At its 2018 Annual Leadership Meeting, IAB shared a new perspective on the accelerating shift from a century old “indirect brand economy” to a “Direct Brand Economy.” The Direct Brand Economy has been led by digitally native brands that have first-party relationships with a substantial number of their end consumers. These relationships, realized through continuously enriched data, are a core asset of the brand. Direct Brands are disrupting the legacy business model of marketing through layers of intermediaries and driving the growth of a new consumer economy. To survive and thrive in the 21st Century Brand Economy, all brands must build and rely on advanced direct marketing capabilities.
Today’s advertising ecosystem needs to adapt to support this mandate. Media creative, planning, buying, targeting, and optimization must all play a pivotal role in transforming the legacy marketing model beyond impressions toward deeper consumer interaction and direct relationships. Despite growth in digital video ad spending, overall marketing dollars are undergoing a shift toward direct marketing, interactive experiences, and two-way consumer relationships. To sustain long-term growth and “must-buy” status with marketers, digital publishers must respond and meet this need with new solutions.
For 2018, innovation represents a central theme across IAB video initiatives, putting IAB’s market-making and market-educating mission into action and providing a road map for growth in multi-platform video advertising. This whitepaper represents the first phase of this innovation initiative and is based on perspectives from thought leaders across publishers, agencies, marketers, and ad tech providers. Insights were gathered through one-on-one expert interviews as well as through a quantitative IAB survey.
This work has focused on: 1) identifying the key goals for marketers, agencies, and publishers in developing new video advertising formats, 2) highlighting which new video ad formats are showing the most promise, and 3) outlining the lessons learned to date for driving successful innovation and results.
New video ad formats that publishers worked with in 2017
Interactive & Shoppable Video Creative Examples
With 88 percent of publishers, 77 percent of brands/agencies, and 76 percent of ad tech vendors stating that they are currently pursuing video ad innovation (Source: Video Ad Innovation Survey 2018), it is clear that creative innovation is vital to compete in today’s media environment. However, achieving meaningful results is easier said than done. Through our conversations with key industry leaders, several themes emerged as important ingredients for successful creative innovation.
- ESTABLISH A DISCIPLINE OF CONSTANT AND RAPID TESTING. Success comes from “always-on” learning and improvement and building a repeatable capability, not from an opportunistic or one-off approach.
- AMPLIFY IMPACT OF NEW FORMATS THROUGH DATA, ANALYTICS AND TARGETING. Data and targeting play key roles in optimizing innovative formats and managing real-time ad performance.
- ESTABLISH MEASUREMENT STANDARDS AND KPIs. Newer and non-traditional formats require metrics and dashboards to help buyers and creatives work together to achieve outcomes. In addition, the industry needs consensus on success metrics as more new formats emerge.
- ADVOCATE FOR AND CURATE CREATIVE INNOVATION. Marketers and publishers indicate a need for neutral, third-party support to curate and showcase an ad gallery of creative innovation examples that adopt consistent and scalable specs.
- ORGANIZE AND RESOURCE FOR SUCCESS. It takes the right structure, mindset and resources to innovate successfully.
IAB will remain focused on creative innovation in the coming months. Specifically, we’ll be developing a creative gallery of ads highlighted in this creative innovation paper, launching new quantitative research on ad effectiveness, and continuing to shepherd industry-wide efforts on cross-platform measurement and attribution.
If you would like to be involved in these ongoing efforts, please reach out to [email protected].