Friday, June 29, 2012

For Tablet Users, Video Trumps All Other Content Types

54% of tablet users watch video on their tablet on a weekly basis

It may be no surprise that tablet users are embracing online video in a big way. According to a March 2012 study by the Online Publishers Association (OPA) and research consulting firm Frank N. Magid Associates, accessing content and information was the top reason US tablet users reached for their devices, at a considerable 94%. Video was the most popular content that tablet users sought, followed by getting weather information and local news.


Tablet Content Accessed Weekly According to US Tablet Users, March 2012 (% of respondents)

Business-related content, such as financial information and checking the stock market, fell fairly low on the list, indicating a more entertainment-focused device experience for most users.
Short-form news and entertainment videos trumped long-form movies or television shows as the most popular videos watched by tablet users. A lofty 92% of those who consumed video on their tablet said they viewed short-form news and entertainment videos on a regular basis. Moreover, 64% viewed user-generated videos, like YouTube videos, on a regular basis. Fewer than half of the respondents said they watched full-length TV shows and movies on their tablet regularly. This suggests that tablet users are more apt to snack on the device—use it for short periods of time, as opposed to hour-long blocks.

Types of Videos that US Tablet Users View Regularly on a Tablet, March 2012 (% of respondents)

In general, tablet users watched video more frequently than smartphone users. According to an April comScore MobiLens study, 53% of US tablet users watched mobile video or TV at least once that month, compared to only 20% of smartphone users. This is likely because of the tablet's larger screen size and its role as a couch companion.

Frequency with Which US Smartphone and Tablet Users Watch Mobile Video/TV, April 2012 (% of total)

eMarketer projects nearly 70 million US consumers will use a tablet by the end of 2012. By 2015, over half of all internet users will be tablet users. This tablet growth rate means that video is also likely to flourish. As marketers consider their tablet video strategies, they should keep in mind that shorter video content is consumed on a more regular basis than long-form content.-eMarketer

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Wednesday, June 27, 2012

5 Key Video Marketing Findings: comScore Report

comScore released a report entitled Surviving the Upfronts in a Cross-Media World, a guide for navigating the cross-media landscape during this year’s TV and digital upfronts.

The report examines how the online video market can be used to supplement traditional television advertising. It also looks at the effectiveness of cross-media campaigns. The report also features some recommendations for advertisers, agencies, and media buyers who are thinking about incorporating digital video formats to their media mix.

“With the digital upfronts in their second year, more advertisers are considering adding digital video to their media mix in long-form TV programming and short-form video,” said Judy Bahary, SVP, Marketing Solutions at comScore in a press release. “Our research shows an incredible synergy between TV and digital video formats when used together in cross-media campaigns, driving effectiveness levels higher than either medium used on its own. As the online video market continues to develop, we should see it evolve from its current supporting role to an essential part of media planning in the annual upfronts.”

Key findings include:
  1. The online video audience reaches approximately 180 million monthly unique viewers. In addition, average engagement levels are rising as it continues to play a more prominent role in the online experience.
  2. Adding a digital video component to a TV media plan can increase the effective reach of the campaign in a very efficient manner.
  3. Digital video ad formats are just as effective as TV ads. But TV and digital video have a synergistic effect when used together, making this media mix more effective than either one on its own.
  4. Multi-Screen consumers are a fast-growing segment and need to be marketed to on multiple screens in order for campaigns to achieve optimal reach and frequency levels.
  5. Younger age segments are generally more receptive to digital advertising than TV, highlighting the importance of incorporating digital video into the media buying and planning process.
It’s no surprise that YouTube is the clear leader in the online video market today, easily drawing 146 million viewers in March 2012. Other leading publishers of video content include Yahoo! (61 million viewers that month), VEVO (51 million) and Facebook (45 million). Many of these properties fluctuate within the top 10 ranking from month to month, but their audiences are consistently strong.

To get a true sense of how widespread online video content is in the U.S., comScore examined its reach within the online population as well as among the total U.S. population, and segmented it by age group. Overall, more than 4 in 5 Internet users are consuming online video content in a given month.
online-videos-reach
The 18- to 24-year-old segment showed the highest penetration of its online population at 87 percent. Another interesting finding is that for ages 25-34 and 35-44, there is virtually no difference between online video’s reach among the web population and the total U.S. population, which suggests that nearly 100 percent of people ages 25-34 and 35-44 in the U.S. are Internet users, making a strong case for the potential value of online video advertising for marketers interested in reaching all of these segments.

While the monthly audience for online video content is steady at around 180 million people, the degree to which users engage with online video has increased dramatically in the past year. In fact, 30 percent more Americans now watch online video content on an average day than they did a year ago.

The average user spends more than 21 hours per month (up 47 percent) watching more than 200 content videos (up 20 percent). Americans’ growing interest in long-form video content is evident from the growth in the average time spent watching a video, which has jumped 23 percent in the last year to 6.4 minutes.

The report makes its most persuasive arguments when it cites the latest data or recent studies. However, it also makes some less persuasive arguments when it suggests editing “TV ads down to 15 seconds to optimize for digital platforms.” This isn’t backed up with any supporting evidence.

Cutting a 30-60 second TV ad spot down to 15 seconds might make sense “if” viewers have no choice and no control over which ads they want to see and when. Anything longer might annoy or irritate them.

But, the advent of YouTube’s TrueView video ads, which give viewers the ability to skip an advertiser’s message, means you might not need to cut your 30-60 second TV ad spot. And since YouTube charges you only when a viewer has chosen to watch your ad, not when an impression is served, there’s no cost and no risk to running a spot that’s longer than 15 seconds.-Greg Jarboe, Search Engine Watch

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Saturday, June 23, 2012

Tablets Gain Mobile Video Viewers

Per comScore, tablets have reached a critical mass in the U.S. with 1 in every 4 smartphone owners using tablets during the three-month period ending April 2012, and nearly 3x more likely to watch video on their device compared to smartphone users, with 1 in every 10 tablet users viewing video content almost daily on their device.
Mark Donovan, comScore SVP of Mobile, observes that “... tablets are one of the most rapidly adopted consumer technologies in history... poised to fundamentally disrupt the way people engage with the digital world... on-the-go and... in the home...”

In April 2012, 16.5% of mobile phone subscribers used a tablet, representing an increase of 11.8 percentage points in the past year. Growth in market penetration was even more apparent among the smartphone population with nearly 1 in 4 using a tablet device in April, an increase of 13.9 percentage points in the past year. A lower 10.4% of feature phone owners use a tablet, suggesting that smartphone ownership is highly predictive of tablet adoption in the current market.

Tablet Users Among Mobile Audiences (Total U.S. Mobile Subscribers; Ages 13+; 3 Mo Average)

% of Respondents Using Tablet

Apr 2011 Apr 2012 Point Change
Total Mobile (Feature Phone & Smartphone)
4.7%
16.5%
11.8
Smartphone Only
9.7%
23.6%
13.9
Feature Phone Only
2.3%
10.4%
8.1
Source: comScore MobiLens, June 2012

A demographic analysis of mobile device audiences indicated that tablet and smartphone audiences closely resemble one another in terms of gender composition, with tablet users just slightly more likely to be female than smartphone users.

However, the age composition of audiences showed that tablet users skewed noticeably older than smartphone users. For both devices, the heaviest overall audience concentration was between the ages of 25 and 44. Compared to smartphone owners, tablet users were 28% more likely to be in the 65 and older age segment, and 27% less likely to be age 18-24.

Tablet users also skewed towards upper income households, likely a function of the high price point of these devices still considered a luxury good to many consumers. Nearly 3 in 5 tablet users resided in households with income of $75,000 or greater, compared to 1 in every 2 smartphone users.
More than half of tablet users watched video and/or TV content on their device in April 2012, compared to just 20% of the smartphone audience, with larger screen sizes making tablets more conducive to video consumption than their smaller-screen cousins, says the report.

Not only were tablet users more likely to watch video, but they were more likely to view video habitually with 18.9% of tablet users watching video content at least once a week, and 9.5% watching video nearly every day on their device. Of those viewing video at least once during the month, 1 in 4 paid to watch content, highlighting the tremendous monetization potential this platform represents for content providers.
Video/TV Viewing on Device for Tablet and Smartphone Audience (Total U.S. Tablet Owners and Smartphone Subscribers, Age 13+; 3 month avg. ending Apr. 2012)
Viewing Frequency % of Tablet Audience % of Smartphone Audience
Ever in month
53.0%
20.0%
Once to three times throughout the month
24.6%
10.3%
At least once each week
18.9%
6.7%
Almost every day
9.5%
2.9%
Source: comScore TabLens and comScore MobiLens, June 2012
For additional information from comScore. - MediaPost

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Friday, June 22, 2012

YouTube Video Campaign Engagement Levels

yesmail-youtube-campaign-video-length-june2012.pngWhile 33% of the most-engaging YouTube campaigns run under 30 seconds, only 11% of campaigns by volume run that length, per findings from a Yesmail Interactive study [download page] released in June 2012. And although YouTube campaigns rose sharply over the 3-month study period - by about 38% to 80 across all brands (3.5 campaigns per brand) - the average campaign engagement plummeted by roughly 66%. Yesmail’s actual engagement measure adjusts for follower size; rather than measure by sheer volume of Facebook Likes or YouTube views, actual engagement is a measure of individuals’ behavior. Thus one campaign may outnumber another in followers by 10 to 1, but its actual engagement may be far lower.

Duration Does Not Match Actual Engagement

Some 45% of all campaigns for 20 leading apparel brands (including Abercrombie & Finch, Old Navy and American Apparel) ran between 30 and 90 seconds. But of the top 10% in terms of actual engagement, a plurality (33%) ran under 30 seconds, while just 39% ran between 30 and 90 seconds. A further 28% ran either between 120-180 seconds (17%) or more than 180 seconds (11%).
The study indicates that much of why brands choose the longer formats is due to choice of content: TV commercials typically run from under 30 to 90 seconds, while music videos, short documentaries and user-generated content usually run over 120 seconds.
According to recent comScore data, video ads accounted for 21.6% of all videos viewed and 1.9% of all minutes spent viewing video online in May. While the duration of the average online content video was 6.5 minutes, the duration of the average online video ad was 0.4 minutes - or 24 seconds.
If duration is a key variable in engagement, then, the challenge for brands is to create video that is short enough to be digestible for the consumer, but long enough to tell a compelling story that prompts a reaction. And if video advertisers want to take a cue from a recently-released Nielsen study of CPG ads from 2006 to 2011, it’s best they focus on funny or sentimental ads at the expense of those that hone in on promotions or prices.


Marketers Missing Other Opportunities, Too

Marketers deploying campaigns on YouTube appear to be missing the boat with regards to the optimal days for deployment. Despite Monday being the most engaging day for YouTube, it is one of the 3 least-utilized deployment days. By contrast, the largest number of YouTube campaigns were deployed on Friday and Thursday.


Other Findings:

  • 15% of the brands tracked do not have a YouTube channel.
  • Only 35% of the brands that have a YouTube channel deployed campaigns during each of the 3 months tracked. 20% only deployed campaigns in 1 of the months.
  • Roughly two-thirds of the YouTube campaigns were deployed between 11AM and 7PM ET. Surprisingly, the 2AM - 3AM timeslot achieved the highest engagement. It may be that these campaigns are reaching insomniacs: according to recent figures from Resonate, insomniacs are 34% more likely to watch TV on a computer, 31% more likely to watch from a tablet, and 24% more likely to watch on a cell phone.
About the Data: Yesmail used its Yesmail Market Intelligence tool to tracks, collect and analyze all digital campaigns deployed through email, Facebook, Twitter and YouTube, for 20 leading apparel brands and retailers over a three-month period. Those brands included The Gap, Abercrombie & Finch, Ralph Lauren and Urban Outfitters, among others. Brands were selected for their strong reliance on social media marketing, and for their focus upon the 18-35 year old demographic.-eConsultancy


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Monday, June 18, 2012

Video Marketing, Production and Distribution Simplified

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Video Ad Views Surpass 10 Billion - 1st Time

comScore May 2012 U.S. Online Video Rankings
More than 180 million U.S. Internet users watched 36.6 billion online videos in May. Video ads posted another month of record-breaking gains, surpassing the 10-billion mark for the first time on record.


Top 10 Video Content Properties by Unique Viewers
Google Sites, driven primarily by YouTube.com, ranked as the top online video content property in May with 151.7 million unique viewers, followed by Yahoo! Sites with 57.8 million, VEVO with 48.3 million, Microsoft Sites with 44.4 million and Facebook.com with 44.3 million. Nearly 36.6 billion video content views occurred during the month, with Google Sites generating the highest number at 17.6 billion, followed by Hulu with 888 million and Yahoo! Sites with 845 million. The average viewer watched 21.9 hours of online video content, with Google Sites (7.7 hours) and Hulu (4.2 hours) earning the highest average engagement among the top ten properties.
Top U.S. Online Video Content Properties Ranked by Unique Video Viewers, May 2012, Total U.S. – Home and Work Locations
Content Videos Only (Ads Not Included)
Property Total Unique Viewers (000) Videos (000)* Minutes per Viewer
Total Internet : Total Audience 180,503 36,556,792 1,315.3
Google Sites 151,656 17,618,391 462.7
Yahoo! Sites 57,762 845,401 77.7
VEVO 48,258 653,656 57.5
Microsoft Sites 44,356 490,942 42.7
Facebook.com 44,310 246,972 24.0
AOL, Inc. 39,627 569,268 60.5
Viacom Digital 39,199 433,530 53.8
News Distribution Network, Inc. 34,246 286,801 86.8
Amazon Sites 27,158 96,733 21.9
Hulu 25,689 887,812 253.7
*A video is defined as any streamed segment of audiovisual content, including both progressive downloads and live streams. For long-form, segmented content, (e.g. television episodes with ad pods in the middle) each segment of the content is counted as a distinct video stream.

Top 10 Video Ad Properties by Video Ads Viewed
Americans viewed an all-time high of 10 billion video ads in May. Hulu ranked first with more than 1.6 billion video ads delivered, followed by Google Sites with nearly 1.4 billion, BrightRoll Video Network with 1.1 billion, Adap.tv with 966 million and TubeMogul Video Ad Platform with 897 million. Time spent watching video ads totaled 4.5 billion minutes, with Hulu delivering the highest duration of video ads at 725 million minutes. Video ads reached 52 percent of the total U.S. population an average of 64 times during the month. Hulu delivered the highest frequency of video ads to its viewers with an average of 56, while ESPN delivered an average of 29 ads per viewer.
Top U.S. Online Video Ad Properties Ranked by Video Ads* Viewed
May 2012, Total U.S. – Home and Work Locations
Ads Only (Content Videos Not Included)
Property Video Ads (000) Total Ad Minutes (MM) Frequency (Ads per Viewer) % Reach Total U.S. Population
Total Internet : Total Audience 10,076,499 4,517 63.6 51.7
Hulu 1,666,846 725 55.5 9.8
Google Sites 1,385,273 143 18.6 24.3
BrightRoll Video Network** 1,130,983 673 10.3 35.8
Adap.tv† 966,204 556 13.1 24.1
TubeMogul Video Ad Platform** 896,787 259 17.4 16.8
Specific Media** 751,542 359 7.7 31.9
Tremor Video** 725,944 408 14.1 16.8
SpotXchange Video Ad Marketplace† 615,290 326 13.5 14.9
Auditude, Inc.** 569,862 219 11.6 16.0
ESPN 490,103 169 28.6 5.6
*Video ads include streaming-video advertising only and do not include other types of video monetization, such as overlays, branded players, matching banner ads, etc.
**Indicates video ad network
†Indicates video ad exchange

Top 10 YouTube Partner Channels by Unique Viewers
Video music channels VEVO (47.6 million viewers) and Warner Music (27.7 million viewers) maintained the top two positions. Gaming channel Machinima ranked third with 23.5 million viewers, followed by Maker Studios Inc. with 16.2 million, FullScreen with 14.1 million and BroadbandTV with 8.1 million. Among the top 10 YouTube partners, Machinima demonstrated the highest engagement (66 minutes per viewer) followed by VEVO (55 minutes per viewer). VEVO streamed the most videos (618 million), followed by Machinima (388 million).
Top YouTube Partner Channels* Ranked by Unique Video Viewers
May 2012, Total U.S. – Home and Work Locations
Content Videos Only (Ads Not Included)
Property Total Unique Viewers (000) Videos (000) Minutes per Viewer
VEVO @ YouTube 47,633 617,770 55.1
Warner Music @ Youtube 27,689 160,880 24.1
Machinima @ YouTube 23,503 388,012 65.7
Maker Studios Inc. @ YouTube 16,158 169,230 43.5
FullScreen @ YouTube 14,135 69,806 18.4
BroadbandTV @ YouTube 8,130 38,293 16.5
Big Frame @ YouTube 7,309 41,341 19.5
Demand Media @ YouTube 6,363 15,238 7.9
Collective Digital Studio @ YouTube 6,261 40,250 22.1
MOVIECLIPS @ YouTube 6,103 15,088 8.5
*YouTube Partner Reporting based on online video content viewing and does not include claimed user-generated content

Other findings from May 2012:
  • 84.5 percent of the U.S. Internet audience viewed online video.
  • The duration of the average online content video was 6.5 minutes, while the average online video ad was 0.4 minutes.
  • Video ads accounted for 21.6 percent of all videos viewed and 1.9 percent of all minutes spent viewing video online.

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Friday, June 15, 2012

Why and How To Create Online Video Content

ReelMarketer.com
Check out our new article on Reel Marketer.

You thought you had your marketing communications under control.
White papers, case studies and webinars – no problem. Your blog is generating traffic, your email campaigns and CRM system are working, and you’ve even implemented a social media strategy. So things are good, right? Well, not really.

You’re missing a crucial component – online video.

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Thursday, June 14, 2012

Online Video Everywhere

According to the Q1 Global Video Index Report from Ooyala, Long-form content, videos longer than 10 minutes, accounted for half the total time people spent watching online video in Q1, and the growth trend is expected to continue.

Viewers are watching more videos on their tablets and mobile devices, and for longer periods. The overall share of time watched on smartphones grew by 41% last quarter. The share of time watched on tablets grew by 32%.

Tablet video viewing rises on weekday mornings as people prepare for the day and commute to work, then falls off during work hours as PC viewing picks up. On weekday evenings, tablet video surges as people watch streaming video to end their day. A third of tablet video plays occur between 7pm and 11pm, while only about 17% of PC plays take place over that same window.

On the weekend, the morning “commuter bump” fades on tablets. Mobile video drops 22% on weekend mornings compared to the workweek. And on Saturdays between 4pm and 11pm, viewers watch nearly a third more video on connected TV devices than they do during the week.

Tablet viewing rises in the morning, tails off during through midday, and then surges in the evenings. On a typical weekday, a full third of tablet video plays occur between 7pm and 11pm. Only about 17% of PC plays take place over that same period.

Viewers on connected TVs watch nearly a third more video between 4pm and 11pm on Saturdays than on a typical weekday evening. Most video publishers have a small group of super-engaged viewers. The analysis shows that 10% of a publisher’s audience watches more than five of its videos in a given day. Smart marketers will find new ways to identify and engage these “power viewers.”

Key trends from Q1 2012:

• People are watching more TV shows, movies and long-form videos online, and they are watching for longer periods of time. Long-form content made up more than half of the total time spent watching video in Q1 across all connected devices

• The share rose dramatically from 57% in Q4 2011 to 88% in Q1 2012. Around 40% of the time spent watching online video on mobile and tablets was spent watching long-form videos, compared to 29% for mobiles and 36% for tablets in Q4 2011

• In addition to watching more long-form video, people are watching each video longer across PCs, smartphones and tablets. Tablets recorded the strongest growth, with time per play increasing 58% during the quarter. The same metric grew 36% for smartphones and 24% for PCs

The study finds that, of users who watch video when they visit a domain or use an application, 55% will watch one video over the course of a given day. At the other end of the spectrum, 10% of the publisher’s audience will be highly engaged “power viewers,” watching more than five videos during the day.

The data shows explosive growth in video watched on non-PC devices like tablets, smartphones, gaming consoles and connected TV devices. The share of non- PC video plays has tripled in the past nine months alone.

Concluding, the report says that the overall share of time watched for mobile video grew by 41% in Q1, while tablets notched 32% growth. ”Typical” TV viewing is shifting, and not slowly, from broadcast channels on a single screen to mobile, multi-screen viewing experiences- Ooyala

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Out-Of-Home To Reach $8.2 Billion By 2016

Despite continuing economic uncertainty at home and abroad, U.S. out-of-home advertising will enjoy a cumulative annual growth rate of 4.9% from 2012-2016, increasing to $8.2 billion over that period, according to PricewaterhouseCoopers, which just released its latest global advertising forecasts.

That’s about the same as PwC’s forecast for the global out-of-home marketplace overall, which the consultancy sees expanding at a CAGR of 5% for 2012-2016. It’s also higher than the predicted growth rate for the broader U.S. economy, with most economists predicting GDP will grow by low single digits over this period, at best.

Stefanie Kane, a partner with PwC’s entertainment and media practice, attributed the positive forecast to the continuing rollout of digital billboards and captive audience video networks, both of which have been growing at an impressive clip in recent years. Captive audience networks, in particular, are “widening to locations that weren’t previously available,” noted Kane, including taxi cabs and gas pumps.

Digital billboards and video networks also allow owners and operators to sell inventory based on dayparts, giving advertisers greater flexibility, as well as more precision in targeting audiences. Increasing adoption of the new “Eyes On” metric from the Traffic Audit Bureau should also result in greater advertiser confidence in the out-of-home medium.

Kane pointed to the growing overlap between all types of out-of-home advertising and the burgeoning field of mobile marketing, with coordination between the two enabled by QR codes, near-field communication and other mobile response mechanisms.

While mobile e-commerce is still in its early stages, hybrid models combining out-of-home and mobile marketing can facilitate in-store mobile transactions for retail customers.

That said, out-of-home does face some headwinds in the U.S. The cost of installation for new digital billboards, in particular, remains high -- at an average price of $450,000 for a 14-by-48-foot LCD billboard. Digital billboards only make up 2,400 surfaces of the total 400,000 billboard surfaces available in the U.S. -- or less than 1%. Digital billboards also face continuing opposition from some state and local governments, which contend that they distract drivers or are aesthetically unappealing.-Erik Sass, MediaPost

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Wednesday, June 13, 2012

Video and TV Advertising Integration

Fear of change, complexity and simple inertia hold back ad integration


Someday, online video will almost certainly become so disruptive that TV advertising will have to integrate with it. Several forces are in play that will likely fuel that eventual fusion, most notably the availability of high-quality video content and associated advertising across five increasingly used digital screens—desktop computers, notebook computers, smartphones, tablets and connected TVs.

But in the short term, the fusion of online video ads and TV commercials into singular campaigns will remain incomplete.

The core factor is a fear of financial loss within the TV industry—broadcast and cable networks, and cable providers (which are often also ISPs). Those fears are leading to tactics such as broadband and mobile data caps, which can reduce video usage, and the use of authentication protocols to block cord-cutters from accessing TV content online.

In the meantime, online video’s ad spending growth will far outstrip TV’s growth through 2016, fueled more by the desires of brand advertisers than by the actions of media companies and other established content owners.

US TV Ad Spending Growth vs. Online Video Ad Spending Growth, 2010-2016 (% change)

The growing consumer appeal of connected TVs is one force in favor of integration between online video and TV advertising. It’s also why 28% of brand advertisers and agencies in North America expected to buy ads on that platform in 2012, up from 8% in 2011, according to a report from Adap.tv and DIGIDAY.

Brand Advertisers and Agencies in North America Who Spend on Connected TV Ads vs. Publishers Who Support Connected TV, 2010-2012 (% of respondents in each group)

The growing online video audience, and its devotion to watching ever more content online, is another factor favoring integration. But the forces arrayed against it are also strong, including the fear of cannibalization, the inability of content owners to sell sufficient ad loads online, the complexity of buying and measuring digital ads, and, of course, simple inertia.

The five digital screens—desktops, notebooks, tablets, smartphones and connected TVs—are where audiences increasingly watch TV and other video content, and brands need to reach them anytime and everywhere.-eMarketing

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Monday, June 11, 2012

Video Effectiveness Seen by Advertisers


Digital video advertising can be equally or more effective than TV, say 64% of advertisers responding to a BrightRoll survey released in June 2012. An even greater proportion see digital video as equally or more effective than display (87%) and social media (69%). Digital video’s effectiveness appears to be driven by its targeting capabilities, which 43% cite as its most valuable aspect. As a result, the use of behavioral targeting by agencies in online video campaigns will increase by 24% this year, with two-thirds saying that more than 40% of their online video ads will be behaviorally targeted. Interestingly, beyond targeting, advertisers also see digital video’s reach and format as more valuable than its price relative to TV, which appears as the channel’s least valuable aspect. Online video’s reach doesn’t yet hold a candle to TV’s reach, though, but it is growing, according to a comScore report also released in June. Across 10 major brands included in the study, on average, 90% of their audiences were reached via TV, compared to 12% through online video.

Digital Video Spending Gets A Boost

Data from BrightRoll’s “US Video Advertising Report 2012″ indicates that digital video advertising budgets are on the rise. This year, close to one-third of the respondents said that 40-60% of their digital RFPs include an online video component, up 9% from last year. Almost one-third of respondents also said that more than 60% of their digital RFPs include video, up 4% from 2011.

Digital video ad spending could get a more significant boost if clearer ROI and success metrics could be determined, with 7 in 10 respondents identifying these needs.

Mobile Gets Share of Video Budgets

This year, half of the BrightRoll respondents said they will likely include tablets in their digital video budgets. This seems sensible, given recent (separate) research from comScore indicating that a majority of tablet owners watch video and/or TV content on their device. While a majority of advertisers will also devote a portion of their digital video budget to mobile, a significant proportion (30%) will also likely allocate some to connected TVs. This choice also seems to follow consumer behavior, as a May 2012 report from Ooyala found connected TVs and gaming consoles to have the highest conversion and engagement rates among the various online video viewing mediums.

Other Findings:

  • The BrightRoll respondents do not display a clear preference for audience measurement. One-third say that their clients most value knowing what percent of viewers reached by their campaign were within their target audience. Not far behind, 26% value knowing what percentage of impressions were delivered to their target audience, and 25% value GRP or TRP measurements.
  • More respondents see contextual and behavioral targeting as valuable than demographic or geographic targeting.
  • The area of online video advertising that most agencies want to see more research into is the impact on offline purchase behavior, at close to one-third of respondents. Almost 1 in 4 want to see more research into the performance of video advertising as compared to TV.
  • The most common video campaign success metrics among respondents are views, brand lift, and sales impact.
  • Advertisers are most likely to buy video inventory from ad networks this year, marking a shift away from publishers.
  • According to the comScore report, 17% of the media brands’ studied audience were multi-screen consumers.
  • Further data from the comScore study indicates that multi-screen consumers who used the media brands via TV and online video spent 25% more time with the content than those who engaged only via  TV.
  • Across the media brands studied, 3 in 5 of their TV viewers used the internet within the same half-hour time block at least once during the 5-week study period. 29% used Facebook.
About the Data: The BrightRoll data is from 106 respondents to a survey conducted in March and April 2012.

comScore developed a Multi-Screen panel of consumers who had access to TV, Internet and mobile devices. The study includes media behavior from both smartphones and tablets but does not include mobile app usage. TV viewing was obtained from set top boxes with return path data capability, with panel households located in metropolitan areas of 22 states. Internet and mobile media usage data was collected for each panelist and includes detailed demographics for each user. To report TV usage at a demographic basis, comScore developed a methodology to attribute demographics to the household- based TV data. With these pieces in place, each platform was enabled with the demographic and socio-demographic segments commonly used in the media industry.

In all, 10,000 consumers participated in the study and 1,000 were active mobile Internet users.

comScore measured the audience size and composition for 10 networks and network groups (“media brands”) and 3 advertisers. The networks/network groups were comprised of 4 major broadcast networks and 6 major cable networks or networks groups. The study was conducted over a five week period in Fall 2011 and examined TV viewing for individual networks or groups of networks and cross-tabulated that viewing with the use of related content on the Internet, mobile Internet and online video. Due to sample size considerations, “related” content was usually broadly defined, so that it included the media company’s network-specific websites and online video, but also may have included other websites and online video content that the media company owns. By way of defining the consumer groups, “Multi-Screen” consumers are those who used the respective network/network group’s content on two or more platforms of the three measured: TV, Internet, mobile.-MarketingCharts

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Sunday, June 10, 2012

Video Ad Spending to Increase 40%

Video is commanding an ever-greater share of online ad dollars. eMarketer, for one, expects video ad spending to increase by 40%, this year, to reach $3.1 billion.

But, how are marketing execs allocating all that money?

64% plan to include smartphones in their spend, while more than 50% said they are likely to include tablets, according to new research from BrightRoll. 30% said they are likely to include connected TV.

While BrightRoll's 2011 survey revealed that video had become a staple of online ad buys, this year’s survey shows that advertisers are embracing the viability of a new digital video viewerscape across four unique screens: computers, smartphones, tablets and connected TVs.
The findings, according to BrightRoll, also indicated that budget allocations may be based on the “maturity curve” -- or how long video has been available on each screen, instead of analyzing what medium is most effective in achieving campaign goals.

Overall, the report indicated that 30% of respondents expect online video to have the largest increase in media spending this year.

On the growth front, 70% of respondents said that clearer ROI and better success metrics are still needed to increase digital video ad spending.

Showing just how far the medium has come, however, 64% of advertisers said that online video is an equally or more effective medium than TV. Respondents overwhelmingly selected targeting -- 43% -- as what their clients deem the most valuable aspect of online video, followed by reach: 28%.

More than half of respondents said they are more inclined to buy online video inventory from a network or exchange than anywhere else -- that's a 20% increase from last year’s survey. Behavioral targeting remains valuable to advertisers with 64% of respondents indicating their online video ads will be behaviorally targeted in 2012 -- a 14% increase from 2011.

Only 5% of respondents said GRP is the most important success metric, while 18% said they are most interested in seeing additional research on GRP measurement for online video buying.-Gavin O'Malley, MediaPost

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Thursday, June 7, 2012

TV Includes 25% Ads; Online Long-Form Video 8%

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comscore-tv-v-digital-ad-loads-june2012.pngResearch from Ooyala suggests that there is potential for publishers to increase their video ad loads, and a new study released in June 2012 by comScore shows that, indeed, online video lags traditional TV in ad loads by a considerable amount. According to the report, content accounts for 75.2% of TV programming, with ads accounting for the remaining 24.8%. Within the online video space, though, ads accounted for just 1.5% of overall viewing time in March 2012. And although online video ad loads were slightly stronger for long-form premium TV content, with ads representing 7.9% of all minutes, they still paled in comparison to traditional TV ad loads.

Video Viewing Growth Outpaces Ad Spend Growth

Data from “Surviving the Upfronts in a Cross-Media World” indicates that despite a recent uptick, online video ad spending has not grown at the same rate as video viewing. Delving into the significant increases in online viewer engagement, the report reveals that the average number of daily unique viewers has grown 30% year-over-year, the number of videos per viewer has increased 20%, the monthly hours spent watching online video per viewer has jumped 47%, and the average time spent watching a video has grown 23%.

Video Ads Said Just as Effective as TV Ads

The report identifies “advertising myths,” using several metrics to test their accuracy. The first “myth” tested is that video ads in short-form online are not as effective as TV. Using its Share of Choice metric, which measures consumer preference for a brand following exposure to an ad, comScore found that the correlation between the lift in Share of Choice following exposure to pre-roll advertising in short-form online content and the lift in Share of Choice following exposure to advertising on TV is 0.86. This indicates that creative messaging works similarly across both platforms, and that video ads can be as effective as TV ads.

Offline Sales Lift Also Comparable

The study also analyzed lift in CPG brand sales in retail stores after exposure to TV ads for one year, comparing it to lift in sales following exposure to online ads (including banner and rich media in addition to video) over the course of 3 months. The results showed that the short-term offline lift in CPG brand sales from exposure to 3 months of online ads matched that of the year-long exposure to TV ads, at 8%.

Other Findings:

  • Looking at a campaign case example, the report finds that TV advertising reaches a point of diminishing returns, and begins to become increasingly expensive to build incremental reach. Trying to reach a target audience through TV advertising alone means that a brand will encounter this plateau where more dollars only increases frequency of exposure rather than incremental reach. In a simulation using comScore’s cross-media databases, the report shows that using online video can be an effective way to build reach. In the example provided, allocating 100% of the budget to TV resulted in effective reach (4+ exposures) of 67.8%. Allocating 90% of the budget to TV and the remainder to a digital component increased the effective reach by 15.9% points, to 83.7%.
  • Adding digital to a TV plan can also increase impact. Consumers exposed to an ad on TV and an ad online were 28% more likely to visit the brand’s website than those only exposed to the TV ad.
  • Consumers aged 12-34 and 18-34 are twice as likely to have received an online impression compared to other demographic segments that received impressions. However, these segments receive TV impressions only in proportion to their population.
  • For the 25-34-year-old and 35-44-year-old demographics, there is almost no difference between online video’s reach among the online population, and the US population overall.
  • The report suggests that brands consider tweaking ads they have created for TV rather than create new commercials for digital. The main strategy recommended is to use shorter-form ads, defined as 15 seconds or less by cutting down the 30-60 second TV spot to that length. The main ways in which to do so are to: reduce communication to a single idea; use images and pictures instead of words; include 5 seconds of product shorts; and avoid storyline formats.-MarketingCharts
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Tuesday, June 5, 2012

Video Boosts Mobile Ad Engagement

According to Medialets, mobile ad engagement rates can be improved by 35 % with the addition of video. A study shows that in the first quarter of 2012 mobile rich media ads containing video had an average of 35 % higher engagement rates. The users who decided to expand these mobile ads spent a total of 20 seconds within the advertisement. Integrating video or product catalog information within ads can increase the average expand time from twenty seconds to over one minute.
medialets-chart
Despite these numbers, only 30 % of mobile ads on tablets contain video, followed by 12 % from smartphones. The portion of mobile rich media advertising campaigns using multiple device environments has doubled from 20 % in Q1 of 2011 to 40 % in Q1 of 2012.

Among rich mobile ad formats, expandable banners are more than twice as common as non-expanding banner and interstitial formats, said Medialets.

Handset device advertising consists of 64 % expandable ads, 22 % interstitial ads, and 14 % banner ads. When it comes to larger devices such as tablets that can support larger banners, 60 % of ads are expandable, 26 % are banners, and 14 p% are interstitials.

Expand rates across mobile environments range from 1.2 % for androids to 1.6 % for mobile web ads, with iPads and iPhones falling in between at 1.5 % and 1.3 %, respectively. As the data from Medialets first quarter are released, companies will be keeping watch over the improved success of mobile video advertising and the division of ads across diverse device environments.

The data reflects Medialets-enabled mobile ads delivered during Q1 2012 through the company's ad platform.-ClickZ.com

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