Marketing Magazine Consumer and Marketer Video Study Commissioned by Videology for Canada
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Transcript of Marketing Magazine Consumer and Marketer Video Study Commissioned by Videology for Canada
consumers lead marketers on path to cross-screen convergenceMarketers bullish on video’s growth, but advertising strategies yet to fully mature
January 2015
contents
I. executIve summary: vIdeo In canada................................................................. 1
II. IntroductIon Connected Device Ownership & Usage.......................................................................... 3
III. the consumer Video Consumption........................................................................................................... 7
Who’s viewing?
Where are they viewing?
What are they watching?
Why are they watching?
Cross-screen Viewing.........................................................................................................15 Time spent viewing
Shifting consumption patterns
Simultaneous viewing and the second screen
Viewing Experience & Advertising Preferences........................................................... 21 Three Year Outlook.......................................................................................................... 23
Expected Shifts in Viewing
the canadIan marketer
Video Advertising Perspectives...................................................................................... 27 Expected video growth
Video advertising adoption
Second screen
Challenges with Video Advertising................................................................................ 33 Biggest challenges holding marketers back
How is technology being used?
The Role of Technology.................................................................................................... 35 Three Year Outlook........................................................................................................... 37
The benefits of video
Is convergence the new normal?
Who will benefit?
appendIx a: Methodology....................................................................................................... 42 appendIx B: Demographics...................................................................................................... 42
executIve summary
Videology’s advertising technology platform is used by our clients to deliver the right message to the right consumer on the right screen. We are committed to understand-ing and sharing insights on the growing trend of video and television convergence. As a global company, we see cross-device video viewership escalating around the world. But each market is different. In this paper, we set out to discover how video convergence is progressing in Canada—both from the perspective of consumer adoption and marketers’ strategic use of new video channels.
To achieve this, we conducted our study in two parts. One survey focused on Canadian consumers’ use of and attitudes surround-ing video and TV. The other focused on Canadian marketers’ understanding of and response to this new viewing environment. The results were interesting, revealing areas of convergence —and truthfully some areas of divergence—that were quite startling. What we did see from both sides, however, was the acknowledgement that the way we watch TV and video is evolving—and more change is on the horizon.
What consumers saId…The lines between TV and video have blurred irrevocably. The growing number of connected devices owned by Canadians, and concurrently the increasing opportunity
to consume content across multiple platforms, has transformed the way that consumers view TV and video. Yet, new video options have not replaced the old. While seven out of ten consumers, and nine out ten Millennials, are viewing video on computers, smartphones or tablets, traditional TV viewing remains strong. And while devices offer the benefit of added mobility—or the promise of TV anywhere—the majority of total viewing still happens in the living room.
It’s not about either/or, it’s about more. Despite the growth of online video, almost 70% of Canadians still subscribe to cable TV or satellite services. Moreover, there is no significant difference between “cord cutters” and TV subscribers’ likelihood to watch video. They are all watching!
consumers want choice and control over what they watch and when. And they often want it at the same time. “Second-screen” viewing is a huge trend engaged in by over half of all Canadians.
consumers understand that advertising is the price of free content and prefer it that way. Good news for advertisers—over 70% of Canadians prefer ad-supported content over pay services with no ads. What’s more, one in five uses the second screen to get more information about products advertised on TV.
1
What marketers saId…
marketers are bullish on video’s growth. In fact, compared to consumers’ own estimates of expected increases in time spent with video over the next three years, marketers are far more optimistic. Conversely, marketers expect consumers’ traditional TV usage to decrease, while consumers are more likely to say it will stay the same or increase.
yet, despite this optimism, video ad strategies are lagging. Half of all marketers say that they do not currently have a video advertising strategy in place.
Marketers could benefit from greater education on video buying opportunities. For instance, 68% of marketers were unfamiliar with the term “second-screen” viewing. Also, over one third did not know what programmatic buying was, and only 10% said that their company used it.
perceived challenges in video advertis-ing may be holding it back. Among the biggest challenges cited by marketers include campaign measurement, cross-screen measurement, quality concerns and targeting questions. Again, lack of knowledge as to what data and technological solutions are available may be fueling these concerns.
looking to the future, however, marketers do expect money to shift from other media to new video options. Some of the biggest advantages that marketers see in video advertising include the ability to match ads with target audiences, the ability to evaluate audiences based on buying behavior and the ability to buy audiences across screens.
Big changes are not far off, as holistic planning and buying will become the new norm. A very significant 85% of respondents said that planning for online video and linear TV will merge within the next three years. Moreover, 52% said that their agencies are likely to merge their TV and online video buying groups within that timeframe.
convergence will be good for buyers and sellers. Marketers believe that video convergence will bring benefits across the ecosystem, with media outlets earning higher CPMs and increasing their revenue with video ads, and advertising effective-ness improving.
2
IntroductIon
Canadians have access to more connected technology than ever before, enabling consumption of more content from a wider array of devices. The growing use and ownership of devices, along with the supporting advertising technology to target and measure holistically across platforms, represents a strong and growing opportunity for marketers to reach and engage with consumers across screens.
study oBjectIves
Videology’s research was conducted by Marketing Magazine and Rogers Connect Market Research and Client Services. It was designed to give a snapshot of the way Canadians are consuming video—in all its incarnations—in today’s cross-screen, cross-device environment. In addition, the research sought to learn marketers’ views on shifting video consumption among their customers and the challenges and opportu-nities that these changes posed. The goal was to determine the areas of divergence and congruity between the way consumers are watching TV and video, and the way advertisers are using media and available technologies to reach them.
overall approach
The study, in the form of an online survey, was conducted across Ontario, Quebec, the Atlantic region and Western Canada. A nationally representative sample of 1,011 consumers and 104 marketers completed the online interviews. All responses were collected between September and October 2014. Data was compiled by Marketing Magazine, and the corresponding analysis and commentary was prepared by Videology.
3
Which of the following technology/services do you currently own/use?
how do you connect to the internet?
connectIvIty across devIcesIntro graph 2
50%
43%
26% 20%
13% 13%
27% 25% 29%
26% 22% 21%
6% 13% 12% 11%
15% 16% 16% 20%
33%
43%
50% 51%
0
10
20
30
40
50
60
Laptop/Notebook Desktop Smartphone Tablet Internet enabled console (i.e. Xbox,
Roku)
Connected TV
How do you connect to the internet?
Most of the Ome % Regularly % Very rarely % Never %
4
Intro graph 1 devIce oWnershIp
68%
58% 55%
38%
20% 23%
76%
54%
76%
50%
25% 27%
73%
61% 65%
40%
23% 24%
68% 68%
40%
30%
21%
13%
62% 62%
21% 19% 23%
4%
0 10 20 30 40 50 60 70 80
Laptop/Notebook Desktop Computer Smartphone Tablet Connected TV (internet-‐enabled)
Connected TV via separate device (Roku, Xbox, etc)
Which of the following technology/services do you currently own/use?
TOTAL % Millennials % Gen X % Boomer % Pre-‐Boomer Seniors %
Laptop/Notebook Desktop Computer Smartphone Tablet Connected TV Internet-enabled (Internet-enabled) Console (Roku, Xbox, etc.)
Laptop/Notebook Desktop Computer Smartphone Tablet Internet-enabled Connected TV Console (Roku, Xbox, etc.)
TOTAL Millennials Gen X Boomer Pre-Boomer Seniors
Most of the time Regularly Very Rarely Never
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
the canadIan consumer
Who’s VieWing?
Overall, three-quarters of Canadians say that they now watch online video. But these percentages vary widely by age group.
While slightly more than one-third (36%) of Seniors watch online video, more than 90% of Millennials tune in online. (Graph 1.)
Interestingly, despite this increase in online viewing and the reports of increased cord-cutting, our survey showed that the vast majority of the population—84%—still subscribes to cable or satellite TV services. And while the number of cord-cutters is highest among Millennials, 80% of them still subscribe to TV services.
As Chart 1 below shows, while a slightly higher percentage of non-subscribers view online video than those who do subscribe, the difference is small, through perhaps directional.
Currently it is safe to say that online video viewing is done for the most part in conjunction with traditional viewing, not in place of it.
The growing number of connected devices owned by Canadians, and concur-rently the increasing opportunity to consume content across multiple platforms, has transformed the way that consumers view television and video. In fact, the boundaries between the two have blurred irrevocably.
the canadIan consumer
7
Video Consumption
consumer graph 1
consumer graph 2
consumer chart 1
Who’s WatchIng
suBscrIBers to caBle and satellIte servIces
cord cutters
8
do you watch video online?
75%
93% 84%
62%
36% 25%
8% 16%
38%
64%
0 10 20 30 40 50 60 70 80 90
100
% % % % %
TOTAL Millennials Gen X Boomer Pre-‐Boomer Seniors
Do you watch video online?
Yes No
TOTAL Millenials Gen X Boomer Pre-Boomer Seniors
do you subscribe to any of the following tv services?
TOTAL Millenials Gen X Boomer Pre-Boomer Seniors
Watch Video Online
SATELLITE / CABLE SUBSCRIBERS
Satellite Subscribers Cable Subscribers Do Not Subscribe
YES 74% 76% 78%
NO 25% 24% 22%
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
75%
93% 84%
62%
36% 25%
8% 16%
38%
64%
0 10 20 30 40 50 60 70 80 90
100
% % % % %
TOTAL Millennials Gen X Boomer Pre-‐Boomer Seniors
Do you watch video online?
Yes No
68% 65% 66% 74% 59%
20% 23% 19% 16% 29%
16% 20% 18% 11% 11%
0 20 40 60 80
% TOTAL % Millennials % Gen X % Boomer % Pre-‐Boomer Seniors
Do you subscribe to any of the following TV services?
Cable Services Satellite Dish Do not subscribe
68% 65% 66% 74% 59%
20% 23% 19% 16% 29%
16% 20% 18% 11% 11%
0 20 40 60 80
% TOTAL % Millennials % Gen X % Boomer % Pre-‐Boomer Seniors
Do you subscribe to any of the following TV services?
Cable Services Satellite Dish Do not subscribe
Where are they WatChing?
The question of where consumers are watching goes hand in hand with the question of which device they are watching on. The influx of smartphones, tablets, and even laptops, has given consumers the ability to watch where and when they want, with the screen choice often coming down to a “best screen available” scenario.
When asked specifically about video viewing, most consumers said that they watch on a desktop or laptop computer. This makes sense considering that computers are still the primary way that consumers connect to the Internet, as discussed in the Introduc-tion of this report. As we also noted in the Intro, accessing the internet via the televi-sion, whether through a connected console or a connected TV, is only done by half of Canadian consumers. Despite this relatively low percentage, the television is still the 2nd most popular device on which to view videos.
Smartphones and tablets are used to view video by roughly the same percentage of consumers at 29% and 23% respectively.
In terms of the physical location of viewing, despite the promise of mobility, most viewing still occurs in the home. The vast majority— 74%—view video primarily in the living room. Almost half also regularly watch in other rooms within the home. Watching while commuting, at work, or other places outside the home is much more limited.
the canadIan consumer
9
Video Consumption
consumers graph 4.VIEWING LOCATION
Which device do you watch video on?
Where do you regularly watch video?
consumer graph 3
consumer graph 4
vIeWIng devIce
vIeWIng locatIon
77%
45% 29% 23%
0
50
100
Laptop/Desktop TV Screen Smartphone Tablet
What device do you watch video on?
TOTAL %
74%
46%
11% 10% 10% 12%
0 10 20 30 40 50 60 70 80
At home in living room
At home in rooms other
than the living room
While commu=ng
While traveling (airport, hotel,etc)
At work/school In public places (beach, park,
etc)
Where do you regularly watch video?
TOTAL %
10
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
At home in rooms other than the
living room
While commuting
While traveling (airport, hotel, etc.)
At work/school
In public places (beach,
park, etc.)
At home in living room
Laptop/Notebook TV Screen Smartphone Tablet
What are they WatChing?
So we know that three out of four Canadians are watching video online. But what type of content are they viewing? The answers range from YouTube clips to the same professionally produced content shown on traditional TV.
In many cases, viewers are simply accessing traditional TV content on an alternate screen. While a relatively low percentage (24%) say that they access content directly from a broadcaster’s site, 39% say that they access “TV Everywhere” from their cable provider.
Almost an equal percentage (35%) say that they access content from a subscription-based service, such as Netflix. And the highest percentage of respondents said that they access video through content aggregators, such as YouTube.
In terms of genre, movies are by far the type of video content that respondents watch most regularly.
Canadian and US/Internationally produced programming placed a close 2nd and 3rd in terms of video content viewed regularly.
Local news was mentioned by 31% of respondents, while 22% cited US/International news, followed closely by local sports at 21%.
the canadIan consumer
Video Consumption
11
consumers graph 4.VIEWING LOCATION
Which of the following best describes how you access the videos you watch?
What types of video content do you watch on-line on a regular basis?
consumer graph 5
consumer graph 6
accessIng content
programmIng genres
69%
38% 36% 31%
22% 21%
11% 2% 1% 2%
0
10
20
30
40
50
60
70
80
Movies Canadian Produced
Programming
US/InternaBonal Programming
News from Local TV Networks
News from US/InternaBonal
Local Sports US/InternaBonal Sports Not Easily Accessible on TV
Music videos YouTube clips/selecBons
Other
What types of video content do you watch on-‐line on a regular basis?
TOTAL %
12
40%
39%
35%
30%
24%
Video Content Aggregator (i.e. Youtube)
TV Everywhere/Cable Provider
SubscripHon streaming service (ie. NeKlix)
Non-‐subscripHon Streaming Site/Service
Site or Broadcaster Direct
Which of the following best describes how you access the videos you watch?
TOTAL %
Site or broadcaster direct
Non-subscription streaming site/service
Subscription streaming service (ie. Netflix)
TV everywhere/cable provider
Video content aggregator (i.e. Youtube)
Movies US/International Programming
Local TV Network News
US/International News
Local Sports US/International Sports Not Easily Accessible on TV
Music videos YouTube clips/selections
OtherCanadian Produced
Programming
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Why are they WatChing?
No technology or new behavior achieves mass adoption unless there is a correspond-ing consumer need. So why are consumers viewing video beyond traditional TV?
By far, the top reason is one of control; control over when they watch and what they watch, i.e. more programming options.
Of course, reasons for viewing do vary significantly among the various age groups:
• Millennials value control the most of all age groups, and also are the most likely to say that they watch video because it is less expensive than traditional TV services. They are least likely to cite fewer ads as a reason to watch. And they also value the freedom to watch outside of the home more than any other group.
• GenX is similar to Millennials in their reasons for watching video, though lower percentages across all choices show that they are more selective in their reasons than younger consumers.
• Boomers want control over when they watch. Interestingly, they value fewer ads more than any other age group, and are least concerned about the cost savings.
• Pre-Boomer Seniors also want control over when they watch and are least interested in the freedom to watch outside of the home.
What about those who are not watching video? The top reason cited was satisfaction with current options, i.e. “TV is sufficient.” Over 60% of Boomers and Seniors who don’t watch video said TV is sufficient. Among Millennials who do not watch video, answers were more diverse, with top choices includ-ing TV is sufficient, my internet costs would increase, and not enough choice.
the canadIan consumer
Video Consumption
13
you indicated that you do not watch video online, why not?
What are the primary reasons that you use digital video rather than traditional tv?
consumer graph 7 reasons for not WatchIng vIdeo
14
consumer chart 2 reasons for WatchIng vIdeo
No need – TV sufficient
Services too expensive
Don’t know how to do it
My Internet costs would
increase
Not enough choice
available
Difficult to find programming
to watch
Internet connection
too slow
Too many ads
Don’t have the right
technology to access
No interest in watching
TV
OtherNo interest in Internet TV
52%
35%
20% 16% 14% 9% 8% 8% 8% 8% 7%
1% 0 10 20 30 40 50 60
No need – TV sufficient
No interest in Internet TV
Services too expensive
Don’t know how to do it
My Internet costs would increase
Not enough choice available
Difficult to find programming to
watch
Internet connecNon too
slow
Too many ads No interest in watching TV
Don’t have the right technology
to access
Other
You indicated that you do not watch video online, why not?
TOTAL %
Base: Respondents who view video online TOTAL Millennials Gen X Boomer
Pre-Boomer
Seniors
More control over when I watch 51% 59% 51% 49% 41%
More programming options 44% 54% 43% 31% 21%
Less expensive than traditional TV services 31% 40% 33% 21% 27%
Fewer ads than TV 29% 28% 30% 33% 30%
More freedom where I watch (outside the home) 27% 31% 28% 21% 10%
Other 16% 13% 16% 16% 41%
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
time spent VieWing
In many ways, TV is still king. Canadians are watching more traditional television than any other kind of programming, spending 14.3 hours on average watching live television, and an additional 4.2 hours watching recorded shows.
And while it’s clear that Canadians love TV content, they are now spending more than 6 hours in the average week consuming that content via the Internet.
Time spent viewing original video content, i.e. not created for television, is still relatively low. This will likely increase as more quality, made-for-video programs become available.
On average, Canadians are spending 3.6 hours with streaming video services, such as Netflix. These services generally include both original programming, as well as TV shows and movies.
In terms of when consumers are viewing content, both traditional TV and video consumption follow the same daypart pattern. Viewing is relatively low in the morning (the peak time for general internet usage), gradually increases throughout the day, and peaks in the traditional evening “primetime” viewing period. (Graph 9.)
the canadIan consumer
Interestingly, despite the increase in video viewership, the time that Canadians spend with traditional TV remains high. In fact, collective research suggests that rather than substituting one medium for another, consumers are simply increasing their overall time spent with media. In some cases, this increase is the result of new access to media in locations and at times when media consumption would have been impossible previously. In other instances, this increase is due to simultaneous usage on different screens.
15
Cross-sCreen VieWing
What time do you most frequently engage in the following activities?
please indicate how many hours per week do you typically do any of the following?
consumers graph 8
consumer graph 9
Weekly vIeWIng hours
vIeWIng By daypart
16
14.3 6.2
4.2 3.6
2.5 2.5
0 2 4 6 8 10 12 14 16
Watch tradi3onal/Broadcast TV Watch Internet TV (TV programming/movies
Watch personally recorded TV content (i.e. Watching streaming services (i.e. NeElix)
Watching snippets TV/Movies streamed on Watching Original Online Video (non-‐TV
Please indicate how many hours per week do you typically do any of the following?
Hrs
Watching original online video (non-TV programming) Watching snippets TV/movies streamed on sites like YouTube
Watching streaming services (i.e. Netflix)Watch personally recorded TV content (i.e. DVR)
Watch internet TV (TV programming/movies watched via Internet) Watch traditional/broadcast TV
Hours
0
5
10
15
20
25
30
% Before 9AM % 12PM to 2PM % 4P-‐Before 6PM % 8PM-‐ Before 10PM
What &me do you most frequently engage in the following ac&vi&es?
Using the Internet
Watching Digital Video on Computer/Mobile Devices
Watching Digital Video on TV via Internet
Watching TradiLonal Television
30%
25%
20%
15%
10%
5%
Using the Internet
Watching Digital Video on Computer/Mobile Devices
Watching Digital Video on TV via Internet
Watching Traditional Television Before 9AM 12PM to 2PM 4PM-Before 6PM 8PM Before 10PM
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
shifting Consumption patterns
As we stated in the Intro section, very few Canadians say that they are doing “less” of anything when it comes to media consumption!
As shown, when asked how their media usage had changed compared to a year ago, upwards of 25% said they consumed “more” across every media type listed (Graph 10.) More respondents (37%) said that they were watching more internet TV (TV programming watched over the internet) than any other category.
The only categories with over 10% of respondents saying that they were watching less than a year ago were traditional/broad-cast TV (18%) and TV content recorded via DVR (11%).
When looked at by age group, it becomes clear that Milllennials are by far the most vora-cious consumers in terms of growing media consumption.
In fact, more than 10% of Millennials say that they are watching “much more” content across every media category (including tradi-tional television).
In all categories involving video viewing, upwards of 20% of Millennials say that they are consuming “much more” than a year ago.
In general, Boomers and Pre-Boomer Seniors are showing the lowest increases in media consumption. This is not to say, how-ever, that they are not already strong viewers of traditional/broadcast TV, as most research indicates.
the canadIan consumer
17
those viewing “much more” compared to a year ago?
how has your usage of the following changed compared to a year ago?
18
consumer graph 10 change In vIeWIng consumptIon
consumer graph 11 change In vIeWIng By age group
17%
13% 11% 11% 11% 10% 9% 8%
26%
21% 21% 20%
16% 11% 11% 12% 11%
14% 10% 9% 10% 8%
6% 6% 8%
6% 1% 2%
5%
10% 7%
3% 4% 2% 2% 4%
6% 4% 4%
0% 0
5
10
15
20
25
30
Watch Internet TV (TV programming/movies watched via Internet)
Watching snippets TV/Movies streamed on sites like YouTube
Accessing the Internet via tablet Watch personally recorded TV content (i.e. DVR)
Those viewing “MUCH MORE” compared to a year ago?
Total % Millennials % Gen X % Boomer % Pre-‐Boomer Seniors %
37% 29% 30% 29% 27% 28% 26% 25%
34% 31% 39%
31% 31%
48% 39% 41%
6% 6% 8% 8% 6%
18% 11% 9%
23%
34%
23%
32% 35%
7%
24% 25%
0 10 20 30 40 50 60
Watch Internet TV (TV programming/movies watched via Internet)
Watching streaming services (i.e. NeFlix)
Watching snippets TV/Movies streamed on sites like YouTube
Accessing the Internet via Smartphone
Accessing the Internet via tablet
Watch tradiPonal/Broadcast TV
Watch personally recorded TV content
(i.e. DVR)
Watching Original Online Video (non-‐TV
programming)
How has your usage of the following changed compared to a year ago?
More Same Less NA %
Watch internet TV (TV programming/movies watched
via Internet)
Accessing the inter-net via smartphone
Watching streaming services (i.e. Netflix)
Accessing the internet via tablet
Watch personally recorded TV
content (i.e. DVR)
Watching snippets TV/movies streamed on sites like YouTube
Watch traditional/broadcast TV
Watching original online video (non-TV programming)
37%
29% 30% 29% 27% 28% 26% 25%
34% 31%
39%
31% 31%
48%
39% 41%
6% 6% 8% 8% 6%
18% 11% 9%
23%
34%
23%
32% 35%
7%
24% 25%
0 10 20 30 40 50 60
Watch Internet TV (TV programming/movies watched via Internet)
Watching streaming services (i.e. NeFlix)
Watching snippets TV/Movies streamed on sites like YouTube
Accessing the Internet via Smartphone
Accessing the Internet via tablet
Watch tradiPonal/Broadcast TV
Watch personally recorded TV content
(i.e. DVR)
Watching Original Online Video (non-‐TV
programming)
How has your usage of the following changed compared to a year ago?
More Same Less NA %
Watch internet TV (TV programming/movies watched
via internet)
Accessing the internet via smartphone
Watching streaming services (i.e. Netflix)
Accessing the internet via tablet
Watch personally recorded TV
content (i.e. DVR)
Watching snippets TV/movies streamed on sites like YouTube
Watch traditional/broadcast TV
Watching original online video (non-TV programming)
17%
13% 11% 11% 11% 10% 9% 8%
26%
21% 21% 20%
16%
11% 11% 12% 11% 14%
10% 9% 10% 8%
6% 6% 8%
6%
1% 2% 5%
10%
7%
3% 4% 2% 2%
4% 6%
4% 4%
0% 0
5
10
15
20
25
30
Watch Internet TV (TV programming/movies watched via Internet)
Watching snippets TV/Movies streamed on sites like YouTube
Accessing the Internet via tablet Watch personally recorded TV content (i.e. DVR)
Those viewing “MUCH MORE” compared to a year ago?
Total % Millennials % Gen X % Boomer % Pre-‐Boomer Seniors %
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
simultaneous VieWing and the seCond sCreen
Despite the large percentage of Canadians who say that they are viewing more TV and video in different ways, the fact remains—there are a finite number of hours available in a given day. So how are consumers making time for all of this increased media consumption? In many instances, the answer is simultaneous viewing across multiple devices, or what has become known as “second-screening.”
In fact, over half of all Canadians say that they use an internet-connected device on a daily basis while watching TV. (Graph 12.) And among Millennials, that percentage jumps to 65%.
The majority of consumers are using their laptop as the second-screen, however, smartphones, tablets and even desktop computers all received significant mentions. It is likely that as tablet ownership increases, which is now at 38%, so too will its use in second screening.
So what are consumers doing on the second screen while watching TV? While 38% are accessing content related to the television content, an equal percentage (39%) are accessing unrelated entertainment content—the age of multitasking is here!
An interesting fact for television advertisers is that 20% of consumers say that they are using the second screen to search, browse or buy the products being advertised on TV. Clearly, the second-screen now offers brands an important opportunity for additional inter-activity and engagement with consumers.
the canadIan consumer
Cross-sCreen usage
19
consumers graph 4.VIEWING LOCATION
consumers graph 4.VIEWING LOCATION
how often would you say you use an internet-connected device at the same time as you are watching traditional tv?
Which devices do you use when watching traditional tv?
What activities do you do on the second device?
53% 65%
59%
44%
23% 18% 20% 18% 14% 10% 8% 7% 7% 9% 2%
0
20
40
60
80
% % % % %
TOTAL Millennials Gen X Boomer Pre-‐Boomer Seniors
How o%en would you say you use an internet-‐connected device (i.e. tablet, phone, etc.) at the same <me as you are watching tradi<onal
TV?
Daily (NET) Weekly (NET) Monthly (NET)
53 65
59
44
23 18 20 18 14 10 8 7 7 9 2
0
20
40
60
80
% % % % %
TOTAL Millennials Gen X Boomer Pre-‐Boomer Seniors
How o%en would you say you use an internet-‐connected device (i.e. tablet, phone, etc.) at the same <me as you are watching tradi<onal
TV?
Daily (NET) Weekly (NET) Monthly (NET)
20
Access other unrelated
entertainment content
TOTAL Millenials Gen X Boomer Pre-Boomer Seniors
Laptop
Smartphone
Desktop
Tablet
Other
Search/browse/ buy products
unrelated to TV
Access other unrelated
entertainment content
Search/browse/buy products
advertised on TV
Write posts, messages or
communicate online related
to program
Play games Check emailsAccess content related to
TV program
consumer graph 14 actIvItIes on second screen
consumer graph 13 devIces used for second-screenIng
consumer graph 12 frequency of second-screenIng
50%
33%
30%
26%
11%
Laptop
Smartphone
Desktop
Tablet
Other
What devices do you use when watching tradi3onal TV?
39% 38%
29%
21% 20% 14%
3% 2%
Access other unrelated entertainment content
Access content related to TV program
Search/browse/buy products unrelated to TV
Write posts, messages or communicate online unrelated to program
Search/browse/buy products adverEsed on TV
Write posts, messages or communicate online related to program
Play games Check emails
What ac'vi'es do you do on the second device?
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
53 65
59
44
23 18 20 18 14 10 8 7 7 9 2
0
20
40
60
80
% % % % %
TOTAL Millennials Gen X Boomer Pre-‐Boomer Seniors
How o%en would you say you use an internet-‐connected device (i.e. tablet, phone, etc.) at the same <me as you are watching tradi<onal
TV?
Daily (NET) Weekly (NET) Monthly (NET)
72% of Canadians prefer to access free, ad-supported digital content. (Graph 15.)
This is related to the point that 48% strongly consider costs when choosing what to watch and how to watch it. (Graph 16.)
Yet, despite their acceptance of advertising, consumers are split on whether it is acceptable to track online behaviour to improve the relevancy of ads. Among respondents, 45% agree it is acceptable, while 55% say that it is not.Generationally, however, Millennials are much more likely to say behaviour tracking is accept-able (56%) than Seniors (24%). (Chart 3.)
In general, Canadians are also quite happy with their viewing choices (81%), yet remain covetous of the choices available to those in the U.S.(78%). Younger consumers (85%) are more likely than Seniors (65%) to say that they would like the same level of choice as U.S. consumers. (Chart 3.)
In addition, younger viewers (80%) are the most likely to change the way they watch video in order to get a better quality image.
the canadIan consumer
consumers graph 4.VIEWING LOCATIONhow would you prefer to access digital video content?
VieWing experienCe & adVertising preferenCes
28 29 25 20 22
72 71 75 80 78
0 20 40 60 80
100
% % % % %
TOTAL Millennials Gen X Boomer Pre-‐Boomer Seniors
How would you prefer to access digital video content?
Pay to access with no adverGsements Access free with adverGsements 21
Despite the negative connotations that sometimes surround advertising interruptions or perceived clutter, the vast majority of Canadians across all age groups prefer the advertising versus paid subscription model when it comes to accessing digital content. Moreover, the vast majority are also satisfied with their overall programming experience in terms of programming choice and quality.bo
TOTAL Millenials Gen X Boomer Pre-Boomer Seniors
consumer graph 15 advertIsIng vs. suBscrIptIon models
28 29 25 20 22
72 71 75 80 78
0 20 40 60 80
100
% % % % %
TOTAL Millennials Gen X Boomer Pre-‐Boomer Seniors
How would you prefer to access digital video content?
Pay to access with no adverGsements Access free with adverGsements
thinking about your media usage, please indicate how strongly you agree or disagree with the following statements.
consumer graph 14 attItudes toWard advertIsIng experIence
22
consumer chart 3 attItudes toWard advertIsIng By age group
It is acceptable to track my behaviour online in order to direct online ads best fitted to my interests
If the quality of image is better, I will change the way I view videos
I wish I had the level of choice available to consumers in U.S. as far as TV/ video goes
I feel I have an abundance of choices as a media consumer
I consider the costs when choosing what to watch and how I watch it
87%
81%
78%
73%
45%
48%
31%
34%
24%
14%
6%
5%
8%
9%
28%
13%
19%
22%
27%
55%
0 10 20 30 40 50 60 70 80 90 100
I consider the costs when choosing what to watch and how I watch it.
I feel I have an abundance of choices as a media consumer
I wish I had the level of choice available to consumers in USA as far as TV/ video goes
If the quality of image is beJer, I will change the way I view videos
It is acceptable to track my behaviour online in order to direct on-‐line ads best fiJed to my interests
Thinking about your media usage, please indicate how strongly you agree or disagree with the following statements?
Disagree (NET) % Strongly Disagree % Strongly Agree % Agree (NET) %
Base: All Respondents answering AGREE (NET)
TOTAL Millennials Gen X Boomer Pre-
Boomer Seniors
I consider the costs when choosing what to watch and how I watch it. 87% 89% 87% 87% 80%
I feel I have an abundance of choices as a media consumer 81% 81% 82% 83% 80% I wish I had the level of choice available to consumers in U.S. as far as TV/ video goes 78% 85% 84% 72% 65% If the quality of image is better, I will change the way I view videos 73% 80% 76% 66% 49% It is acceptable to track my behaviour online in order to direct online ads best fitted to my interests
45% 56% 48% 32% 24%
87
81
78
73
45
48
31
34
24
14
6
5
8
9
28
13
19
22
27
55
0 10 20 30 40 50 60 70 80 90 100
I consider the costs when choosing what to watch and how I watch it.
I feel I have an abundance of choices as a media consumer
I wish I had the level of choice available to consumers in USA as far as TV/ video goes
If the quality of image is beIer, I will change the way I view videos
It is acceptable to track my behaviour online in order to direct on-‐line ads best fiIed to my interests
Thinking about your media usage, please indicate how strongly you agree or disagree with the following statements?
Disagree (NET) % Strongly Disagree % Strongly Agree % Agree (NET) %
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
expeCted shifts in VieWing
Across the entire respondent base, the majority of consumers said they expected their viewing on each device to remain about the same over the next three years.
But it’s not a flat story by any means. A significant number, in the range of 22-28%, expect their viewing to increase across the major connected devices currently available. And another 16% expected their viewing of traditional TV via cable or satellite to increase as well. (Graph 17.)
This story varies dramatically by age group, however, as seen in Chart 4. There is a clear inverse relationship between age and expected viewing increases.
Upwards of 30% of Millennials expect to watch more video on most devices over the next three years, while the percentages of Seniors expecting to watch more seldom top the single digits. Gen X’s responses skew closer to Millennials’, while Boomers’ expect-ed increases were more closely aligned with those of the Seniors.
In some ways, we are seeing a bifurcated population, with those under 50 years voraciously embracing the new video options, and those over 50 years adopting change more slowly.
three year outlook
23
As the previous pages show, the majority of Canadian consumers are already embracing video viewing across a variety of devices. In terms of video usage, however, it appears that we are still on the upside of the growth curve. When asked about their expected viewing patterns over the next three years, approxi-mately one-quarter to one-third of consumers expected to spend more time watching video on the “big four” connected devices: computers, smartphones, tablets and connected TVs.
the canadIan consumer
In your opinion, how will your time spent viewing videos on the following devices change over the next 3 years?
In your opinion, how will your time spent viewing videos on the following devices change over the next 3 years?
consumer graph 17 expected vIeWIng changes
consumer chart 4
24
Laptop computer Smart TVs, i.e., TVs with a direct
internet connection
Tablet Desktop computer Smartphone Television set via an internet
connected device, e.g., Apple TV,
Other types of devices yet to be
identified
Television set, via an antenna
or cable/satellite provider
28 26 25 23 23 22 18 16
56 56 55 56 58 56 62
57
17 18 19 21 19 22 21 27
0 10 20 30 40 50 60 70
Laptop computer Smart TVs, i.e., TVs with a direct internet
connecAon
Tablet Desktop computer Smartphone Television set via an internet connected
device, e.g., Apple TV, Roku, XboxOne
Other types of devices yet to be idenAfied
Television set, via an antenna or cable/satellite provider
In your opinion, how will your .me spent viewing videos on the following devices change over the next 3 years?
Increase (NET) % Stay the same % Decrease (NET) %
28% 26% 25% 23% 23% 22% 18% 16%
56% 56% 55% 56% 58% 56% 62%
57%
17% 18% 19% 21% 19% 22% 21% 27%
0 10 20 30 40 50 60 70
Laptop computer Smart TVs, i.e., TVs with a direct internet
connecBon
Tablet Desktop computer Smartphone Television set via an internet connected
device, e.g., Apple TV, Roku, XboxOne
Other types of devices yet to be idenBfied
Television set, via an antenna or cable/satellite provider
In your opinion, how will your .me spent viewing videos on the following devices change over the next 3 years?
Increase (NET) % Stay the same % Decrease (NET) %
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Increase (NET) Total Millennials Gen X Boomer
Pre-Boomer Seniors
Laptop computer 28% 36% 31% 20% 3% Smart TVs, i.e., TVs with a direct internet connection 26% 31% 26% 21% 16% Tablet 25% 33% 27% 16% 8% Desktop computer 23% 29% 24% 17% 12% Smartphone 23% 33% 23% 12% 10% Television set via an internet connected device, e.g., Apple TV, Roku, XboxOne 22% 27% 24% 15% 9% Other types of devices yet to be identified 18% 24% 17% 11% 6% Television set, via an antenna or cable/satellite provider
16% 18% 17% 13% 8%
the canadIan marketer
expeCted Video groWth
The vast majority of marketers believe consumers’ time spent viewing video on connected mobile devices like Smartphones and Tablets will grow strongly over the next three years (Marketer Graph 1.)
Meanwhile, 38% of marketers predict a decrease in consumers’ time spent viewing video on a desktop, and 74% predict a decrease in time spent watching linear television. This is in contrast to the consumers themselves, who mostly think viewership of these devices will remain the same (Consumer Graph 17.)
Comparing these results to the same question for consumers, it’s clear that marketers are more bullish in their predictions. (Marketer Graph 2.) For example, while only 23% of consumers expect their video viewing on Smartphones to increase, a very large majority (84%) of marketers believe viewing on Smartphones will grow; the same holds true for Tablets, where 25% of consum-ers expect growth, while 80% of marketers expect growth.
Marketers’ strong belief in the future growth of new media and connected devices suggests that they see plentiful opportunities ahead for marketing on new screens.
the canadIan marketer
Video adVertising perspeCtiVes
27
From the perspective of marketers, consumers’ adoption of new media and connected devices is expected to grow rapidly in the coming three years. Ironically, though, marketers’ adoption of strategies and programs to run advertising on these screens is not as aggressive. While they appear eager to embrace these new channels, few of those surveyed had a deep understanding of the tools and technology currently available to help reach consumers along this new multi-screen, multi-device media path.
consumers graph 4.VIEWING LOCATION
In your opinion, how will time spent viewing videos on the following devices change over the next 3 years?
marketer graph 1
marketer graph 2
expected vIdeo groWth
expected vIdeo groWth – consumer comparIson
84 80 80
63 61 49
23
4 2 3 6 6 13 13
38
74
0 10 20 30 40 50 60 70 80 90
n=95-‐104 Smartphone Tablet Smart TVs, i.e., TVs with a
direct internet connecCon
Other types of devices yet to be idenCfied
Television set via an internet
connected device, e.g., Apple TV,
Roku, XboxOne
Laptop computer
Desktop computer
Television set, via an antenna
or cable/satellite provider
In your opinion, how will consumers’ 3me spent viewing videos on the following devices change over the next 3 years?
Increase (NET) Decrease (NET)
28
Smartphone Tablet Other types of devices yet to be identified
Television set via an internet
connected device, e.g., Apple TV,
Roku, XboxOne
Laptop computer Desktop computer
Television set, via an antenna
or cable/satellite provider
Smart TVs, i.e., TVs with a direct
internet connection
Smartphone Tablet Other types of devices yet to be identified
Television set via an internet
connected device, e.g., Apple TV,
Roku, XboxOne
Laptop computer Desktop computer
Television set, via an antenna
or cable/satellite provider
Smart TVs, i.e., TVs with a direct
internet connection
In your opinion, how will consumers’ time spent viewing videos on the following devices change over the next 3 years?
49
80 80
23
84
61 63
4
28 26 25 23 23 22 18 16
0
10
20
30
40
50
60
70
80
90
Laptop computer Smart TVs, i.e., TVs with a direct internet
connecAon
Tablet Desktop computer Smartphone Television set via an internet connected
device, e.g., Apple TV, Roku, XboxOne
Other types of devices yet to be idenAfied
Television set, via an antenna or cable/satellite provider
In your opinion, how will .me spent viewing videos on the following devices change over the next 3 years?
Marketers ExpecAng Increase % Consumers ExpecAng Increase %
84% 80% 80%
63% 61% 49%
23%
4% 2% 3% 6% 6% 13% 13%
38%
74%
0 10 20 30 40 50 60 70 80 90
n=95-‐104 Smartphone Tablet Smart TVs, i.e., TVs with a
direct internet connecDon
Other types of devices yet to be idenDfied
Television set via an internet
connected device, e.g., Apple TV,
Roku, XboxOne
Laptop computer
Desktop computer
Television set, via an antenna
or cable/satellite provider
In your opinion, how will consumers’ 3me spent viewing videos on the following devices change over the next 3 years?
Increase (NET) Decrease (NET)
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
49%
80% 80%
23%
84%
61% 63%
4%
28% 26% 25% 23% 23% 22% 18% 16%
0
10
20
30
40
50
60
70
80
90
Laptop computer Smart TVs, i.e., TVs with a direct internet
connecBon
Tablet Desktop computer Smartphone Television set via an internet connected
device, e.g., Apple TV, Roku, XboxOne
Other types of devices yet to be idenBfied
Television set, via an antenna or cable/satellite provider
In your opinion, how will .me spent viewing videos on the following devices change over the next 3 years?
Marketers ExpecBng Increase % Consumers ExpecBng Increase %
49%
80% 80%
23%
84%
61% 63%
4%
28% 26% 25% 23% 23% 22% 18% 16%
0
10
20
30
40
50
60
70
80
90
Laptop computer Smart TVs, i.e., TVs with a direct internet
connecBon
Tablet Desktop computer Smartphone Television set via an internet connected
device, e.g., Apple TV, Roku, XboxOne
Other types of devices yet to be idenBfied
Television set, via an antenna or cable/satellite provider
In your opinion, how will .me spent viewing videos on the following devices change over the next 3 years?
Marketers ExpecBng Increase % Consumers ExpecBng Increase %
49%
80% 80%
23%
84%
61% 63%
4%
28% 26% 25% 23% 23% 22% 18% 16%
0
10
20
30
40
50
60
70
80
90
Laptop computer Smart TVs, i.e., TVs with a direct internet
connecBon
Tablet Desktop computer Smartphone Television set via an internet connected
device, e.g., Apple TV, Roku, XboxOne
Other types of devices yet to be idenBfied
Television set, via an antenna or cable/satellite provider
In your opinion, how will .me spent viewing videos on the following devices change over the next 3 years?
Marketers ExpecBng Increase % Consumers ExpecBng Increase %
49%
80% 80%
23%
84%
61% 63%
4%
28% 26% 25% 23% 23% 22% 18% 16%
0
10
20
30
40
50
60
70
80
90
Laptop computer Smart TVs, i.e., TVs with a direct internet
connecBon
Tablet Desktop computer Smartphone Television set via an internet connected
device, e.g., Apple TV, Roku, XboxOne
Other types of devices yet to be idenBfied
Television set, via an antenna or cable/satellite provider
In your opinion, how will .me spent viewing videos on the following devices change over the next 3 years?
Marketers ExpecBng Increase % Consumers ExpecBng Increase %
49%
80% 80%
23%
84%
61% 63%
4%
28% 26% 25% 23% 23% 22% 18% 16%
0
10
20
30
40
50
60
70
80
90
Laptop computer Smart TVs, i.e., TVs with a direct internet
connecBon
Tablet Desktop computer Smartphone Television set via an internet connected
device, e.g., Apple TV, Roku, XboxOne
Other types of devices yet to be idenBfied
Television set, via an antenna or cable/satellite provider
In your opinion, how will .me spent viewing videos on the following devices change over the next 3 years?
Marketers ExpecBng Increase % Consumers ExpecBng Increase %
49%
80% 80%
23%
84%
61% 63%
4%
28% 26% 25% 23% 23% 22% 18% 16%
0
10
20
30
40
50
60
70
80
90
Laptop computer Smart TVs, i.e., TVs with a direct internet
connecBon
Tablet Desktop computer Smartphone Television set via an internet connected
device, e.g., Apple TV, Roku, XboxOne
Other types of devices yet to be idenBfied
Television set, via an antenna or cable/satellite provider
In your opinion, how will .me spent viewing videos on the following devices change over the next 3 years?
Marketers ExpecBng Increase % Consumers ExpecBng Increase %
49%
80% 80%
23%
84%
61% 63%
4%
28% 26% 25% 23% 23% 22% 18% 16%
0
10
20
30
40
50
60
70
80
90
Laptop computer Smart TVs, i.e., TVs with a direct internet
connecBon
Tablet Desktop computer Smartphone Television set via an internet connected
device, e.g., Apple TV, Roku, XboxOne
Other types of devices yet to be idenBfied
Television set, via an antenna or cable/satellite provider
In your opinion, how will .me spent viewing videos on the following devices change over the next 3 years?
Marketers ExpecBng Increase % Consumers ExpecBng Increase %
49%
80% 80%
23%
84%
61% 63%
4%
28% 26% 25% 23% 23% 22% 18% 16%
0
10
20
30
40
50
60
70
80
90
Laptop computer Smart TVs, i.e., TVs with a direct internet
connecBon
Tablet Desktop computer Smartphone Television set via an internet connected
device, e.g., Apple TV, Roku, XboxOne
Other types of devices yet to be idenBfied
Television set, via an antenna or cable/satellite provider
In your opinion, how will .me spent viewing videos on the following devices change over the next 3 years?
Marketers ExpecBng Increase % Consumers ExpecBng Increase %
Video adVertising adoption
Surprisingly, despite being very bullish about the growth of connected “new media” devices, it does not appear that marketers have strong strategies set for reaching consumers on these channels.
A full 50% of marketers say that while digital video is part of their day-to-day work, they do not have a video advertising strategy in place. (Marketer Graph 3.)
Meanwhile, 42% say they have an informal strategy in place, and only 8% say they have a formal, company-wide strategy.
Among those who have strategies set, there is a diversified use of video advertising across all connected devices. Close to half of respondents report advertising in video on tablets and smartphones, and a larger percentage report running video advertising on more traditional desktops. (Graph 4.)
In some cases, there is a disconnect between the perceived usage of a device and the advertising being done on the device. For example, while 61% of marketers expect consumer usage of TVs with connected devices to grow, and 80% expect Smart TV usage to grow, (Marketer Graph 1) only 9% and 26% respectively advertise on these devices. (Marketer Graph 4.)
The research suggests that while they predict a growth in consumers’ usage of these devices, their advertising strategies and approaches still have some catching up to do.
the canadIan marketer
Video adVertising perspeCtiVes
29
typically speaking, what type of video platforms does your company advertise on?
as far as you know, does your company have a digital video marketing strategy to assist in reaching consumers?
marketer graph 4
marketer graph 3 vIdeo strategy
vIdeo platforms for advertIsIng
30
No, but we work in the area and it’s part of our day-to-day actions
Yes, but it’s more informal
Yes, we have a formal, company-wide strategy 9%
42%
50%
0 10 20 30 40 50 60
Yes we have a formal, company-‐wide strategy
Yes but it’s more informal
No but we work in the area and it’s part of our day-‐to-‐day acFons
As far as you know, does your company have a digital video marke9ng strategy to assist in
reaching consumers?
TOTAL %
Connected TV via separate device (Roku, Xbox, etc)
Pay TV
Connected TV (internet-enabled)
Wireless home internet
Tablet
Smartphone
Laptop notebook
Desktop computer 56%
45%
42%
41%
32%
26%
10%
9%
0 10 20 30 40 50 60
Desktop Computer
Laptop Notebook
Smartphone
Tablet
Wireless Home Internet
Connected TV (internet-‐enabled)
Pay TV
Connected TV via separate device (Roku, Xbox, etc)
Typically speaking, what type of video pla6orms does your company adver:se at?*
TOTAL
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
seCond sCreen
While “second-screening” has become the norm for most consumers, especially Millennials, it seems that few marketers have strategies in place to take advantage of the behaviour, and many do not know the meaning of the term.
When asked about their familiarity with the idea of “second-screen” viewership, 68% of marketers were unfamiliar with the concept. (Marketer Graph 5.)
Of those marketers who have heard of “second-screening,” over 90% say they have not developed a strategy to reach “second screen” customers. (Marketer Graph 6.)
These numbers show a disconnect between consumer habits and the advertising strategies to reach them, as 71% of consumers (and 85% of Millennials) report “second-screening” at least once a week. (Consumer Graph 12). It appears there is a powerful opportunity for marketers to reach the underserved, second-screen audience.
Cross-screen strategies are especially important since 20% of consumers use the second screen to interact with products being advertised on TV. (Consumer Graph 14.)
the canadIan marketer
31
Video adVertising perspeCtiVes
have you ever developed a strategy to reach “second-screen” consumers?
how familiar are you with the concept of “second-screen” viewers?
32
14%
68%
0
20
40
60
80
Familiar (NET) Unfamiliar (NET)
How familiar are you with the concept of “second screen” viewers?
TOTAL
9%
91%
Have you ever developed a strategy to reach “second screen” consumers?
Yes No
yes
no
marketer graph 5 second-screen famIlIarIty
marketer graph 6 second-screen strategIes
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Biggest Challenges holding marketers BaCk
When asked about the biggest challenges they face today, nearly half (48%) of marketers cited the ability to measure campaign perfor-mance. (Marketer Graph 7.)
Following the ability to measure, the most common challenges cited were measurement specifically across multiple screens or devices (37%), the ability to achieve sufficient reach (36%) and the ability to evaluate quality placements. (34%.)
18% of marketers say measurement is the single biggest challenge they face today (Marketer Graph 8.), followed by the ability to understand their target’s behaviours (11%) and ability to target (11%).
the canadIan marketer
So why don’t marketers have firm strategies in place to reach consumers in the places they know they can be found? What is holding them back? Although successful measurement seems to be a common concern, the other responses are varied, ranging from lack of sufficient reach or frequency, to a lack of under-standing about inventory quality. All answers suggest there is an opportunity for more education in the area of multi-screen and multi-device advertising.
33
Challenges With Video adVertising
What are the biggest challenges in video advertising you face today?
marketer graph 7 current challenges
34
18%
11% 11% 10%
8% 7%
5% 4%
2%
8%
10%
0
2
4
6
8
10
12
14
16
18
20
Measuring campaign
performances
Understanding cross=pla>orm
viewing behaviours of my target audience
TargeEng specific
consumers
Achieving sufficient reach
Measuring the campaign audience
across all video screens or devices
IdenEfying content that is right for your
brand
IdenEfying content that your target
audience views
EvaluaEng the quality of placement
(e.g., viewability)
Planning mulE-‐screen or
mulE-‐device video
campaigns
Other None
Of these, which is the single biggest challenge you face today?
48%
37% 36% 34% 32% 31% 31% 29%
16% 15% 12% 11%
0
10
20
30
40
50
60
Measuring campaign
performance
Measuring the campaign
audience across all video screens
or devices
Achieving sufficient reach
EvaluaCng the quality of
placements (e.g., viewability)
IdenCfying content that your target
audience views
TargeCng specific
consumers
Understanding cross-‐plaQorm
viewing behavior of my target audience
IdenCfying content that is right for your
brand
Lack of standardizaCon
Achieving sufficient frequency
Planning mulC-‐screen or mulC-‐device video campaigns
HolisCcally planning linear TV and digital
video campaigns
What are the biggest challenges in video adver2sing you face today?
TOTAL
of these, which is the single biggest challenge you face today?
marketer graph 8 BIggest sIngle challenge
Measuring campaign
performance
Understanding cross-screen
behaviour of target audience
Targeting specific
consumers
Achieving sufficient reach
Measuring audience
across all video screens
Identifying content right
for brand
Identifying content
that target audience
views
Evaluating quality of
placements (e.g., view-
ability)
Planning multi-screen
video campaigns
Other None
Measuring campaign
performance
Measuring audience across all
video screens
Achieving sufficient
reach
Evaluating quality of
placements (e.g., view-
ability)
Identifying content
that target audience
views
Targeting specific
consumers
Under-standing
cross-screen-behaviour of target audience
Identifying content right
for brand
Lack of stan-dardization
Achieving sufficient frequency
Planning multi-screen
video campaigns
Holisti-cally planning linear TV and digital video
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
hoW is teChnology Being used?
Very few marketers in Canada say that they are leveraging technology to solve their advertising challenges—with only 10% saying their company makes use of programmatic buying today. (Marketer Graph 9.) However, it is worth noting that the agencies may be leveraging programmatic technology on the marketers’ behalf without their knowledge.
39% of marketers can definitively say they are not using programmatic buying, but 15% are uncertain and 36% do not know what programmatic buying is.
For those who are familiar with program-matic buying, targeting is the key priority by a huge margin. When asked about the top features they look for in a technology, nearly half said having multiple ways to target, with another 9% saying real-time-bidding and 9% more citing the ability to transact both programmatically or with reserved inventory. (Marketer Chart 10.)
the canadIan marketer
As the previous graphs have shown, there are many challenges facing marketers in Canada today. Marketers are finding that as the number of video screens grows, so does the complexity of video advertising. The solution to most of their biggest challenges may be the use of technology to pull the pieces together, yet many do not yet understand how they might leverage a programmatic approach to their advertising.
35
the role of teChnology
does your company make use of programmatic buying?
programmatIc vIdeo strategIes
What are the top three features in a technology platform that you look for to assist video ad buying or selling?
marketer graph 10 key technology features
marketer graph 9
36
I don’t know whatprogrammatic
buying is36%
Yes 10%
Uncertain 15%
No 39%
Yes 10%
No 39%
Uncertain 15%
I don’t know what
programma=c buying is 36%
Does your company make use of programma1c buying?
Multiple ways to target
audiences (e.g., demo, purchase
behaviour, etc…)
Availability of inventory via real
time bidding
Ability to transact both programmati-
cally and reserved inventory
Ability to import CRM data to use in targeting ads
Ability to track consumers on
multiple devices
Ability to provide cross-device GRP metric
Ability to serve ads into videos of networks’ online streaming sites
Ability to serve ads into Video on Demand on cable/satellite
systems
Other
47%
9% 9% 8% 6% 6% 5% 3% 8%
0 5
10 15 20 25 30 35 40 45 50
Having mul6ple ways to target audiences (e.g., demographics,
product purchase behavior, etc…)
Availability of inventory via real 6me bidding
Ability to transact both
programma6cally and reserved inventory
Ability to import CRM data to use in targe6ng ads
Ability to track consumers on mul6ple devices
Ability to provide cross-‐device GRP
metric
Ability to serve ads into videos of networks’ online streaming sites
Ability to serve ads into Video on Demand on cable/satellite systems
Other
What are the top THREE features in a technology pla7orm that you look for to assist video ad buying or selling?
Rank 1
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Video to groW, along With programmatiC teChnologies
Over the next three years, marketers predict that the industry will continue to shift money into video. (Graph 11.) Specifically, 64% believe money will be shifted from other media channels into video, and 67% think money will be shifted specifically from TV.
Moreover, while currently only 10% of marketers are knowingly making use of programmatic buying, and 36% are unfamil-iar with the concept, 34% of total respon-dents said that they think video buying will become more programmatic over the next three years. This suggests that those with knowledge of programmatic are enthusiastic about its growth.
Of course, one of the benefits of pro-grammatic video buying is the ability to reach discrete consumer groups through the application of data. Similarly, continu-ing with themes that arose in the previous
section, the key potential advantage that marketers see in video is its ability to target specific consumers (45%). They also see the ability to reach consumers not exposed to TV ads (16%) and enhanced interactivity (9%) as key video advantages. (Graph 12.)
When marketers were asked about the most important future video buying capa-bilities, responses were generally in line with video’s potential advantages. Ability to target again topped the list, including target-ing by buying behaviour. And 40% cited the ability to reach consumers across screens as a key capability. (Graph 13.) Ability to buy video programmatically was mentioned by only 24% of respondents as “key.” Since targeting is a key component of programmatic strategies, however, again this may suggest more of an education gap on programmatic capabilities rather than a lack of support.
the canadIan marketer
37
three year outlook
Despite their perceived challenges with video advertising and limited familiarity with the technologies currently available to assist in video planning and buying, marketers believe that over the next three years, video will command a stronger presence in their advertising plans. But video will not remain a siloed channel: the vast majority of marketers predict that the industry will move towards a model that is more holistic, supporting the convergence of content and advertising across screens. And marketers seem optimistic that all groups–from brands, to agencies, to publishers–will see a better return on investment by taking this type of holistic approach to advertising.
What do you see as the three greatest future potential advantages for video advertising?*
In the future, which of the following will be the most important capabilities for buying video advertising?
marketer graph 13 vIdeo BuyIng capaBIlItIes
respondents who believe the following are likely in the next three years
38
Ability to target ads to individuals
based on their match with my target audience
Ability to evaluate audiences on
buying behavior in my product
category
Ability to buy audiences across all screens including
TV / video platforms
Ability to buy ads on specific
programs
Ability to buy online video ads
programmatically
Ability to work directly with media outlets to customise packages of video
advertising opportunities
Ability to buy linear TV ads
programmatically
Advertisers will reallocate money currently spent on linear TV to new video options
Advertisers will shift more money from other media into advertising on new video options
67%64%
Video buying will become more programmatic
34%
*Note: top five responses
marketer graph 12 advantages of vIdeo
marketer graph 11 groWth trends
71%
48% 40%
33% 24% 22%
10%
0 10 20 30 40 50 60 70 80
Ability to target ads to individuals based on their match with my
target audience
Ability to evaluate audiences on buying
behavior in my product category
Ability to buy audiences across all screens
including TV / video plaDorms
Ability to buy ads on specific programs
Ability to buy online video ads
programmaFcally
Ability to work directly with media outlets to customise packages of
video adverFsing opportuniFes
Ability to buy linear TV ads programmaFcally
In the future, which of the following will be the most important capabili6es for buying video adver6sing?
TOTAL
Targeting specific
consumers
Reaching new consumers not
exposed to ads on TV
Enhancing video with
interactivity
Better message communication
ability
Greater ROI accountability
45%
16% 9% 7% 6% 5% 4 3 3 2
0 10 20 30 40 50
Targe1ng specific
consumers
Reaching new consumers not exposed to ads
on TV
Enhancing video with
interac1vity
BeFer message communica1on
ability
Greater ROI accountability
Higher audience aFen1on
Ability to deliver messages to a consumer at
different 1mes of day
Viewabilty overall
To control reach and frequency across devices
New ad formats other than :15 or :30 second
spots
What do you see as the THREE greatest future poten5al advantages for video adver5sing?
Ranked 1st
45%
16% 9% 7% 6% 5% 4 3 3 2
0 10 20 30 40 50
Targe1ng specific
consumers
Reaching new consumers not exposed to ads
on TV
Enhancing video with
interac1vity
BeFer message communica1on
ability
Greater ROI accountability
Higher audience aFen1on
Ability to deliver messages to a consumer at
different 1mes of day
Viewabilty overall
To control reach and frequency across devices
New ad formats other than :15 or :30 second
spots
What do you see as the THREE greatest future poten5al advantages for video adver5sing?
Ranked 1st
45%
16% 9% 7% 6% 5% 4 3 3 2
0 10 20 30 40 50
Targe1ng specific
consumers
Reaching new consumers not exposed to ads
on TV
Enhancing video with
interac1vity
BeFer message communica1on
ability
Greater ROI accountability
Higher audience aFen1on
Ability to deliver messages to a consumer at
different 1mes of day
Viewabilty overall
To control reach and frequency across devices
New ad formats other than :15 or :30 second
spots
What do you see as the THREE greatest future poten5al advantages for video adver5sing?
Ranked 1st
45%
16% 9% 7% 6% 5% 4 3 3 2
0 10 20 30 40 50
Targe1ng specific
consumers
Reaching new consumers not exposed to ads
on TV
Enhancing video with
interac1vity
BeFer message communica1on
ability
Greater ROI accountability
Higher audience aFen1on
Ability to deliver messages to a consumer at
different 1mes of day
Viewabilty overall
To control reach and frequency across devices
New ad formats other than :15 or :30 second
spots
What do you see as the THREE greatest future poten5al advantages for video adver5sing?
Ranked 1st
45%
16% 9% 7% 6% 5% 4 3 3 2
0 10 20 30 40 50
Targe1ng specific
consumers
Reaching new consumers not exposed to ads
on TV
Enhancing video with
interac1vity
BeFer message communica1on
ability
Greater ROI accountability
Higher audience aFen1on
Ability to deliver messages to a consumer at
different 1mes of day
Viewabilty overall
To control reach and frequency across devices
New ad formats other than :15 or :30 second
spots
What do you see as the THREE greatest future poten5al advantages for video adver5sing?
Ranked 1st
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
the canadIan marketer
39
ConVergenCe is the neW normal
On the prior page, we saw that 40% of marketers believed that the ability to buy audiences across screens, including TV and video platforms, would be a key capability in the future. (Graph 13.)
Another sign that marketers believe television and video convergence are here to stay…an overwhelming percentage (85%) predict that in the coming years, planning for online video and linear television will merge. (Graph 14.)
Less clear is who would take the lead if these two sides merged, with 71% predicting specialized digital media buying compa-nies would lead, and a split response on whether traditional media buying firms would lead.
As the digital and traditional disciplines merge, 52% of marketers predict agencies will merge their existing teams–leaving the possibility that new teams could also be created with a focus on cross-screen buying and planning.
About half of marketers also predict that agencies will plan video advertising campaigns holistically across all video viewing options–almost twice as many as those who believe it will be done in siloes. This shows there is a growing expectation that the siloes of today will break down as agencies and advertisers look more holistically at all of their dollars across screens. (Graph 15.)
three year outlook
thinking about how video advertising will change in the next three years, please indicate how strongly you agree or disagree with the following statements.
plannIng and BuyIng In the future marketer graph 14
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
thinking about the next three years, in your view how likely are the following to happen?
Agencies will merge their TV and online video
buying groups
Agencies will plan video advertising campaigns holistically across all
video viewing options
Agencies will plan video advertising on each platform separately
marketer graph 15 the Impact of convergence on agencIes
52% 48%
0
10
20
30
40
50
60
Agencies will merge their TV and online video buying
groups
Agencies will plan video adver@sing campaigns
holis@cally across all video viewing op@ons
Agencies will plan video adver@sing on each plaAorm
separately
Thinking about the next 3 years, in your view how likely are the following to happen?
85
71
46
15
29
54
0 10 20 30 40 50 60 70 80 90
Planning for online video and linear television will merge
Specialized digital media buying agencies will lead all video buying
TradiDonal media buying firms will lead all video buying
Thinking about how video adverDsing will change in the next 3 years, please indicate how strongly you agree or disagree with the following statements?
Agree (NET) Disagree (NET)
Planning for online video and linear television will merge
Specialized digital media buying agencies will lead all video buying
Traditional media buying firms will lead all video buying
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
85%
71%
46%
15%
29%
54%
0 10 20 30 40 50 60 70 80 90
Planning for online video and linear television will merge
Specialized digital media buying agencies will lead all video buying
TradiEonal media buying firms will lead all video buying
Thinking about how video adverEsing will change in the next 3 years, please indicate how strongly you agree or disagree with the following statements?
Agree (NET) Disagree (NET)
26%
40
Who Will Benefit?
When all is said and done, who will benefit from the more cross-platform, cross-screen approach marketers are predicting we’ll see in the coming years? The answer is that everyone can benefit.
A large majority of marketers believe that media outlets will increase their overall video advertising revenue in the next three years. (Graph 16.)
Additionally, almost three-quarters believe that media outlets will also benefit, by earning higher CPMs for video advertising (74%).
Finally, 64% of marketers predict that advertising effectiveness will improve, sug-gesting that the brands themselves will also benefit. Overall this suggests that the changes ahead for video advertising will be a win-win across the board.
the canadIan marketer
thinking about how video advertising will change in the next 3 years, please indicate how strongly you agree or disagree with the following statements?
41
three year outlook
81% 74%
64%
19% 26%
36%
0 10 20 30 40 50 60 70 80 90
Media outlets will increase their overall adver=sing revenue by selling video
adver=sing
Media outlets will earn higher CPMs for video adver=sing
Adver=sing effec=veness will improve
Thinking about how video adver=sing will change in the next 3 years, please indicate how strongly you agree or disagree with the following statements?
Agree (NET) Disagree (NET)
Media outlets will increase their overall advertising revenue by
selling video advertising
Media outlets will earn higher CPMs for video advertising
Advertising effectiveness will improve
marketer graph 16 ecosystem BenefIts
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
81% 74%
64%
19% 26%
36%
0 10 20 30 40 50 60 70 80 90
Media outlets will increase their overall adver=sing revenue by selling video
adver=sing
Media outlets will earn higher CPMs for video adver=sing
Adver=sing effec=veness will improve
Thinking about how video adver=sing will change in the next 3 years, please indicate how strongly you agree or disagree with the following statements?
Agree (NET) Disagree (NET)
ConsumersMale 48
Female 52
Millennial (18-34) 32
Gen X (35-49) 27
Boomer (50-69) 36
Seniors 6
< High School 5
High School 26
Some College/Univ 21
College 20
University 20
Post-Graduate 9
Work Full Time 37
Work Part Time 14
Retired 20
Self Employed 6
Not Employed 17
Student 6
Single/Div/Widow 45
Married/Common Law 55
Children in Home 36
Major Metro 49
Medium Metro 33
Small/Rural 17
Atlantic (Net) 7
Quebec 23
Ontario 39
West (Net) 31
HHI <$50K 45
HHI $50K-99.9K 32
HHI $100K+ 14
HHI Not Avail 10
Mean HHI $58k
Canadian 81
French Canadian 5
Other Ethnic 14
marketerssegments of Industry your company Works With:
Online/Internet 67
Publishing 43
Digital 27
Broadcast 23
Other 4
Job TitleC-suite Executive 44
Brand/Account Manager 17
Other Executive 16
CMO/Director Marketing 9
Other 15
size of company
1-99 78
100-499 11
500+ 12
Mean 92
years in Industry
<1 year 8
1-5 years 14
6-10 years 19
11-20 years 32
21+ years 26
Mean 13
co.’s total revenue
<$1 Mil 42
$1-$99 Mil 35
>$100 Mil 23
Mean 136K
other
Male 56
Female 44
Atlantic (Net) 10
Quebec 21
Ontario 39
West (Net) 32
appendix a: methodology
appendix B: demographiCs
In Fall 2014, Marketing Magazine and Rogers Connect Market Research and Client Services conducted an independent online survey of 1,011 Canadians (nationally repre-sentative) and 104 Canadian marketers (those working in a marketing-related, or executive-level role). The survey did not include marketing professionals working at advertising or media agencies—only brand direct advertisers. All responses were collected between September and October 2014. Data was compiled by Marketing Magazine, and the corresponding analysis and commentary was prepared by Videology.
42
For more information, please contact [email protected]
videologygroup.com