video advertising in a multi-screen world 1. the marketing world is focused on all things digital...

Video Advertising in a Video Advertising in a Multi-Screen WorldMulti-Screen World

Video Advertising in a Video Advertising in a Multi-Screen WorldMulti-Screen World

1

The Marketing World is Focused on The Marketing World is Focused on All Things DigitalAll Things Digital


1. Because new tools present new opportunities

2. And because the old ways no longer work

2



1. Because new tools present new opportunities…Yes

2. And because the old ways no longer work…Not so fast

3

Popular Consumer Insight:Popular Consumer Insight:Popular Consumer Insight:Popular Consumer Insight:

In a Post-Television World, the consumer is in control and will choose what, when, where and on what to watch, creating his own personal media smorgasbord.

4

Popular Marketing Insight:Popular Marketing Insight:Popular Marketing Insight:Popular Marketing Insight:

In a Post-Television World, new ways must be found to reach and engage with consumers, on their terms, not the marketers’ terms.

5

Maybe so, if and when a Maybe so, if and when a Post-Television World Post-Television World

arrives.arrives.

Maybe so, if and when a Maybe so, if and when a Post-Television World Post-Television World

arrives.arrives.

6

Television – good old Television – good old “Old Media” TV – has never “Old Media” TV – has never

been more highly been more highly consumed… and it’s still consumed… and it’s still

growing.growing.

Television – good old Television – good old “Old Media” TV – has never “Old Media” TV – has never

been more highly been more highly consumed… and it’s still consumed… and it’s still

growing.growing.

7

Let’s look at video in all Let’s look at video in all forms and see what’s real forms and see what’s real

today.today.

Let’s look at video in all Let’s look at video in all forms and see what’s real forms and see what’s real

today.today.

8

Consumer Usage of the Medium Is Consumer Usage of the Medium Is GrowingGrowing

Consumer Usage of the Medium Is Consumer Usage of the Medium Is GrowingGrowing

99Sources: Daily Usage Figures: The Nielsen Company, NTI Annual Averages; Prior to 9/87: Audimeter Sample; 9/87

to date: People Meter Sample. Ad and Promo Exposure: Council for Research Excellence – Video Consumer Mapping Study 2009.

Household viewing is nearing 8.5 hours, daily. Americans are exposed to nearly 72 minutes of video ads and promos per day.

(Hr:Min/Day)

Television Viewing Is a High-Growth Television Viewing Is a High-Growth ActivityActivity

Television Viewing Is a High-Growth Television Viewing Is a High-Growth ActivityActivity

1010Sources: Daily Viewing: The Nielsen Company, NTI Annual Averages. Monthly estimate: Nielsen 4Q09 Three-

Screen Report.

Each year, time spent viewing TV is increasing across most major demographics. Each month the average American watches over 153 hours of TV at home.

Men Women Teens Children

2003 4:29 5:05 3:07 3:14

2004 4:26 5:07 3:07 3:16

2005 4:31 5:17 3:19 3:19

2006 4:35 5:17 3:22 3:26

2007 4:39 5:19 3:24 3:27

2008 4:49 5:25 3:27 3:28

2009 4:54 5:31 3:26 3:31

Hours:Minutes /DayHours:Minutes /Day

1212

Live TV Ads

1st Quarter 2010 Video Viewing by 1st Quarter 2010 Video Viewing by Distribution ChannelDistribution Channel


13

Weekly Time Spent Hrs:Min

Source: Nielsen 3 Screen Report Volume 8

Traditional Live TV 35:34

Time Shifted TV 2:09

Watching Video on Internet 0:20

Watching Video on Mobile Phone0:04

Total Video Consumption 38:07



Traditional Live TV 35:34 93.3%

Time Shifted TV 2:09 5.6%

Watching Video on Internet 0:20 1.0%

Watching Video on Mobile Phone0:04 0.2%

Total Video Consumption 38:07

14

Weekly Time Spent Hrs:Min

Source: The Nielsen Company Three Screen Report Volume 8

Weekly Total TV ViewingWeekly Total TV Viewing11stst Qtr 2010 vs. 4 Qtr 2010 vs. 4thth Qtr 2009 Qtr 2009

Weekly Total TV ViewingWeekly Total TV Viewing11stst Qtr 2010 vs. 4 Qtr 2010 vs. 4thth Qtr 2009 Qtr 2009

+ 60 Minutes

Live : +57 minutesTimeshifted : +5 minutesWatching Video on Internet: -2 minutesWatching Video on Mobile : Flat

15

Weekly Time Spent in Hours:Minutes Weekly Time Spent in Hours:Minutes By Age Demographic 1Q 2010By Age Demographic 1Q 2010

Weekly Time Spent in Hours:Minutes Weekly Time Spent in Hours:Minutes By Age Demographic 1Q 2010By Age Demographic 1Q 2010

16

K2-11 T12-17

A18-24

A25-34

A35-49

A50-64

A65+ P2+

On Traditional TV 25:48 24:28 26:45 32:03 36:35 44:20 48:54 35:34

Watching Timeshifted TV 1:32 1:20 1:31 3:00 2:50 2:30 2:17 2:09

Watching Video on Internet 0:04 0:10 0:30 0:36 0:31 0:18 0:07 0:20

Mobile Subscribers Watching Video on a Mobile Phone

n/a 0:18 0:10 0:07 0:03 0:01 <0:01 0:04

Source: The Nielsen Company, Three Screen Report, 1st Qtr 2010.

Timeshifted Viewing:Timeshifted Viewing:A Reality CheckA Reality Check

Timeshifted Viewing:Timeshifted Viewing:A Reality CheckA Reality Check

17

National DVR Penetration is on the National DVR Penetration is on the Rise…Rise…

But the Growth Rate is SlowingBut the Growth Rate is Slowing

National DVR Penetration is on the National DVR Penetration is on the Rise…Rise…

But the Growth Rate is SlowingBut the Growth Rate is Slowing

18

+33.7% +37.0% +15.9%

Source: The Nielsen Company

Nielsen Reports 94% of TV Viewing is Nielsen Reports 94% of TV Viewing is to Real Time Broadcaststo Real Time Broadcasts

Nielsen Reports 94% of TV Viewing is Nielsen Reports 94% of TV Viewing is to Real Time Broadcaststo Real Time Broadcasts

Source: TVB Analysis of data presented in The Nielsen Company’s Three Screen Report, 1st Qtr 2010 P2+

Of the 6% Timeshifted Viewing About Of the 6% Timeshifted Viewing About 45% Watch the Commercials45% Watch the Commercials

Of the 6% Timeshifted Viewing About Of the 6% Timeshifted Viewing About 45% Watch the Commercials45% Watch the Commercials

Source: TVB Analysis of data presented in The Nielsen Company’s Three Screen Report, 1st Qtr 2010 P2+

About 3.2% of Viewing is Commercial Fast-Forwarded

About 10% of Viewers Account for About 10% of Viewers Account for 72% of Timeshifted Viewing72% of Timeshifted Viewing

About 10% of Viewers Account for About 10% of Viewers Account for 72% of Timeshifted Viewing72% of Timeshifted Viewing

% of all Viewers % Shifters % of Timeshifting

Heavy Shifters 3.5% 10.0% 39.0%

Medium Shifters 7.1% 20.0% 33.0%

Light Shifters 24.8% 70.0% 28.0%

21Source: TVB Analysis of The Nielsen Company DVR Study

Time-Shifting FactsTime-Shifting FactsTime-Shifting FactsTime-Shifting Facts

General Primetime Dramas are the most timeshifted genre.

Sports and News programs are the least timeshifted.

Most playback – 63% – occurs on the same day as recorded… 42% in the same hour.

Source: The Nielsen Company

Broadcasting & Local CableBroadcasting & Local CableBroadcasting & Local CableBroadcasting & Local Cable

23

The Local Programming of Choice is on Local The Local Programming of Choice is on Local TV Stations… 195 of the Top 200 Shows in TV Stations… 195 of the Top 200 Shows in

2009 2009 Were BroadcastWere Broadcast

The Local Programming of Choice is on Local The Local Programming of Choice is on Local TV Stations… 195 of the Top 200 Shows in TV Stations… 195 of the Top 200 Shows in

2009 2009 Were BroadcastWere Broadcast

1-25 25 0 0 2526-50 25 0 0 2551-75 23 2 0 25

76-100 25 0 0 25101-125 25 0 0 25126-150 24 1 0 25151-175 25 0 0 25176-200 23 2 0 25

Total 195 5 0 200% 97.5% 2.5% 0.0% 100%

24Source: The Nielsen Company, Galaxy Explorer; 9/22/08-5/20/09, Ranked by A25-54 Live+SD US AA % (ties broken by 000’s)

Program Broadcast SubscriptionRank Stations TV PBS Total

Prime Programs Ranked by Adult 25-54 Ratings

The Big Problem in Converting Cable The Big Problem in Converting Cable Network Audience to Local Ad Viewers:Network Audience to Local Ad Viewers:The Big Problem in Converting Cable The Big Problem in Converting Cable

Network Audience to Local Ad Viewers:Network Audience to Local Ad Viewers:

Satellite penetration is now at 32.9% of subscription HHs

Satellite HHs do not receive local cable ads. They do get local TV station ads.

25

Satellite!

Source: The Nielsen Company, May’10 DMA Media Related Universe Estimates

Broadcast’s Reach AdvantageBroadcast’s Reach AdvantageBroadcast’s Reach AdvantageBroadcast’s Reach Advantage

Broadcast TV has the potential to reach 100% of TV HHS

Local cable systems have the potential to reach 61.5% of TV HHS

39.5 % of viewers cannot see local cable TV ads

26

Let’s Look at Online VideoLet’s Look at Online VideoLet’s Look at Online VideoLet’s Look at Online Video

27

May 2010 Online Video ProfileMay 2010 Online Video ProfileMay 2010 Online Video ProfileMay 2010 Online Video Profile

Unique Viewers 135,881,000 (45% U.S. Pop.)

Video Streams: 9,821,675,000

Streams Per User: 72.3

Time Per Stream: 2:63 (min:sec)

28Source: Nielsenwire for May 2010

Top Online Video Brands May 2010Top Online Video Brands May 2010Top Online Video Brands May 2010Top Online Video Brands May 2010

1. YouTube 101,336,00034.6%

2. Facebook 26,186,000 9.0

3. Yahoo! 24,200,000 8.3

4. Google 18,851,000 6.4

5. Hulu 15,458,000 5.3


Uniques % U.S. Pop.

Top Online Video Brands May 2010Top Online Video Brands May 2010Top Online Video Brands May 2010Top Online Video Brands May 2010

1. YouTube 5,280,02753.8%

2. Hulu 813,043 8.3

3. MSN/Bing 183,836 1.9

4. Yahoo! 170,462 1.7

5. Turner Nets 130,552 1.3


Streams (000) % Total

Video Ads Viewed – June 2010Video Ads Viewed – June 2010Video Ads Viewed – June 2010Video Ads Viewed – June 2010

Hulu 566,162,000

YouTube 200,011,000(Includes All Google Sites)

Hulu Advantage +184%

31Source: ComScore June 2010

YouTube LeanbackYouTube LeanbackYouTube LeanbackYouTube Leanback

“We’re looking at how to push users into a passive-consumption mode, a lean-back experience.”

– Jamie DavidsonYouTube Product Manager

32

YouTube LeanbackYouTube LeanbackYouTube LeanbackYouTube Leanback

Pre-organize a video playlist by vertical category: sports, food, travel, etc.

Insert ads between video content clips

33

YouTube Tests LiveYouTube Tests LiveYouTube Tests LiveYouTube Tests Live

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September 13, 14 live streaming video

“Adding the power of live TV to a video-on-demand platform”

Live content partners – Next New Networks, Rocketboom, Young Hollywood and Howcast

You Tube Live Test PartnersYou Tube Live Test PartnersYou Tube Live Test PartnersYou Tube Live Test Partners

Rocket Boom Daily video news blog

Next New Networks Short form films “Indie Mogul”

Young Hollywood Celebrity clips

Howcast How to Defog Car How to Preserve LemonsHow to Survive a Bad HaircutHow to Make a Halloween

OutfitHow to Lower Pregnancy

Related Hypertension… (uh oh) 35

Marketing Consideration: The Heavy Marketing Consideration: The Heavy UserUser

Marketing Consideration: The Heavy Marketing Consideration: The Heavy UserUser

Twitter: 1 in 5 Twitter users has 10 followers, follows 10

and has twittered 10 times 73% have Twittered less than 10X

Facebook: 12% of users = 66% of visits 34% of users = 3% of visits

U.S. Internet: 16% of web users click on ads 8% of users = 80% of Clicks

36

Distribution of TV Viewers Distribution of TV Viewers by Amount of Daily Viewingby Amount of Daily ViewingDistribution of TV Viewers Distribution of TV Viewers by Amount of Daily Viewingby Amount of Daily Viewing

37Source: Bruzzone Research Co./TV Dimensions 2010

Light Medium Heavy

Exposure of Ad Messages Exposure of Ad Messages by Viewer Groupby Viewer Group

Exposure of Ad Messages Exposure of Ad Messages by Viewer Groupby Viewer Group

38Source: Bruzzone Research Co./TV Dimensions 2010

Light Medium Heavy

Mobile VideoMobile VideoMobile VideoMobile Video

39

Mobile Video GrowthMobile Video GrowthMobile Video GrowthMobile Video Growth

Monthly Reach of Mobile Video Viewers

40

1Q ’10 1Q ’09

20,284,000 13,419,000 +51.2%

Source: Nielsen Three Screen Report Vol. 8

Mobile Video UsageMobile Video UsageMobile Video UsageMobile Video Usage

Monthly Time Spent per Mobile Video User

41

1Q ’10 4Q ’09 1Q ‘08

3:37 3:37 3:37

Source: Nielsen Three Screen Report Vol. 8

Two last thoughts that Two last thoughts that go beyond the go beyond the

##ss

Two last thoughts that Two last thoughts that go beyond the go beyond the

##ss

42

More People Feel Broadcast Television More People Feel Broadcast Television is Most Involved in Their Communityis Most Involved in Their Community

More People Feel Broadcast Television More People Feel Broadcast Television is Most Involved in Their Communityis Most Involved in Their Community

43Source: TVB Media Comparisons Study 2010. Knowledge Networks Inc. Custom Survey.

Persons 18+

Television Advertising Has the Television Advertising Has the Best Perception Among Persons 18+Best Perception Among Persons 18+

Television Advertising Has the Television Advertising Has the Best Perception Among Persons 18+Best Perception Among Persons 18+

44Source: TVB Media Comparisons Study 2010. Knowledge Networks Inc. Custom Survey.

Most Persuasive

New Media Paradigm: POENew Media Paradigm: POENew Media Paradigm: POENew Media Paradigm: POE

Paid Media

Owned Media

Earned Media

45


Paid Media TV, Print Reach Awareness Persuasion Intrusion Search – High Control

46


Owned Media Search Websites Literature Email/Blogs Social Media Customer Relationship Management – High

Control

47


Earned Media Social Search Social Media YouTube Twitter Facebook Communities Dynamic Viral Unpredictable – Low Control

48

The POE Media World is:The POE Media World is:The POE Media World is:The POE Media World is:

More Complex

More Dynamic

More Demanding

More Interrelated

49

We’re Glad to be a Part of it!We’re Glad to be a Part of it!We’re Glad to be a Part of it!We’re Glad to be a Part of it!

50

Thank You!

video advertising in a multi-screen world 1. the marketing world is focused on all things digital...

Documents

video viewing

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minutes of video ads

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