Our co-founder, Eric Franchi, took part in a panel at OMMA Global yesterday that got to the heart of an important topic in digital video advertising: the issue of supply vs. demand and the impact this has on effective targeting.
For all the hype that is rightly surrounding video advertising at the moment, it’s sometimes easy to forget that the display market is still 40 times larger than the digital video market. According to comScore, in June this year there were 424 billion impressions in display, compared to 10 billion impressions in digital video.
In addition to these differences in scale, sell-through rates – i.e. the amount of inventory publishers are selling direct rather than through aggregators – are considerably higher in video than in display. The result: there is a significantly smaller pool of inventory in digital video against which advertisers can apply data targeting.
While, broadly speaking, the same targeting solutions are available for video as in display, as an advertiser you need to ask questions of your vendor if they are promising significant scale for video campaigns when narrow targeting parameters are applied. Given the relatively limited supply that exists in digital video, by focusing on tightly targeted audience segments but still delivering your campaign at scale, you’ll almost certainly start to sacrifice quality.
So, what is the answer? At Undertone, we believe that successful video campaigns hinge on context rather than audience targeting. More often than not, page environment affects consumer mindset. A consumer browsing through a low quality site is likely not engaged, leaning forward, and therefore likely not going to be receptive to brand messaging. Conversely, a consumer on a high quality page is likely to be interested, leaning forward and more receptive to brand messaging alongside that content.
At Undertone, quality is at the heart of everything we do. We’ve built our Preferred Publisher Portfolio™ around quality publishers specifically because we know that quality context yields more engaged consumers. And nowhere is this more important than in the supply constrained world of video advertising.