state online video 2010

The State of Online VideoDan Piech

The State of Online Video

OMMA VIDEO - January, 2010

MILLION PEOPLEIN THE UNITED STATESIN THE UNITED STATESARE GOING TO WATCH

2© comScore, Inc. Proprietary. Source: comScore Video Metrix, December 2010


BILLION VIDEOS



BILLION VIDEOS


20062006

<embed src=“video swf”>5© comScore, Inc. Proprietary.

<embed src=“video.swf”>

20062006$324

63$324 MILLION (ad spend)

63 BILLION VIDEOS

¢0.7 PER VIDEO6© comScore, Inc. Proprietary.

¢0.7 PER VIDEOSource: comScore Video Metrix, December 2010; eMarketer, December 2009; IAB, 2010

20102010

<video><video>

7© comScore, Inc. Proprietary.

20102010$1 440

441$1,440 MILLION (ad spend)

441 BILLION VIDEOS

¢0.4 PER VIDEO8© comScore, Inc. Proprietary.

¢0.4 PER VIDEOSource: comScore Video Metrix, December 2010; eMarketer, December 2009; IAB, 2010

2006 – 20102006 2010


2006 – 20102006 2010$ Ad Spend: +344%p


2006 – 20102006 2010$ Ad Spend: +344%p

# Videos: +600%# Videos: +600%


AGENDATHE STATE OF ONLINE VIDEO

AGENDATHE STATE OF ONLINE VIDEO

THE FUTURE OF VIDEO MONETIZATION

WHY VIDEO?

12© comScore, Inc. Proprietary. Icon Source: Dale Morrell, 19eighty7.com

THE STATE OF ONLINE VIDEOUbiquityThe rise of long-formVideo advertising


The growth of the online video universe

40,000180,000

Number of People Streaming (000) Streams (MM)

30,000

35,000

140,000

160,000

20,000

25,000

80,000

100,000

120,000

5,000

10,000

15,000

20 000

40,000

60,000

00

20,000

Jan

'06

Mar

'06

May

…

Jul '

06

Sep

'06

Nov

'06

Jan

'07

Mar

'07

May

…

Jul '

07

Sep

'07

Nov

'07

Jan

'08

Mar

'08

May

…

Jul '

08

Sep

'08

Nov

'08

Jan

'09

Mar

'09

May

…

Jul '

09

Sep

'09

Nov

'09

Jan

'10

Mar

'10

May

…

Jul '

10

Sep

'10

Nov

'10

14© comScore, Inc. Proprietary. Source: comScore Video Metrix

15© comScore, Inc. Proprietary. Image Source: Craig Chelius

The growth of the online video universe

40,000180,000

Number of People Streaming (000) Streams (MM)

30,000

35,000

140,000

160,000

20,000

25,000

80,000

100,000

120,000

5,000

10,000

15,000

20 000

40,000

60,000

00

20,000

Jan

'06

Mar

'06

May

…

Jul '

06

Sep

'06

Nov

'06

Jan

'07

Mar

'07

May

…

Jul '

07

Sep

'07

Nov

'07

Jan

'08

Mar

'08

May

…

Jul '

08

Sep

'08

Nov

'08

Jan

'09

Mar

'09

May

…

Jul '

09

Sep

'09

Nov

'09

Jan

'10

Mar

'10

May

…

Jul '

10

Sep

'10

Nov

'10

16© comScore, Inc. Proprietary. Source: comScore Video Metrix

Every month:

NUMBER OF VIEWERS 180MM180MM

% OF INTERNET AUDIENCE 85%

VIDEOS VIEWED 36B

VIDEOS PER PERSON 200

VIEWING TIME PER PERSON 13 hr


Age breakdown: Percent of Internet audience that view video

90

100

60

70

80

40

50

60

20

30

0

10

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


Age breakdown: Videos per viewer

300

350

250

300

150

200

50

100

012-17 18-24 25-34 35-44 45-54 55-64 65+


Viewing by gender (Top 100 Video Properties)

473.0500 Females Males

366.0400

300

89.4

139.0

89.8

170.0

100

200

0UVs (MM) Videos per Viewer Minutes per Viewer

48% 52% 43% 57% 42% 58%


UVs (MM) Videos per Viewer Minutes per Viewer

Source: comScore Video Metrix, December 2010

Where are viewers watching content videos?

Web PropertyTotal Unique

Viewers (000)(of content videos)

Google Sites 145,829Yahoo! Sites 61,803VEVO 50,320AOL, Inc. 47,687Viacom Digital 47 282Viacom Digital 47,282Facebook.com 42,500Microsoft Sites 35,348Fox Interactive Media 31,552NBC Universal 29,192Turner Digital 27,714


Duration moves upwards as long-form TV content moves online

180 Total US Viewing Duration +162%

140

160

s

80

100

120

s of

Min

utes

40

60

80

Bill

ions

0

20


Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10

Source: comScore Video Metrix

Growth in long-form TV programming online

Yearly growth in videos viewed on long-form TV programming sites

Videos per ViewerVideos Viewed Videos per ViewerVideos Viewed

104% 75%increase increase

23© comScore, Inc. Proprietary. Source: comScore Video Metrix, Dec 2009 – Dec 2010

Growth in long-form TV viewing repeat engagement

Average percent of a site’s viewers that view videos on any given day

4%(long-form sites only)

8%4% 8%2009 2010

24© comScore, Inc. Proprietary. Source: comScore Video Metrix, Dec 2009 – Dec 2010

Ad impressions per month

5 9Billion5.9video ad impressions per monthBillion

2.4video ad minutes per monthBillion

1482.4video ad minutes per month

Milli148 viewers exposed to video adsMillion


Ad Impressions per month – 6 month variances

36% Growth36video ad impressions per month% Growth

30video ad minutes per month% Growth30video ad minutes per month

8% G thviewers exposed to video ads8% Growth

26© comScore, Inc. Proprietary. Source: comScore Video Metrix, June 2010 – December, 2010

Video advertising reach

83% video viewers

70%total web

49% total USUS

Population

Linear video ads are served across the web in a month reach the

average video viewer 40 times

Linear video ads are served across the web in a month reach the

average video viewer 40 times


gg

Ad Percentage

16%16%

AdsC t t

84%

Content

16 4% f id i d d16 4% f id i d d16.4% of videos viewed are ads16.4% of videos viewed are ads


THE FUTURE OF VIDEO MONETIZATION Are we monetizing to the degree we could be?Comparison to televisionViewer expectations are being molded as we speak


Online video viewing growth is outpacing ad spending growth

500000$6,000

Ad Spending (MM) Streams (MM)

$5,202 440,692

350000

400000

450000

$5,000

$2,858

$3,844

260,049 250000

300000

350000

$3,000

$4,000

$734 $1,029

$1,440

$1,966

63 515

102,141

142,254

100000

150000

200000

$1,000

$2,000

$40 $55 $85 $135 $225 $324 $410 63,515

0

50000

$0

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

30© comScore, Inc. Proprietary. Source: comScore Video Metrix, December 2010 and eMarketer, December 2009

Not enough ads?Not enough ads?

Ads too cheap?Ads too cheap?31© comScore, Inc. Proprietary.

All Online Video Television

1.6%

Ads Content25%

98.4% 75%

1.6% of time spent viewing video online is spent viewing ads compared to 20-30% on TV

1.6% of time spent viewing video online is spent viewing ads compared to 20-30% on TV


Entertainment Sites Television

5.3%

Ads Content25%

94.7% 75%

5.3% of time spent viewing video online on entertainment sites is spent viewing ads compared to 20-30% on TV

5.3% of time spent viewing video online on entertainment sites is spent viewing ads compared to 20-30% on TV


Long-Form Premium TV-content Television

8.5%

Ads Content25%

91.5% 75%

8.5% of time spent viewing video online on long-form premium TV content is spent viewing ads compared to 20-30% on TV

8.5% of time spent viewing video online on long-form premium TV content is spent viewing ads compared to 20-30% on TV


on TVon TV

What do our Viewers Really Value?

69%Missed episode on TV

Reasons to Watch Online

56%Like to see past episodes

42%

57%

Less ads

Convenience

Cross Platform [B]

13%

29%

Prefer the online experience

Can discover new shows easily

9%Don't subscribe to cable/ don't have a TV

p


Q12. What are the reasons why you like to watch Original TV shows online? Check all that apply.

0% 20% 40% 60% 80%

Base sizes:Total=617

Online Only= 115Both TV/Online= 502

Source: comScore TV Everywhere Survey, 2010

What do our Viewers Really Value?

69%Missed episode on TV

Reasons to Watch Online

56%Like to see past episodes

42%

57%

Less ads

Convenience

Cross Platform [B]

13%

29%

Prefer the online experience

Can discover new shows easily

9%Don't subscribe to cable/ don't have a TV

p


Q12. What are the reasons why you like to watch Original TV shows online? Check all that apply.

0% 20% 40% 60% 80%


Online Only= 115Both TV/Online= 502


100.0

80.0

Desired Length of Commercials Online

60.0

40.0

20.0

0.01 min 2 min 3 min 4 min 5 min 6 min 7 min 8 min 9 min 10 min 11 min 12 min 13 min 14 min 15 min


Negligible Minimal Long Enough Too Long

Base sizesTotal=640


100.0

80.0

Desired Length of Commercials Online

60.0

40.0

20.0

0.01 min 2 min 3 min 4 min 5 min 6 min 7 min 8 min 9 min 10 min 11 min 12 min 13 min 14 min 15 min


Negligible Minimal Long Enough Too Long

Base sizesTotal=640


Amount of Advertising is:

90%

100%

60%

70%

80%

40%

50%

60%

20%

30%

0%

10%

1min 2 3 4 5 6 7 8 9 10 11 12 13 14 15


Fair Minimal Long Too Long



Are we conditioning ourAre we conditioning our viewers to fewer ads?viewers to fewer ads?


WHY VIDEO?What makes the video universe uniquely powerful?The social nature of online video


And it works

How would you rate the commercials you see when watching i i l V h ONLIN V?original TV shows on ONLINE vs. TV? Completely Agree – Top 2 Box

Online Rating TV Rating

18.7%

29.8%

31.2%

Commercials are relevant to me

Commercials make me think favorably about the brand being advertised

Online Rating TV Rating

32.1%

21.8%

18.6%

30.1%

The commercials interfere with my show viewing

Commercials are memorable

Commercials are relevant to me

25.6%

19.5%

34.3%

32.0%

Commercials are annoying

I enjoy watching the commercials


22.0%35.8%Commercials are interesting

Source: comScore TV Everywhere Survey | n = 1825

What are the reasons you visited an advertiser’s website while watching a show online?

A video commercial played during the show

A product that you noticed in the program

p y g

A text or image-based commercial di th id l

A video commercial played before the show

Other

surrounding the video player

0 10 20 30 40 50 60Percentage of respondents

43© comScore, Inc. Proprietary. Source: comScore TV Survey, 2010

Nearly 100% of online spenders are video viewers

Non-Video Non Video Viewers

4%

Video Viewers

96%

44© comScore, Inc. Proprietary. comScore Video Metrix and comScore E-Commerce Online Spend Data – June 2010

Not all video audiences are created equal when it comes to video advertising and retail spending at a category level

Buying Power Index

140160180

170145136

115

80100120140 115

0204060

Total Video Sites Video Ad Network Category

Earned Media & Social Video

Long Format TV0

45© comScore, Inc. Proprietary. comScore Video Metrix and comScore E-Commerce Online Spend Data – June 2010

Video is social, interactive, lean forward…

Note the clichéd clip-art graphics


1 in 3 video viewers comment1 in 3 video viewers comment


2 in 5 upload videos2 in 5 upload videos


1 in 2 regularly share videos1 in 2 regularly share videos


More than 1 in 2 view online video with othersMore than 1 in 2 view online video with others


Among 18-34’s more than 2 in 3 view with othersAmong 18-34 s, more than 2 in 3 view with others


THE STATE OF ONLINE VIDEOUbiquityThe rise of long-form

THE FUTURE OF MONETIZATION

The rise of long formVideo advertising

THE FUTURE OF MONETIZATION Are we monetizing to the degree we could be?Comparison to televisionViewer expectations are being molded as we speak

WHY VIDEO?Wh t k th id i i l f l?

Viewer expectations are being molded as we speak

What makes the video universe uniquely powerful?The social nature of online video


Thank you!Thank you!Dan Piech | [email protected]

Business

state online video 2010