DO YOU RECOGNIZE ITS BRAND? The Effectiveness of Online In-Stream Video Advertisements Royston Chiam Julian Stacho

CONTENTS & OVERVIEW ➤ Online in-stream video advertising ➤ Effects of ad length, ad position and ad-context congruity ➤ Internet Advertising will increase by 13,9% ➤ TV ads grow by 2,5% per year ➤ Video ad view volume increased by 47% from 2011 to 2012 ➤ More than double the growth rate of video views (23%) ➤ Users watch more web-based video ads than ever

ONLINE VIDEO ADVERTISEMENT ➤ Online media is more attention-demanding ➤ Ad placement varies ➤ Prior to the video (pre-roll) ➤ During the video (mid-roll) ➤ At the end of the video (post-roll) ➤ Video ads were selected from YouTube as stimuli ➤ Fast forwarding is prevented

1. EFFECT OF AD LENGTH ON RECOGNITION ➤ Length of television commercial has a positive effect on the ad’s memorability ➤ In radio, brand recall was significantly greater from 60- seconds ads than from 30-seconds ads ➤ Hypothesis 1: The length of in-stream video ads has a positive effect on brand name recognition

2. EFFECT OF AD POSITION ON RECOGNITION ➤ Online media is more interactive and attention-demanding than offline media ➤ But viewers attention is limited and selective ➤ Greater amount of attention encourages deeper processing of the advertised message ➤ Sensory fatigue can occur during video viewing ➤ Response to the same stimulus will decrease ➤ Hypothesis 2: Mid-roll video ads enhance brand name recognition more effectively than pre-/post-roll video ads

3. EFFECT BETWEEN AD POSITION AND AD- CONTEXT CONGRUITY ➤ People are more likely to notice stimuli that differ from other stimuli around them ➤ Incongruent ads might be more prominent, stimulate more internal processing and there fore be remembered better ➤ Effective advertising message requires both attention and cognitive processing ➤ Internet users are more goal-oriented at the time of viewing ➤ When message passes through attentional gate, it transfers from sensory memory to short-term memory ➤ Hypothesis 3: There are interaction effects between ad position and ad-context congruity/incongruity on brand name recognition

MAIN STUDY ➤ 240 Chinese students ➤ 46% male, 54% female ➤ Randomly assigned to 12 conditions (20 each) ➤ years old ➤ 68.3% undergraduates, 31,7% graduates

EXPERIMENTAL DESIGN ➤ Selecting video programs: ➤ 3 themes - fashion, sports and IT ➤ Available metrics (use to determine interest) ➤ Product-related video content preferred ➤ 6 HD video programs identified ➤ Language: Chinese

EXPERIMENTAL DESIGN ➤ Selecting video ads: ➤ No celebrity participation ➤ Only music and written language ➤ HD quality ➤ Clear exposure of brand logos ➤ No more than 30 seconds ➤ 15 seconds (short), 30 seconds (long)

EXPERIMENTAL DESIGN ➤ Identifying ad-context congruity: ➤ Different combinations of video programs and video ads ➤ Stimuli: ➤ Pre-roll, mid-roll and post-roll ➤ On virtual website, Video channel

EXPERIMENTAL DESIGN ➤ Procedure: ➤ Computer laboratory ➤ Isolated from others ➤ Wore headsets ➤ Randomly assigned

EXPERIMENTAL DESIGN ➤ Measures: ➤ Brand recognition - select five among choices ➤ Recognition - dichotomous variable ➤ Ad familiarity - true/false question ➤ Brand familiarity, ad congruity, perception of product placement - 7-point Likert-scale

RESULTS ➤ Hypothesis 1: supported

RESULTS ➤ Hypothesis 2 and 3: partially supported

4 THEORETICAL AND PRACTICAL IMPLICATIONS ➤ 1. Ad length important for online video advertisement ➤ 2. Provide empirical data on topic ➤ 3. Advertisers activate memory network with short-term brand recognition ➤ 4. Effects of incongruent in-stream video ads depends on position