Kellogg’s has joined forces with Nielsen Catalina Solutions (NCS), Moat, and Yahoo’s BrightRoll in order to evaluate the relationship between the quality of video advertising and purchase rates. They measured factors such as ‘time in view’ and ‘audibility’ in order to determine how they influenced overall sales impact.
Kellogg’s purchased sets of exposures from BrightRoll and Moat provided a variety of metrics to provide insight into the video viewings. Some of these metrics include data on video player size, time spent viewing, and if the audio was muted during viewing. This data was leveraged against offline sales data provided by Nielsen Catalina Solutions in order to assess the sales outcomes of the video inventory.
Does Video Inherently Boost Sales?
The results were surprising to many in the industry and challenged the notion that video automatically improves sales numbers.
“More stringent in-view minimums, customized to the format of delivery, are required,” said the senior director of KNA Media and Experience Planning of Kellogg Co., Chris Osner-Hackett.
Evaluation from the test campaign revealed that videos that were viewed for seven to 16 seconds were the most significant contribution to sales. This points towards a flaw within the industry standard of two seconds.
It was also discovered that video with the sound active boosted sales by twice as much compared to videos with no sound or the sound off.
Nielsen Catalina Solutions was also able to pick up on some nuances of reach and sales frequency.
“Reach is particularly important, but not just reach among all people – it’s reach among opportunities to purchase,” said the chief revenue officer for NCS, Andrew Feigenson. “I may buy bottled water once a week, you may buy it once a year. So my ability to influence a purchase is largely dependent on how many times you’re going to a store and when I capture you in the purchase cycle.”
There Is Still No Black And White Definition
Despite many of the insights, there is still no clear definition of what works the best, particularly when it comes to time spent.
For example, if a consumer purchases a year’s supply of Corn Flakes, and Kellogg’s exposes them to a video ad afterwards, the consumer is less likely to be impacted by that impression.
Determining the connection between video views and sales numbers is starting to define more accurate measurement methods. In the past, studies that evaluated the connection between digital activity and offline sales were slow and expensive. However, as more offline data becomes digital, the ability to measure ad effectiveness has improved greatly.
This will enable advertisers to develop and run campaigns that are more directly related to performance and measurement data. Although there are still many challenges to this type of targeted advertising, it is becoming much easier as measurement methods develop. As programmatic transactions continue to rise and access to data grows, it is predicted that these types of integrations will become industry standard within the near future.