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Online Video Advertising Landscape
This document provides an overview of the online video landscape. It notes that while TV viewing is still prominent, behaviors are changing as viewership fragments across multiple screens. Nearly 60% of US households now have broadband access and online video streaming is growing rapidly. Younger demographics are more likely to watch online video. Popular online video sites like YouTube see billions of views monthly. The document also discusses how online video provides opportunities for targeted and measurable video advertising compared to traditional TV. It predicts online video advertising spending will continue growing substantially in coming years.
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Online Video Advertising Landscape
- 1. Online Video LandscapePreparedby: Fuor Digital
- 2. AgendaOverview – Stateof Online VideoDeep Dive – Digital Video LandscapeOnline Video Streaming for AdvertisersOnline Video Streaming PlayersWhat’s Next in Online Video
- 3.
- 4. TV is notdeadThe average American watches 153 hoursof TV per month4Source: A2/M2 Three Screen Report, Q1 2009
- 5. 5But viewing behaviorIS changing
- 6. Fragmentation continues toescalate6
- 7. With DVR penetrationinline with predictionsAs of March 2009, 30.6% of households in Nielsen’s People Meter Panel have a DVR, up from just 12.3% in Jan 2007A growing number are becoming multi-DVR households - 25% of homes had two, while 5% had three or more7
- 8. And Broadband accessreaching over 60% of all US households93.3% of Internet Users access the Web via a broadband connection8Source: MAGNA, US Census, April 2009; Nielsen 2010 Media IndustryFactSheet
- 9. More time watchingacross ALL screensTimeshifting usage with DVR is up 40%, with Americans playing back 8 hrs, 13 minutes per month. With broadband levels increasing, online video audiences will continue to grow as consumers begin to upgrade their PCs to support increased video consumptionMobile video viewing grew a significant 52% in Q1 09 from the previous year, up to over 13MM Americans. The most watched categories are comedy and weather9
- 10. 56 Million U.S.adults are “Off The Grid”Results Show That 56 Million “Off The Grid” Consumers Are Slipping Past Advertisers Because They Are Removing Themselves From Live Broadcasting Ad ExperiencesThis Off the Grid group represents nearly one third of the adult, online population in the United States – according to comScore, nearly 56 million people and growing.10SAY Media/ComScore New ResearchStudy Oct. 2010
- 11. U.S. consumers havewatched their favorite TV programs on the following platforms:Source: Deloitte’s State of the Media Democracy Survey, Fourth Edition December 2009From “Primetime” to “Mytime”11
- 12. Video Where, Whenand How I want it12
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- 14. Internet networking trafficis predicted to quadruple between 2009 and 2014 with online video as the primary driver of that growth.14Cisco Systems Annual Visual Networking Index Forecast, 2010
- 15. 15%Online video viewingsoars15Source: comScore VideoMetrix, July 2010
- 16. And will continueto grow16
- 17. Approximately one-quarter ofUS consumers watch Internet TV weekly.17Source: In-Stat, *The US Market for Web-Based TV Widgets and Applications* as cited in press release, April 20, 2010
- 18. Who’s watching?Television AudienceCompM46%W 54%Internet Video Audience CompThe highest penetration of online video is among A18-24, followed closely by A25-34 year olds.29% of under-25s get “most” of their TV online, compared to 8% of all online adults.From a sheer reach standpoint, the fastest growing demographic is among A45+ - while A35-49 are the fastest growing in time spent.W 53%M47%18Source: *Retrevo, « Gadgetology Report, » April 9,2010 * A2/M2 Three Screen Report Q1 2009 *Nielson Online VideoCensus, 2009
- 19. Who’s Watching?Source: comScore,“Great Expectations”, August 2010. 19
- 20. When an impressionmeans more than 118%+Source: The Nielson Wire Blog - February 201020
- 21. What are theywatching?Entertainment is by far the category leader in terms of reach, streams per streamer and minutes per stream21
- 22. The rise oflong-formAttributed to the success of online properties such as Hulu and the increase in Internet- enabled TV sets and other viewing devices. In-Stat expects US shipments of web-enabled devices that support TV applications to increase from 14.6 million this year to 83.4 million by 201422
- 23. Content optionsUser GeneratedContentTV23Professional
- 24. Where are theywatchingYouTube is by far the category leader, accounting for 43.1% of all videos viewed online.Source: comScore Video Metrix May 201024
- 25. Beyond the top1025
- 26. Because size isn’teverythingVS.26
- 27. Why are theywatching?Online video is for catching up, not replacingSource: The Nielson Wire Blog - February 201027
- 28. Online’s convenience appealsto viewersConvenience remains the key driver for online video useMore males than females watch for convenience, while more females than males watch for portabilityYounger visitors (age 18-49) are more likely to cite convenience and/or portability as a reason for useCommon Others:Can watch shows they missedCan watch shows that are no longer airedQ162: What are the top three reasons you watch TV shows on NBC.com?nQ1 =286 (Rotation Group)28
- 29. When are theywatching?Primetime hours dominate online viewsLunchtime Bump: Likely a result of access to computers at workNote: Rewind usage scales are higher than TV scalesSource: Nielsen and Omniture data, March 2010; Nielsen P2+ PUTs by hour for March broadcast month weekday viewing Live; Omniture visits by hour for March weekday only29
- 30.
- 31. The best ofboth worldsTraditional TV: sound, sight, motion, reachTraditional Digital: targetability, accountability, interactivity31
- 32. Video ads accountfor nearly 10% of all videos viewed onlineSource: eMarketer, “U.S. Internet Users”, April 2010; comScore, June, July and August 2010.32
- 33. Audiences have grownto accept online video adsMajority of audiences (~55%) find the presence of ads in online videos just as or more acceptable than ads in TV shows.Source: Frank N. Magid Associates, Inc., “Magid Media Futures 2010: Online Video”. 33
- 34. Digital video deliversmeasurable impactPremium Online Video vs. Non-Content Sites/Ad NetworksSource: Nielsen IAG, P13+ July 201034
- 35. Digital video deliversmeasurable impactPremium Online Video vs. TV Ad Performance65%46%Source: Nielsen IAG, A18-49, July 201035
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- 38.
- 39. And fully measurableenvironmentStandard MetricsImpressionsUnique impressionsClicksClick through rateInteraction rateInteractionsAvg. time spentVideo MetricsVideo start
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- 47. “It appears thatleveraging the large reach of TV in combination with the standalone impact and amplifying effect of online video makes for a successful marketing strategy”Dave Kaplan, Senior Vice President, Product Leadership at Nielsen IAG40
- 48. TV + onlinedeliverssuperior results18%52%44%35%53%35%29%26%31%19%17%13%Source: Nielsen IAG, A18-49, July 201041
- 49. 43% of cross-platformviewers have momentarily stopped watching a TV program online to go to an advertiser’s websiteSource: comScore, “Great Expectations”, August 2010. 42
- 50. A billion dollarindustry and growing43
- 51. Set to outpacegrowth of every other ad format44Source: Growth stats derived from published study of projected spend growth by ad format , eMarketer, May 2010
- 52. By 2014 over15%of advertiser’s online dollars are predicted to go towards video and 8.5% of their TV budgetseMarketer.com 201045
- 53.
- 54. Top streaming networks47Source:comScore VideoMetrix, July 2010
- 55. Streaming – afew things to rememberIt’s TV onlineCPM pricing model$30-$45 CPMInvestment minimums vary by networkSimilar number of commercial breaks as on-air1-3 commercials per podBrand engagement vs. immediate conversionRe-purposed TV ads generate the best resultsOn-air + online delivers the most impact48
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- 57. TV will embracethe connectivityBy 2015, 60% of all new TVs will have built-in network connectivity, and 70% of the connected sets ship with an embedded app platform and app store. Source:GigaOM Pro 201050
- 58. And get smarterSet-TopBoxes GetSmarter through EBIFVoting & PollingT-CommerceLead Gen/RFI51
- 59. Online Video SummaryMOREContentOptionsWatchingScreensConnectivityInteractivityChangeMoreOpportunity to reach your consumer52
- 60.
Editor's Notes
- #10 - Results Show That 56 Million “Off The Grid” Consumers Are Slipping Past Advertisers Because They Are Removing Themselves From Live Broadcasting Ad Experiences- This Off the Grid group represents nearly one third of the adult, online population in the United States – according to comScore, nearly 56 million people and growing.
- #35 Premium Online Video Ads Generate Greater Brand/Message Recall than Video Ads on Non-TV Content Sites and Ad Networks(demo expanded to increase available sample size); specific brands/ creative executions vary between streaming full episode and other online video sites/ad networks. Non-premium online video includes a combination of in-banner/in-stream video ad formats.
- #36 In a recent presentation at the Advertising Research Foundation’s annual RE: Think conference, Dave Kaplan, Senior Vice President, Product Leadership at Nielsen IAG, and Beth Uyenco, Director of Global Research at Microsoft, discussed the ins and outs of online advertising and how to effectively reach video viewers. Evaluating 238 brands encompassing 412 products in 951 ad executions in streaming full-episode TV programs, Nielsen IAG used the key brand impact metrics of ad recall, brand recall, message recall and likeability to determine the effectiveness of ads. More than 14,000 surveys were conducted.The patterns they uncovered were consistent: video ads run during online full-episode TV programs yield deeper brand impact than corresponding on-air TV ads, with the difference most pronounced among younger viewers age 13-34
- #42 But the results of the study don’t point toward an “either or” approach to advertising dollar allocation, especially given that audience reach and CPMs can vary greatly between linear TV and online streaming TV. Instead, the data suggests the benefits of utilizing both platforms in tandem to achieve advertising objectives.“It appears that leveraging the large reach of TV in combination with the standalone impact and amplifying effect of online video makes for a successful marketing strategy,” said Kaplan.Specifically, online video ads help to reinforce and strengthen the impact of a traditional TV campaign. Including online video advertising in the media mix and synchronizing with TV greatly improves all key brand metrics, especially message recall.
- #43 Fios TV widgetsVizio TV apps
- #44 What's an EBIF? It's the technical name (Enhanced Binary Interchange Format) for a standardized way to do interactive TV, at a national scale. It's big, because of its reach—to 25 million households, by year-end 2010. That's a lot of eyeballsShowtimeShowtime Sports® Interactive: An interactive TV project that enhances ....HSNComcast and HSN have announced the national rollout of "Shop by Remote"...Comcast Caller IDETV enhances the customer experience by providing services such as Caller ID. Comcast's Triple Play customers...Time Warner CableLeveraging ETV, cable operators, content providers or advertisers can implement overlays to digital content streams. Time Warner...