Magna: How machine learning boosts KPIs for video ad retargeting
- Fifty-nine percent of ad impressions are wasted with standard video retargeting, according to findings of new research by Magna, IPG Media Lab and ViralGains, titled "The Sentiment Driven Consumer Journey." The study tested two video ad journeys among 6,000 consumers.
- In the study, one group received a series of video ads optimized based on sentiment, or a viewer's level of interest in the first video ad, with machine learning used to serve the best next ad based on a viewer's preference as determined by a survey. The second group received a series of ads based solely on exposure. The brands involved include Dr. Pepper, Charles Schwab, an unnamed "major quick service restaurant" and a "major travel brand."
- Consumers on the sentiment-based journey were 2.7 times more likely to search for the brand and 2 times more likely to visit a brand's website. Among these consumers, 85% said that the ads were interesting, 76% felt that the ads were relevant and 66% thought the ads were informative.
Video ad retargeting is a popular digital tactic but it can be inefficient and even detrimental to a brand's health if consumers aren't interested in a brand and yet continue to be served ads simply because they previously watched an ad for that brand. The Magna report underscores how intelligent, calculated video advertising strategies that leverage machine learning to take customer sentiment into account can help brands avoid wasting video ad budgets while driving brand affinity metrics. Marketers can save $59,000 for a $100,000 campaign on average by determining whether or not someone is interested in their brand after watching a video and then not retargeting that person in the future, according to the report.
Getting ad delivery right is an essential step in determining campaign ROI and effectiveness, and it's an area where marketers continue to struggle. The new report offers some key insights that could help marketers boost engagement as they plan future video strategies. Video ad spending is projected to grow from $91 billion in 2018 to $103 billion by 2023, with the total share of video ad spending increasing from 21% to 34%, according to Forrester. Display video was projected to account for 82.7% of online video ad spending in 2018, but social video is growing quickly at a 20.8% compounded annual growth rate through 2023.
As online video viewership is growing, optimizing ad delivery can ensure that audiences are served with ads that are most relevant to them and help marketers achieve higher levels of personalization, which consumers are growing to expect.