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Video Marketing Workshop for
Fionn Downhill’s Class
Greg Jarboe
President of SEO-PR
April 21, 2015
First video on YouTube was uploaded
almost 10 years ago on April 23, 2005
Source: https://youtu.be/jNQXAC9IVRw
Fionn Downhill’s Irish stepdancing
video uploaded on March 8, 2008
Source: https://youtu.be/M1vFOvGt4_c
YouTube has more than 1 billion users,
making it #2 largest social media site
• Every day people watch
hundreds of million...
Would you spend $4.5 million to reach
114.4 million viewers for 30 seconds?
Source: http://money.cnn.com/2015/01/30/media/...
Most ad agencies measure the inputs,
not the outcomes of their advertising
• In the late 1980s, my father
was the director...
How do you calculate your return on
marketing investment (ROMI)?
• Return on marketing investment (ROMI) is the contributi...
If a VW Passat sells for $29,310, then
how many cars do you need to sell?
• Return on marketing
investment of 10% = 100
x ...
Volkswagen needed 2,957 views and
254 shares to sell a car back in 2012
• Volkswagen’s “The Force” is
the most shared ad o...
VW’s Super Bowl 2014 ad, “Wings,”
didn’t get as many views or shares
Source: http://www.thesempost.com/marketing-lessons-l...
So, Volkswagen decided it wouldn’t
advertise during Super Bowl 2015
Source: http://www.autonews.com/article/20141120/RETAI...
All the Super Bowl 2015 ads that did
run on NBC also appeared on YouTube
Source: https://www.youtube.com/user/adblitz
Some plays in the marketer’s playbook
for winning the big game are classics
• The Kick Return: This is one of
the most bas...
Other plays in the marketer’s playbook
for winning big games are brand new
• Half-Back Pass: This trick play
has high risk...
YouTube delivered more views, but
Facebook videos got more shares
Source: http://www.clickz.com/clickz/news/2394454/facebo...
Facebook videos got a share rate
almost 5 times higher than YouTube
• When comparing campaigns that ran on both YouTube an...
Video content related to Super Bowl
2015 broke the 1 billion view mark
• According to Tubular Labs,
80,000 videos from 49,...
Top 5 videos on YouTube were ads, but
3 of top 5 on Facebook were trailers
Source: http://www.reelseo.com/super-bowl-1-bil...
3 of top 5 Instavids by Victoria’s Secret,
but top 5 Vines are all user-generated
Source: http://www.reelseo.com/super-bow...
Were the folks at Unruly, YouTube, and
Pixability watching the same game?
• It’s clear to everyone who
watched Super Bowl ...
They were watching the same game,
but they were using different metrics
• Pixability’s list of the top Super
Bowl ads was ...
So, which metrics should marketers
use? The answer is: All of the above!
• Measurement is essential, both for defining suc...
Please, don’t rush out and buy my
book, YouTube and Video Marketing
• When it was published in
November 2011, the second
e...
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Video Marketing Workshop for Fionn Downhill's Class

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This presentation to Fionn Downhill's Digital Marketing class at the Thunderbird School of Global Management uses ads from Super Bowl 2015 to demonstrate how to calculate your return on marketing investment.

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Video Marketing Workshop for Fionn Downhill's Class

  1. 1. Video Marketing Workshop for Fionn Downhill’s Class Greg Jarboe President of SEO-PR April 21, 2015
  2. 2. First video on YouTube was uploaded almost 10 years ago on April 23, 2005 Source: https://youtu.be/jNQXAC9IVRw
  3. 3. Fionn Downhill’s Irish stepdancing video uploaded on March 8, 2008 Source: https://youtu.be/M1vFOvGt4_c
  4. 4. YouTube has more than 1 billion users, making it #2 largest social media site • Every day people watch hundreds of millions of hours on YouTube and generate billions of views. • 300 hours of video are uploaded to YouTube every minute. • YouTube is localized in 75 countries and available in 61 languages. • Half of YouTube views are on mobile devices. Source: https://www.youtube.com/yt/press/statistics.html
  5. 5. Would you spend $4.5 million to reach 114.4 million viewers for 30 seconds? Source: http://money.cnn.com/2015/01/30/media/super-bowl-viral-ads/
  6. 6. Most ad agencies measure the inputs, not the outcomes of their advertising • In the late 1980s, my father was the director of marketing at Oldsmobile. • He launched the classic ad campaign, “This is not your father’s Oldsmobile.” • But sales fell from 900,000 in 1987 before the ad campaign to under 450,000 in 1991. • So, he asked his ad agency, Leo Burnett, how they were measuring results. • “GRPs”, they replied. • Dad asked, “How many GRPs do we need to sell a car?” Source: http://www.amazon.com/YouTube-Video-Marketing-Hour-Day-ebook/dp/B002MZUPTW
  7. 7. How do you calculate your return on marketing investment (ROMI)? • Return on marketing investment (ROMI) is the contribution to profit attributable to marketing (net of marketing spending), divided by the marketing invested. – It is not like the other “return on investment” metrics because marketing is not the same kind of investment. – Instead of moneys that are “tied” up in plants and inventories, marketing funds are typically “risked.” – Usually marketing spending will be deemed as justified if the return is positive. • The purpose of the ROMI metric is to measure the rate at which spending on marketing contributes to profits. • Return on marketing investment (%) = 100 x [{Incremental revenue attributable to marketing ($) x Contribution margin (%) - Marketing spending ($)} ÷ Marketing spending ($)] – Note: Marketing spending is typically expensed in the current period. Source: http://www.commonlanguage.wikispaces.net/Return+on+Marketing+Investment
  8. 8. If a VW Passat sells for $29,310, then how many cars do you need to sell? • Return on marketing investment of 10% = 100 x [{$379,300,710 in incremental revenue attributable to marketing (12,941 more cars) x 2.9% contribution margin ($850) - $10 million for 60-second Super Bowl spot and ad production} ÷ $10 million for marketing spending] Source: http://www.bloomberg.com/bw/articles/2014-03-13/volkswagen-pockets-23-000-when-you-buy-that-new-porsche
  9. 9. Volkswagen needed 2,957 views and 254 shares to sell a car back in 2012 • Volkswagen’s “The Force” is the most shared ad of all time, with more than 61.8 million views and close to 5.3 million shares. • This Super Bowl ad generated a 127% uplift in website traffic and drove the sale of 20,902 units. • The price range for a new Passat in 2012 was $19,995 to $32,950, so “The Force” drove from $417,935,490 to $688,720,900 in incremental sales back when margins were higher. Source: Unruly White Paper, November 2012
  10. 10. VW’s Super Bowl 2014 ad, “Wings,” didn’t get as many views or shares Source: http://www.thesempost.com/marketing-lessons-learned-2014-vw-super-bowl-commercial-wings/
  11. 11. So, Volkswagen decided it wouldn’t advertise during Super Bowl 2015 Source: http://www.autonews.com/article/20141120/RETAIL03/141129979/volkswagen-wont-advertise-during-2015-super-bowl
  12. 12. All the Super Bowl 2015 ads that did run on NBC also appeared on YouTube Source: https://www.youtube.com/user/adblitz
  13. 13. Some plays in the marketer’s playbook for winning the big game are classics • The Kick Return: This is one of the most basic plays in the playbook, but it generates results again and again. • Budweiser’s “Lost Dog” was the most-shared Super Bowl ad of 2015. • Budweiser's “Puppy Love” was the most-shared Super Bowl ad of 2014 • Budweiser’s “Brotherhood” was the most-shared Super Bowl ad of 2013. Source: http://www.momentology.com/4725-best-super-bowl-ads-of-2015-put-new-plays-in-marketers-playbook/
  14. 14. Other plays in the marketer’s playbook for winning big games are brand new • Half-Back Pass: This trick play has high risks, but high rewards. • But “Aubrey Plaza Prepares America for Newcastle’s Band of Brands Ad” demonstrates that you don’t need to be an official Super Bowl advertiser to steal the show. • And Newcastle Brown Ale didn’t pay NBC $4.5 million to air a 30-second spot during the Big Game? Source: http://www.momentology.com/4725-best-super-bowl-ads-of-2015-put-new-plays-in-marketers-playbook/
  15. 15. YouTube delivered more views, but Facebook videos got more shares Source: http://www.clickz.com/clickz/news/2394454/facebook-videos-pull-upset-over-favored-youtube-at-super-bowl-2015
  16. 16. Facebook videos got a share rate almost 5 times higher than YouTube • When comparing campaigns that ran on both YouTube and Facebook, the versions run on Facebook got an average share rate of 6.1% – almost 5 times higher than the 1.3% rate on YouTube. • Why are share rates higher on Facebook? • Facebook is a social networking service, while YouTube is video- sharing website. • What’s the difference? • Facebook is a place where people scroll through their News Feed and may be more likely to check out content that their friends, family, and colleagues have enjoyed. • YouTube is a place where people search for content from creators and then share some of it with their friends, family, and colleagues. Source: http://www.clickz.com/clickz/news/2394454/facebook-videos-pull-upset-over-favored-youtube-at-super-bowl-2015
  17. 17. Video content related to Super Bowl 2015 broke the 1 billion view mark • According to Tubular Labs, 80,000 videos from 49,000 creators got close to 1.1 billion views. • And the digital video universe is far more segmented than I suspected. • I use the term “segmented” instead of “fragmented” because each of these worlds has its own language, its own culture and customs, as well as its own folk heroes. Source: http://www.reelseo.com/super-bowl-1-billion-online-views/ 368.1 321.8 226.0 128.7 11.2 Views (Million) YouTube Facebook Instagram Vine Other
  18. 18. Top 5 videos on YouTube were ads, but 3 of top 5 on Facebook were trailers Source: http://www.reelseo.com/super-bowl-1-billion-online-views/
  19. 19. 3 of top 5 Instavids by Victoria’s Secret, but top 5 Vines are all user-generated Source: http://www.reelseo.com/super-bowl-1-billion-online-views/
  20. 20. Were the folks at Unruly, YouTube, and Pixability watching the same game? • It’s clear to everyone who watched Super Bowl 2015 that the New England Patriots beat the Seattle Seahawks by a score of 28 to 24. • But which Super Bowl ads won the Big Game? • Well, only 3 ads – Budweiser’s “Lost Dog”, Supercell’s “Clash of Clans”, and Snickers’ “The Brady Bunch” – made all 3 of the key lists. • Were the marketers at Unruly, YouTube, and Pixability watching the same game? Source: http://www.business.rutgers.edu/executive-education/blogs/which-ads-won-super-bowl-2015-it-depends-metrics-you-use
  21. 21. They were watching the same game, but they were using different metrics • Pixability’s list of the top Super Bowl ads was based on views. • YouTube’s list of top ads was determined by an algorithm that factors in paid views, organic views and audience retention (how much of a video people watched). • And Unruly’s list of top ads was based on the number of times video content was shared on Facebook, Twitter and in the blogosphere. Source: http://www.business.rutgers.edu/executive-education/blogs/which-ads-won-super-bowl-2015-it-depends-metrics-you-use
  22. 22. So, which metrics should marketers use? The answer is: All of the above! • Measurement is essential, both for defining success and optimizing towards it. • Most marketers find it useful to select 1 metric for each of the following 3 buckets that measure engagement with their content: – Audience. Are you reaching the right audience? How well? – Expression. Is your target audience engaging with your content? How much? – Participation. Is your audience endorsing and sharing your content? How much? • The number of views is a key metric for the first bucket. • Watch time is a key metric for the second bucket. • And the number of shares is a key metric for the third bucket. Source: http://www.business.rutgers.edu/executive-education/blogs/which-ads-won-super-bowl-2015-it-depends-metrics-you-use
  23. 23. Please, don’t rush out and buy my book, YouTube and Video Marketing • When it was published in November 2011, the second edition legitimately claimed to be “Fully updated with new information, including the latest changes to YouTube!” • But the only chapter that isn’t out-of-date today is Chapter 1: A Short History of YouTube. • So, if you want up-to-date information, read my posts on ReelSEO, ClickZ, The SEM Post, or Momentology. Source: http://www.amazon.com/YouTube-Video-Marketing-Hour-Day/dp/047094501X

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