scott ferber - videonuze online video ad summit - 6-16-15 v1

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TV & VIDEO: A YEAR OF CONVERGEJUNE 2015

@scottferber

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VIDEO: IT’S BEEN QUITE A YEAR…

The Great TV Unbundling Has Begun. But Be Careful What You Wish For

Oct, 2014

Amazon wins first Golden Globe

Jan, 2015

Cord-Cutting Accelerates in Q1 ‘15 as Pay-TV Operators Lose 31K Subscribers

May, 2015

ESPN Sues Verizon Over New Cable Packages

April, 2015

Verizon Buys AOL for $4.4 billion

May, 2015

Dish Network in Merger Talks With T-Mobile

June, 2015

Report: AT&T will accept net neutrality if it gets DirecTV

June, 2015

Upfront 2015: Major TV Networks Face Severe Pressure on Ad Prices

May, 2015

Networks Fret as Ad Dollars Flow to Digital Media

May, 2015

Advertisers to lose $6.3 Billion to Fraud in 2015

Dec., 2014

Media Agency Kickbacks. Yes, They’re Real.

March, 2015

Epic Wave of Media Reviews Comes at a Crucial Time for Media Buying

May, 2015

$25 billion in media money just went up for grabs -- and nobody can agree on why

May, 2015

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3

ADVERTISING DISRUPTION: WHY (NOW)?

Data is defining the

winners

New players are disrupting the status quo

Distribution models have

changed

Threat to ad dollars is forcing

change

Consumers are redefining

the rules

3

2010 2011 2012 2013 2014 2015

4.4 4.6 4.6 4.5 4.4 4.3

0.4 0.3 0.3 0.3 0.3 0.4

2.4 2.6 2.5 2.3 2.4 2.4

0.40.8 1.6 2.3 2.6 2.8

Daily Time Spent on Screens

Mobile

Computer

Other Connected Devices

TV

Hour

s Per

Day

7.68.2

9.0 9.4 9.6 9.9

CONVERGENCE IS REDEFIN ING CONSUMERS’ V IEWING

4

source: @KPCB Emarketer 4/15

BUT CONVERGED VIEWING IS NOT ABOUT E ITHER/OR…IT ’S ABOUT

MORE.GOOD NEWS FOR TV.

TV Only TV + PC/Laptop TV + PC/Laptop + Mobile TV + PC/Laptop + Mobile + Tablet

Video Viewing Per Day

Tablet

Mobile

Computer

TV

Hou

rs P

er D

ay

4hr 19min 4hr 28min 5hr 6hr 7min

55min

40min47min

59min51min

50min

8hr 29min

6hr 50min

5hr 18min

4hr 19min

Source: Analysis of NBC broadcast content viewed by screen by discrete viewers, 2012.

5

YET FRAGMENTATION IS ST ILL FORCING MARKETERS TO RETHINK TV STRATEGIES.

6

Reach Build for Television Networks & ProgramsSep ‘09 vs. Sep ‘14

0 1000 2000 3000 4000 5000 6000 7000 80000

10

20

30

40

50

60

GRPs

Reac

h %

September 2009

September 20141990

(21.3)

2000

(16.9)

2014

(7.6)

Source: NPower Live+7 TV Data; Adults 18-49

AND INCREASINGLY THESE NEW STRATEGIES MEAN CONVERGED

STRATEGIES

Source: Videology, Q1 2015.

58% of all campaigns ran on more than one device in Q1 2015, compared to just 17% in Q1 2014.

PC, Mobile & OTT46%

PC Only40%

Mobile Only2%

PC & OTT2%

PC & Mobile10%

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8

 

The New Golden Rule for Converging World:

The One with the Gold Rules.

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DATA

9

LINEAR TV

MVPDSComcastDishDirecTVVerizon FIOS, etc.

DIGITAL VIDEO

PublishersGoogleFacebookAppleAmazon, etc.

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DATA OWNERSHIP: CONNECTING TWO WORLDS

CONTENT MATTERS

WHY CONVERGENCE MATTERS?DATA-ENABLEMENT + QUALITY

CONTENT= BETTER RESULTS

10

UNIT SALES RATE LIFT PENETRATION LIFT DOLLAR SALES RATE LIFT

13.6%12.4%

13.7%

6.1% 6.2% 6.4%

Data Targeted vs. Untargeted Impressions

Average Targeted Average Untargeted

10.2%

7.6%

2.7%

FEP vs. Prime vs. Other Total HH Penetration Sales Lift

32.3%

21.8% 22.5%

Sales Lift of Multi-device vs. Digital Targeting

UNITS VELOCITY (units per 100HHs)

ADDRESSABILITY WORKS CONVERGENCE DRIVES RESULTSCONTENT MATTERS

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Series1

3.50%

5.10%

5-year CAGR2015-2019

Source: eMarketer 2014-2018 ests, June 2014, based on IAB/PwC data; Videology 2019 estimates; 5-year CAGR PwC June 2015

2014 2015 2016 2017 2018 2019

$2.19$2.06

$3.18

$2.21

$2.66$2.52

$1.76 $1.81 $1.68 $1.67$1.59

$1.27

Incremental Annual Spend Increases: US TV vs. Digital Video

TV Digital Video

Converged TV/Video

Total Advertising

SPENDING FOLLOWS RESULTS 5 YEAR VIEW: TV REMAINS KEY CONTRIBUTOR TO CONVERGING MARKET

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Andrew FeigensonManaging DirectorNielsen Digital

Brian WieserSenior AnalystPivotal Research Group

Kris MagelChief Investment OfficerInitiative U.S./Interpublic Group

Melissa RobertsGM/ Enterprise SolutionsFreeWheel

Scott Ferberscott@videologygroup.com

WHAT DO THE EXPERTS THINK…

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