Post on 06-May-2015
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Digital Video OverviewWhat Every Marketer Should Know
December 2008
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Agenda
• Address the New Model
• Define the Options
• Understand the Audience
• Review the Video Content
• Results
• Implications & Best Practices
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
The New(er) Model: On-Demand
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
New Reality
Consumers have more control
We must move from exposure to ENGAGEMENT
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Milestones: Game Changing Events in Online Video
5
5/05
Initial launch ofYahoo! Video
Relaunches in 2006 as a video-sharing site,
a la YouTube
iTunes 4.8 offers video
Users buzz about a thefuture possibility of a video-enabled iPod
Nielsen addsVOD to their ratings
6/05
The Slingbox allows you to watch your home TV
on any Internet-enabled device.
10/05 3/06 4/06 6/06
Apple sells TV showsfor $1.99 (ABC/Disney)
1,000,000 videos soldin first 12 days
YouTube limits video clips to 10 mins in order to combat
piracy. Users respond bybreaking episodic content
into segmented clips.
First ever non-traditionalplatform Emmy awarded
to Live 8 on AOL.
"This throws the shackles off of the definition of what
TV has been." –Tom O’Neil,author of book “The Emmys”
TiVo offers Internet videoservice, featuring content
from the NYT, NBA, and iVillage.
Web videocontent
migrates to TV
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
The Old Way of TV Distribution
CONTENT DISTRIBUTION DEVICE
2004 a. New Programsb. Syndication
a. Networks & Affiliatesb. Cable Networks & MSO
Fewer choices for contentScheduled
LinearDistributor-Centric
TV w/ DVR or VCR
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
The New Way… IP Delivered, On-Demand
2008
a. New Programsb. Syndicationc. Game Industryd. Movie Industrye. Music Industryf. General Publishersg. Consumer-generated
a. Online – iTunesb. Online – Aggregatorc. Online – ISP’sd. Mobilee. Networked distributionf. Wireless data systemg. Direct to consumer
CONTENT DISTRIBUTION DEVICE
a. TV w/ DVR b. Networked TV c. Computerd. Cell Phonee. PSPf. iPod
Unlimited content choiceMultiple distributors
On demandConsumer-Centric
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
The State of Television Today:
– While the average US household has 96.4 TV channel choices, the average viewer watches only 15.4*
– Ad clutter has increased
– Ratings have dropped
– Fewer than 10% of consumers say that television ads influence their purchase decisions** Source: *Nielsen Media Research, 2006
**Forrester Research, 2006
Jim Stengel, CMO, P&G:
“In 1965, 80% of 18-49 year-olds in the US could be reached with three 60-second TV spots. In 2002, it required 117 prime-time commercials to do the same.”
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Multi-Platform Messaging
• The TV360 model surrounds consumers with your brand in two highly complementary environments
Television Provides:
Unparalleled reach
Broad scale
Deep inventory
One-way, multi-touch consumer relationship
Large screen, high-quality messaging
Viewer loyalty & engagement
Digital Video Adds:
Lean-forward environment
Direct link to brand, continuing consumer conversation
Uncluttered, yet limited inventory
One-to-one consumer relationship
Video + interactivity & custom creative elements
Real-time campaign performance, opportunity to track & optimize
Additional engagement—users virally sharing great content with friends
+
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
The US Ranking
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Spend Projections
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Defining the Digital Video Options
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
What is Digital Video?
• IP-delivered video content– Through the internet– Potentially compatible with a range of devices– On-demand– Degrees of interactivity
• Majority of online video made up of– In-stream Video– In-banner video
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
What is In-Stream Video?
• An online streaming video experience similar to linear TV models that can offer
• Pre-roll creative runs prior to user requested content
– Also available in mid-roll and post roll format
• Coupled with a companion ad unit (standard or rich media banner) that adds interactive functionality
• Commercial cannot be fast forwarded
• Sold on impressions, not GRPs
• Commercials run one per pod
15 OR 30 SECOND SPOT
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
What is In-Banner Video?
• Full motion video advertisement• Ad plays unobtrusively until clicked on/sound
enabled• Can use existing creative• Expandable viewing window• DR capabilities/clickable for more
information/retail locations/calls to action• Interstitial ads: Commercial video appears
in same browser window between web page loads
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
A Handy Reference
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Advertising Examples
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Advertising Examples
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
A Hyper-fragmented Video Landscape
19
Sources: ComScore 11/30/07 Press Release, Willvideoforfood.com
28% of the views come from YouTube
Only 50% of streams come from top 10 sites
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
In-Stream Video: Pros/Cons
Cons
• It’s still just a commercial
• Limited targeting (compared to other online tactics)
• Inventory is limited
• Costly CPMS
• 3rd party ad serving not always supported
• Video Ad length effectiveness not well understood
• Reporting discrepancies
• Online buying not similar to TV buying
• Many different video ad products available
• Different video player technologies
• Attribution of metrics and viewers
Pros
• Extends TV reach and ability to penetrate at-work audience
• Reaches captive audience awaiting desired content
• Like TV, delivers impact with sight, sound and motion
• Clutter free environment
• Allows for higher composition media buy (where available)
• Allows for interactivity via companion units
• Delivers measurable results
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Marketing Opportunities
Industry Examples
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Marketing Opportunities: Tiered Levels of Involvement
22
Like most other forms of advertising marketers can participate at varyinglevels within online video marketing
Low Involvement• “Traditional” advertising within Video Sites (i.e. banners, logo placement)• In-Video Overlays (small ad banner that pops up on bottom of video player while content plays)
Medium Involvement• Exclusive internet produced spots to be included in ad campaign or seeded within video sites• Includes pre-roll placement• Relevant or irreverent (viral) content is encouraged
High Involvement• Content creation– create content that lives in specific branded channels within top video destinations or within corporate website
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Low Involvement
23
Adobe sponsored a featured channel produced by Metacafe, showcasing original video that honors the craft of filmmaking.Sponsorship includes call out on features section on homepage, logo sponsorship with in Director’s Cut Channel, co branded media throughout the site.
Adobe’s sponsors Metacafe’s Director’s Cut
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Medium Involvement
24
Purchased pre-roll video inventory before quality video content on top sites which scored high among the target audiences and were contextually relevant
Furthered the broadband video experience by expanding PCH’s brand messages to an interactive companion banner that provided the user with valuable product information, games, coupons, etc.
Pfizer Consumer Healthcare
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
High Involvement
25
• A custom microsite was built for Schick Quattro for Women by Match.com in conjunction with Schick’s creative agency and Carat
•Match.com hired an actress and to play the role of ‘Juliette’ – a Dating Guide and filmed her giving tips (scripted in advance with Schick’s approval)
•The role of ‘Juliette’ in the Girls Guide to Dating microsite was to make navigating the site fun and to provide a human element throughout the microsite
•‘Juliette’ was present across the website and gave users Dating Advice, First Date Tips, and Tips on Relationships
•In addition to this, other videos were present such as: humorous dating scenarios with Juliette interjecting and providing advice
•In its first month, this site received 3.8MM hits
visit www.girlsguidetodating.com
Schick: Girl’s Guide to Dating
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
TV360(TV + Online)
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
TV360 | Benefits
• Incremental ReachAdding Online to a TV program delivers a whole
new set of highly engaged consumers
• Segmenting the FunnelTelevision’s broad reach fills the marketing funnel and Online’s targeting and interactivity push consumers through to purchase
• Enhanced ResultsAdding Online increases brand metrics lift by 15-45%
+
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
TV 360 | Example
Broadcast + .com + Streams + Syndication + PartnersVideo
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Internet Dominates the Purchase Process
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Understanding the AudienceWho’s watching this stuff anyway?
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Broadband Users: Home(millions)
BB Access at Critical Mass
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
The Broadband Effect
• Time spent online increases dramatically for broadband users• Broadband users are much more likely to bank online, and to research
financial products and services online
Source: Knowledge Networks, Inc., MediaScan Fall 2002
10.7hours
BroadbandBroadbandDial-upDial-up
7.5hours
Time Spent Online
12.4hours
W25-54
7.6hours
W18-49
15.8hours
9.1hours
15.7hours
M25-54
8.1hours
M18-49
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
The Raw Numbers
33
Source: eMarketer, August 2007 “Online Video: Making Content Pay”
• 62% (114 MM) of Online Users are viewing online video
Over 40% watch online videos, at least, on a weekly basis
Currently, Men slightly outnumber Women, 71% to 64%
Viewers 28-34 are the most “active” online video viewers
Online video viewing has reached its tipping point
Expected to increase 86.6% (183MM) by 2011
24% watch several times a week
Young affluent men are the most frequent online video viewers
Popular activities include creating and posting content
$410 MM spent on US online video advertising in 2006 Reached 47% (88 MM) online video viewers
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Internet Video Continues To Grow
Internet Users and Percent Who Stream
Source: comScore Video Metrix, April 2007, U.S. Audience
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
In-Stream Video Audience is Diverse too
Source: Arbitron/Edison Media research Internet and Multimedia 2005: the on-Demand Media Consumer
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Viewing Frequency
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Internet Video “Primetime” Is Actually Early Fringe
Average Number of Streamers – By Weekday Hour and Audience
Source: comScore Video Metrix, April 2007, U.S. Audience
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Why They Watch
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Consumer Tolerance
39
Overall consumers accept that advertising is a fair way for publishers to supplement costs and offer free content
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Benchmarking: Consumers View 63%+ of a Video Ad Message
40
Source: DoubleClick Rich Media and Video (Klipmart) campaign benchmarks, 30 and 15 second ads only, June-Sept. 2006
Video View Time by Vertical for 30 sec & 15 sec videos
Vid
eo V
iew
Tim
e (
seco
nd
s)
18.5
21.419.1
9.8 10.3
Entertainment Consumer Overall
Video View Time 30 sec Video View Time 15 sec
Consumers watch on average 19 sec of a 30 sec video, and 10 sec of a 15 sec video
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
The “Engaged Viewer”
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
The “Engaged Viewer”
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
The “Engaged Viewer”
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Reviewing the ContentWhat are they watching?
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
What Type of Video Content is Accessible?
Since early 2005, broadband video inventory has exploded Inventory available on leading news, health, lifestyle, and entertainment sites
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Four Types of Content
• Repurposed Content
• Original Content
• Syndicated Content
• User-Generated Content
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
What is Everyone Watching?News, Weather and “Entertainment” • 45% view news at least weekly• Movie trailers drive a high share of female viewers: 47% vs. 35% of men*• Men prefer amateur videos over women, 44% to 30%*; However women
frequently watch “user-created” from trusted communities (e.g., baby home videos)
47
Source: Online Publishers Association, “Online Video Advertising, Content and Consumer Behavior: June 2007;
*eMarketer “Women Online: Taking a new look”, March 2007
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
What and Where
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Key Video Destinations – What about TV Networks?
49
TV Network websites are indeed gaining momentum
• Individually it’s hard for them to compete in terms of share of visits, however as a cluster they make a significant dent
• When scaled by gender, TV networks actually are taking the lead for the #1 destination for women, just ahead YouTube 47.8% vs. 47.7%
• NBC leads the broadcast networks at 37% share of visits, followed by ABC with 30% share*
News sites such as CNN.com are also significant
• 35% total share vs. YouTube with 42% and TV networks with 41%**
* Hitwise, April 2007 , **Harris Poll Jan 2007
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Delivering Results
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Benchmarking: In-stream CTRs Higher than In-Banner Units
51
Source: DoubleClick Rich Media and Video (Klipmart) campaign benchmarks, on-page plus in-stream ads, June-Sept. 2006
Click-through Rate by Format
Clic
k-t
hro
ug
h R
ate
*
* Note: It is DoubleClick’s supposition that the high click-rates on the floater format is due in significant part to consumers attempting to close the units and missing the close box.
1.40%
0.74%
0.47%0.40%
floater in-stream expandable standard
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Causing Action
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Benefits to Marketers
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Qualitative Effects
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Performance by Format
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Performance by Frequency
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Enhanced Results
• The TV360 model delivers impact beyond what either medium can deliver alone
4.7% 5.0%
11.0%
8.5%
10.7%11.4%
11.8% 11.7%
14.1%
16.8% 16.6%
13.3%
Aided Brand Awareness Ad Awareness Brand Favorability Purchase Intent
Source: NBCU Dynamic Logic Cross Media studies (average of 9 brands)
Lift vs. Control
16.8
Aided Brand Awareness Ad Awareness Brand Favorability Purchase Intent
Online Only TV Only TV 360
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Implications & Best Practices
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
A Shift in Planning
• Advertisers need to plan for shifts in on-demand media habits– Young adults and affluent Americans are most engaged by on-demand media
devices and behaviors– Consumers’ desire to control their media use continues to spread
• Traditional media outlets need to incorporate the on-demand media lifestyle into their programming decisions
• Internet advertising needs to expand beyond banners, search and pop-ups
Source: Arbitron/Edison Media research Internet and Multimedia 2005: the on-Demand Media Consumer
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
A Shift in Video Creative
• Marketers need to consider the potentially disruptive nature of video placements and tune content to web constraints– Optimize the quality and composition of their creative for web delivery– Be conscious of Codec compression and video file size implications on streaming
speeds and picture output quality– Images and scenes need to be simple and uncluttered to best be interpreted within
small screen spaces– Elaborate lighting effects and excessive panning, zooming, and camera movement
should be minimized to avoid pixelation or blurring– Editing transitions, such as long cross fades and dissolves, should be avoided– Overly complex audio, such as ambient noise and peaking above normal audio
levels, may be difficult to decipher through PC speakers– Text should be placed in space surrounding video so that viewers can clearly read
taglines and calls to action
Source: Online Video Advertising, Jupiter Research, 2005
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
A Shift in Metrics
• Planning– Reach and composition into psychographic audience, not just demo
• Example: “Adults who have researched purchasing new compact cars in the past six months”, instead of “M25-34”
– Ability to deliver engaging user experience, not GRPs
• Delivery– Impressions counted upon user initiation of the stream, time spent watching ad, and
interaction rates with companion ad units, instead of program ratings
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Best Practices | Creative Variety
• Brand Recall– Number of creative executions had no significant effect on recall
• Brand Attributes– 3+ creatives had a positive impact on brand attributes vs. 1-2 creatives; 3+
creatives seen as less repetitive & annoying and more entertaining• Among those viewing 1 creative, :30s were more likely to be seen as repetitive
and annoying vs. :15s
– The threshold for repetitiveness and entertainment is 3+, while annoyance begins to decline at 2+ creatives
% of Respondents who Agree 1 Creative
2 Creative
3+ Creative
Was Repetitive 74% 76% 65%
Was Annoying 45% 43% 40%
Was Entertaining 26% 27% 31%
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Best Practices | Interactivity
• Brand Recall– Among ads with branded canvases, those with complex
interactivity (e.g. playing games) generated significantly higher recall than ads with simple interactivity (e.g. choosing your ad)
• Brand Attributes – Ads with branded canvases (vs. those without) were more likely to
be seen as entertaining and less likely to be seen as repetitive • Respondents viewing ads with branded canvases were also
more likely to rate their experience on the NBC.com video player excellent/very good
– Respondents exposed to ads with more complex interactivity were more likely to agree that the ads:
• Caught their attention• Made them want to know about the brand• Were better than advertising in other full episode players
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Best Practices | Ad Content
• Think Advertainment, not Advertisement– Viewers are more open to enjoying the advertisements. Give them what they
want by creating ads that are entertaining as the video clips with which they are paired. Make the advertising a part of this engagement by telling compelling stories rather than repeating TV spots.
• Shoot more video• Be more creative
• Active mindset equals greater action– People who watch long form video content are more engaged with every aspect
of the experience, including the advertising. This implies that viewers that sit down to watch a one minute clip come to the screen with different mindsets. Consider having multiple creative units depending on the mindset of the watcher.
• Use all the units on the page as a team– Advertising can be annoying, but it doesn’t have to be. Viewers respond to ad
formats that don’t intrude unfairly. The preference for banner ads supports this, but banner ads can be supported by a comprehensive ad experience that ties display ads, sponsorships, and in-video ads together in a coherent package.
• Be mindful of advertising length!
USA // Atlanta Boston Chicago Dallas Los Angeles New York San Francisco
Questions? Comments? Sarcastic Remarks?