The online video space in China is fragmented and complex. Unlike in the United States, four different online video platforms have a combined market share of just under 70%. As mentioned in our previous blog (A Primer for Online Video Marketing in China), the projected revenue growth of Chinese video platforms in the near future will not necessarily translate into greater bounties for marketers. Brands and agencies must take every step to ensure that they will receive the best value for their online video campaigns to avoid getting ripped off.
In this blog, we will cover 2 of 4 fundamental ways on how to create effective Integrated Video Campaigns (IVC) in China. When penetrating the Chinese market, brands and advertisers must avoid some common pitfalls.
2 steps to creating effective Integrated Video Campaigns (IVC):
1. Trust, but Verify
To get the best ROI, advertisers and agencies work with trusted sites or networks that promise brand-safe programming. That’s a good start but not enough. Seasoned marketers more actively evaluate the service partner’s platform and the supporting technology.
Take a deeper dive on platforms’ use of autoplay. Since some or even many viewers may not want to see your video ad and may click to stop it immediately, you need to know if your service provider offers autoplay. The vast variety of ad formats for both web and mobile such as autoplay, PushUp, interstitial, display banners, sliders and direct links certainly give ad networks an easy way to boost their numbers, but you need to make sure that your brand is benefiting as well.
2. Knowing What to Ask For – Define Your Own KPIs
Brands and their agencies rely on trusted online video service providers to create safe, controlled environments that allow them to connect credibly to their audiences. Beyond, just selling ad inventory, a platform should help navigate the brand’s KPI’s. For the inexperienced advertiser, it can be overwhelming to comprehend such terms as:
CPM (Cost Per Thousand)
eCPM (Effective Cost Per Thousand)
CPV (Cost Per View)
PPC (Pay Per Click)
CPE (Cost Per Engagement)
CPA (Cost Per Action)
CTR (Click Through)
VTR (Video Through Rate)
CPI (Cost Per Impression)
…and a stream of new metrics and terms are being introduced regularly.
Take the time to figure out which ad networks support which ad units, and what type of content is needed for each format. Text ads are measured by CPC or PPC while for graphics, we need ad units like CPV and VTR. When it comes to video, you should look at CPV and VTR. In China, CPM is still common KPI for online video ads, but even if a thousand people see your ad and no on clicks on it you still pay. Unless you are running a pure branding campaign, it’s smart to look into the formula behind each KPI and decide how much you are willing to pay and set appropriate benchmarks.
The final part of the series will cover the last two essential realities on how to create effective video campaigns. Subscribe now to ensure you receive our regular insights into online video marketing in China.