Tuesday, September 20, 2011, 8:21 AM ET|Posted by Will RichmondVideo ad technology provider EyeView is unveiling research this morning that demonstrates how personalized online video ads can improve viewers' purchase intent, brand favorability and brand loyalty. The research underscores how online video advertising continues to differentiate itself from traditional TV advertising with real-time, dynamic creative that breaks through. EyeView CEO Oren Harnevo walked me through the research findings last week.
The research was conducted by Knowledge Networks (KN), which queried approximately 400 online users which were divided in half. Both halves were shown the same online video content with adjacent pre-roll video ads, but one half saw standard TV ads from travel provider Kayak and the other half saw these ads with personalized messaging (e.g. specific flight information from their local airport, etc.). Reactions from the two groups were then compared.
Those seeing the personalization notched a 100% improvement in level of favorability toward Kayak, a 37% jump in likelihood of visiting Kayak the next time travel is being planned online and a 73% increase in likelihood of recommending Kayak to a friend, colleague or relative. There's a bit of a halo effect from personalization as well: the level of enjoyment for the content itself also increased by 13%. And there was a 40% jump in participants believing that advertising is a fair price to pay for being able to watch online video for free.
Subsequently, all participants were shown the personalized Kayak ads and asked for their reactions. The results included 40% of participants liking the idea of personalized ads (with 12% not liking it) and two-thirds saying they would like at least half their online video ads to be personalized.
Given that people are accustomed to seeing so many ads that aren't even relevant to them, it makes sense that viewers prefer advertising that feels customized to them. By quantifying the impact of personalization, the research contributes to brands, agencies and publishers better understanding how personalized online video advertising is worth pursuing.
EyeView, which has raised $5.7 million to date, has run personalized campaigns for T-Mobile, Capital One, Hotels.com, Red Lobster and others to date and also partners with ad networks, exchanges and publishers on personalized ads. EyeView's secret sauce is the ability to effectively customize video ads at scale. To do so, EyeView draws on user information such as location and ISP being used plus demographical and behavioral information from various data providers. EyeView constantly takes feeds of the advertiser's latest offers (e.g. hotel rates, flight information, product sales, etc.) so that when an ad is ready to be served, the right offers can be matched to a user's profile to deliver the personalized ad. See the below example personalized for the New York vs. LA markets:
EyeView is another great example of the rapid innovation happening in the online video advertising space. Brands are being presented with increasingly sophisticated opportunities to use online video advertising to reach just the audiences they desire with just the right message. That's good news not only for brands but also for viewers who can expect ads that are more relevant to them.
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