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USA Video Trends video advertising summit

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  • 1.Digital Video Overview What Every Marketer Should Know December2008

2. Agenda

  • Address the New Model
  • Define the Options
  • Understand the Audience
  • Review the Video Content
  • Results
  • Implications & Best Practices

3. The New(er) Model: On-Demand 4. New Reality

  • Consumers have more control

We must move from exposure to ENGAGEMENT 5. Milestones: Game Changing Events in Online Video 5/05 Initial launch of Yahoo! Video

    • Relaunches in 2006 as a
    • video-sharing site,
    • a la YouTube

iTunes 4.8 offers video

    • Users buzz about a the
    • future possibility of a video-
    • enabled iPod

Nielsen adds VOD to their ratings 6/05 The Slingbox allows youto watch your home TV on any Internet-enabled device.10/05 3/06 4/06 6/06 Apple sells TV shows for $1.99 (ABC/Disney)

    • 1,000,000 videos sold
    • in first 12 days

YouTube limits video clips to10 mins in order to combatpiracy. Users respond by breaking episodic content into segmented clips. First ever non-traditional platform Emmy awarded toLive 8 on AOL.

    • "This throws the shackles off
    • of the definition of what
    • TV has been."Tom ONeil,
    • author of book The Emmys

TiVo offers Internet video service, featuring contentfrom the NYT, NBA,and iVillage. Web video content migrates toTV 6. The Old Way of TV Distribution CONTENT DISTRIBUTION DEVICE 2004 a. New Programs b. Syndication a . Networks & Affiliates b. Cable Networks & MSO Fewer choices for content Scheduled Linear Distributor-Centric TV w/ DVR or VCR 7. The New Way IP Delivered, On-Demand 2008 a. New Programs b. Syndication c. Game Industry d. Movie Industry e. Music Industry f. General Publishers g.Consumer-generated

  • Online iTunes
  • Online Aggregator
  • Online ISPs
  • Mobile
  • Networked distribution
  • Wireless data system
  • Direct to consumer


  • TV w/ DVR
  • Networked TV
  • Computer
  • Cell Phone
  • PSP
  • iPod

Unlimited content choice Multiple distributors On demand Consumer-Centric 8.

  • The State of Television Today:
  • While the average US household has96.4TV channel choices, the average viewer watches only15.4 *
  • Ad clutter has increased
  • Ratings have dropped
  • Fewer than10%of consumers say that television ads influence their purchase decisions**

Source: *Nielsen Media Research, 2006 **Forrester Research, 2006 Jim Stengel, CMO, P&G: In 1965, 80% of 18-49 year-olds in the US could be reached with three 60-second TV spots. In 2002, it required 117 prime-time commercials to do the same. 9. Multi-Platform Messaging

  • The TV360 model surrounds consumers with your brand in two highly complementary environments
  • Television Provides :
  • Unparalleled reach
  • Broad scale
  • Deep inventory
  • One-way, multi-touch consumer relationship
  • Large screen, high-quality messaging
  • Viewer loyalty & engagement
  • Digital Video Adds :
  • Lean-forward environment
  • Direct link to brand, continuing consumer conversation
  • Uncluttered, yet limited inventory
  • One-to-one consumer relationship
  • Video + interactivity & custom creative elements
  • Real-time campaign performance, opportunity to track & optimize
  • Additional engagementusers virally sharing great content with friends

+ 10. The US Ranking 11. Spend Projections 12. Defining the Digital Video Options 13. What is Digital Video?

  • IP-delivered video content
    • Through the internet
    • Potentially compatible with a range of devices
    • On-demand
    • Degrees of interactivity
  • Majority ofonlinevideo made up of
    • In-stream Video
    • In-banner video

14. What is In-Stream Video?

  • An online streaming video experience similarto linear TV models that can offer
  • Pre-roll creative runs prior to user requestedcontent
    • Also available in mid-roll and post roll format
  • Coupled with a companion ad unit(standard or rich media banner) thatadds interactive functionality
  • Commercial cannot be fast forwarded
  • Sold on impressions, not GRPs
  • Commercials run one per pod

15 OR 30 SECOND SPOT 15. What is In-Banner Video?

  • Full motion video advertisement
  • Ad plays unobtrusively until clicked on/soundenabled
  • Can use existing creative
  • Expandable viewing window
  • DR capabilities/clickable for moreinformation/retail locations/calls to action
  • Interstitial ads: Commercial video appears in same browser window between webpage loads

16. A Handy Reference 17. Advertising Examples 18. Advertising Examples 19. A Hyper-fragmented Video Landscape Sources: ComScore 11/30/07 Press Release, Willvideoforfood.com 28% of the views come from YouTube Only 50% of streams come from top 10 sites 20. In-Stream Video: Pros/Cons

  • Cons
  • Its still just a commercial
  • Limited targeting (compared to other online tactics)
  • Inventory is limited
  • Costly CPMS
  • 3 rdparty ad serving not always supported
  • Video Ad length effectiveness not well understood
  • Reporting discrepancies
  • Online buying not similar to TV buying
  • Many different video ad products available
  • Different video player technologies
  • Attribution of metrics and viewers
  • Pros
  • Extends TV reach and ability to penetrate at-work audience
  • Reaches captive audience awaiting desired content
  • Like TV, delivers impact with sight, sound and motion
  • Clutter free environment
  • Allows for higher composition media buy (where available)
  • Allows for interactivity via companion units
  • Delivers measurable results

21. Marketing Opportunities Industry Examples 22. Marketing Opportunities: Tiered Levels of Involvement

    • Like most other forms of advertising marketers can participate at varying
    • levels within online video marketing
    • Low Involvement
    • Traditional advertising within Video Sites (i.e. banners, logo placement)
    • In-Video Overlays (small ad banner that pops up on bottom of video player while content plays)
  • Medium Involvement
    • Exclusive internet produced spots to be included in ad campaign or seeded within video sites
    • Includes pre-roll placement
    • Relevant or irreverent (viral) content is encouraged
  • High Involvement
    • Content creation create content that lives in specific branded channels withintop video destinations or within corporate website

23. Low Involvement

    • Adobe sponsored a featured channel produced by Metacafe, showcasing original video that honors the craft of filmmaking.
    • Sponsorship includes call out on features section on homepage, logo sponsorship with in Directors Cut Channel, co branded media throughout the site.
    • Adobes sponsors Metacafes Directors Cut

24. Medium Involvement

    • Purchased pre-roll video inventory before quality video content on top sites which scored high among the target audiences and were contextually relevant
    • Furthered the broadband video experience by expanding PCHs brand messages to an interactive companion banner that provided the user with valuable product information, games, coupons, etc.

Pfizer Consumer Healthcare 25. High Involvement

    • A custom microsite was built for Schick Quattro for Women by Match.com in conjunction with Schicks creative agency and Carat
    • Match.com hired an actress and to play the role of Juliette a Dating Guide and filmed her giving tips (scripted in advance with Schicks approval)
    • The role of Juliette in the Girls Guide to Dating microsite was to make navigating th
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