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A Brand Marketer’s Guide to
Online VideoOnline video is rapidly becoming a natural extension to broadcast buys, with distribution across the Internet and a whole new generation of connected devices.
Here’s what you need to know to connect with the “TV everywhere” generation – including techniques that ensure reach and efficiency with brand safety.
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If TV offered premium audience targeting, advanced ROI metrics, in-depth reporting, interactive ad formats, social media integration and iGRP.
® collective.comfacebook.com/collective
Collective Video is just like TV.*
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A Brand Marketer’s Guide to Online Video ®
Executive Summary
Online video is today what cable TV was 20 years ago - a new and untapped extension to a broadcast buy.
170 million people in the US are viewing online video today, expected to grow to 195 million people by 20151.
The average online video viewer consumed 14.2 hours per viewer per month in 2010 – a growth rate of 12% over 20092.
Broadcast television today represents less than half of all 18-34 year olds’ primary video viewership diet3.
61% of all video usage online takes place outside the realm of YouTube and Hulu4.
Wireless devices are spurring increased online video viewership.
GRPs are now available to measure online video audience, in addition to brand lift studies and even offline sales lift metrics.
Professionally-produced content yields higher ad acceptance by consumers and is brand safe for advertisers. Be wary of anyone selling video inventory for less than $5CPMs as it is likely not top quality.
Research shows that online video ads impact recall and purchase intent more than broadcast or cable.
1 eMarketer 20102 comScore, December 20103 Harris Poll, September 20104 comScore, September 2010
A Brand Marketer’s Guide to Online Video
When cable TV reached critical mass, it blew apart the notion of reaching consumers through only a handful of broadcast networks. Now, an even more expansive shift is underway: video has broken out of the TV box entirely and is being viewed by consumers through the Internet and all forms of wireless devices from mobile phones to gaming devices to tablets. For marketers, it’s an extraordinary opportunity to expand video reach past broadcast television and to an entire generation of consumers who want their TV content wherever and whenever they desire.
And while online video is an easy extension to a TV buy, it also provides the added brand benefit of a more focused consumer and less clutter. It’s not surprising then that research is showing that online video ad impact including recall and purchase intent are multiples higher than broadcast or cable.
The growth of online video consumption is so strong and the value so great to advertisers, that in this upfront season expect to see many brand marketers investing in online video as a major component of traditional broadcast buys.
online video ready for prime time
As of February 2011, 170 million people watched online video: over 6 billion video viewing sessions for an average of 816 minutes per viewer.(comScore)
introduction
When Nielsen reported in 2000 that cable hit household penetration rates above 60%, it was a mind-and-media-plan blowing development. Advertisers flocked to cable channels to take advantage of this newfound scale and contextual targeting. A little over a decade later, online video (both via desktop and mobile devices) is presenting a similar opportunity.
According to ITU, 68 percent of US households have broadband access, and comScore reports that over 170 million people in the US are viewing online video; eMarketer predicts that number will grow to 195 million people by 2015. And when you consider that video advertising can be served to users through a variety of online activities, such as during video games and social applications, the actual available video viewing time online exceeds that of television for certain demographics.
With numbers like that, it’s no wonder brands are beginning to embrace online video as a new broadcast channel.
the 18-34 viewer: in demand and video at their demand
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The numbers get more powerful if you focus in on exactly who these people are. According to a Harris Poll from October of 2010, the younger the audience, the more likely they are to be consuming more online video content.
Nielsen, the arbiter of all television numbers, shows growth for online viewing, as does comScore, which reports that by December 2010, the average online video viewer consumed 14.2 hours per viewer per month – a growth rate of 12% year over year.
US Internet Users Who Primarily Watch TV Shows on a TV Set or on a Computer, by Age, Oct. 2010% of total
n Primarily on TVn Mostly on TV, but
sometimes on computern Equally on TV and computer
n Mostly on Computern Primarily on computern Don’t watch TV shows
Note: numbers may not add up to 100% due to roundingSource: Harris Poll and 24/7 Wall St. survey as cited by press release.Oct 28, 2010
18-34
35-44
45-54
55+
48% 24% 10% 5% 7% 6%
69% 5%
1% 3%
2%
74%
84%
16%
11%
4%
1%
2%
4%
1% 4%
20%
The growing online audience is cannibalizing tv viewership, especially across the younger demographic.
No one in a major city in the US can avoid the smart phone revolution going on in front of their eyes, but there is a larger connected device explosion that is easier to miss. A study of media futures from respected researcher Frank Magid (2010: The New Age of Video Entertainment) showed that 38% of the US population was interested in connecting their PCs to their TVs to watch video. And then there is the iPad. Silicon Alley Reporter commissioned a survey in November 2010 of tablet owners and found that they spent 33% of their time watching video on the device, which is slightly more time than was spent playing games. These are all wi-fi devices and early reports indicate they are becoming a replacement household pc – but also a living room and bedroom entertainment device. Viewers everywhere may be cuddling up with a tablet soon.
Sources like Nielsen IAG and comScore ARS are the two big measurement forces for next day impact of TV ads (most often used for creative testing) and are now extending this sort of research into interactive. Nielsen IAG released a report in 2010 that showed that not only does online video work better than display advertising at generating recall and brand linkage, premium video online (broadcast type content) delivers a significant lift over primetime broadcast advertising.
new generation of connected devices leads to more digital video consumption
for brand recall, online video works better than TV
If so, was the advertised
brand recalled?
General Ad Recall
Was the ad remembered?
Brand Linkage
100
135
176
100
149
185
Prem
ium
Onl
ine
Vid
eo
Prim
etim
e TV
Ads
Dis
play
Prem
ium
Onl
ine
Vid
eo
Prim
etim
e TV
Ads
Dis
play
In 2010, US internet users spent more time online than in front of the TV
Sources: Collective Audience Cloud; Ipsos OTX MediaCT, “What A Difference Two Years Make: Revelations from the OTX LMX”, provided to eMarketer, September 2010; Nielsen IAG
Watching TV (live/DVR)
3.4
3.7Daily Time Spent on Select Media Activities by US Internet Users, 2010 (hours)
Going online/using a computer/online gaming
? *
3.7
A Brand Marketer’s Guide to Online Video
brand metrics. Digital brand measurement company, Vizu, reports that online video advertising generates more than twice the brand lift of standard display advertising.
But this is not a game of one medium winning over another. IAG also shows that the same ads run in online video and on broadcast as part of a holistic schedule increases the effectiveness among all brand measures.
Even within the online world, video is especially powerful at driving
Online video ads can add impact to a TV campaign Message recall exhibited the greatest lift among the dual-platform exposed group
Source: Nielsen IAG, A18-49, Premium Online Video Measurement 2008-09; TV + Premium Online Video Total Exposed Sample Size = 1,068TV + Premium Online Video exposure group include those viewers who were exposedto same brand/product ad in Premium Online Video in 7-day period prior to TV ad exposure.
Note: Primemedia TV data based only time period(s) where impressions were also being delivered on measured Premium Online Video for same brand/product.
All metrics are significantly higher for TV+ Premium Online Video exposure group at 90% confidence.
General Ad Recall+18%
52
44
Brand Recall
+35%35
26
Ad Message Recall
+53%29
19
Ad Likeability
+31%17
13
TV + Premium Online Video
TV Only
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looks like TV, measures like TV, targets like online.
It may sound clichéd, but online video represents a holy grail for brand marketers. Finally it is possible to combine the storytelling impact of television with the targetability, measurability and portability of online advertising. Also, advances in GRP-like measures mean that marketers can begin to leverage their experience garnered from fifty years of television advertising performance.
Targeting With Audience Data: A Glimpse of Television’s FutureFor generations, brand advertisers were forced to use programming as a proxy for audience. But with online video, audience data can be used to effectively target the ads by demography, geography or purchase intent – this is where broadcast television wants to be as it moves towards addressability. Addressability is available NOW in online video, so brand marketers who get smart using these new targeting tools will benefit when audience targeting becomes available on broadcast television.
Measuring Success in the Wired World: GRPs PLUS engagement metricsTelevision has been bought for the last 50 years on a simple system of accounting for reach of a given audience. With so much experience with GRPs, marketers – especially packaged goods ones that tie ratings back to cash register data – know how many GRPs to buy to move products.
While the systems are not perfect, both comScore and Nielsen have made strides in producing reporting that helps brand marketers used to using GRPs in TV more cohesive with what they get in online. All of Collective’s video campaigns are assessed through the comScore iGRP tools which calculates reach and frequency based on campaign reach multiplied by the average frequency of exposure of the video impressions. Nielsen is also now making available Online Campaign Ratings, which are comparable to their TV ratings.
Aside from holistic concepts of online video measurement like iGRPs, there are ways to measure online video that are familiar to brand marketers used to measuring online display. The control and exposed group survey research that yields improvement in ad awareness and purchase intent are available for online video campaigns from well-known sources like Dynamic Logic, Insight Express, KN Dimestore and Vizu, among others. Both DL and IE have enough video ad impact studies under their belt that they release normative data. It’s no surprise that online video trumps display in terms of all measures of ad impact.
A Brand Marketer’s Guide to Online Video
Recently, a new and exciting method for measuring the real-world, in-store sales lift created by online advertising has evolved. Called ClosedLoop™, this product (offered by Collective through a partnership with DataLogix), anonymously matches shopper loyalty program data from thousands of retail chains nationwide with online advertising impressions to determine the true ROI of a campaign.
closing the loop: measuring brand lift
TV ACCELERATOR ™ : BOOST AD RECALL BY UP TO 53%
As demonstrated by Nielsen’s dual-platform research (see previous spread), retargeting online video ads to users who are likely to be exposed to the campaign on television can dramatically increase message recall. Collective can match digital set-top box data from providers such as RenTrak, TiVo
and TNS with our Audience Cloud of 190 million US Internet profiles. This new targeting method allows advertisers to re-target online audiences with video advertising messages that they’ve been exposed to on TV, significantly boosting message recall. Collective can also construct look-alike models of the audience to increase the volume of targetable high program index households.
User sees ad on TV
Collective targets online video ad, boosting message recall
Collective Audience CloudMatchCable Co.
AD
AD
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Here is what marketers should know about online video content and ad format options.
The Content Divide: Separating your UGC from professional content
It’s true, video in its earliest incarnation online was defined by kitten videos while professionally produced content was tied up in rights issues. The resolution of rights management has led to the current flowering of advertiser-worthy content online. Furthermore, the dramatic increase in video viewing in 2010 can be directly attributed to this influx of quality content, according to comScore.
getting to know online video
Consumers are spending more time watching videos onlineOnline viewership increasing as more long-form TV content moves online
Source: comScore Video Metrix
180
160
140
120
100
80
60
40
20
0
Billi
ons o
f Min
utes
+162%
Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec -10
Total US Viewing Duration
160 Billion minutes
spent viewing
online video
A Brand Marketer’s Guide to Online Video
getting to know online video Content online currently breaks into the following buckets:
n UGC: Typically short form (under 5 minutes) these are amateur videos placed on sites like YouTube, Google Video, Metacafe, Blip TV and all of the social networking sites. The inventory these sites have is typically referred to as “long tail”: there are a lot of videos with small numbers of plays and a few videos with huge numbers of plays. UGC tends to be avoided by brand advertisers due to the uncontrolled nature of the content. But some brands are finding that consumers are in a sense creating their own ads – and embracing this viral activity. There are thousands of examples of people making soda geysers out of Diet Coke and Mentos mints.
n Television Content:
- Full Broadcast Episodes: Some networks - ABC, NBC and Fox among them - release full episodes online both through their own network sites as well as select online channels, typically available 24 hours after the initial broadcast. Consumers tend to use online viewing of these shows like a DVR: to catch up with favorites they missed or forgot to record.
- Clips and Short Form Episodic TV Content: These include made for online video short form (The Office and 30 Rock are especially good at this), interviews with the stars and outtakes. This content typically has less value than long form, but especially for shows that have extensive fan bases and for advertisers who already have program sponsorships in broadcast, clips have great value.
- News and Sports: These clips are perfect for short form video and can deliver very specific audiences. However, the nature of the content makes it tough to predict which events will drive astronomical views – and ad volume – thus, they are generally bought on an impression-delivery basis.
n Made for the Web Episodic - Webisodes: There has been a movement to create video content specifically for the web and a few ongoing “hits” such as the Annoying Orange have emerged. Data from Visible Measures released on a monthly basis through social media publication Mashable (http://mashable.com/2009/12/11/top-web-series-november/) shows how comedy-driven these studio-produced webisodes are. These videos are an excellent way to reach males 13 – 34 who may have fallen off the Nielsen broadcast grid.
Professionally produced content yields higher ad acceptance by consumers and is brand safe for advertisers. Be wary of anyone selling video inventory for less than $5CPMs as it is likely not top quality.
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n Made for the Web “How To”: The web is perfect for instructional videos, such as content from sites like eHow and How Stuff Works. These sites have created massive amounts of video on everything from how to paint a room to how to breastfeed. Advertisers can find great contextual placements in videos like these.
n Viral Video: Ad Age Online publishes the top viral videos each week in data supplied by Visible Measures. Major brands dominated the list in February with either cool or funny videos for products like Doritos, Mercedes and Old Spice showing up on the list regularly. According to Kantar’s video unit, 200+ top US brands have released viral videos. Of those, 100 have surpassed ½ million views without an identifiable supporting media buy.
n Distributed Video: All manner of mid-tier sites (comScore top 100 to 250) are eager to increase their revenue and engagement levels through video and have embedded video players on their home pages. Through syndication services including those provided by Oggifinogi, which is now owned by Collective, they are pulling in video content on everything from entertainment to topical news, events and “how to”. Oggifinogi reaches more than 150 million unique users across more than 2,500 publisher sites. Audience aggregators like Collective sell across these sites by audience to provide efficient reach of the online video audience.
It is important to note that as powerful as Hulu and YouTube might seem in the video world, they represent just a small slice of video viewing online: according to comScore’s September 2010 video usage rankings: 61% of all video usage online takes place outside the realm of YouTube and Hulu.
61% of video viewing sessions happening outside YouTube and Hulu
n Consumers viewing video on wide variety of premium sitesn Television quality video now distributed in many places onlinen Majority of Google is YouTube UGC which is typically not safe for advertising use
Source: comScore Sept. 2010 Online Video Rankings
61% 61%
Opportunity
36%
YouTube
3%
Hulu
A Brand Marketer’s Guide to Online Video
FreeWheel Internal Data 12/18-31/2010
BUYING DISTRIBUTED VIDEO? QUESTIONS YOU SHOULD ASK TO KEEP YOUR BRAND SAFE AND YOUR ADS EFFECTIVE VIDEO
There are many companies that distribute video on a range of sites where it has varying levels of value to the advertiser. For those concerned about brand protection – and ad effectiveness – here are some of the questions you should ask:
• Is the video user initiated? There are video players that auto initiate when a user goes to a page with an imbedded player – that video view was not something desired by the viewer and should not be counted. The sound could also be off, lessening the value even further.
• Is it in-stream video or in banner? Video in banner is a viable advertising option but it is not the same thing as an in-stream video ad in true video content.
• Where is the video player placed on the page? Some less than scrupulous distributors place video players wherever sites will let them. If the video player is below the fold and of course not user initiated, it has no value.
• What is the context? In keeping with the point above, video can be distributed anywhere and brands need to be careful about the context in which their ads appear. Credible distributors screen for questionable content and also look for relevant context for the ads. If you are running ads for baby related products, should these show up on sites appealing to young male demos?
In online video, caveat emptor is a sound principle. The most valuable video is professional, studio-developed content and there is not enough of it available – the supply is controlled tightly and generates CPMs in excess of $20. Be wary of anyone selling video inventory for less than $5 CPMs as it is likely not user initiated and can be delivering lots of plays that no one actually watches. The best place to start is by partnering with trusted audience engines like Collective that guarantee the placements of the video in brand safe environments where they will get seen.
Placement Beyond the Pod: Pre, Mid and Post-Rolls and their Relative ValueIn television, ad placements are made based on upfront negotiations, sponsorships with specific shows and sometimes just luck of the draw as the goal of the programmer is to deliver an audience to the advertiser – not a specific impression as in online. In general, top advertisers tend to get the first position available in the pod or the one coming out of the break. Online video is still feeling its way in terms of ad positioning and as ad volumes are currently low – and the mass of inventory available is short form – pre-rolls are the most commonly used position. Pre-rolls do have high engagement rates. Research by Freewheel shows that during 2010, average completion rates for short form pre-roll hovered around 60% -- Collective’s own data shows average completion rates for short form at around 70% for the year. As more and more long-form content becomes available, other positions become possible. These so called “mid roll” placements have extremely high value, which CW research on the show Gossip Girl substantiates: when you have a highly engaging show, people stay through the commercials because they want to see what’s next.
What of post rolls? Intuitively the industry valued these lower than other positions as who would stick around for the final ad once the content was done, however, consider that content sites are now enabling consumers to create playlists or string together groups of short form video content to make their own long form videos. In this instance, post-rolls in effect become mid rolls which have relatively high completion rates.
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In Banner Video: Extending Video Reach SimplyWhen most marketers refer to video advertising, they often think of the TV model imported to the web: you watch a video clip and before it starts it is interrupted by a :15 or :30 ad. That’s great, but there is only so much video inventory to go around and it may be cost prohibitive depending on the marketer’s budget. There is another option: in-banner video, which is video embedded within an expandable banner ad.
In-banner video is as eye catching as in-stream but it is also easier to traffic, there is more available inventory, you can place it contextually and it’s more cost-effective. It is tracked with the same metrics you use for online buys: impressions, click throughs and view throughs. Ads with TV-level production values can be placed in any banner spot. Marketers can synch up their visual from TV by integrating them into their banner buys during key campaign periods for cross-media impact. Interactive elements, such as polls, store locators, maps and social objects such as Facebook and Twitter feeds can be incorporated into in-banner video units.
Marketers who do not have TV creative are also discovering that they can inexpensively create video assets that relate to their brand – even 30 second tutorials on product use – that get displayed without the user having to initiate a video player or leave the site they are on. In-banner video can be executed by any of the rich media vendors – including Oggifinogi.
It’s a myth that only pre-roll videos get viewed. Depending on the length of the content, mid-rolls and post-rolls also have great value for the advertiser.
Video Ad Completion Rate by Video Length and Placement
Mid-rolls have highest completion rates across content lengths; long-form video highest overall
postroll
69%
49%
38%
midroll
96% 95%
84%
preroll
73%64% 61%
long
mid
short
Source: FreeWheel, December 2010
A Brand Marketer’s Guide to Online Video
1. Is this really television?Of course it is. It’s just television on demand viewed on various devices and with higher engagement levels, less clutter and unparalleled measurement. It’s also reaching audiences for whom broadcast viewing is a thing of the past.
2. I hear the inventory is all YouTube pet videos—how quality/safe is the inventory?Professionally produced online video content is growing exponentially online and buying online video is easier than ever. There is a lot of great inventory out there. As comScore data shows, 61% of all video viewing takes place outside of either YouTube or Hulu. You just have to know what you are buying just like any ad environment you are considering.
3. Is it a good place for premium brands to advertise?They’re buying now: auto, telecommunications and entertainment companies and even packaged goods are some of the heaviest buyers of online video – it’s a natural extension of their TV buys. In fact, we’re seeing more clients budget online video out of their TV budget, not their digital spend.
4. Who’s watching it?Who isn’t? Watching online video is a very common activity and nearly half the US population does it. Viewership is especially pronounced among the 18 – 34 demo as it fits their lifestyle and viewing habits. No different than cable, the internet is providing even greater programming options with the flexibility to watch on demand.
5. Does it work?Even Nielsen, the grand arbiter of TV measurement, says that its impact is multiples of that of broadcast advertising. In fact when online video runs in combination with TV, the ad recall and effectiveness is at its highest.
6. Do I—or how do I—coordinate online video with my TV strategy?There are tools from vendors like comScore (which produced what they call an iGRP) that can make connections from TV to online. Online video complements a TV schedule and research from sources like Nielsen IAG, comScore and Dynamic Logic show that the combination of the two has an additive impact.
7. What are my choices for creative units and formats? Why choose one over another?The same units used in broadcast work online: usually :15s and :30s but longer formats can work within longer form content. The rule of thumb is that if you are using short form video (under 5 minutes) a shorter ad is a better bet. Online also offers options not available on TV like interactive units that drive ad and social engagement.
8. How do I measure it?Same way as you do regular television: you can use an interactive version of GRPs available from either Nielsen or comScore. Just like display, online video measures clicks and conversions, but there are better ways to measure success, including completion rates of the video ads, engagement and attitudinal lift.
9. How can I achieve reach with efficiency?This is the greatest challenge with online video. You can buy high quality video inventory directly from some of the largest sites that produce it – but the challenge is that they may not have enough volume and the CPMs may be too high. An audience engine like Collective aggregates audiences across sites where video is delivered to provide reach and frequency with efficiency.
10. How do I get started? Find a partner that helps you find the right audiences and vets the right ad environment and ad units for your plan. Online video absolutely works if done right, but you need to understand the myriad of options available. Collective helps top brands achieve efficient scale with their online video buying every day.
11. What does the future hold for online video?Convergence in short. Look for online video to be a component of every TV budget moving forward. While online spend overall has grown dramatically over the past 10 years and recovered more strongly from the recession than other media, this has come largely at the expense of print. TV budgets have once again increased – while the audiences for top shows have declined. Let’s face it - TV is easy to buy. But as online video aggregators (whether networks or portals) perform the role of broadcast networks, marketers will shift spend more easily to online video. They’ll be rewarded with lower levels of clutter, greater measurability and ad effectiveness.
online video: your questions answered by Collective CEO Joe Apprendi
“Find a partner that helps you find the right audiences and vets the right ad environment and ad units for your plan.”
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CONTACTPress:
Laura Colona, Director of Communications,
Sales:Chip Russo,
Senior Vice President, Collective Video [email protected]
ABOUT COLLECTIVEFounded in 2005, Collective is a full service provider of media and technology solutions for display and video advertising. We help brand advertisers and leading publishers monetize trusted audience data and brand safe ad inventory. Collective’s industry expertise provides a strategic advantage to its clients by leveraging proprietary audience modeling, insights and ad effectiveness metrics. Our flagship products, Collective Display® and Collective Video®, are powered by AMP®, our market-tested data and media management platform. Collective is headquartered in New York with offices in Atlanta, Boston, Chicago, Dallas, Detroit, Los Angeles, San Francisco and London. Collective’s investors include Accel Partners, Greycroft Partners and iNovia Capital. For more information, please visit www.collective.com
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