using this functionality are that it provides you with an independent
view of the campaign performance, especially when the video ads are placed on
multiple websites. Reach and frequency can also be monitored via this system
(and a view is given for all the publishers who are serving the ads). Another great
benefit of using this method is that creative changes can take place in the third party
system (for instance for campaign optimisation, ‘offer’ changes or creative rotation)
and the publisher(s) will not have to make any campaign changes at their end.
Finally, as with publisher-side adserving, you can monitor post clickthroughs on the
ads, leading to sales/conversions.
35

By Dean Donaldson
digital experience strategist, EyeBlaster

Vaughan Denny
head of rich media sales EMEA,
DoubleClick Rich Media and Video

Preventing waste
One of the big promises of online advertising is that by using clever targeting,
budgets can be used more efficiently as advertising isn’t wasted on those that a)
can’t see it or b) are unlikely to respond to it.

This is especially important for video advertising, as it is usually more engaging
than standard display advertising so a positive experience is more important. Video
advertising has existed since the dawn of commercial television. While the way it is
delivered may have changed, the aim hasn’t. You can use video to increase brand
engagement and measuring this is where online video advertising excels.

For an example, if you are promoting a horror film, you are unlikely to reach a
receptive audience by advertising on a mother and baby website. It is better to
target the audience to make your advertising more efficient.

Bandwidth
If you are running a campaign featuring a beautiful video that has high production
values and where the feeling of quality is essential, there is very little point trying to
show these ads to someone who barely has enough bandwidth to download their
email. They won’t respond positively and you will waste your efforts.

36


The desired quality of video footage in an ad has a huge impact on the technical
specifications. The higher the quality, the higher the file size and the larger the
impact on the viewer, both in terms of advertising impact and the technical
demands upon the viewer’s machine.

Technical targeting
The technical aspects of targeting which affect the success of a campaign include,
but are not limited to:

• eographical targeting: allows you to deliver an ad against a person’s
G
location. This is especially true when running multinational campaigns as
delivering a video in the correct language with the correct information will
increase its effectiveness.

• rowser and operating system targeting: allows you to target against the
B
technology that a person is using. There may be little point in delivering a video
ad to someone who hasn’t updated their browser for four years as the video
probably won’t play.

• onnection speed: has particular impact upon video advertising as trying
C
to squeeze a large video creative down a slow connection is frustrating to the
consumer and is a waste of effort for you. This doesn’t mean that a user on a
slow connection should be excluded from seeing the ad – just that they should
see it in a different fashion – as a download rather than a stream for instance.

• ime of day targeting: allows ads to be delivered to someone at an appropriate
T
point of the day. If you have a video ad that has the aim of driving people to a
particular fast food chain then it will be better to show this to them in the two
hours running up to lunch rather than first thing on a Sunday morning.

• argeting against site content: is a technique that allows an advertiser to
T
show ads to different users of a site. There is little point showing a video ad for
the new VW Golf to someone who is searching for a second hand Ford Fiesta.
Using keywords to target an ad means that the marketing spend works a bit
harder.

• Behavioural targeting of video: isn’t available for all pre/mid/post-roll

advertising but it will become more important in the future. Video in display
banner advertising can be behaviourally targeted. Behavioural targeting places
people anonymously into large groups that have shown an interest in a certain
subject based on the websites they have visited. It is often shown to deliver
higher clickthrough or engagement because it increases relevancy.

37

By Alfred Ruth
product manager, Videoplaza

Camilla Day
head of video on demand, PHD

What is the best way of tracking and measuring video advertising?

The way you track, measure and report your campaign must
be decided upfront and depends on your campaign objectives.
You can use brand tracking, online metrics or both.
The type of ad format you use will also be important. A pre-roll is best
measured on the number of people that see it and brand tracking. Interactive
ads or a player skin can be measured on dwell time and interaction rates.
Use this section to help pick two or three relevant metrics that are linked to
your objectives.

Brand tracking

Video advertising, particularly advertising around on-demand clips and
programs, can be measured in a similar way to TV and cinema. Research
companies like DynamicLogic can measure brand uplift (increases in the
relationship between your brand and your consumers). Therefore, you
should consider using the following:
38


• wareness: shows if there has been uplift in the number of people that
A
know about your brand or product.

• avourability / perception: shows if there has been a positive uplift or
F
change in consumer opinion.

• onsideration: shows if there has been an increase in the number of
C
consumers thinking about buying or using your brand.

• essage association: shows if there has been uplift in the association of
M
a message to your brand. E.g. when fuel companies advertise about their
environmental credentials.

Online metrics

Online metrics are vital for measuring delivery and reach. Video ads are served
through ad servers in the same way display banner ads normally are, and
hence, a few metrics derived from banner ads are still relevant.

• Delivery / impressions: the number of unique browsers / computers that

an ad has been served to.

• Reach: the number of individuals in an audience reached by an advert.

Offline, this is an estimate, online is far more accurate.

• Clickthrough rate: the share of impressions that led to a click that

redirected the user to the advertiser’s site.

Besides these standard metrics, there are a few more metrics unique to online
video advertising:

• Frequency: while you can set the number of times an advert is repeated

in a set time period on TV, uniquely to the internet, you can limit the number
of times an individual sees the ad too.
• Dwell time: total amount of attention in seconds that an ad has generated

from users. This can be measured since the ads are served one at a time.
• Drop-off time: how much of the ad did the user see? The data should be

broken down at least into quarters of the content duration. You should, for
instance, be able to tell what share of the users saw at least half of the ad
or more.
39

Further, several types of online video ads are interactive which means that
users can interact with the ads without leaving the video player. There are too
many variations to list them all, but some are worth mentioning.

• nteraction rate:
I adverts that have additional functionality in them like
buttons, animations or forms that require people to interact can be measured
by interaction rate. You can compare the number of impressions to interactions
to find out how successful your ad was at engaging the consumer.

• n-stream overlay click rate: in-stream overlay ads allow people to click
I
on them which can trigger a number of actions such as directing people to
the brand website, or opening up more information within the player while
pausing the content. The first click of an overlay banner cannot be considered
a clickthrough since the user is not always redirected to the advertiser’s
site immediately. Hence, the clicks on the overlay banner must be counted
separately and calculated to reflect the share of impressions that led to a click
on the overlay banner.

How do you choose which metric to use?

The type of campaign and its objectives will decide the metrics you need to
use:

• randing campaign:
B how do you want the relationship between your
brand and consumers to change? Do you want more people to know about
your brand? Is it your aim to change opinions? Are you looking to increase
the likelihood to purchase? Depending on your branding objective, you can
use a combination of online metrics (e.g. for reach) and brand tracking (e.g.
for brand uplift).
• esponse campaign: what type of response do you want, sales,
R
interactions, leads or more people visiting your shops? Response has
many different forms. Depending on your response objective, the type of
measurement will change. For instance, if you have an interactive ad you can
measure the number of times a consumer interacts. If you’re driving leads,
you can measure increase in phone and in-shop enquiries as well as online.
Don’t rely solely on clickthrough.

40


Case study: McCain Home Fries
PHD set out to test the impact of exposing consumers to both TV and pre-roll
messaging for the McCain Home Fries brand. The online video ad campaign
ran simultaneously with the TV campaign. Consumer exposure to both TV and
online video campaigns led to the following results:

TV only Incremental VoD

Aided advertising awareness 4.4 20.8

Brand favourability 3.3 12.7

Likelihood to consider 2.3 11.4

Likelihood to purchase .2 21.6

• 22% increase in purchase intent

• 13% increase in brand favourability

• Perceptions surrounding McCain Home Fries ingredients such as “specially

selected potatoes” and “made from British potatoes” were particularly
enhanced with the addition of online video

The future of video advertising measurement
Advertising in and around video content is still a relatively new format, and while
it is building on two established mediums – online and TV – the way in which it
is measured will continue to improve in the coming years. For instance, at the
moment publishers can measure video and while agencies can add tracking
pixels to their adverts, there is still room for improvement. Third party adserving
allows online measurement at the client side and it is beginning to be adopted
for video on demand, following several years of successful implementation for
other video formats.

41

By Mike
Nicholson
tv manager,
Telegraph Media Group

Video advertising allows brands to harness the power of their
advertising campaigns while the user is both fully engaged,
and in the enviable position of being able to react to that
message immediately online.
This powerful mix has already helped countless brands make a real connection
with audiences, and the examples within this guide, along with many others,
are proof of these successes.

Video consumption is on the rise, and in response I think publishers will
continue to increase and improve both the quality and quantity of the video
they offer. This is great news for brands as they will have a larger selection of
sites that are able to offer targeted solutions.

42


As the medium continues to evolve I encourage advertisers to think
creatively about how they can get the most out of this powerful
medium. Think beyond traditional broadcast advertising norms, and
create online video campaigns that literally pull consumers in and
connect them to your brand.

I think it’s safe to say that video advertising is here to stay, and it is a
tremendously exciting time to be working in this space.

43

Video
Handbook

ACKNOWLEDGEMENTS

This handbook was produced by members of the IAB Video Council.
Chaired by Robert Black, rainmaker of UTarget.Fox, the council is a
panel of leading media owners (including broadcasters), agencies and
technology providers. If you would like to know more about the Video
Council, please contact jack@iabuk.net.

Jack Wallington,
senior programmes manager, IAB

Amit Kotecha,
project executive, IAB

Amy Kean,
senior pr marketing manager, IAB

The iab would like to thank
the proud sponsor of this Guide to Video Advertising Online.

Design Artwork by
Evolve design digital media
www.evolve-ddm.co.uk
44

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