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The High Price of Low Quality Video Advertising

Attention is an advertising outcome that precedes any effect. Therefore, managing advertising for attention outcomes should be a foundational principle in modern practice. That starts with the commercial messaging and advertising creative.

 

This paper presents an ROI model using attention data from Realeyes’ PreView product, applied to an actual portfolio of video ads from consumer brands.

 

CMO reading a printed copy fo the paper

 

Our case study scenario shows that optimizing creatives for attention within media activations can easily achieve 30% performance improvements (or waste reductions). It also can achieve a 9X ROI based on the cost of applying attention predictions data.



Monthly digital spend..................................$2,500,000

Unique video creative..................................51

 

Quality exposures with all creative.............93,142,400

Quality exposures of Top & Mid perf’.........121,372,899

Delta of quality exposure ............................28,230,499 %

Gain in quality exposure..............................30%

Value of additional quality exposure..........$1,051,783

Cost of 51 PreView tests.............................$102,000

 

ROI PreView Based on eqCPM...................1031%

 

 

By applying the predictive power of Quality Score, advertisers can modulate their creative activations in their media plans to make qCPM work to their benefit. In our scenario below with 51 creatives applied to a $2.5 million media budget, we achieve a potential boost (or waste reduction) of $1.1 million simply by eliminating the lowest performers according to Quality Score. This is a 9X return on investment, based on the cost of PreView testing against the portfolio of 51 ads.

 

Our conclusion is that to advertise effectively, advertisers must embrace attention through reliable, valid and quantitative measures that are comparable across media and time. 

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