yahoo online video_daily_habit_research

Why Online Video is a Daily Habit

Yahoo Insights Team

December 2013

Email

Search

Sports

Socializing

Lifestyle

Q&A

News

Music

Games

Video

Blogs

Shopping

In this pursuit, we are utilizing ever-growing

stores of data to understand how and why

consumers utilize the digital realm in order

to enhance their lives.

This report lays out the process we are

taking at Yahoo for understanding a major

digital daily habit—Online Video—and for

developing products and creating

opportunities for advertisers to engage in

consumers’ daily lives…


Source: 2011 Ipsos survey tracking

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TOP 12 DIGITAL DAILY HABITS Yahoo is making the world’s digital

daily habits inspiring and entertaining

Email

Search

Sports

Socializing

Lifestyle

Q&A

News

Music

Games

Video

Blogs

Shopping

Source: 2011 Ipsos survey tracking

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TOP 12 DIGITAL DAILY HABITS Yahoo holds leadership positions across the

top consumer daily habits, which allows us

to use signals from many different digital

experiences in developing products:

• Two types of consumer behavior signals:

• Explicit (e.g. visits to Sports web pages,

clicks on ads)

• Implicit (e.g. dwell time in the comments

sections of articles, searches for a brand

after seeing video ads about the brand)

• Data across all major platforms—mobile,

tablet, PC—and emerging platforms.

• Spanning content types (videos, articles,

images, search results) and interactive

product experiences (apps, email,

shopping, fantasy football, stock quotes).

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As we gather signals and work to make sense of them,

we are asking ourselves:

• How do digital daily habits form?

• Why does a particular digital experience become a daily habit?

In order to understand how daily habits form, we analyzed two approaches to product design:

• Designing for Triggers

• REM model

Through this analysis, we developed hypotheses that we tested in two-phase research with

consumers:

• Engaged with twenty 16-34 year olds about the role of online video in their daily lives using an online

community tool, SparkStream

• Conducted online survey of 1,775 consumers ages 16-44 who watch online video at least several times a

week

Designing for Triggers

TRIGGER ACTION

INVESTMENT REWARD

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In Desire Engine, Nir Eyal’s product design model says habits develop through a cycle that

starts with a trigger initiated by the product...

Trigger – Entices an action by the

consumer

Action – Delivers a reward

Reward – Provides emotional

reinforcement for the action, invites

deeper investment

Investment – Strengthens bonds

with the experience, builds personal

connection and community

Trigger – The next trigger repeats

the cycle, creating a reinforcing

loop…a habit develops

Designing for Triggers

Let’s look at this cycle using a scenario with Yahoo Fantasy Football...

TRIGGER ACTION

INVESTMENT REWARD

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Trigger – Receive an email from

Yahoo about this week’s game against

your office nemesis

Action – Launch the Fantasy

Football app to find a player to

strengthen your team

Reward – Discover that running back

Reggie Bush is available and add him

to your team

Investment – Talk some smack with

your nemesis, building community

Trigger – Receive a notification

about how your nemesis

responded…a habit develops

3:10 PM

Reggie Bush

is MINE!

Game on!!!

Let’s look at another product development model,

REM:

• Rational

• Emotional

• Meaningful

REM postulates a hierarchy of needs that, if met,

result in habitual behavior. By delivering on each of

these elements, a brand can create a habit in its

consumers.

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REM Model

RATIONAL

Basic everyday needs

• Table stakes—every product needs

to deliver these basics

• Provides sense of trust and control

EMOTIONAL

Engaging and inspiring experience

• This is where a product or brand

differentiates itself from

competitors, in design, voice, feel

MEANINGFUL

Deep connection to larger community

• Creates a social context and feeling

of connectedness

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REM Model

RATIONAL Basic elements of coffee

• Attributes : steaming hot, iced, caffeinated

• Performance : efficient service

• Psychosocial value : consistency

EMOTIONAL Coffee shop as an experience

• Sensory : aroma

• Affect : pleasure, stimulation,

local, décor, music, hangout

MEANINGFUL Deep connection with Starbucks brand

• Self-concept : fair-trade coffee

• Self-expression : personalization

• Personal meaning : “my starbucks”

• Social meaning : sophistication

Here is the REM model applied to

a well-known brand…

In the late 80s, coffee was a

commodity, until Starbucks turned

it into a product experience

EMOTIONAL

Feelings people want to feel daily... Digital experiences lead to intrinsic growth, feeling

great, and expressing a better version of self. There

is also a need for inspiration.

RATIONAL

Feelings people need to feel daily... Table stakes. Digital experiences must provide a sense

of control, safety, and lead to an organized life.

MEANINGFUL

Feelings people would love to feel daily... Digital experiences must be socially contextualized,

create significance within a group, and prevent

feeling of missing out

9

REM Model + Designing for Triggers

As applied to digital experiences

10


Now let’s focus on online video in the U.S.…

Video is a top daily habit: #5 for PC, #9 for Mobile, #4 for Tablet

According to comScore, each day 85M consumers in the U.S. watch

1.6B streams and spend 1.5 hours watching online video, just on the

PC. eMarketer estimates that 57.7% of the population or 75% of all internet users watch video

online. We wanted to know why and how video got to this place.

The following data pieces together why online video is becoming a daily habit. We have

identified 3 building blocks:

ACCESS – is the rational piece allowing consumers to watch where and when they want

CONTENT – provides the emotional layer that inspires consumers and allows them to

express the best versions of themselves

DISCOVERY – creates social connection and curation through personal digital

experiences, ultimately create meaning for consumers

ACCESS where I watch

CONTENT what I watch

DISCOVERY how I find what I watch

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Video Daily Habit Building Blocks

ACCESS where I watch

85%

73% 65%

51%

49%

13

of laptop owners

watch video on them

The average consumer watches video on 4 devices • 148M people in US now own a smartphone

• 62% of mobile phones are smartphones

• 72M people now own tablets

• Half of all parents own a tablet

• Half of households with income $75K+ own a tablet (eMarketer)

ACCESS

Consumers are viewing video across devices

38% of consumers say the ability to watch across a wide range of

devices is important to make a video destination a daily habit

DEVICE AT LEAST ONCE A DAY SEVERAL TIMES A DAY

Desktop 52% 34%

Laptop 65% 47%

Smartphone 61% 38%

Streaming Box 60% 33%

Tablet 57% 31%

Game console 46% 24%

Connected TV 49% 31%

61%

of consumers are watching video daily, across devices;

double the number from two years ago

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ACCESS

Daily video viewers have doubled in two years

Sorted top to bottom by total video viewers per device

HOW OFTEN DO YOU WATCH VIDEO ON THIS DEVICE?

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ACCESS

Dayparts

The next two pages show how online video usage changes from

one part of the day to the next.

• Mobile video has become important during morning and afternoon

dayparts; mobile video usage remains high during prime time as

consumers multi-task while watching television.

• Video viewing length and discovery modes change throughout the day.

Here is a typical scenario:

We wake up and snack on some quick, curated videos on our social media feeds, and as we

get to the afternoon hours we’re ready for slightly meatier content, but are more open to

discovery. This is when we stumble upon content, and that content comes in short form.

When we move to the evening hours, we lean back and consume more longform content on-

demand via aggregators like Netflix, Hulu, and network websites.

ACCESS

Mobile & tablet starting to dominate some dayparts

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VIDEO USAGE THROUGHOUT DAY

ACCESS

Online video is pervasive and adapting to daily rythms

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VIDEO USAGE THROUGHOUT DAY

36%

41%

25%

32%

39%

29%

28%

37%

35%

22%

26%

51%

Laptop Long form

Short form

User generated content

18

of consumers expect to watch online video

content on their TV screens by 2015

50%

ACCESS

Reaching viewers where and how they watch

VIDEO CONTENT MIX BY DEVICE

CONTENT what I watch

70%

43% Wide variety of videos

26% Videos which are

constantly updated (e.g. new

videos every couple of hours)

CONTENT

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CONTENT

Content is the biggest driver of the video daily habit

WHAT GETS YOU TO USE A VIDEO SITE DAILY?

10%

10%

16%

16%

22%

22%

26%

27%

38%

41%

Video Blogs

Design

Travel

Style

News

Gaming

Food

How To

Music

Comedy

Comedy and Music are

especially popular among

16-24 year olds

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CONTENT

Short Form: Most-watched short clips

SHORT CLIPS: WHICH TYPES DO YOU WATCH?

of people in

“discovery mode”

watch short clips

61%

What is your mind set

when you are in video

“discovery mode”

56% Laughed

67% Entertained

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CONTENT

Short Form: “Discovery Mode”

3 in 5 videos are happened-upon as a incidental part of our daily online lives

Regularly watch more than 2-3

episodes of a series in a row

3 in 5 consumers Marathon View

“I have the Netflix Streaming subscription, but

only use the free Hulu service. I generally watch

shows on my laptop, but will stream to my blu-

ray player on occasion. I usually watch one or

two episodes a day and finish the season in

about a week or so.”

- Male, 35

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CONTENT

Long Form: Marathon Viewing

With a wealth of newly available TV content,

marathon viewing is on the rise

80% of consumers

expect TV quality from curated online clips

45%

Will watch TV in a series of short form clips

45%

Expect most of the online video they watch

in 2015 will come from recognized networks

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CONTENT

Growing expectations of “professional quality” video online

65%

How do you define quality when it comes to

online video?

EXPERIENCE

High quality video 54%

Limited disruptions 45%

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CONTENT

Expectation of high quality with limited interruptions

WHAT GETS YOU TO USE A VIDEO SITE DAILY?

HIGH

LOW

40%

want high definition

video, regardless of

video type

92% DAILY VIDEO SITE

50%

TV SERVICES

68%

SOCIAL NETWORKS

25%

APPS

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CONTENT

Ever-increasing range of sources for daily video fix

WEBSITES OR SERVICES USED REGULARLY TO WATCH ONLINE VIDEO

Dynamic Landscape

Apps like Vine are amassing tens of millions

of users within a matter of months

DISCOVERY how I find what I watch

78%

SOCIAL

18%

AD 72%

BROWSING

62% SEARCH/ GO DIRECT/

INTENTIONAL

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DISCOVERY

Many sources of video discovery

HOW DO YOU FIND THE VIDEOS YOU WATCH?

50%

45%

36%

22%

15%

45%

34%

32%

23%

16%

50%

36%

18%

Social Network

Word of mouth

Via email or text

People I don't know on social

Tumblr or Blogs

Browsing online

Recommendations while watching videos

Video within article

Website with videos around interests

Sites like Buzzfeed or Upworthy

Video Aggregator

Search Engine

An Advertisement

SOCIALIZATION

BROWSING

INTENTIONALLY

VIA AN AD

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DISCOVERY

Many sources of video discovery


Share videos on

social networks of

relevance to my

friends & family Women and casual users

mostly share videos to

amuse friends and family

Share online video on

social networks to

connect with friends

and family

45%

59%

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DISCOVERY

Sharing today: Staying connected & starting conversations

WHY DO YOU SHARE VIDEOS ON SOCIAL NETWORKS?

49% say that people will be more

selective about videos they share

expect the Facebook

news feed to be

dominated by video

Only 33%

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DISCOVERY

Sharing in the future: Will have to meet a higher bar

IN 2015, THIS IS WHERE I EXPECT ONLINE VIDEO TO BE…

Online

video clips Originals

Music

videos

TV

programs Movies

Word-of-mouth 39% 29% 32% 33% 33%

Search engine 36% 25% 28% 24% 22%

Video aggregator 45% 27% 38% 23% 21%

Social network 42% 24% 31% 21% 19%

Just browsing 41% 24% 30% 18% 17%

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DISCOVERY

Video discovery approach varies with content type


52% a website or app will curate

(i.e. pick, organize &

recommend) the majority of

videos I watch based on my

interests or preferences

a website or app will bring

together all forms of online

video that interest me, so

I can see everything

in one place

58%

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DISCOVERY

Consumers expecting aggregation, curation, personalization

IN 2015, THIS IS WHERE I EXPECT ONLINE VIDEO TO BE…

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DISCOVERY

Personalization

With ease of access and content overload, video viewers are looking for

discovery assistance that will include automation, smarter curation, better

filtering, crowd sourcing, and relevant recommendations. What this really

amounts to is a greater call for personalization.

Video will be distributed through two methods of push and pull:

1) Through friends

2) Through normal online routines (using favorite apps/websites, searching)

The previous pages show just how important both push and pull will be to driving video views. In

order for a video to be discovered and watched, it’s critical to:

1) Have a robust social strategy

2) Be a part of the range of digital daily habits of consumers

3) Optimize search engine marketing while making it search-worthy in the first place

This concept of being a “worthy” place to watch is important to Yahoo, what we are calling the next

stage of video, or the televisionization of personalized video experiences.

PAYMENT how would I pay for this

35% 25%

Only 1 in 4 people

would consider

making monthly

subscription

payments

Only 1 in 3 people

would consider making

micro payments

36

PAYMENT

Ads still preferred over subscriptions

WOULD YOU BE WILLING TO PAY FOR ONLINE VIDEO?

55%

expect to be able

to choose the ads

they see

57%

expect online advertising

to be more interactive

48%

expect online advertising

to be directly relevant

to them

37

PAYMENT

Ads expected to be interactive, relevant, viewer-chosen

Pre-rolls 22%

Sponsorships 18%

Interactive ads 18%

Banner ads 15%

Wrapped banners 15%

Mid rolls 12%

MORE ACCEPTABLE

LESS ACCEPTABLE

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PAYMENT

The most appealing ads are non-disruptive, interactive

HOW ACCEPTABILE ARE EACH OF THESE ADS?

84%

16% I would be unwilling to

share information about

my shopping habits

42% I would be happy to

share information about

my shopping habits

42% I might consider sharing

information about my

shopping habits

39

PAYMENT Most would consider sharing personal info to get more relevant ads

WOULD YOU SHARE PERSONAL INFORMATION IN ORDER TO RECEIVE MORE RELEVANT

ADS TARGETED TO YOU?

40


Video is a daily habit as a result of easy access across devices, a wealth of great

content, and opportunities to discover through social and personalized experiences

ACCESS

Table stakes. Work with publishers that provide ease

of access, across devices and consumer daily habits.

CONTENT

Emotional connection. Sponsor or co-create the kinds

of content that consumers now expect. Align with the

rhythm of the consumer day and mindset.

DISCOVERY

Deeper significance and meaning. Utilize a push-and-

pull strategy to drive views that includes social and

strong curation powered by personalization engines. 41


What does this all mean for advertisers?

AD EXPERIENCE

• Take into account daypart, device type, and

demeanor

• Don’t get in the way of what the user wants

to do

• Use data wisely and respectfully when

targeting

• Contribute to the value exchange and

reciprocity

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What does this all mean for advertisers?

Thank you.

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