Viral is dead, online video is born

Viral is dead, online video is born

Audience: It’s an attention economy

Content: Viral is dead, online video is born

Advertising: Video is the social glue

Distribution: If content is king, distribution is queen

Case: Working strategically with online video

Agenda

About goviral

Company Info: Founded 2005 (acquired by Aol for 96,7 mil USD in Jan 2011) 90+ Employees Offices in London, Munich, Paris, Madrid, Stockholm

& Copenhagen Global reach (Distribution in 90 countries)

Network Info: 20,000+ videos launched 18,000+ active paid publishers 24 verticals

Transactions: 30+ million targeted views monthly Engage over 1+ million consumers every day 365+ million unique users

Technology: Proprietary analytics, distribution and player technology

Your videos Our audience Guaranteed engagement

Longer form videos +30s 20,000 content partners Pay for performance only

What we do

goviral is a global video content distribution network

Video as the social glue

It’s an attention economy

A wealth of information creates a poverty of

attention”- Herbert Simon, 1971

Hyper fragmentation

Television’s top rated show twenty years ago, the Cosby show, reached 27% of the population every week. Today’s top scorer, American Idol, reaches less than 9%.

- Anthony Young, CEO OptimediaBrand Media Strategy, 2010

The status of video with consumers

Source: Universal McCann – Wave 1-4 studies (2006, 2007, 2008 and 2009)

Wave 115 markets7,500 users





According to the largest continuous online study, UM’s Wave program, global online video penetration grew from 32% to 82% between 2006 and 2010.

Online video consumption

Average online video viewing in Europe/US in December 2010

was 15,4 hours

The online video audience is still younger than the average

web user

Video builds conversation

Dec 09 Jun 10 Dec 10

0,1 %

3,8%

12,5%

% o

f tot

al g

ovira

l vie

ws

deliv

ered

from

with

in F

aceb

ook

Facebook is not like a website, rather it is a platform for almost 600m individual long tail publishers… and it is taking +10% of their time.

Consumers understand the game

Online there has to be a value exchange between brand and consumer


Viral is dead, online video is born

The evolution in online video

Objective: Viral Brand Always on

Content: UGC Professional Multiple

Player: Basic Social Interactive

Targeting: Broad Context Audience

2005 - 2008 2008 - 2010 2010 -

What’s changing, what’s the same?

The basics of good content is not changing, but we need to adopt to a new medium

All video advertising- Fit for audience- Engaging- Memorable- Strong messaging

Online video- No restrictions on content- Participation from users- Shareable- Non-linearity- Real time feedback- Buying model

Tutorial & ProductBrand narratives Strong TV style ads

Episodic Content Interactive VideoBranded content

Awareness LearningEngagement

Thinking in multiple formats

T-mobile: Life’s for sharing

Collaborative content to generate publicity


Jan 2009 May 2009 Oct 2010

Dance Sing along Welcome back

Proving its worth over time

Results of the “life’s for sharing” activities

*Source: The Ambient Advert titled 'Dance' Case Study by Mediacom


Over 45 million total views on Youtube

A total of 760 videos published over the last 2 years

52% increase in sales YOY

43 Facebook groups

Shared on over 2500 blogs


Video as a format

The evolution in online advertising

The front lineThe driver

1996-2001 2003-2007 2008-

Access Broadband Experience (content)

BrandPerformanceReach

The format

Static display Rich media + search Audiovisual

Video vs display

CTR rate

0,5%

0,4%

0,3%

0,2%

0,1%

0,6%

2004 2005 2006 2007 2008 2009 2010

In 6 years European CTR rates on banners across all formats have dropped 60% from 0,35% in 2004 to 0,13% in 2010

*Source: Adtech and Forrester – End of year 2009

Display CTR0,13%

Display CTR0,22%

Display CTR0,35%

Video CTR1,7%

Delivering superior performance

Videos, properly submitted, are 53 times more likely to generate a first page Google

ranking than traditional SEO techniquesForrester Report, 2010

Video ads are on average 4-7 times more effective than other display formats in

engaging a user. Double click & Dynamic Logic 2009

Cadbury Chocolate charmerFirst effectiveness study in FMCG of TV, online and online video

Campaign: Chocolate Charmer

Launch Date: 9th April 2010

End Date: 3rd June 2010

Distribution: TV, online, online video

Summary:While delivering a return on investment of £3,71 for every £1 spend, online video also added a 19% incremental reach for the campaign. The majority of people – nearly two out of three – who saw the ads online did not see them on TV.

Cadbury's 'Chocolate Charmer' campaign was tracked by the Media Efficiency PanelSource: www.marketingmagazine.co.uk

Be ahead of the curve…

50.1%

54.3%

57.7%

60.7%

64.0%

66.7%

12.3%

13.6%

15.1%

17.0%

18.4%

19.8%

37.5%

32.1%

27.2%

22.3%

17.6%

13.4%

US

onlin

e di

spla

y ad

spe

ndin

g, b

y fo

rmat

, 200

9-20

14%

of t

otal

and

bill

ions

Source: eMarketer, May 2010

The current video opportunity


If content is king,distribution is queen

Automotive videos on Adage top 10

CampaignWeeks in the charts

in 2010Main reason Views

Volkswagen - The Fun Theory 2* Distribution and users 13,764,622 (today’s views on YT)

Bridgestone - Super Bowl 2010 2 Superbowl 1,091,382 (today’s views on YT for the commercial)

Audi - Green Police 1 Superbowl 2,370,704 (today’s views on YT)

Hyundai - Think about it 1 Distribution 2,498,072 (true reach)

Toyota - The Sienna Family 8 Distribution and users 9,082,833 (true reach)

Volkswagen - Driven by fun 2 Distribution 1,978,977 (true reach)

Kia - A new Way to Roll 2010 1 Distribution 3,941,484 (true reach)

Subaru - Get more G’s 1 Distribution 1,088,645 (true reach)

Kia - Who’s Next? Competition 1 Distribution 714,608 (true reach)

Buick - Moment of Truth 2 Distribution 1,497,364 (true reach)

Skoda Fabia - Made of Meaner Stuff 1 Distribution 593,440 (true reach)

Chevrolet – Legendary Stories… 1 Distribution 854,331 (true reach)

Mercedes Benz - Sunday Driver 1 Distribution 630,497 (true reach)

Viral is dead

* Fun theory spent a total of 9 weeks on the list, primarily in 2009.

The competition for attention

Dec 2010

35 hours of content every

minute.

200,000 videos per day

More content

Bett

er c

onte

nt

There is both increasing horizontal and vertical growth in video content. All this is increasing competition for the users attention

- Banners/CPM

- Activate as ads

- Drive to campaign site

- Content/CPV

- Activate as content

- Take content to the user

Content activationDisplay activation

TRADITIONAL ONLINE MODEL BRANDED CONTENT MODEL

Rather than distributing video on a traditional CPM/display basis, goviral adopt a content activation model – delivering a guaranteed number of click to play views upfront.

The shift in commercial model

Long tail distribution

71% of all views goviral deliver originates from outside our top 20 publishers

* Based on 205,5 mil targeted video views over the last 12 months tracked through goviral analytics

The global top 20

The vertical champions

The nationalchampions

The vertical“long tail”

30% 70%

The difference in engagement

Goviral network stats are consistently outperforming the market in both content and commercial placements

- Goviral stats are based on last 12 months, 200mil view sample - Youtube stats based on stated averages for Promoted videos and True view - Click to play rates for video ads are from Adtech global CTR rates survey, Nov 2009 - View to end average for video ads are combined total from different lengths of Brightcove/Tubemogul 2010 study. - CTR average for market is from stated Unruly Media / Tubemogul averages

Click to Play 3,11%

View to End 40,23%

CTR 2,8%

Action rate 2,6

Click to Play* 0,52%

View to End* 35%

CTR N/A

Action rate N/A

Click to Play* 1,7%

View to End* 24,4%

CTR* 1.57%

Action rate N/A

Enhance experience and sharing

Design

Fully customizable design, accept 3rd party graphics

Social Sharing

Social sharing with all blog formats and social

media

Send users to relevant destinations such as website or Facebook

Embed & Download

See user ratings and comments

Ratings & Comments3rd Party Integration

Track +100 metrics and embed 3rd party tracking

Interactive Player

Video overlays to enhance user experience and drive

interaction

Engagement = Actions?

Video action rate is measured as the number of unique video actions for every 1,000 views.

Video Actions

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10Jul-1

0

Aug-10

Sep-10

Oct-10

Nov-10

0

0.5

1

1.5

2

2.5

3Vi

deo

Acti

on R

ate

Video action rate

Video Action Rate Progression

Facebook Like Released

GV Interactive Videos Released

Video Action Rates has been increasing YOY as players are further optimized for sharing

Source: goviral analytics

LG Optimus Case Study

200-400% increase in video actions across all markets

Spain Italy Germany UK France0

20406080

100120140160180200

Interactive Player

Standard PlayerVid

eo A

ctio

ns

Source: goviral Analytics

Video Actions by Country

Standard Interactive

Video action rate 1,0 3,2

Video actions 1,177 6,331

Total ratings 322 1278

*Source: Standard video rates based on average network numbers


Working strategically with distribution

The Online Evolution

2000-2007Nokia is slowly moving to

digital, but remains largely traditional in choice of

formats

2008-09Nokia get’s first real

online video successes with “Get out and play”

and “Bruce Lee” gathering 5-10mil views

2010-2012Nokia’s creation teams are

adopting increasingly strategic models for

working with content and distribution.

Traditional Campaign Activity Always On

Peak n’ Valley: Traditional Campaigns run in bursts with 3-6 months interval.

It takes a large effort and budget to build up the level of momentum after

each valley.

Always On: The idea for online video is to build an activity that is always

on. Nokia can achieve this by planning to continuosly distribute

content across hundreds of websites.

The distribution approach

“We want to take a dandelion approach to

content. Instead of aiming to create that one amazing viral in a year, we want to create 365 potential candidates”

Daniel GoodallSenior marketing manager, Nokia

Content development strategy

Think in content Think in audiencePlanning

Production

Testing

Distribution

•Different length/cut

•Different end frames

•Different overlays

•Click to play

•Pay per view

•Guaranteed engagement

Nokia N8The way to introduce a new phone

Thinking strategically about content & distribution

Branded content

Overlays & interactivity

Nokia destination pages

Product & tutorial films

Engagement

Interest

Action

Post click

Implications for planning

Media Long tail distribution in relevant channels(The difference can be measured in engagement..!)

Content Creative concepts can come from many sources(both traditional and from new ”crowd” sources)

Audience From one ad to many content formats(A dandelion approach to content)

Analytics Establish benchmarks for each part of funnel(Brand goals, action goals and conversion to community/action)