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Brands Assign Bigger Budgets Towards Content Marketing on Digital Video, Yet Struggle with Verifying ROI, According to New Study from DigitasLBi & IABNEW YORK, April 30, 2015 /PRNewswire/ -- Content marketing that leverages digital video is seen as one of the best storytelling mediums by marketers and is garnering bigger, standalone budgets accordingly, yet these same brand advertising executives are challenged with justifying its ROI, according to a qualitative study— "Content Revelations"— from DigitasLBi and the Interactive Advertising Bureau (IAB), and conducted by Advertiser Perceptions. "Content Revelations" is a research supplement to a quantitative report, "Digital Content NewFronts: Digital Video Spend Study", released on Monday, April 27th by the IAB. Senior-level digital video decision-makers across Automotive, CPG, Financial Services, Pharmaceutical, and Retail took part in one-on-one 45-minute interviews, revealing three key insights that align with statistics from the IAB quantitative research (*). I. Content Marketing presents an ideal way to form authentic consumer relationships; therefore, its importance as a brand-builder is growing. According to one marketer, "the content is seen as a way to create 'a world' for the brand outside of the product."
Supporting Stat: Two-thirds of marketers and agency executives believe that Original Digital Video will become as important as original TV programming within the next three years. II. As a result of content marketing's growing prominence and value within the overall marketing mix, Content Marketing budgets are evolving and increasing.
Supporting Stat: Original Digital Video as a proportion of TOTAL Digital Video budget by marketers has increased by 17%, between 2013 to 2015 (projected). III. Cost, quality, and measurement are the biggest factors inhibiting marketers and publishers from driving sustained performance in content initiatives. Original Digital Video is seen as being most useful for driving consumer engagement and upper funnel sales objectives. Several marketers cited the need to account for original content production costs separate from traditional digital costs. From an ROI perspective, it's being held to the same standards as paid media, therefore it looks expensive. With this, marketers are looking for new ways to account for original content's influence on less concrete measures like consumer engagement and brand awareness/favorability.
Supporting stat: ROI vs. other Media (54%), Quality of Content (45%), Audience & Campaign Measurement (41%) and Price (39%) are the top obstacles to spending more on Original Digital Video among marketers. "This study confirms that brands clearly understand content marketing's power to effectively connect with consumers," said Randall Rothenberg, President and CEO, IAB. "Marketers recognize that digital video is a valuable player in that mix, with tremendous potential for growth. Its combination of sight, sound and motion – united with interactivity – creates compelling storytelling opportunities." "As a NewFronts co-founder, we are delighted that marketers are seeing and seizing original video content as a place and space to create stories worth telling," says Tony Weisman, CEO, DigitasLBi North America. "The opportunities for brands to create and distribute compelling content that will engage, move, and surprise audiences has never been greater." In addition, the analysis of the brand leadership interviews revealed a guide on marketer expectations for building a successful content partnership: IV.Six-Point Ideal Content Partner checklist (based on the cumulative interviews)
(NOTE: (*) All supporting stats are from the IAB "Digital Content NewFronts: Video Ad Spend Study," April 2015) Methodology About DigitasLBi About the IAB About Advertiser Perceptions Logo - http://photos.prnewswire.com/prnh/20150430/212925LOGO To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/brands-assign-bigger-budgets-towards-content-marketing-on-digital-video-yet-struggle-with-verifying-roi-according-to-new-study-from-digitaslbi--iab-300075212.html SOURCE DigitasLBi |