Click Happiest Consumers? What do They Click? Not Video

[5starAffiliatePrograms]

What type of ads are getting the most clicks - it aint video. Who is clicking - it aint people with disposable income to burn. There IS some good news hidden in this study that could boost weak Q4 sales.

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[Donuts]

Normally, I weight CTR (click thru rate) very heavily because it not only affects aggregate uptake as we all know, but also ppc quality scoring. However, the ultimate metric for my ad spends are ROI (return on investment) / ROAS (return on ad spend). So I look at CR (conversion rate) along with the related CTR for video advertising, and there's a good reason why I do that.

The magic comes from this equation:
CTR x CR = ROI Success

Not this equation:
CR = ROI Success

The billing triggers for video ads often work differently, mechanically speaking, than a banner or text ad. So looking at just CTR, is often deceiving.

My video ads have a wonderful ROI / ROAS.

And as the economic situation turns south, I feel that most marketers should be looking at focusing further on their best ROI / ROAS advertising channels.

The analysis of video ad effectiveness is a complex task, more so than banners and text, mainly because the diversity of tactics and methods and content composition and distribution far exceeds the non-video route. Further I believe that to be engaging and compelling and persuasive, the subject areas of video ads need to be somewhat narrower than banners and text ads, so you need to do more work and employ more resources to get the same reach, but given the higher ROI / ROAS, I find it worthwhile to do so.

[Donuts]

And by the way, for the niches I play in with video ads, my CTR, on average, is higher than it is with my banner and text ads in the same areas, but my peers have told me I may be an exception to the general consensus, again, because of the particular niches I'm in.

If the product areas are visual in nature, I'd strongly recommend heavy experimentation with video advertising.

[5starAffiliatePrograms]

Hi Donuts, you make some really great points!

This is exactly the type of discussion I wish more people would start. I always hope when I pass on studies or articles from various places that someone will challenge the data, refute the idea or build on it, like you did!.

I should have mentioned and should go back and edit my blog to add... I personally an a BIG believer in good video and think it can really boost conversions in most markets. I just was trying to point out in the blog entry, that some bloggers really harp on the fact that video is the be all and end all - or at least it sounds like that to me.

I think video is awesome if done right. I just think many times when people are pushed and told you gotta be "doing video" no matter what, sometimes the quality is so poor you almost wish they had stuck to text links. And in the time a video newbie could take to put out a low quality video, they could have gotten a bunch of new pages or even a new site up.

Thanks for weighing in Donuts!

I'll go over and link to this post so folks that read that post can see what you had to add!

[Donuts]

Originally Posted by LindaBuquet

I think video is awesome if done right. I just think many times when people are pushed and told you gotta be "doing video" no matter what, sometimes the quality is so poor you almost wish they had stuck to text links. And in the time a video newbie could take to put out a low quality video, they could have gotten a bunch of new pages or even a new site up.

I completely agree!!!

And not just on the quality of the video ads they may put forward, but where and how they put it forward. It's very analogous to the offline world... put an ad on a billboard (banner) in the wrong location and it's a waste... put a video ad on a tv station and time that isn't well targeted or demographed and it's also a waste. The majority of people try to get videos, that are poor attempts at monetization, into YouTube and the YouTube clones... this is also a waste, people aren't there to see ads... what's crazy, is that the obvious places where people don't mind seeing ads at all, are things people who are trying to pump video ads seem to ignore... there's confusion among mid range talent, so it's not surprising that newbies make a mess of their attempts. This will change as people learn lessons from experience, so it's just early in the game for now.

[5starAffiliatePrograms]

Yep I'm with you on that! Great points about the monetization aspect.

I think too, the mindset and skillset needed to produce good video and monetize it is something some people just thrive at and others just don't have the nack for at all. It's a skill that can be learned for sure, but I think there are people that just excel at it and it comes so easy to them.

I'm coming from a different place than you, because it sounds like you've done quite a lot with video. I have quite a bit of video background, so it's surprising to me I don't do it in my biz at all now. I'd love to! But I'm so overwhelmed and busy. I just can't even fathom how long it would take me to do it right.

People like Shawn Collins video blog like it's as easy as typing. I imagine once you do it a few times and get and figure out how to use the best editing software, build your graphics for the intro, do special effects, figure out the best file formats, get your video and sound quality issues nailed - it's probably easy. Maybe I'm making it harder in my mind than it really is??? I just have no time to even try to deal with it right now. Maybe some day!

[D.L. Wood]

Donuts

Since I'm new at this and videos interest me, in fact I'm looking at that inexpensive Flip model to play with, I have a couple of questions.

Are these monetizing videos being supplied from the merchant or are they being produced by you?

When you talk about the CTR - are the videos themselves a clickable link or are they giving info that guide you to an accompanying link? It seems to ones I've come across are just information and either mention or scroll type across the screen to get you to go somewhere else.

You say it's a waste to put them on the YouTube type sites. Yet I see things like a book at Borders about video marketing on YouTube and I saw on Jim Kukral site that he mentions this is a new area to explore. People thought Blogs, Facebook, Twitter, etc. type sites weren't areas to sell in, but now they are areas people are exploiting for profits. Maybe Youtubers are not looking and are not specifically targeted - but may buy - if presented with a offer that appeals to them when they come across it. Wouldn't it also be an opportunity to maybe find new customers to drive to your sites that you might never get exposure to otherwise?

[Donuts]

+produced by me and by people i hire to produce them as well.

+the click mechanisms vary so categorical answers aren't simple. but when i was talkign about ctr, i am talking about environments that are strictly comparable - meaning banners, text and videos shown in the same space and size and all requiring a click to deliver the ad viewer from a contextual ad location to my sites. generally these are very brief video ads that present post roll link to my site - these are not video ads that are in another video stream - they are video ads that people click to play the actual video, and the video is nothing but an ad, and is clearly marked that way as well. Interstitial video ads are something i've generally avoided, because i think they're annoying to consumers.

+i was talking from the prospective of being an affiliate... the hope of showing your name in an untargetted fashion to people trying to compel them when they're not looking for what you offer, is a broader branding effort mentality. merchants should be doing this, but generally affiliates should be focused on areas where the ROI is higher. i think of youtube like tv watching... people there are surfing the channels and looking for entertainment... sometimes they are looking for information and other things as well... and for this reason, i'd put video ads on YouTube on par with running ads on TV... again, most affiliates shouldn't be reaching that hard to build a brand... why, because affiliates would be better served, on the diminishing return line, to start another niche than to try to milk the last drop of milk from the one cow they have... put another way, exposure / reach isn't the affiliate marketers ideal activity, the size and scope of the majority of affiliates make them rifles, not shotguns. the allure of YouTube is strong, but the exposure game their requires an exceptional video to be made - something uniquely compelling that is also targeted to a product / service an affiliate can monetize... so there will be cases where affiliates find success with YouTube, but this is beyond the typical ability of most affiliates... and it's a home run mentality... affiliates who chase home runs, get washed out... Forget ARod... Pete Rose is the model affiliates need to emulate... hit singles all day and just keep hitting them... the gaps between home runs are oppotunities for failure - for an affiliate to run out of money and have to get a job, taking them out of the game... when you're hitting sinlges like mad (Kukral), then you can swing for the fences now and then... but I don't recommend it for most affiliates, it to often leads to false hope and failure. Market first, in places where you know they're looking for what you're offering... and start hitting singles... leave the home run dreams for later.

[D.L. Wood]

Donuts

Thanks for the reply - I always look forward to your comments. Always well thought out and to the point.

Thanks again