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The Evolving Role of Live Online Video in Corporate Marketing

Copyright © 2012 Wainhouse Research, LLC Page 1

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The Evolving Role of Live Online Video in Corporate Marketing

Copyright © 2012 Wainhouse Research, LLC Page 2

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The Evolving Role of Live Online Video in Corporate Marketing

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Contents

Expanding Video’s Horizons

How Live Video Attributes Pave a Path to Marketing

Gauging the Impact of Live Video Adoption

Key Takeaways

About the Author / About WR

List of Figures

Figure 1: Agree / Disagree: Expanded Use of Online Video Can Enhance External Communications -

Segmented by Frequency of Live Online Video Use

Figure 2: Frequency of Use for Online Video Applications Among Users Who Have Experienced Live

Business Online Video

Figure 3: Abilities of Live Video - Percentage of All Live Video Users who "Strongly Agree" that Live

Video....”

Figure 4: Abilities of Live Video - Segmented by Frequency of Live Online Video Usage; Percentage of

Executives who "Strongly Agree" that Live Video...."

Figure 5: Abilities of Live Video - Social Media Measures; Enterprise vs. Government vs. Education

Figure 6: Factors Influencing Streaming Technology Purchase Decision – Segmented by Preference for

Live / On-Demand Online Video

Figure 7: Measures of Web Communications Effectiveness - Segmented by Organization's Frequency of

Live Online Video Deployment

The Evolving Role of Live

Online Video in Corporate

Marketing

Gauging How Organizations Leverage

Online Video to Drive Promotion and

Build Community

Steve Vonder Haar

November 2013

White Paper commissioned by:

Steve Vonder Haar

June 2014

White Paper commissioned by:

Executive Visions on Video

in the Workplace

WHITE PAPER

WHITE PAPER

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WR Paper:

Executive Visions on Video in the Workplace Copyright © 2014 Wainhouse Research. All rights reserved.

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Expanding Video’s Horizons

This report is the third in a series of

white papers and webinars tracking

the usage, deployment and executive

perceptions of online video in the

corporate sector.

The concept for this series was

inspired by previous market research

published on behalf of Cisco Systems

that measures the growing use of

online video on the Internet.

Commissioned by Ustream and

produced by Wainhouse Research,

the Business Video Now Series seeks

to take the next step in gauging

momentum in the evolving online

video market.

The aim of Business Video Now is to

foster greater awareness of and

understanding of online video trends

by providing data-driven insight,

focusing on the expanding role of the

technology in enterprise

communications. Results from a

survey of 1,007 executives conducted

in the fourth quarter of 2013 serve as

the foundation for information

presented in this series.

Future editions of the Business Video

Now Series will identify the video

applications that executives

frequently employ and discuss

lessons learned from

implementations of technologies

enabling online video.

ABOUT THE

BUSINESS VIDEO NOW

SERIES

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Figure SEQ Figure \* ARABIC 1: Agree / Disagree: Expanded Use of Online Video Can Enhance External Communications - Segmented by Frequency of Live Online

Video Use

Live online video is emerging as a tool that marketers employ to cut through the clutter of

communicating with external audiences. Whether the video is used to extend the reach of product

launch events, to create engaging descriptions of merchandise for sale or to provide richer forms of

customer support, the technology is helping to transform best practices in corporate outreach.

While some executives may perceive live video as a solution best implemented for employee training

and executive presentations, they sell themselves short if they try to limit its use to these internal

communications applications. Indeed, according to results from the Wainhouse Research Enterprise

Web Communications Survey – a survey of 1,007 executives conducted in the fourth quarter of 2013 –

those who use live online video most extensively are highly likely to see it as a valuable tool enabling

corporate branding and promotion

As illustrated in Figure 1, 59% of executives who report daily usage of live online video for business

applications say they “strongly agree” with the idea that expanded use of online video can enhance

communications with external audiences. Another 35% of these frequent video users “somewhat agree”

with this statement. Among those who never use live onl ine video, in contrast, only 9% “strongly agree”

and 49% “somewhat agree” that expanded use of online video can enhance external corporate

communications.

Simply put, executives familiar with live

online video recognize the role it can

play in marketing communications. And

this growing interest in leveraging live

online video for corporate branding and

promotion is one of the key factors

driving the expanded viewership of live

online video in business

communications. In a previous report

published in the Business Video Now

series, Wainhouse Research estimated

that workers watched 1.12 billion hours

of business live online video content in

2013 – a total forecasted to more than

double by 2016.

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This viewership forecast is driven – in part – by the one-to-many nature of video-enriched marketing

communications. If successful, a single marketing event can draw hundreds or thousands of viewers,

typically generating more eyeballs (and viewer minutes) from a live online marketing session than is

possible from the distribution of an employee-targeted video distributed behind the corporate firewall.

Consider the implications of this trend. Employee training and executive presentations are cited in

survey results as the two applications of online video that are most frequently implemented by

companies that deploy streaming technologies. But while this inward-facing content is created most

often, it does not lead the pack in generating actual viewership of live business video in the corporate

market. Rather, it’s the outward-facing applications of video that generate the most consumption of live

online content. (Figure 2)

Overall, for instance, 89% of executives who say they have experienced live video report that they have

watched a product launch event via live online video at some point. And 22% of those experienced with

live video say they watch product launch content on a daily basis. Similarly lofty viewership totals were

tallied for other external applications for video, such as using video to deliver “descriptions of products

for sale” and for “corporate branding and advertising.”

Viewership of internal communications applications, such as employee training and executive

presentations, also was strong. More than 80% of viewers of live online video say they have also

Figure SEQ Figure \* ARABIC 2: Frequency of Use for Online Video Applications Among Users Who Have Experienced Live Business Online Video

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experienced these applications. However, adoption patterns for these applications still lagged slightly

behind viewership totals for the most actively watched marketing applications of live online video. This

happened even though organizations tend to produce more live video events for internal use than they

do for external audiences. The inescapable conclusion is that – event-by-event- marketing applications

of video typically reach more viewers than targeted internal communications applications.

How Live Video Attributes Pave a Path to Marketing

Survey results presented in prior reports published in the Business Video Now Series illustrate that

executives perceive online video as an effective venue for delivering a message to a business audience,

are using online video more than ever before and are preparing to boost their usage of live online video

for business applications even further in coming years.

Indeed, executives’ embrace of live online video appears to accelerate as their exposure to the

technology grows. Among the group of survey respondents reporting that they now watch live online

video on a daily basis, 47% say they are watching more live online video than was the case just three

years ago. And 18% of this high-frequency group report that their consumption of live online video has

more than doubled over the course of that three-year period.

So, live online video viewership clearly is proliferating in the enterprise. The question is “Why?” Multiple

factors undoubtedly contribute to this corporate viewership trend. But survey results suggest that

executive interest in leveraging live online video for external communications applications is playi ng a

significant role in driving the next stage of adoption for this technology.

Let’s consider the responses provided to a survey question in which executives with experience in using

live video technologies were asked to quantify their outlooks towards a range of live video attributes.

Survey respondents were asked to agree/disagree with a range of topic statements related to the

technologies enabling live online video adoption and its use in business communications.

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The top-level findings for this question, illustrated in Figure 3, demonstrate some bedrock truths related

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to executive perceptions of how live online video creates value in enterprise deployments. The first key

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takeaway is that video delivers the most value in business communications when i t is presented

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alongside other on-screen data. Among all survey respondents who use live video, 64% “strongly agree”

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Figure : Abilities of Live Video - Percentage of All Live Video Users who "Strongly Agree" that Live Video....”

that live video is more effective when combined with PowerPoint slides and other on-screen data.

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Live video users also are developing a greater trust in the technology underpinning the delivery of live

online video content. Sixty-three percent of live online video users report that the technology is “easier

to use and more reliable than in years past.”

When looking at these survey results from all users of live video users, however, marketing applications

do not appear to be held in high regard. Less than 55% of all respondents say that they “strongly agree”

that live online video is an “effective vehicle for marketing and customer acquisition” or that it can be

used as “focal point for online interaction and community building” or leveraged to enhance an

organization’s social media presence.

These top-level results, however, merely obscure stark differences in opinion that exist between

executives that use live online video frequently and those with less exposure to the technology. Figure 4

segments perceptions of live video attributes by the extent of executives’ usage of the technology. The

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Figure SEQ Figure \* ARABIC 4: Abilities of Live Video - Segmented by Frequency of Live Online Video Usage; Percentage of Executives who "Strongly Agree" that Live Video...."

attrib

utes

are listed from the top of the chart based on the difference in response totals cited by those using live

video daily compared to those viewer live online video less than monthly.

Active users of live online video have high regard for the technology across the board. This should be

expected. After all, if they did not believe in the technology, they likely would not be using it on a

regular basis. The truly noteworthy theme emerging from Figure 4, however, comes in comparing how

much ground selected issues gain in the eyes of active users when their responses are compared to

those who use the technology intermittently.

Those same corporate marketing issues that ranked near the bottom of the overall survey results

illustrated in Figure 3 are the same attributes that soared most when comparing the responses of active

users of live online video with those using the technology less than monthly. Among those using live

online video daily, for instance, more than two-thirds (67%) “strongly agree” that live online video can

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be employed to boost an organization’s social media presence. Only 23% of those using live online video

less than monthly shared that outlook.

Likewise, 66% of daily users of live online video “strongly agree” that the technology can “serve as a

focal point for online interaction and community building.” Only 38% of executives using live online

video less than monthly responded in a similar manner.

These results help to paint a picture of how perceptions of online video evolve as individuals becom e

more familiar with the technology. Sporadic users of live online video are likely to recognize its

improved reliability and the value it can add to online presentations that blend video with other on -

screen data, such as PowerPoint. These opinions do not change simply because executives begin using

the technology more. Rather, as exposure to live video capabilities expands, executives come to better

understand the role it can play in reaching external audiences and energizing the way an organization

interacts with partners, customers and prospects in the social media arena.

One of the fundamental truths of the enterprise online video market is that the longer executives are

exposed to the technology, the more they use it. Sixty eight percent of executives who watch live online

video daily started using live video at the desktop more than three years ago, according to survey

results. Among those viewing live online video once a month or less, 48% had their first experience with

the technology within the past two years.

As end-users’ tenure of experience grows, it should be expected that more executives will graduate into

the ranks of active users of the technology watching live online video on a daily basis. Because

perceptions of live online video’s value appear to evolve with usage patterns, a greater percentage of

executives over time will likely come to regard live online video as a viable vehicle for enhancing

external corporate messaging.

It should be noted, however, that not all

individuals will value live online video’s

growing role in communications targeting

external audiences. Instead, this theme will

resonate primarily with executives working

in the corporate segment. Individuals from

other verticals with less of a focus on

external communications, such government

and education, are far less likely to make

the connection between live online video

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Figure : Abilities of Live Video - Social Media Measures; Enterprise vs. Government vs. Education

technology and its impact on social media.

More than half of executives who work in the corporate sector, labelled as “enterprise” in Figure 5, say

they “strongly agree” that live online video “leverages our social media presence” and “can serve as a

focal point for online interaction and community building.” Questioned on these same topics, less than

40% of workers in government and education cited comparable outlooks.

The results underscore the need for executives to marry the deployment of li ve online video

technologies with the stated communications needs of their organizations. Adoption of live online video

for external messaging is likely to fall behind the curve in vertical segments where such outbound

communications do not play a key role in defining an organization’s success. Conversely, companies that

do place a premium on the role of

marketing and audience outreach should

recognize the growing role that live online

video can play in a comprehensive external corporate messaging strategy.

Gauging the Impact of Live Video Adoption

Recognizing that online video usage patterns correlate with shifting executive outlooks towards

enterprise streaming, one can also surmise that these usage patterns are associated with a change in

priorities when executives consider streaming technology investments and measure the impact of these

investments on their business.

Survey results confirm this extended correlation and demonstrate how executives who use live online

video frequently place higher priority than others on leveraging live online video more extensively in

external corporate communications.

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Figure 6, for instance, examines the technology issues that tend to influence an executive’s decision on

whether to invest in a specific enterprise streaming platform. The chart compares responses from

executives who say they prefer live forms of online video to the responses of executives citing a

preference for consuming on-demand online video. As was the case in Figure 4, these issues are

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Figure SEQ Figure \* ARABIC 6: Factors Influencing Streaming Technology Purchase Decision – Segmented by Preference for Live / On-Demand Online Video

listezZZZZZzžd based on the extent of difference between these two survey group segments. Those

issues demonstrating a significant different of opinion between the two segments are listed towards the

top of this chart.

Certainly, some areas of agreement exist between the two survey audience segments. The issues of

“price” and “ease of use” are rated in similar ways by users with a live video preference and those who

would rather use on-demand video. As a result, these issues are listed at the bottom of Figure 6.

At the other end of the spectrum, the topics generating the greatest disparity of responses were

“potential scalability of selected solution,” “preference to use a specific technology approach” and “the

ability to distribute live video events via multiple web sites.” For each of these three categories, the

proportion of respondents citing the issue as “very important” to the streaming purchase decision was

more than 10 percentage points higher for executives citing a preference for live video when compared

to those stating a preference on-demand online video.

Each of these technology issues is relevant to corporate adoption of live video for marketing

applications.

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● The issue of scalability is important to companies seeking to deliver a live marketing video event

to hundreds (or possibly thousands) of viewers at the same time.

● The “preference to use a specific technology approach” refers to whether an organizat ion

deploys an on-premise or hosted software solution for streaming. Hosted solutions are best-

suited for one-to-many marketing applications.

● The ability to distribute video via multiple web sites can be used to expand the reach of a

marketing video, boosting the exposure generated by a live event.

Just as marketing issues rise in importance in the eyes of active live video users who are contemplating

investments in streaming-enabling technologies, the metrics of effectiveness that are used to gauge the

success of these technology deployments also evolve as executives use live online video more

extensively.

At companies that do not deploy live online video events, the evaluation metrics used in measuring the

effectiveness of the technology is somewhat one-dimensional. The focus for these survey respondents

rests on the tangible financial impact that comes from deploying communications technologies. Thirty -

two percent of these live video laggards, for instance, describe “generates revenue” as a “very

important” measure of effectiveness. That puts it ahead of all other potential gauges of effectiveness.

Ranking second on the list, cited by 29% of executives at companies not using live online video, is the

metric “improves productivity.” (Figure 7)

Executives at companies that implement live online video extensively appear to take a broader

worldview. For this group of executives at organizations using live online video in more than 100 events

annually, the top-ranking metric of effectiveness is “improves corporate brand image.” This issue was

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Figure SEQ Figure \* ARABIC 7: Measures of Web Communications Effectiveness - Segmented by Organization's Frequency of Live Online Video Deployment

described as “very important” by 67% of executives at companies deploying live online video at that

high frequency level. The issue ranking second for this group active in live video adoption was “places

our company at the “cutting edge” of technology.” This was cited by 64% of this high frequency video

group as a “very important” measure of web communications effectiveness.0000000000

In short, executives at organizations using live online video m0000ost frequently care greatly about how

they are perceived by outsiders. As organizations boost their adoption of live online vi deo, executives

are increasingly likely to view it as a tool for enhancing communications with external audiences. In turn,

this expectation helps shape what organizations are looking for when they deploy streaming

technologies and how they go about measuring the impact that online video has on day-to-day business

operations.

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Key Takeaways

Live online video is no one-trick pony. Results from Wainhouse Research’s Q4 2013 survey of 1,007

executives illustrate that the technology can play a role in corporate communications applications that

extend beyond their stronghold behind the corporate firewall where organizations typically use the

technology to enrich employee training and make all -hands employee meetings more accessible.

Indeed, live online video is being used extensively for corporate outreach – a trend that promises to

have outsized impact on boosting overall viewership for live business video content online. Here are key

trends to keep in mind as the worlds of live online video and corporate marketing increasingly overlap:

● Video Viewership Begets Expanded Video Interest: Executives who watch live online video for

business purposes most frequently are the most likely to see value in expanding the use of the

technology in external messaging. Of those executives watch live online video daily, 59%

“strongly agree” that expanded use of online video can aid an organization’s outbound

communications.

● Perceptions of Live Video Evolve with Increased Viewership: Survey results suggest that a

handful of bedrock principles shape the core perceptions of live online video. Most executives

see it as more reliable than in years past and more effective when presented in combination

with other on-screen elements, such as PowerPoint slides. As users gain experience with live

video, their horizons expand to better recognize the impact that video can have in boosting an

organization’s social media presence and its role in supporting the development of online

communities.

● Marketing Boosts the Live Video Footprint: Employee training and executive presentations will

remain popular corporate applications for live online video. But their use primarily behind the

firewall will limit the number of individuals that see any single live online video business event

designed for employee-to-employee communications. By their nature, successful marketing

events will reach large audiences. As a result, broader adoption of live online video for

marketing applications will boost the viewership volume for live online video designed for

business use.

● Growth of Live Online Video Boosts Competitive Risks for Some: Organizations with the

greatest need to communicate with external audiences are the most likely to perceive live

online video as a valued tool for communications outreach. While adoption of live online video

for marketing is not a leading priority for those in the government and education segments, the

concept is significantly more popular with those working in the corporate market. Recognize

that marketing-oriented organizations will put themselves at a competitive disadvantage if they

don’t embrace live online video options likely to be adopted by rivals.

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● Image is Everything: Or so it seems for organizations that deploy live online video extensively.

Concerns over corporate brand image and being seen as working on the “cutting edge of

technology” are paramount for organizations that are most active in producing and distributing

live online video events. As adoption of live online video expands, the number of organizations

leveraging live online video as a key part of their overall marketing strategy will only grow over

time.

About the Author / About WR

Steve Vonder Haar is a Senior Analyst with Wainhouse Research, focusing on enterprise streaming &

webcasting. Steve has covered the technology industry for more than 20 years. He previously served as

Research Director of Interactive Media Strategies and as Director of Media and Entertainment Strategies

for the Yankee Group. He is a graduate of the University of Missouri Columbia with degrees in Journalism

and Economics, and holds a Master’s degree in Bus iness Administration from the University of Texas-

Arlington. He can be reached at [email protected]

About Wainhouse Research: Wainhouse Research is an independent analyst firm that focuses on

critical issues in the unified communications and collaborat ion market. The company provides 6 different

vendor subscriptions covering unified communications, group videoconferencing, personal & web-based

collaboration, audio conferencing, streaming & webcasting, and distance education & e-Learning

solutions, as well as a single all-inclusive subscription for enterprise users. The company acts as a

trusted advisor providing strategic advice and direction for both the UC&C industry and its enterprise

users. For further details contact [email protected] or see http://www.wainhouse.com.