Getting Beyond Big in Online Video

Presented by Tania Yuki, comScore

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Getting beyond big

Small (and relevant) is the new big

Context: not all video or video advertising is created equal

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16.8

billion

streams! Video Metrix US April 2009

Video is big

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Put another way…

That’s 151mm people who can

be reached an average of 110

times during a video experience,

each

month

…just in the US

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

20

40

60

80

100

120

140

160

180

Total Internet Users (MM)(MM)

In the US, video is also undeniably big in terms of reaching people

online…

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Total Internet Videos are Up 66% in 15 months

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Total Videos

Total Videos Streamed (000) in the US Over 15 Months

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And big elsewhere by reach as well…

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

UK Canada France Germany

Percentage of online population who streamed video

Source: comScore Video Metrix; December 2008

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Online video is surprisingly big across all age categories…

70.5%67.6%

70.0%73.6% 73.4% 72.8%

70.1%66.7%

61.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2+ 2-11 12-17 18-24 25-34 35-44 45-54 55-64 65+

Online Video Monthly Cume by Age

Source: comScore Video Metrix

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And especially big in 18-34’s in terms of time spent viewing

3

5

9

77

6

44

0%

100%

200%

300%

400%

500%

600%

700%

800%

900%

1000%

2-11 12-17 18-24 25-34 35-44 45-54 55-64 65+

Average time spent viewing video per person (in hours)

Source: comScore Video Metrix

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YouTube Videos are Up 98% in 15 months

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Youtube

Top video sites show big growth

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Top video sites show big growth

Unique viewers on Hulu and the Hulu video network

Hulu’s audience grew nearly 600% in the last 12 months

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Getting Beyond Big…

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Big does not always equal good…

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Especially when we talk about video in terms of streams

My network did

10 million

billion streams

last month…

What’s a

stream?

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The problem with big streaming numbers…

A stream is a generic term used to explain that a video file was requested

and viewed (at least in part)

– Can be auto initiated, user initiated, live streaming, progressive download, from

a web server or a content delivery network (CDN), or multiple CDN’s…

Can be useful to understand scale and tonnage, but---

Content

Request

Stream

Web

Server

Consumer

CDN

Content

Request

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We need to look beyond ‘streams’

A stream really only expresses the result of convoluted, complex

technology-based relationships, and can be confusing as a measure in

itself

Content

Request

Ad Stream

Web

Server

Consumer

Ad Network

Content

Stream

Content

Request

Content

Server

CDN

Ad Request

?

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Looking beyond big streams, to specific audiences

and online behaviors…

…small (and relevant) is the new big

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Big used to matter. Big meant economies of scale. Value came from

hundreds of operators standing by and from nine-figure TV ad budgets.

And then small happened.

Seth Godin

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Three alternatives to ‘big’ streaming numbers

Specific audiences and audience comps who can be understood and

reached meaningfully by virtue of their behavior

Niche audiences or online ‘tribes’ who congregate (and can be reached)

around their interests

Relevant, value-enhancing advertising messages and offers that focus on

the context of the video experience (moving beyond sweeping

generalizations based on demographic composition)

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Specific audiences:

Target: 18+ business travelers who watch video and multi screen

– Of the 39mm in this target group,

52% watched online video in the

last 7 days

– Light, medium and heavy TV

viewers represented 43%, 27%

and 24% reach respectively

– 50% of light TV viewers, 44% of

medium TV viewers and 66% of

heavy TV viewers also watched

online video in the last 7 days

– Only 3.5% never watch TV while

using their computer

26% frequently watch TV while using

their computer ; 12% always did so

Plan Metrix, April 2009

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Video can be used to reach very specific people around their online

searching and buying behavior

Applying for and searching out financial

products –

Of the 30mm people who searched

for and/or applied for an array of

financial services products

(personal loan, mortgage, 401k,

brokerage account etc) in the last 6

months…

60% could have been reached via

online video in the last week

The video viewers tended to

concentrate around the higher

income thresholds, and around

specific video sites

Where can we reach these people?

Video Metrix and Plan Metrix report, April 2009

Geico browsers over indexed on

myspace, msn video, OV guide

Lendingtree browsers loved video

sharing sites like ebaumsworld,

veoh and dailymotion

Etrade, Schwab and Fidelity

browsers and applicants could be

found watching video on Hulu,

Spike, Metacafe, Break, MSN Video

and Justin.tv among others

Freecreditreport.com customers

and applicants also visited

Funnyordie, real.com and Break

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Using simple planning tools like Video RF to simplify planning video

against specific targets

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Video is also a powerful way of reaching niche audiences as they

congregate around their interests

DIY fashion

and influencers

Snow boarders

gamers

Mom bloggers

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The fascination with big (and why we’re stuck)

Small (and relevant) is the new big

Don’t forget context

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Not all video is the same (and not all viewers can be treated the same)

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Not all video advertising is the same either…

Pre-roll

Overlays

BugsIn page video

Post-roll

In banner video

Water

marks

Skinned players

Sponsor driven

Something different?

Mid-roll

Branded content

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Two kinds of video experiences

Transportation and escape

Information and education

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Online video to…

escape

• immersive

• viewer in ‘passive mode’

• Less likely to want to interrupt their content experience or be diverted

• Linear video advertising with companions, similar to TV experience

elevate

• functional, searching

• viewer in ‘action mode’

• More likely to take action on a relevant message, immediately

• Video advertising featuring a call to action: clickable overlays, in video ads, companions

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Content as transportation and escape…

The viewer is typically interested in an

immersive but lean back experience similar

to that of TV

Program or video is the end in itself, the

outcome of searching/seeking

Includes short or long form programming

Examples include Lost, Desperate

Housewives, Heroes as well as short form

comedy programming, music, animation

Viewer is receptive to advertising

messages, albeit in a ‘soft’ way – think

brand lift, awareness

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Content as information and education…

Aka help me do something; find something; be more interesting

• Viewer actively seeks out

information in a shared video format

that is valuable to him/her

• Reveals a lot about interests, and

potentially where they are in the

purchase cycle

• How-to content, news, travel

information, professional talks,

interviews etc

• Ads can become ‘helpful’

• Huge opportunities here for highly

relevant advertising that delivers

value and utility, directly

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The potential in video advertising:

Video viewers are 20% more likely to make a purchase online

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Total Internet

Video Streamers

20.5%

Buyers per visitor/

video viewer

19.7%

21.3% 21.5% 22% 21.8%

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Key Takeaways

Big is not the destination in online video… meaningful is

Meaningful insights means understanding audiences, as well as

understanding the different types of video experiences available… and

catering our advertising messages to each

There are huge, untapped opportunities in video advertising

Do not think streams, think who is watching and what are they telling you

about their interests?

tyuki@comscore.com

Thank you!

Next in the Online Video Series

July 14

Cross-Screen Synergy: Show me the (TV) money!

(Why Online Video and TV are not competitors…and what you

can do about it.)

July 29

Going Beyond TV on the Web: Finding the Untapped

Advertising Opportunities in Online Video

Contact: events@comscore.com