Emerging B2C Digital Marketing Trends with a Focus on Video by Richard V. Ducey, Ph.D.

Guiding Media. Inspiring Innovation. Leading Local.

Emerging B2C Digital Marketing TrendsWith Focus on Digital Video on the Rise Among Marketers

Rick DuceyManaging Director

[email protected]

January 28, 2016

2© 2015 BIA/Kelsey. All Rights Reserved. |

ObjectivesFrom this session you will learn: 1. How Small and Medium Businesses (SMBs) are using and evaluating the effectiveness of digital marketing

channels, particularly social and video. 2. What marketers are spending and how they’re allocating their budgets between traditional and digital

marketing.3. And you will get insights and recommendations into how to best use digital social and video marketing as part

of your overall marketing mix.

BIA/Kelsey defines SMBs as firms with under 100 employees


Talking PointsWhat we’ll cover in this presentation Social media highlights Local advertising forecast How SMBs are spending their advertising budgets Assessing ROI on advertising Digital video marketing trends and directions Key takeaways



72% 77%Mobile

Social Media Highlights


Facebook is the killer app, when it comes to reach and use.But other social media channels have “super powers” depending on the demographic.

Internet UsersMen: 16%Women: 44%


Sources: Facebook, BIA/Kelsey 2016.

Facebook is the killer app for social.72% of online adults and 77% of SMB video advertisers use Facebook.


Social Media Services You May Have Never Used Are HugeSnapchat skews toward women, younger and $50K+ demographics.

http://gizmodo.com/leaked-snapchat-code-hints-at-new-voice-and-video-chat-http://sproutsocial.com/insights/new-social-media-demographics/#snapchat1755009028?rev=1453756984798&utm_campaign=socialflow_gizmodo_twitter&utm_source=gizmodo_twitter&utm_medium=socialflow

http://gizmodo.com/leaked-snapchat-code-hints-at-new-voice-and-video-chat-

http://gizmodo.com/leaked-snapchat-code-hints-at-new-voice-and-video-chat-

8© 2015 BIA/Kelsey. All Rights Reserved. |http://www.mediapost.com/publications/article/267445/instagram-ad-impressions-surge.html

According to Brand Networks, Instagram impressions delivered grew from 50M in April 2015 to 670M in Dec 2015.

Headed to 1B+ monthly impressions by end of 1Q2016.

To differentiate itself on an increasingly saturated platform, Instagram advertisers to embrace more premium ad formats -- and video especially -- this year.

During the fourth quarter alone, video ads as a percent of total ads served by Brand Networks jumped up from 9.54% in September to 22.52% in December.

“Video advertising on Instagram is rising to prominence incredibly quickly," according to Brand Network’s Jamie Tedford.

Instagram is Headed to 1 Billion Monthly Impressions13x Increase in Impressions April 2015 to December 2015, Video Ads Rising Quickly


Quick Shout-Out to Sponsors at Multifamily Social Media SummitOffering digital video marketing solutions


Social Increasingly is a Mobile ExperienceLarge uptick in mobile engagement with social networks.

https://www.comscore.com/Insights/Blog/Millennials-Boast-Huge-Social-Networking-Growth-and-Engagement-on-Smartphones



$146.6B$168.9B81.9%

BIA/Kelsey’s Local Ad Forecast Highlights


Newspapers Print9.8%

Newspapers Online2.6%

Direct Mail25.6%

TV O-T-A14.5%

TV Online0.7%

Radio O-T-A10.0%

Radio Online*0.8%

Print Yellow Pages1.7%

Internet YP1.6%

OOH5.6%

Cable5.1%

Magazine1.0%

Magazine Online0.3%

Online / Interactive11.3%

Email1.6%

Mobile7.7%

2016 U.S. Local Advertising Revenues — $146.6 Billion

Local Ad Market Keeps Noticeable Shares for Traditional MediaBIA/Kelsey sees traditional media keeping biggest share of ad.

*Radio online revenues include online revenues from terrestrial and online streaming services.Source: BIA/Kelsey, October 2015


Jeff Goldblum’s “Brad Bellflower” Pitches for Apartments.comTraditional media counted on even by digital players to drive brand goals.


2015 2016 2017 2018 2019 2020$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$103.3 $104.0 $102.0 $102.9 $101.2 $102.8

$38.0 $42.6 $47.8 $53.5 $59.3 $66.0$141.3 $146.6 $149.7 $156.4 $160.4

$168.9

Traditional Online/Digital

US$

Billio

ns

Note: Numbers are rounded.

2015-2020CAGRs:

TotalCAGR 3.6%

Online/DigitalCAGR 11.7%

Traditional MediaCAGR -0.1%

US$

Billio

ns


Steady Shift Toward Digital Ad Spending in Media MixDigital rising to 40% of paid advertising by 2020.

Source: BIA/Kelsey, October 2015


*Other includes ad revenue from all other U.S. social networks (e.g., Pinterest, Tumblr and Foursquare).

Facebook, 81.9%

Twitter; 12.2%LinkedIn;

2.5%

Other*; 3.4%

2020Facebook; 79.7%

Twitter; 12.8%LinkedIn; 3.9%

Other*; 3.6%

2015

Social Media Advertising by Company: 2015 & 2020It’s all about Facebook when it comes to paid social advertising, rising to 81.9% share.

Source: BIA/Kelsey, October 2015

16© 2015 BIA/Kelsey. All Rights Reserved. |Source: BIA/Kelsey, October 2015

2015 2016 2017 2018 2019 2020$0

$5

$10

$15

$20

$25

$30

$6.0 $8.6$11.4

$14.4 $16.6 $18.4$3.2

$3.7$4.3

$4.9$5.3

$5.7

$9.3

$12.3

$15.7

$19.3$21.9

$24.1

Mobile Desktop/Tablet


U.S. Social Mobile vs. Desktop/Tablet Ad SpendMobile portion of social ad spending will triple 2015-2020

US$

Billio

ns


Source: BIA/Kelsey, Local Ad Forecast, October 2015

Local Television67.6%

Local Cable22.9%

Online Video2.9%OOH - Video

4.6%

Mobile Video2.0%

2016 Local Video Ad Spending PieTV and Cable Have Largest Slices but Mobile and Online Video Growing Quickly


Source: BIA/Kelsey, Local Ad Forecast, October 2015

2015 2016 2017 2018 2019 2020$0

$5

$10

$15

$20

$25

$30

$35

$40

$20.2 $22.3 $21.8 $23.3 $23.1 $25.4

$6.8$7.5 $7.3

$7.9 $7.6$8.1

$0.7$0.9 $1.2

$1.4 $1.6$1.8

$1.4$1.5 $1.6

$1.7 $1.7$1.7

$0.4$0.7 $0.9

$1.1 $1.4$1.5

$29.6$32.9 $32.8

$35.3 $35.3$38.5

Local Television Local Cable Online Video OOH - Video Mobile Video

US$

Billio

nsLocal Video Advertising SpendingOnline and Mobile Video Each Growing by $1.1B from 2015-2020



$88KHow SMBs Are Spending Their Ad Budgets


Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.

Average Spending for SMBs (Among those with $25K+ Budget)

Wave 18 2014 Wave 19 2015 $-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$82,983 $87,923

Q101 What was the approximate amount spent on advertising and promotion in the last 12 months?Sample Size = 229

Video Users


SMB Ad Budgets Holding Relatively SteadyHigher Spending ($25K or more) SMBs Average about $75K in Annual Ad Spend



Wave 17 (Q3/2013) Wave 18 (Q3/2014) Wave 19 (Q3/2015)0

2

4

6

8

10

12

14

10.4 10.9

12.9

Sample Size = 252

Media Used(Average Number)

Q S11 Which of the following do you use to advertise or promote your business?

“Plus Spenders” Use 13 MediaBusiness trying new channels

Noe: “Plus Spenders” refer to SMBs in BIA/Kelsey’s Local Commerce Monitor that spend at least $25K in annual advertising.



Faceb

ook

Website

Vide

o

Website Em

ail

YouTu

beTw

itter

Direct

Mail

Google (

Any Goog

le Site

)

Linked

In

Communit

y Spon

sorships

Faceb

ook Ad

Blog

Mobile

Website

Giveaw

ays

Pay Pe

r Click

Instag

ram

Newspa

pers

Magazi

nes

Other O

nline V

ideo

Online D

isplay

Pinter

est

Print

YP IYP

Direct

Home

Promote

d Tweet

s0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

76.6%72.7%

65.6%

58.7%

51.0%

40.9%40.8%40.2%40.0%34.1%32.3%31.1%30.6%30.3%29.2%27.9%26.5%26.2%25.6%25.3%23.9%23.5%22.6%21.3%21.3%

Q S11 Which of the following do you use to advertise or promote your business?Sample Size = 243

Media Used for Advertising or PromotionAmong SMB Video Users*: Website Video, YouTube and Other Online Video Are Top 3

Video Users

*About 25% of All SMBs Use Some Type of Video.



Competitors Spending

Amount Spent Previous, Adjusting Up or Down

Advertising Discounts and Bargains

Business Conditions

Our Expected Revenues

Money Left After Other Expenses Are Paid

Exposure and Customer Engagement Benchmarks

0% 10% 20% 30% 40% 50% 60% 70%

9.2%

10.1%

14.5%

15.6%

15.1%

21.8%

13.2%

3.3%

10.2%

12.4%

14.2%

22.3%

17.8%

18.5%

2.5%

6.3%

6.1%

10.1%

19.5%

20.9%

34.4%

Third Second First

Q104A What are the 3 biggest factors in determining spend?Sample Size = 243

Factors Determining Ad SpendOver Half of SMBs Cite Customer Exposure and Engagement Benchmarks as Drivers

Video Users

52.9%



Increase Decrease Maintain Not sure0%

10%

20%

30%

40%

50%

60%53.3%

3.7%

37.6%

5.3%

Q104 In the next 12 months do you intend to?Sample Size = 243

Video UsersSpending Intentions For Next 12 MonthsOver Half of SMB Video Advertisers Will be Increasing Their 2016 Ad Budgets



41.8%22.3%

Assessing ROI on Advertising



None

Analysis Program

None, But Likely

Compare Per-formance Data

Vendor Data

Own Data

Google Adwords/Google

Analytics

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

7.7%

13.1%

14.7%

22.2%

29.9%

38.2%

41.8%

Q108 What type of analysis do you do to determine cost effectiveness of your marketing?Sample Size = 243

Video UsersAnalysis of Cost Effectiveness of AdvertisingGoogle Analytics, Own Data and Vendor Data Used Most



ROI Assessment of Ad Media – Over 30 Channels Measured!

Dir. Assi

st

Online

Deals TV

Websit

e

Out of

Home

Spon

sored

Conten

t

Mobile

App

Online

Coupon

s

Spec

Print

Dir.Cab

leRad

io

Print

YP

Mobile

Web

site

Native

Ads

Enha

nced

listin

g in M

obile

App

Print

Coupo

ns

Video Disp

lay

Text

Msg

Commun

ity Sp

onso

rships

Promote

d Twee

ts

Giveaw

ays

Face

book

News A

ds

Spec

Online

Dir.

Instag

ram Email

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

6.1%0.0%

7.5% 6.1% 10.4%1.4% 3.5% 5.3%

16.4%5.2% 7.8% 6.4% 9.9% 5.4%

15.6%1.0% 1.7%

11.0%4.7% 7.8% 4.8%

14.1% 9.9% 8.3% 7.7%7.7%

5.9%

7.5% 6.8%10.5%

15.2%4.0%

9.4%

7.4%

5.9%9.2% 15.2% 5.5% 12.4%

3.4%

4.3%10.3%

9.8%13.2% 11.4%

27.6% 8.2%2.3%

15.1%6.4%

13.1%20.5%

12.3%9.8%

15.3%10.6% 26.1%

22.6%

20.6%

22.1%19.8%

20.2%21.0% 21.7% 21.3%

19.6%

33.3% 13.9% 24.6% 27.8%

17.4%

6.2% 25.9%

21.8%

21.5%

17.6% 22.9% 24.2% 29.3%15.7%

24.8%19.0%

18.2%12.3%

23.6% 20.7% 16.0% 22.6% 20.1% 19.9%

35.6%

15.6%26.5%

20.0% 15.9% 13.3%

34.8%25.5%

19.0%29.4%

42.2% 35.0% 29.8% 28.4% 34.1%

16.2%28.7% 27.8%

32.9%20.4%

31.5%24.3%

29.2%21.9% 19.3%

26.8%16.7%

26.2% 21.8% 22.3% 21.1% 18.9%25.7%

17.1%22.9%

13.2% 15.7% 18.7% 19.6% 13.9%

31.8%18.7% 16.6%

10.4%22.9%

11.0%17.9%

11.8%18.5% 20.4%

12.7%22.3%

12.6% 15.6% 14.8% 15.8% 17.8%10.7%

18.7%12.0%

Not Sure Poor Equal to Spend Fair 2-4x SpendGood 5-9x Spend Excellent 10-19x Spend Extraordinary Over 20x Spend

Q107 How would you rate the ROI on media you use?Sample Size = Variable

Video Users


Video Display Other Online Video YouTube Website Video0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

1.7%20.4% 22.9% 14.5%10.3%

7.4%13.4%

15.0%33.3%

18.3%20.3% 24.8%

15.6% 22.4%18.2% 22.7%16.7%

13.0%11.7% 12.2%

22.3% 18.6% 13.5% 10.8%

Not Sure Poor Equal to Spend Fair 2-4x SpendGood 5-9x Spend Excellent 10-19x Spend Extraordinary Over 20x Spend

ROI Assessment for Digital Video AdvertisingVideo Display gets highest ROI ratings by SMB video users, 22.3% say 20x or better.


What’s Your ROI on Website Video?Almost half of SMBs see at least 5x ROI on website video spending

Source: BIA/Kelsey, Local Commerce Monitor Surveys, Waves 16-19.

Good5-9x Spend

Excellent10-19x Spend

Extraordinary Over 20x Spend Top 3 Total

2012 33.9% 14.9% 7.7% 56.5%

2013 23.3% 19.2% 10.2% 52.7%

2014 14.9% 12.7% 16.4% 44.0%

2015 22.7% 12.2% 10.8% 45.7%


Source: BIA/Kelsey, September 2015

How Digital Video is Used in the Customer Journey Impacts ROIMatch the content to the customer stage objective


Three Basic Approaches to Video ProductionBIA/Kelsey Recommends Long Term View of Video in Our Free Report

Source: BIA/Kelsey, “Video: The Conversion Media,” September 2015

1. Regular gritty self-produced video that, while it is a bit rough,

delivers a genuine sense of participation in the recorded event

2. Professionally produced video, whether created by a dedicated

in-house person or outsourced to a production company

3. Tentative steps into video with a few test programs delivered

to gauge interest among viewers

Download free at: http://www.biakelsey.com/Research-and-Analysis/Reports/Sponsored-Research/Video-The-Conversion-Media.asp



Made Ourselves

Producer Custom Video

Didn’t have a video made

Producer Stock Video

Producer Slide Show

Other

Don’t remember

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

45.6%

24.4%

15.4%

6.7%

5.9%

1.6%

0.3%

Q315 If you had a video made in the last 12 months what method did you use?Sample Size = 243

Video Production MethodsAlmost Half of SMBs Make Their Own Videos

Video Users



56.8%Video, Social, Mobile, VR

Digital Video Marketing Trends and Directions



Broadcast Advertising

Discount or Loyalty Program

Mobile Advertising

Print Advertising

Analytics/Performance Assessment

Video

Social Media Advertising

Email Marketing

SEM/SEO

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

29.9%

26.9%

16.6%

14.2%

10.2%

5.4%

7.1%

5.5%

6.6%

21.7%

19.7%

17.9%

17.8%

13.1%

13.3%

9.2%

9.5%

5.3%

17.3%

21.1%

21.9%

24.3%

25.3%

24.5%

20.9%

21.2%

20.1%

16.6%

17.5%

24.5%

26.3%

28.2%

31.8%

29.1%

33.4%

30.2%

14.6%

14.7%

19.1%

17.4%

23.2%

25.0%

33.7%

30.4%

37.7%

Not at all a priority Low priority Moderate priorityVery high priority Extremely high priority

Q608 What is your future marketing priorities for the following options?Sample Size = 243

Future Marketing Priorities of SMBs56.8% SMBs Say Video is a “Very” or “Extremely” High Priority

Video Users

56.8%


http://www.videoedge.net/news/expertise/youtubes-robert-kyncl-says-digital-video-will-become-largest-way-people-spend-their-free-time-2020/361944?utm_source=twitterfeed&utm_medium=twitter

“Digital video is exploding.” “Already the youngest millennials are watching more digital video than TV.” “In fact, it has now overtaken social media as their top online activity.”

YouTube’s Robert Kyncl 2016 CES KeynoteVideo already bigger than social media among millennials


Digital Video Use is a Growing HabitUp to 76 minutes per day for average adult in 2015, up almost an hour since 2011


Ooyala, Global Video Index, Q3 2015

Digital video must work on the phone for greatest impact.

Bigger screens, data plans, changing consumer expectations all point to further growth in mobile video use.

Mobile Video on the Rise – Quadrupled Share Since 2013Website video is important but more viewing on phones these days


Source: www.multifamilyexecutive.com/property-management/marketing/more-consumers-using-mobile-to-apartment-hunt_o

Mobile Video Works for Multifamily40% of consumers consider mobile video an evaluating tool


http://apartmentinternetmarketing.com/2015/11/forget-reality-multifamily-marketing-is-poised-for-a-virtual-change/

Virtual Reality, Augmented Reality and 360° Video



VideoSocialMobile

Key Take Aways


Key Take AwaysMultifamily Marketers Can Ride the Wave of Video, Social, Mobile1. SMBs are using and evaluating the effectiveness of digital marketing channels, particularly social,

mobile and video.

• Using more different media channels, up to 12.9 on average for larger spending SMBs• More use of social and. mobile• Website video currently gets highest ROI for video advertising

2. Marketers are spending and how they’re allocating their budgets between traditional and digital marketing.

• Shifting spend to digital, 40% or so on average• Weighting Mobile, Social, Video

3. Insights and recommendations into how to best use digital social and video marketing as part of your overall marketing mix.

• Match marketing channel, creative to consumer purchase journey stage and audience targeting.• Programmatic exchanges provide self-serve options and more targeting• Develop goals, metrics, assess ROI and optimize campaigns – easier to do in digital media• Plan and measure cross-platform campaigns

Questions & Comments:Guiding Media. Inspiring Innovation. Leading Local.

Rick DuceyManaging Director

[email protected]

Emerging B2C Digital Marketing Trends with a Focus on Video by Richard V. Ducey, Ph.D.

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Transcript of Emerging B2C Digital Marketing Trends with a Focus on Video by Richard V. Ducey, Ph.D.