Biggest Pitfall for Effective 360° Video Ads Is
Simple Branding, According to New Research From YuMe, MAGNA, the
IPG Media Lab
MAGNA, the intelligence, investment and innovation unit within
IPG Mediabrands, and IPG Media Lab, the media futures and advisory
arm of IPG Mediabrands, in partnership with YuMe by RhythmOne, a
proven partner for video advertising leadership and innovation,
today announced the results of a media trial examining consumers’
perspective on 360° video advertising from innovative brands
BMW, Royal Caribbean and PBS. The resulting report, The 360°
Effect: Understanding Immersive Video, reveals the opportunities
this ad format provides to marketers and the challenges marketers
will face in maximizing its value. The report also offers insight
into how marketers should utilize this new video ad format to help
drive brand KPIs.
While most brands have yet to utilize 360° video for
marketing purposes, many consumers are already familiar with the
format. Consumers show a strong interest in 360° videos
created by brands, with the majority (69%) intending to interact
with brand videos in the future. Consumers’ primary interest in
brand-created 360° video relates to viewers’ desire for
entertainment and new experiences. Marketers need not only to
deliver on high expectations for fun, but also to move the needle
on the metrics that drive brand growth.
“While 360° video ads offer the most accessible immersive
video ad experiences for consumers – available across mobile, PCs
and VR headsets – marketers must artfully balance entertainment
with branding to achieve optimal brand metrics,” said Devin Fallon,
VP of Analytics, YuMe by RhythmOne. “Our study reinforces the
opportunity that marketers have to drive purchase intent with
360° video ads, provided they properly incorporate brand
messages to encourage higher recall.”
“This research not only has helped us better understand the user
experience for 360° video ads, but also the common pitfalls
marketers may face in driving important metrics such as brand
favorability and purchase intent,” said Kara Manatt, SVP,
Intelligence Solutions Strategy at MAGNA. “Consumers are welcoming
of this advertising format because it provides a fun and engaging
experience. We need to ensure that we deliver on those expectations
and our KPIs at the same time.”
Key insights include:
Consumer Preference
- Consumers are eager to experience
360° video even when created by brands. However, they have
high expectations for fun and excitement, which were reported as
the top reasons for engaging with 360 video in the future. 88% of
those who found 360° “entertaining” intend to interact with
360° video ads in the future.
- Early tech adopters are most likely to
engage with and enjoy 360° video, making it a big
opportunity for brands targeting tech savvy consumers.
- Providing simple instructional cues
delivered the best user experience. Some consumers didn’t engage
with the video because they weren’t sure what to do.
Marketer Takeaways
- Overall, 360° video can be an
effective format in delivering against brand KPIs above and beyond
traditional video. However, challenges persist in creating
memorable experiences given the inherent distractions of the
format.
- The payoff is big once consumers
recalled the brand, with +7% purchase intent increase on
smartphones and +12% in agreement that the brand “has a unique
story to tell” compared with a traditional video ad.
- While VR headset environments serve as
the ideal platform, smartphone was the next best option.
360° video outperformed on smartphones compared with the
same ad on PC, with a +10% in purchase intent.
- Contextual targeting can make a
difference – pairing a 360° ad with content that is also 360°
improves branding impact. The same ad is perceived as 8% more
relevant compared with running in front of standard (non-360°)
content.
“360-degree video is a true discovery experience – showcasing
multiple facets of the brand offering instead of being limited to
just one or two messages,” said UM’s Global Chief Innovation
Officer, Chad Stoller. “This provides brands with an ability to tap
into consumer passions while allowing them to choose their own
journey through the experience.”
In conducting the media trial, a total of 2,159 consumers were
recruited from a representative online panel. The survey directed
participants to a media experience of their choosing on PC,
smartphone, or smartphone-enabled VR device, where they were able
to view a webpage and watch video content based on their interests.
Each participant was randomized into a test cell that determined
what type of pre-roll video they saw – control, standard video ad,
or 360° video ad. Afterwards, participants completed a
survey that measured traditional branding metrics and qualitative
feedback.
About MAGNA
MAGNA is the centralized IPG Mediabrands resource that develops
intelligence, investment and innovation strategies for agency teams
and clients. We utilize our insights, forecasts and strategic
relationships to provide clients with a competitive marketplace
advantage.
MAGNA harnesses the aggregate power of all IPG media investments
to create leverage in the market, negotiate preferred pricing and
secure premium inventory to drive maximum value for our clients.
The MAGNA Investment and Innovation teams architect go-to-market
investment strategies across all channels including linear
television, print, digital and programmatic on behalf of IPG
clients. The team focuses on the use of emerging media
opportunities, as well as data and technology-enabled solutions to
drive optimal client performance and business results.
MAGNA Intelligence has set the industry standard for more than
60 years by predicting the future of media value. The MAGNA
Intelligence team produces more than 40 annual reports on audience
trends, media spend and market demand as well as ad
effectiveness.
About IPG Media Lab
Part of the Interpublic network, the IPG Media Lab identifies
and researches innovations and trends that will change the media
landscape and how brands engage with their audiences. Since 2006,
the Lab has worked with our clients and with industry partners who
can help them best adapt to disruptive change. Its expertise,
resources and consulting services also help to inform the
learnings, strategies and business outcomes of all
Interpublic agencies. For more information, please visit
www.ipglab.com or follow @ipglab.
About YuMe by RhythmOne
YuMe by RhythmOne is a leading provider of video
and connected TV inventory, unique consumer insights, and
cross-screen targeting technology, helping global advertisers
better reach and engage consumers wherever and however they consume
video content. YuMe's strong demand offering is backed by the
supply-side strength of RhythmOne's industry-leading
programmatic platform, which provides access
to data-driven audience targeting in a verified,
brand-safe environment. RhythmOne's end-to-end platform - coupled
with the world-class service of its account teams - provides more
direct, efficient and effective connections, driving ROI for
advertisers and publishers. Founded in 2004 in the UK, RhythmOne is
headquartered in San Francisco with offices in the US, UK, Europe,
APAC and Canada. For more information, please
visit www.rhythmone.com.
Forward-Looking Statement
This press release contains forward-looking statements,
including those in management quotations. In some cases, you can
identify forward-looking statements by the words "may," "will,"
"expect," "intend," "plan," "objective," "anticipate," "believe,"
"estimate," "predict," "project," "potential," "continue" and
"ongoing," or the negative of these terms, or other comparable
terminology intended to identify statements about the future. All
statements other than statements of historical fact are statements
that could be forward-looking statements, including, but not
limited to, statements about the effectiveness of 360°
advertisements; growth strategies; market trends; and quotations
from management. These forward-looking statements are subject to
risks and uncertainties, assumptions and other factors that could
cause actual results and the timing of events to differ materially
from future results that are expressed or implied in the
forward-looking statements. Factors that could cause or contribute
to such differences include the dynamic and rapidly evolving
sector, as well as the highly competitive industry that RhythmOne
operates in, which make it difficult to evaluate prospects. These
and other risk factors are discussed in RhythmOne’s Annual Report
for the period ended March 31, 2017. The forward-looking statements
in this press release are based on information available to YuMe as
of the date hereof, and we assume no obligation to update any
forward-looking statements.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180313005884/en/
IPG MediabrandsScott BerwitzGlobal Corporate
CommunicationsScott.Berwitz@mbww.comorSeismic Marketing for YuMe by
RhythmOneMelissa Laverty, 540-272-6465Melissa@teamseismic.com
Rhythmone (LSE:RTHM)
Historical Stock Chart
From Apr 2024 to May 2024
Rhythmone (LSE:RTHM)
Historical Stock Chart
From May 2023 to May 2024