hemlock grove digital_strategy

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  • 1. Hemlock Grove:Digital StrategyCrash Course in Digital Strategyby Julian Cole TERRY LAWYER Integrated Creative Producer
  • 2. 1 The Brief
  • 3. All episodes of Hemlock Grove, Netflixsnew original series, will premiere on April19th for Netflix subscribers...And Netflix wants to use the series togenerate new subscribers and sustain anupward trend in user growth.But Netflix needs tocreate awareness ofthe new series in orderto use it to attract newsubscriptions.
  • 4. 2 The Key Insights
  • 5. Customer Insight #1Set-top device users are highlylikely to subscribe to movie and TVstreaming services.
  • 6. And the research confirms it...64% of consumers who use their videogame consoles to access online contentdownload television shows and movies via 80% of consumers who use their Blu-subscription video-on-demand services such ray players to access online contentas Hulu and Netflix. download television shows and moviesNPD Group Sept. 2012 via subscription video-on-demand services such as Hulu and Netflix. NPD Group Sept. 201269% of consumers who use their TVs to accessonline content download television shows andmovies via subscription video-on-demand 79% of Netflix Watch Instantlyservices such as Hulu and Netflix. customers use it to watch movies andNPD Group Sept. 2012 television shows on a TV, and 59% of this group access Netflix via a videoConsoles have become strategically positioned game system.as a secondary gateway to TV content, and can Leichtman Research Apr. 2012now be found in 45% of TV homes.Nielson May 2012
  • 7. Customer Insight #2These set-top device users andvideo streamers are also likelyto be a part of the show andNetflixs target audience:18-34 YOs who enjoy sci-fi and supernaturalcontent in movies, TV, and games.
  • 8. They over-index at most of the largeststreaming platforms.Netflix HuluPlaystation (online) Xbox Live
  • 9. And streaming is quickly becoming a part of their everyday experience.Netflix InstantWatch Night
  • 10. Surprisingly, they might even appreciate abit of advertising. Excerpts from a message thread on a Star Trek message board about Netflixs House of Cards. trekbbs.com/showthread.php?p=7624447
  • 11. Customer Insight #3Of the series creative elements, Eli Rothand Famke Janssen have the most brandawareness in digital.Eli Roth: known for directing Hostile and his Famke Janssen: known for roles inrole in Quentin Tarantinos Inglorious Basterds. Goldeneye, the X-men series, and Taken.Generates 6-7 million Google search results. Generates 6-7 million Google search results.
  • 12. 3 The Big Idea
  • 13. The Hemlock Grove preview experience...Presented by Eli Roth...Exclusive to set-top users.Why this approach?Banners and trailers are standard for driving audienceto movies and TV as both are typically high feel, lowinformation purchase decisions. It doesnt take that long todecide if you want to buy a movie ticket or tune-in for a TVprogram. But a monthly subscription is a bit differentslightlymore of a long-term commitment than an impulse purchase.So, as Netflix learned with House of Cards, users appreciatea test drive to help them decide if the show is worth thecost of subscribing. The House of Cards test drive wasa free episode for non-subscribers. But at nearly 30 to 60minutes long and tasked with introducing the series principalelements, the first episode of any series isnt designed toconvert non-subscribers to subscribers.Perhaps a different format would helpnon-subscribers make a decision?
  • 14. About the preview experience...The content will be housed in apps forXbox Live and PSN.Should include 1 to 3 full scenes from thepremiere episode.Eli Roth features prominently along withFamke Janssen in vignettes where theyoffer their thoughts on elements in theseries. Other members of the principalcast also describe their roles in the series.Should include interactive content, suchas info about the fictional town, PetersGypsy family, the Godfreys, and/orwerewolf legends.For other set-top device users and thetraditional web audience, the previewexperiences video content can berepackaged in short form as a teaser.
  • 15. 4 Media Planning
  • 16. Where to place messaging?A cross-platform campaign that covers the major video game consoles (Xbox Liveand PSN offer ad solutions) and set-top devices (Roku, Boxee, and Blu-ray players)with the remaining half of impressions targeting Hemlock Groves audience atYoutube, Hulu, and Facebook. The geography is limited to North America.How to structure the messaging?Banner ads and streaming spots that deliver the campaign creative concept: TheMonster Within, plus the by Eli Roth and only on Netflix mandatories. A CTA for thepreview content will be placed before or after the creative concept.When to activate?The campaign should go live when the episodes premiere in April and run for amonth at maximum if the budgeted click-thrus arent reached within the first fewweeks. Also, Netflix activity (searches and traffic) peaks on weekends, so the Saturdayrelease day is ideal for launching the campaign.
  • 17. 5 The Metrics
  • 18. Impressions and Conversions200,000 New Subs Generated by the campaignThis target is derived from the Q4 2012 new subscriber results, when Netflix added 2 millionsubscribers. That averages to roughly 700K additions per month. Also, going by Google searchvolume from 2010 - 2012, the holiday season is a peak period for interest in Netflix while Apriland May is when search volume levels off. So we estimate this Aprils new subscriber number tobe 600,000: 400,000 from other sources, 200,000 from the Hemlock grove campaign.80 million Impressions required to hit the targetHow to arrive at this number? Its basically:80MM impressions x 5% click-through = 4MM preview viewers4MM preview viewers x 5% subscriber conversion = 200K new subscribersThe numbers are reasonable given the size of the audiences at the major platforms. Youtubereaches nearly 200 million users each month, so 20 to 40 million impressions is 10% to 20% oftheir total inventory. Xbox Live and PSN have about 40MM and 70MM users respectively. WithFacebook added to the mix, the major platforms should have plenty of audience available forthe 80 million impressions target.
  • 19. Total Budget = $2.1 MillionMedia CostGaming Platforms = $28 CPM x 30MM Impressions = $900,000Traditional Web = $22 CPM x 50MM Impressions = $1.1 millionCreative CostDesign and development of the gaming platform apps = $50,000Banner design = $8,000Shooting, editing, and post for video work = $50,000
  • 20. And why its worth itThere a few different analyses of Netflixs subscriber acquisition cost,but a conservative estimate might be $15 to $19 per new subscriber.Our campaign spend of $2 million for 200K new subscribers comes inat $10.50 p