IPG Units Find ‘HVAs’ Work Better Than Conventional Targeting, Rival Contextual’s Premiums

By JOE MANDESE.  Published by MEDIA POST on 8 April 2020.

 

“HVAs,” an increasingly popular new acronym being used by marketers and agencies to describe methods of targeting only “high value audiences” via various identity-based data schemes, appears to perform better than conventional methods of targeting media audiences, especially Madison Avenue’s stock-in-trade: the demographic. That’s the conclusion of a rigorous test conducted by IPG Mediabrands’ Magna and IPG Media Lab units.The test, which utilizes IPG’s proprietary research panel, as well as proprietary HVA segments created via its Kinesso platform (the data platform that leverages IPG’s Acxiom unit), conducted various controls to measure the effects of common advertising KPIs (key performance indicators) such as ad recall and purchase intent, and in every case it demonstrated that utilizing HVAs performed much better than demographics, contextual targeting, or even a mix of demographics and contextual targeting.

Contextual targeting utilizes the nature of the medium and/or the content that consumers are accessing as a proxy for their interests and intent as consumers of a brand’s products and or advertising messages, and according to Magna Senior Vice President-Group Director of Intelligence Solutions & Strategy Kara Manatt, the findings indicate that HVA targeting is more valuable than the premiums often paid for contextually-targeted audiences.

“I don’t thinks it has changed what we think about contextual,” she explains, noting, “In many cases, I would say contextual is worth a premium. But for most brands you cannot run your entire campaign on contextual, because there’s not enough inventory.”

In theory, utilizing HVAs enables brands and agencies to tap an unlimited array of media and content based on where those high value audiences index best.

Manatt emphasized that brands “should not spend a lot of money” using the method without also “doing a lot of testing and vetting it out.”

While IPG’s Kinesso has proprietary data and methods of identifying HVAs, the concept is available to any brand, agency and data management partners who can associate identity-based audiences with a brand’s highest value consumers.

NEW STUDY BY MAGNA AND IPG MEDIA LAB REVEALS THAT USING PEOPLE-BASED IDS TO REACH HIGH VALUE AUDIENCES YIELDS 50% HIGHER ROI

‘From Cookies to People’ Shares How the Identification of High Value Audiences (HVAs) Yields Precision That Cookies Can’t and Is Ultimately More Effective for Advertisers

NEW YORK – April 8, 2020 – From mass market, to household demos, to individual demo, and finally, to big data, the advertising industry has undoubtedly come a long way in how it reaches people. While traditional methods enabled us to reach large audiences based on reported behavior, a new study by MAGNA and IPG Media Lab reveals that new, advanced technologies, using people-based IDs, yield precision that cookies simply can’t. “From Cookies to People: Reaching High Value Audiences” demonstrates how the added precision with High Value Audiences (HVAs) can aid brands in their reach efforts with the hope of no wasted impressions. The study used Kinesso’s database in order to ethically source and identify HVAs. Other strategies were also tested in the study, such as demo, contextual, and demo + contextual.

 

More specifically, HVAs are defined as specific personas that are identified as having more lifetime value than a consumer reached via traditional methods, like demographics, and are highly customized based on variables such as category status and psychographics. These segments are created from a large data set with audience behavior tracked at the consumer level. Modeling is used to predict conversions from behaviors.

 

Brands can identify HVAs for a variety of different reasons, from reaching a particularly niche audience to converting consumers currently using a competitor product/service. There’s no one-size-fits-all for HVA strategies.

 

Key insights from the study include:

 

  • Identifying HVAs goes beyond simply zeroing in on those who are already going to buy; the tested HVAs were efficiently reaching potential new customers.

 

  • Ads were more memorable among tested HVAs and were especially effective at fostering a strong brand image. While contextual targeting drove brand resonance as well and is seen as being worth a premium, campaign reach can still be an issue.

 

  • HVAs were persuaded to purchase the brand, up +8% compared to +4% Demo, +4% Contextual and +6% Demo + Contextual. In addition, HVAs were particularly effective at driving purchase intent among in-market consumers, despite being least likely to have purchased the brand before.

 

  • The tested HVAs were particularly critical of ads not customized to them. However, when tested HVAs saw creative that they perceived as relevant, the ads were more effective, presenting a clear opportunity to customize creative for HVAs.

 

“Utilizing HVAs is one of the most precise and effective ways for advertisers to reach the best possible audiences on linear and digital video, and I believe it’s the future of our industry,” said Dani Benowitz, President, U.S., MAGNA. “We’re at a point in time where we’re able to save impressions from being wasted for advertisers, and in turn, are able to deliver content to viewers that they want to see since it is so targeted to their interests, which is a win-win for everyone.”

 

“We’ve been pleased to see interest around utilizing HVAs rise fourfold over the past three years as brands become more sophisticated in their marketing efforts,” said Michael Heberle, Chief Marketing Scientist, Kinesso. “It’s been a game changer for our clients, who have driven drastic improvements in business performance through better targeting.”

 

In order to identify HVAs, the study’s methodology involved recruiting YouTube users for participation from a nationally representative panel using Kinesso’s database of privacy-safe, best-in-class providers. Participants selected online video topics based on personal interests and those that were not interested were screened out to ensure a natural audience. Randomization was introduced into the test and control groups (Test= Brand Ad; Control = Public Service Announcement; 50% skippable ads; 50% non-skippable ads). Participants visited YouTube’s testing page where they selected and played the video content based on their interests, and relevant behavior was tracked. The targeting strategies used included HVA targeting, demo targeting, contextual targeting, and demo + contextual targeting.

 

Download the full report

 

 

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.

 

# # #

 

Media Contact:

Zinnia Gill

IPG Mediabrands

Director, Global Corporate Communications

(646) 965-4271

zinnia.gill@mbww.com

 

NEW STUDY BY MAGNA, IPG MEDIA LAB AND VEVO REVEALS THE FACTORS THAT DRIVE VIEWER CHOICE FOR DEVICE AND VIDEO SELECTION

“The Anatomy of a Video Experience” Provides Insights for Advertisers on How Best to Deliver Brand Messages to Receptive Audiences across Devices

 

NEW YORK – March 11, 2020 – It’s no secret that the video device landscape is fragmented. In fact, the average U.S. home owns over 10 connected devices. Understanding the nuances is key for advertisers looking to reach receptive audiences and better inform their future planning efforts. “The Anatomy of a Video Experience,” a study conducted by MAGNA, IPG Media Lab and Vevo, explores the many ways consumers view video across devices, and what motivates their viewing habits.

 

The natural nuances of video experiences were tracked across various devices such as Over-the-Top (OTT), Linear TV (LTV), PC and Mobile, in order to uncover the 5 W’s of Video Consumption: Why, What, When, Where and Who.

 

The study found that viewers have no true “go-to” device to watch video and in fact, device selections are made in the moment based on situational factors. For example, viewers select OTT for video/audio quality, select LTV for exclusive content, and select mobile and PC for accessibility.

 

Additional key findings of the study include:

 

  • Consumers are in vastly different mindsets on each video device. For example, people have relaxation in mind when watching on bigger screens, and utility on PC.

 

  • Audio attention reigns supreme, even in a video environment, with the highest full attention to audio at 56% on PC, as opposed to highest full attention to visual, 44% on OTT. Video ads should rely on more than just visuals to get its message across.

 

  • Video co-viewing offers a sweet spot for advertisers, offering purpose-driven viewing, longer session lengths, and higher receptivity. In fact, OTT was the best device for co-viewers (49%), and they are especially attentive on it (43%).

 

  • The music genre is strongly tied to positive moods and high cultural relevance, allowing advertisers to reach music video viewers in moments where their brand message will resonate most. This is especially true for music video consumption on OTT, where ad receptivity is particularly high (co-viewing ~68%; solo viewing ~ 58%).

 

  • LTV users are more likely browsing on other digital devices if they’re multi-tasking than users of other devices, providing an advertiser opportunity for simultaneous cross-screen exposure.

 

  • There is more passive video search discovery happening on OTT (24%) than other digital devices like PC (18%) and mobile (16%).

 

“Vevo is thrilled to be partnering with MAGNA to release the results of such a valuable study” says Kevin McGurn, President of Sales and Distribution, Vevo. “The fragmentation of content viewership is accelerating but music videos continue to aggregate huge audiences where advertisers’ messages reach and resonate with their consumers. The MAGNA findings help us to understand co-viewing behaviors, what makes viewers more receptive to advertising, how they engage with what screen and for what purpose. These valuable insights enable us to recommend smart, actionable media solutions to our advertisers across all audiences.”

 

“The industry tends to focus on mobile and OTT, but the truth is that people are using several devices and we need to understand the nuances of why/when,” said Kara Manatt, SVP, Group Director, Intelligence Solutions, MAGNA Global.  “People are focused when listening to rock music, excited when watching action movies…their mood states vary wildly throughout the course of a day and so does their openness to receiving an ad. Brands that understand the mood behind the action are dramatically more likely to grab the attention of listeners and viewers.”

 

Download the full report

 

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 Vevo

Vevo is the world’s largest all-premium music video provider, offering artists a global platform with enormous scale through its distribution partners. Vevo connects artists with their audience globally via music videos and original content, working directly with them to find unique ways to bring their music to life visually. Vevo also works with emerging artists, providing them with a platform of global scale and reach, to find and grow their audience. Reaching 26 billion monthly views globally, Vevo has over 450,000 music videos in its catalogue.

 

 

Media Contacts:

Zinnia Gill

Director, Global Corporate Communications

IPG Mediabrands

zinnia.gill@mbww.com

(646) 965-4271

 

Anthi Pantelidis

Senior Manager, Communications

Vevo

Anthi.pantelidis@vevo.com

5 W’s of consumer video habits: Why, what, when, where, who

By LINDSEY STEIN.  Published by CAMPAIGN LIVE on 11 MARCH 2020.

Consumers are in very different mindsets on each video device.

Consumers in the U.S. have 10 or more connected devices in their home on average, which may be one of the reasons why most of them don’t have a true “go-to” device for their video-viewing habits.

“The Anatomy of a Video Experience,” a study conducted by MAGNA, IPG Media Lab and Vevo, digs into the various ways in which consumers are viewing videos and the motivations behind those decisions. By tracking video experiences across OTT, linear TV, PC and mobile, the research uncovered the 5 W’s of video consumption – why, what, when, where and who. The study includes insights from 3,500 people in the U.S. (1,500 of which are multicultural), as well as 9,613 tracked video sessions (4,083 multicultural).

One of the key takeaways from the study is that consumers are in varying mindsets when using different video device, with people generally wanting to relax when watching bigger screens or get something of value from PCs.

Co-viewing, the study states, is an opportunity that advertisers to tap into because it provides purpose-driven viewing, longer session lengths and higher receptivity. OTT devices were the top for co-viewers (49 percent), with 43 percent saying they are “especially attentive” on it.

The research also states that video ads should rely on more than just visuals since audio attention is the most important aspect of a video experience to consumers. Consumers give their fullest attention to audio on PCs (56 percent), compared to the highest attention to visual on OTT at 44 percent.

“The industry tends to focus on mobile and OTT, but the truth is that people are using several devices and we need to understand the nuances of why/when,” said Kara Manatt, senior-VP and group director of Intelligence Solutions at Magna Global, in a statement.

Manatt added: “People are focused when listening to rock music, excited when watching action movies… their mood states vary wildly throughout the course of a day and so does their openness to receiving an ad. Brands that understand the mood behind the action are dramatically more likely to grab the attention of listeners and viewers.”

For a more in-depth look at the study, including states on music in video and LTV, see the infographic below.

Read the full report
Read the full article