Friday, November 11, 2011

Are Commercial Completion Rates A Proxy For Sales?

In a recent article by Daisy Whitney, she mentions that the online video metric considered most valuable by advertisers is commercial completion rate.

Advertisers want to know if their commercial was watched all the way through.

Why a commercial’s completion rate is the most highly regarded metric, Ms Whitney doesn’t say.

But it’s probably safe to assume that advertisers feel that the more time viewers spend with the commercial, the better the commercial’s chances are of persuading someone to buy the product.

In other words, there is a direct correlation between view duration and sales.

If this is indeed true, then the question that needs to be answered is who’s accountable for view duration?

Media?

I don't think so. When I've asked online publishers if they want to be held accountable for view duration, the answer's always no. They argue that once a viewer clicks in to watch a commercial, the media doesn't have any control over how long they keep watching the commercial.
(Unless, of course, it’s a forced view, which really shouldn’t be considered as part of this discussion.)

No, what’s accountable for view duration is the content of the commercial itself.

So the groups that should be held accountable are the ones that create the content.

Of course, accountability works best when it’s tied into income. So why not pay the content creators based on how long they involve the viewer in the commercial? The longer that viewers are involved, the more the content creators would make.

The opposite would also hold true.

There is such a model out there. It’s called View Duration Compensation. It’s a way of paying for creative based on how long the creative involves the viewer.

Which only seems fair.

After all, the longer the creative involves the viewer, the better the commercial will work for the advertiser. The better the commercial works for the advertiser, the better it should also work for the content creators in terms of more money.

In this way, advertisers can pay for content creation based on results rather than effort.

Most advertisers I’ve talked with like the concept.

Most creative agencies I’ve talked with don’t.

Wonder why that is?

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