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Video Advertising in a Multi-Screen World 1 The Marketing World is Focused on All Things Digital 1. Because new tools present new opportunities 2. And because the old ways no longer work 2 The Marketing World is Focused on All Things Digital 1. Because new tools present new opportunities…Yes 2. And because the old ways no longer work…Not so fast 3 Popular Consumer Insight: In a Post-Television World, the consumer is in control and will choose what, when, where and on what to watch, creating his own personal media smorgasbord. 4 Popular Marketing Insight: In a Post-Television World, new ways must be found to reach and engage with consumers, on their terms, not the marketers’ terms. 5 Maybe so, if and when a Post-Television World arrives. 6 Television – good old “Old Media” TV – has never been more highly consumed… and it’s still growing. 7 Let’s look at video in all forms and see what’s real today. 8 Consumer Usage of the Medium Is Growing Household viewing is nearing 8.5 hours, daily. Americans are exposed to nearly 72 minutes of video ads and promos per day. (Hr:Min/Day) Sources: Daily Usage Figures: The Nielsen Company, NTI Annual Averages; Prior to 9/87: Audimeter Sample; 9/87 to date: People Meter Sample. Ad and Promo Exposure: Council for Research Excellence – Video Consumer Mapping Study 2009. 9 9 Television Viewing Is a High-Growth Activity Each year, time spent viewing TV is increasing across most major demographics. Each month the average American watches over 153 hours of TV at home. Hours:Minutes /Day Men Women Teens Children 2003 4:29 5:05 3:07 3:14 2004 4:26 5:07 3:07 3:16 2005 4:31 5:17 3:19 3:19 2006 4:35 5:17 3:22 3:26 2007 4:39 5:19 3:24 3:27 2008 4:49 5:25 3:27 3:28 2009 4:54 5:31 3:26 3:31 Sources: Daily Viewing: The Nielsen Company, NTI Annual Averages. Monthly estimate: Nielsen 4Q09 Three-Screen Report. 10 10 11 11 Live TV Ads 12 12 1st Quarter 2010 Video Viewing by Distribution Channel Weekly Time Spent Hrs:Min Traditional Live TV 35:34 Time Shifted TV 2:09 Watching Video on Internet 0:20 Watching Video on Mobile Phone 0:04 Total Video Consumption Source: Nielsen 3 Screen Report Volume 8 38:07 13 1st Quarter 2010 Video Viewing by Distribution Channel Weekly Time Spent Hrs:Min Traditional Live TV 35:34 93.3% Time Shifted TV 2:09 5.6% Watching Video on Internet 0:20 1.0% Watching Video on Mobile Phone 0:04 0.2% Total Video Consumption Source: The Nielsen Company Three Screen Report Volume 8 38:07 14 Weekly Total TV Viewing 1st Qtr 2010 vs. 4th Qtr 2009 + 60 Minutes Live : +57 minutes Timeshifted : +5 minutes Watching Video on Internet Watching Video on Mobile : -2 minutes : Flat 15 Weekly Time Spent in Hours:Minutes By Age Demographic 1Q 2010 K2-11 T12-17 A18-24 A25-34 A35-49 A50-64 A65+ P2+ On Traditional TV 25:48 24:28 26:45 32:03 36:35 44:20 48:54 35:34 Watching Timeshifted TV 1:32 1:20 1:31 3:00 2:50 2:30 2:17 2:09 Watching Video on Internet 0:04 0:10 0:30 0:36 0:31 0:18 0:07 0:20 Mobile Subscribers Watching Video on a Mobile Phone n/a 0:18 0:10 0:07 0:03 0:01 <0:01 0:04 Source: The Nielsen Company, Three Screen Report, 1st Qtr 2010. 16 Timeshifted Viewing: A Reality Check 17 National DVR Penetration is on the Rise… But the Growth Rate is Slowing +33.7% Source: The Nielsen Company +37.0% +15.9% 18 Nielsen Reports 94% of TV Viewing is to Real Time Broadcasts Source: TVB Analysis of data presented in The Nielsen Company’s Three Screen Report, 1 st Qtr 2010 P2+ Of the 6% Timeshifted Viewing About 45% Watch the Commercials About 3.2% of Viewing is Commercial Fast-Forwarded Source: TVB Analysis of data presented in The Nielsen Company’s Three Screen Report, 1st Qtr 2010 P2+ About 10% of Viewers Account for 72% of Timeshifted Viewing % of all Viewers % Shifters % of Timeshifting Heavy Shifters 3.5% 10.0% 39.0% Medium Shifters 7.1% 20.0% 33.0% Light Shifters 24.8% 70.0% 28.0% Source: TVB Analysis of The Nielsen Company DVR Study 21 Time-Shifting Facts General Primetime Dramas are the most timeshifted genre. Sports and News programs are the least timeshifted. Most playback – 63% – occurs on the same day as recorded… 42% in the same hour. Source: The Nielsen Company Broadcasting & Local Cable 23 The Local Programming of Choice is on Local TV Stations… 195 of the Top 200 Shows in 2009 Were Broadcast Prime Programs Ranked by Adult 25-54 Ratings Program Rank 1-25 26-50 51-75 76-100 101-125 126-150 151-175 176-200 Total % Broadcast Stations Subscription TV PBS Total 25 25 23 25 25 24 25 23 0 0 2 0 0 1 0 2 0 0 0 0 0 0 0 0 25 25 25 25 25 25 25 25 195 97.5% 5 2.5% 0 200 0.0% 100% Source: The Nielsen Company, Galaxy Explorer; 9/22/08-5/20/09, Ranked by A25-54 Live+SD US AA % (ties broken by 000’s) 24 The Big Problem in Converting Cable Network Audience to Local Ad Viewers: Satellite! Satellite penetration is now at 32.9% of subscription HHs Satellite HHs do not receive local cable ads. They do get local TV station ads. Source: The Nielsen Company, May’10 DMA Media Related Universe Estimates 25 Broadcast’s Reach Advantage Broadcast TV has the potential to reach 100% of TV HHS Local cable systems have the potential to reach 61.5% of TV HHS 39.5 % of viewers cannot see local cable TV ads 26 Let’s Look at Online Video 27 May 2010 Online Video Profile Unique Viewers 135,881,000 (45% U.S. Pop.) Video Streams: 9,821,675,000 Streams Per User: 72.3 Time Per Stream: 2:63 (min:sec) Source: Nielsenwire for May 2010 28 Top Online Video Brands May 2010 Uniques % U.S. Pop. 1. YouTube 101,336,000 34.6% 2. Facebook 26,186,000 9.0 3. Yahoo! 24,200,000 8.3 4. Google 18,851,000 6.4 5. Hulu 15,458,000 5.3 Source: Nielsenwire for May 2010 29 Top Online Video Brands May 2010 1. YouTube Streams (000) % Total 5,280,027 53.8% 2. Hulu 813,043 8.3 3. MSN/Bing 183,836 1.9 4. Yahoo! 170,462 1.7 5. Turner Nets 130,552 1.3 Source: Nielsenwire for May 2010 30 Video Ads Viewed – June 2010 Hulu 566,162,000 YouTube 200,011,000 Hulu Advantage +184% (Includes All Google Sites) Source: ComScore June 2010 31 YouTube Leanback “We’re looking at how to push users into a passive-consumption mode, a lean-back experience.” – Jamie Davidson YouTube Product Manager 32 YouTube Leanback Pre-organize a video playlist by vertical category: sports, food, travel, etc. Insert ads between video content clips 33 YouTube Tests Live September 13, 14 live streaming video “Adding the power of live TV to a video-on-demand platform” Live content partners – Next New Networks, Rocketboom, Young Hollywood and Howcast 34 You Tube Live Test Partners Rocket Boom Daily video news blog Next New Networks Short form films “Indie Mogul” Young Hollywood Celebrity clips Howcast How to Defog Car How to Preserve Lemons How to Survive a Bad Haircut How to Make a Halloween Outfit How to Lower Pregnancy Related Hypertension… (uh oh) 35 Marketing Consideration: The Heavy User Twitter: Facebook: 1 in 5 Twitter users has 10 followers, follows 10 and has twittered 10 times 73% have Twittered less than 10X 12% of users = 66% of visits 34% of users = 3% of visits U.S. Internet: 16% of web users click on ads 8% of users = 80% of Clicks 36 Distribution of TV Viewers by Amount of Daily Viewing Light Source: Bruzzone Research Co./TV Dimensions 2010 Medium Heavy 37 Exposure of Ad Messages by Viewer Group Light Source: Bruzzone Research Co./TV Dimensions 2010 Medium Heavy 38 Mobile Video 39 Mobile Video Growth Monthly Reach of Mobile Video Viewers 1Q ’10 1Q ’09 20,284,000 13,419,000 Source: Nielsen Three Screen Report Vol. 8 +51.2% 40 Mobile Video Usage Monthly Time Spent per Mobile Video User 1Q ’10 4Q ’09 1Q ‘08 3:37 3:37 3:37 Source: Nielsen Three Screen Report Vol. 8 41 Two last thoughts that go beyond the #s 42 More People Feel Broadcast Television is Most Involved in Their Community Persons 18+ Source: TVB Media Comparisons Study 2010. Knowledge Networks Inc. Custom Survey. 43 Television Advertising Has the Best Perception Among Persons 18+ Most Persuasive Source: TVB Media Comparisons Study 2010. Knowledge Networks Inc. Custom Survey. 44 New Media Paradigm: POE Paid Media Owned Media Earned Media 45 New Media Paradigm: POE Paid Media TV, Print Reach Awareness Persuasion Intrusion Search – High Control 46 New Media Paradigm: POE Owned Media Search Websites Literature Email/Blogs Social Media Customer Relationship Management – High Control 47 New Media Paradigm: POE Earned Media Social Search Social Media YouTube Twitter Facebook Communities Dynamic Viral Unpredictable – Low Control 48 The POE Media World is: More Complex More Dynamic More Demanding More Interrelated 49 We’re Glad to be a Part of it! Thank You! 50