Brand Marketer's Guide to Video_May2011

8/3/2019 Brand Marketer's Guide to Video_May2011

1/16

A Brand Marketers Guide to

Online VideoOnline video is rapidly becoming a natural extension to broadcast buys,with distribution across the Internet and a whole new generation ofconnected devices.

Heres what you need to know to connect with the TV everywheregeneration including techniques that ensure reach and efciency withbrand safety.


2/16

If TV offered premium audience targeting, advancedROI metrics, in-depth reporting, interactive ad formats,

social media integration and iGRP.

collective.co

facebook.com/collect

Collective Video is just like TV.*

*


3/16

A Brand Marketers Guide to Online Video

Executive Summary

Online video is today what cable TV was 20 years ago - anew and untapped extension to a broadcast buy.

170 million people in the US are viewing online video today,expected to grow to 195 million people by 20151.

The average online video viewer consumed 14.2 hoursper viewer per month in 2010 a growth rate of12% over 20092.

Broadcast television today represents less than half of all18-34 year olds primary video viewership diet3.

61% of all video usage online takes place outsidethe realm of YouTube and Hulu4.

Wireless devices are spurring increased online

video viewership.

GRPs are now available to measure online video audience,in addition to brand lift studies and even ofine sales

lift metrics.

Professionally-produced content yields higher adacceptance by consumers and is brand safe for advertisers.Be wary of anyone selling video inventory

for less than $5CPMs as it is likely not top quality.

Research shows that online video ads impact recall andpurchase intent more than broadcast or cable.

1 eMarketer 2010

2 comScore, December 2010

3 Harris Poll, September 20104 comScore, September 2010


4/16


When cable TV reached critical mass, it blew apart the notion ofreaching consumers through only a handful of broadcast networks

Now, an even more expansive shift is underway: video has broken outof the TV box entirely and is being viewed by consumers through theInternet and all forms of wireless devices from mobile phones to gamingdevices to tablets. For marketers, its an extraordinary opportunityto expand video reach past broadcast television and to an entiregeneration of consumers who want their TV content wherever andwhenever they desire.

And while online video is an easy extension to a TV buy, it also providesthe added brand benet of a more focused consumer and less clutter. Its

not surprising then that research is showing that online video ad impact

including recall and purchase intent are multiples higher than broadcastor cable.

The growth of online video consumption is so strong and the valueso great to advertisers, that in this upfront season expect to see manybrand marketers investing in online video as a major component of

traditional broadcast buys.

online video ready or prime time

As o February2011, 170 millionpeople watchedonline video: over6 billion video

viewing sessionsor an average o816 minutes perviewer.(comScore)

introduction

When Nielsen reported in 2000 that cable hit household penetrationrates above 60%, it was a mind-and-media-plan blowing developmentAdvertisers ocked to cable channels to take advantage of this

newfound scale and contextual targeting. A little over a decade lateronline video (both via desktop and mobile devices) is presenting asimilar opportunity.

According to ITU, 68 percent of US households have broadbandaccess, and comScore reports that over 170 million people in theUS are viewing online video; eMarketer predicts that number wilgrow to 195 million people by 2015. And when you consider thavideo advertising can be served to users through a variety of onlineactivities, such as during video games and social applications, theactual available video viewing time online exceeds that of televisionfor certain demographics.

With numbers like that, its no wonder brands are beginning toembrace online video as a new broadcast channel.


5/16

the 18-34 viewer:in demand and video at their demand

The numbers get more powerful if you focus in onexactly who these people are. According to a Harris Poll

from October of 2010, the younger the audience, themore likely they are to be consuming more online videocontent.

Nielsen, the arbiter of all television numbers, showsgrowth for online viewing, as does comScore, whichreports that by December 2010, the average onlinevideo viewer consumed 14.2 hours per viewer per month a growth rate of 12% year over year.

US Internet Users Who Primarily Watch TV Showson a TV Set or on a Computer, by Age, Oct. 2010% of total

nPrimarily on TV

nMostly on TV, butsometimes on computer

nEqually on TV and computer

nMostly on Computer

n Primarily on computer

nDont watch TV shows

Note: numbers may not add up to 100% due to roundingSource: Harris Poll and 24/7 Wall St. survey as cited by press releaseOct 28, 2010

18-34

35-44

45-54

55+

48% 24% 10% 5% 7% 6%

69% 5%

1% 3%

2%

74%

84%

16%

11%

4%

1%

2%

4%

1% 4%

20%

The growing onlineaudience is cannibalizing tvviewership, especially acrosthe younger demographic.


6/16

No one in a major city in the US can avoid the smart phonrevolution going on in front of their eyes, but there is a largeconnected device explosion that is easier to miss. A studof media futures from respected researcher Frank Magi(2010: The New Age of Video Entertainment) showed tha38% of the US population was interested in connectintheir PCs to their TVs to watch video. And then there the iPad. Silicon Alley Reporter commissioned a survey iNovember 2010 of tablet owners and found that they spen33% of their time watching video on the device, which slightly more time than was spent playing games. These ar

all wi- devices and early reports indicate they are becomina replacement household pc but also a living room anbedroom entertainment device. Viewers everywhere may bcuddling up with a tablet soon.

Sources like Nielsen IAG and comScore ARS arethe two big measurement forces for next dayimpact of TV ads (most often used for creativetesting) and are now extending this sort of research

into interactive. Nielsen IAG released a report in2010 that showed that not only does online videowork better than display advertising at generatingrecall and brand linkage, premium video online(broadcast type content) delivers a signicant lift

over primetime broadcast advertising.

new generation o connected devicesleads to more digital video consumption

or brand recall, online videoworks better than TV

I so, was theadvertised

brand recalled?

General Ad Recall

Was the adremembered?

Brand Linkage

100

135

176

100

149

185

PremiumO

nlineV

ideo

PrimetimeTVAds

Display

PremiumO

nlineV

ideo

PrimetimeTVAds

Display

In 2010, US internet usersspent more time onlinethan in ront o the TV

Sources: Collective Audience Cloud; Ipsos OTX MediaCT, What A Dierence Two Years Make:Revelations rom the OTX LMX, provided to eMarketer, September 2010; Nielsen IAG

Watching TV (live/DVR)

3.4

3.7Daily Time Spent on Select Media Activitiesby US Internet Users, 2010 (hours)

Going online/using a computer/online gaming

?*

3.7



7/16

brand metrics. Digital brand measurement company, Vizu, reports thatonline video advertising generates more than twice the brand lift of

standard display advertising.

But this is not a game of one medium winning over another. IAG alsoshows that the same ads run in online video and on broadcast as part of aholistic schedule increases the effectiveness among all brand measures.

Even within the online world, video is especially powerful at driving

Online video ads can add impact to a TV campaignMessage recall exhibited the greatest lit among the dual-platorm exposed group

Source: Nielsen IAG, A18-49, Premium Online Vi deo Measurement 2008-09; TV + Premium Online Video Total Exposed Sample Size = 1,068TV + Premium Online Video exposure group include those viewers who were exposedto same brand/product ad in Premium Online Videoin 7-day period prior to TV ad exposure.

Note: Primemedia TV data based only time period(s) where impressions were also being delivered on measured Premium Online Video orsame brand/product.

All metrics are signifcantly higher or TV+ Premium Online Video exposure group at 90% confdence.

General Ad Recall+18%

52

44

Brand Recall

+35%

35

26

Ad Message Recall

+53%29

19

Ad Likeability

+31%17

13

TV + Premium Online Video

TV Only


8/16

looks like TV, measures like TV,targets like online.

It may sound clichd, but online video represents a holy grail for brandmarketers. Finally it is possible to combine the storytelling impact of televisionwith the targetability, measurability and portability of online advertising. Also,advances in GRP-like measures mean that marketers can begin to leverage theirexperience garnered from fty years of television advertising performance.

Targeting With Audience Data:

A Glimpse of Televisions Future

For generations, brand advertisers were forced to use programming as aproxy for audience. But with online video, audience data can be used to

effectively target the ads by demography, geography or purchase intent thisis where broadcast television wants to be as it moves towards addressability.Addressability is available NOW in online video, so brand marketers who getsmart using these new targeting tools will benet when audience targeting

becomes available on broadcast television.

Measuring Success in the Wired World:

GRPs PLUS engagement metrics

Television has been bought for the last 50 years on a simple system of accountingfor reach of a given audience. With so much experience with GRPs, marketers

especially packaged goods ones that tie ratings back to cash register data know how many GRPs to buy to move products.

While the systems are not perfect, both comScore and Nielsen have madestrides in producing reporting that helps brand marketers used to using GRPsin TV more cohesive with what they get in online. All of Collectives videocampaigns are assessed through the comScore iGRP tools which calculatesreach and frequency based on campaign reach multiplied by the averagefrequency of exposure of the video impressions. Nielsen is also now makingavailable Online Campaign Ratings, which are comparable to their TV ratings.

Aside from holistic concepts of online video measurement like iGRPs, thereare ways to measure online video that are familiar to brand marketers used tomeasuring online display. The control and exposed group survey research thatyields improvement in ad awareness and purchase intent are available for onlinevideo campaigns from well-known sources like Dynamic Logic, Insight Express,KN Dimestore and Vizu, among others. Both DL and IE have enough video adimpact studies under their belt that they release normative data. Its no surprisethat online video trumps display in terms of all measures of ad impact.



9/16

Recently, a new and exciting method for measuring the real-world, in-store

sales lift created by online advertising has evolved. Called ClosedLoop,this product (offered by Collective through a partnership with DataLogix),anonymously matches shopper loyalty program data from thousands ofretail chains nationwide with online advertising impressions to determine

the true ROI of a campaign.

closing the loop: measuring brand lit

TV ACCELERATOR : BOOST AD RECALL BY UP TO 53%

As demonstrated by Nielsens dual-platorm research (see previous spread), retargeting online video

ads to users who are likely to be exposed to the campaign on television can dramatically increase

message recall. Collective can match digital set-top box data rom providers such as RenTrak, TiVo

and TNS with our Audience Cloud o 190 million US Internet proles. This new targeting method allows

advertisers to re-target online audiences with video advertising messages that theyve been exposed to on

TV, signicantly boosting message recall. Collective can also construct look-alike models o the audience to

increase the volume o targetable high program index households.

User sees ad on TV

Collective targets online videoad, boosting message recall

Collective Audience CloudMatchCable Co.

AD

AD


10/16

Here is what marketers should know about online video

content and ad format options.

The Content Divide:

Separating your UGC from professional content

Its true, video in its earliest incarnation online wasdened by kitten videos while professionally produced

content was tied up in rights issues. The resolution ofrights management has led to the current owering

of advertiser-worthy content online. Furthermore, thedramatic increase in video viewing in 2010 can be directly

attributed to this inux of quality content, according tocomScore.

getting to know online video

Consumers are spending more time watching videos online

Online viewership increasing as more long-orm TV content moves online

Source: comScore Video Metrix

180

160

140

120

100

80

60

40

20

0

Billion

sofMinutes

+162%

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

Total US Viewing Duration

160 Billionminutes

spentviewing

online video



11/16

Content online currently breaks into the following buckets:

n UGC: Typically short form (under 5 minutes) these are amateurvideos placed on sites like YouTube, Google Video, Metacafe, Blip TV

and all of the social networking sites. The inventory these sites have istypically referred to as long tail: there are a lot of videos with smallnumbers of plays and a few videos with huge numbers of plays. UGCtends to be avoided by brand advertisers due to the uncontrollednature of the content. But some brands are nding that consumers are

in a sense creating their own ads and embracing this viral activity.There are thousands of examples of people making soda geysers out

of Diet Coke and Mentos mints.

nTelevision Content:

- Full Broadcast Episodes:

Some networks - ABC, NBC and Foxamong them - release full episodes online both through their ownnetwork sites as well as select online channels, typically available24 hours after the initial broadcast. Consumers tend to use onlineviewing of these shows like a DVR: to catch up with favorites theymissed or forgot to record.

- Clips and Short Form Episodic TV Content: These include madefor online video short form (The Ofce and 30 Rock are especially

good at this), interviews with the stars and outtakes. This contenttypically has less value than long form, but especially for shows

that have extensive fan bases and for advertisers who already haveprogram sponsorships in broadcast, clips have great value.

- News and Sports: These clips are perfect for short form videoand can deliver very specic audiences. However, the nature of the

content makes it tough to predict which events will drive astronomicalviews and ad volume thus, they are generally bought on animpression-delivery basis.

nMade for the Web Episodic - Webisodes: There has been amovement to create video content specically for the web and a few

ongoing hits such as the Annoying Orange have emerged. Datafrom Visible Measures released on a monthly basis through socialmedia publication Mashable (http://mashable.com/2009/12/11/top-web-series-november/) shows how comedy-driven thesestudio-produced webisodes are. These videos are an excellentway to reach males 13 34 who may have fallen off the Nielsenbroadcast grid.

Proessionally producedcontent yields higher

ad acceptance byconsumers and is brandsae or advertisers.Be wary o anyoneselling video inventoryor less than $5CPMsas it is likely not topquality.


12/16

nMade for the Web How To: The web is perfect for instructional videos,such as content from sites like eHow and How Stuff Works. These sites havecreated massive amounts of video on everything from how to paint a room tohow to breastfeed. Advertisers can nd great contextual placements in videos

like these.

nViral Video: Ad Age Online publishes the top viral videos each week in datasupplied by Visible Measures. Major brands dominated the list in February witheither cool or funny videos for products like Doritos, Mercedes and Old Spiceshowing up on the list regularly. According to Kantars video unit, 200+ top USbrands have released viral videos. Of those, 100 have surpassed million viewswithout an identiable supporting media buy.

nDistributed Video: All manner of mid-tier sites (comScore top 100 to 250) areeager to increase their revenue and engagement levels through video and haveembedded video players on their home pages. Through syndication servicesincluding those provided by Ogginogi, which is now owned by Collective, they

are pulling in video content on everything from entertainment to topical news,events and how to. Ogginogi reaches more than 150 million unique users

across more than 2,500 publisher sites. Audience aggregators like Collectivesell across these sites by audience to provide efcient reach of the online video

audience.

It is important to note that as powerful as Hulu and YouTube might seem in thevideo world, they represent just a small slice of video viewing online: according tocomScores September 2010 video usage rankings: 61% of all video usage onlinetakes place outside the realm of YouTube and Hulu.

61% o video viewing sessionshappening outside YouTube and Hulu

nConsumers viewing video on wide variety o premium sitesnTelevision quality video now distributed in many places onlinenMajority o Google is YouTube UGC which is typically not sae or advertising useSource: comScore Sept. 2010 Online Video Rankings

61%

61%

Opportunity

36%

YouTube

3%

Hulu



13/16

FreeWheel Internal Data 12/18-31/2010

BUYING DISTRIBUTED VIDEO? QUESTIONS YOU SHOULD ASK TO KEEPYOUR BRAND SAFE AND YOUR ADS EFFECTIVE VIDEO

There are many companies that distribute video on a range o sites where it has varying levels o value tothe advertiser. For those concerned about brand protection and ad efectiveness here are some othe questions you should ask:

Is the video user initiated? There are video players that auto initiate when a user goes to a page with animbedded player that video view was not something desired by the viewer and should not be counted. Thesound could also be of, lessening the value even urther.

Is it in-stream video or in banner? Video in banner is a viable advertising option but it is not the samething as an in-stream video ad in true video content.

Where is the video player placed on the page? Some less than scrupulous distributors place videoplayers wherever sites will let them. I the video player is below the old and o course not user initiated, ithas no value.

What is the context? In keeping with the point above, video can be distributed anywhere and brands needto be careul about the context in which their ads appear. Credible distributors screen or questionable contentand also look or relevant context or the ads. I you are running ads or baby related products, should theseshow up on sites appealing to young male demos?

In online video, caveat emptor is a sound principle. The most valuable video is proessional, studio-developedcontent and there is not enough o it available the supply is controlled tightly and generates CPMs in excesso $20. Be wary o anyone selling video inventory or less than $5 CPMs as it is likely not user initiated and canbe delivering lots o plays that no one actually watches. The best place to start is by partnering with trustedaudience engines like Collective that guarantee the placements o the video in brand sae environments wherethey will get seen.

Placement Beyond the Pod:

Pre, Mid and Post-Rolls and their Relative Value

In television, ad placements are made based on upfront negotiations, sponsorships with specic shows and

sometimes just luck of the draw as the goal of the programmer is to deliver an audience to the advertiser not a specic impression as in online. In general, top advertisers tend to get the rst position available in the

pod or the one coming out of the break. Online video is still feeling its way in terms of ad positioning andas ad volumes are currently low and the mass of inventory available is short form pre-rolls are the moscommonly used position. Pre-rolls do have high engagement rates. Research by Freewheel shows that during

2010, average completion rates for short form pre-roll hovered around 60% -- Collectives own data showaverage completion rates for short form at around 70% for the year. As more and more long-form contenbecomes available, other positions become possible. These so called mid roll placements have extremelhigh value, which CW research on the show Gossip Girl substantiates: when you have a highly engaging showpeople stay through the commercials because they want to see whats next.

What of post rolls? Intuitively the industry valued these lower than other positions as who would stick aroundfor the nal ad once the content was done, however, consider that content sites are now enabling consumers

to create playlists or string together groups of short form video content to make their own long form videos. Inthis instance, post-rolls in effect become mid rolls which have relatively high completion rates.


14/16

In Banner Video: Extending Video Reach Simply

When most marketers refer to video advertising, they often think of the TVmodel imported to the web: you watch a video clip and before it starts it isinterrupted by a :15 or :30 ad. Thats great, but there is only so much video

inventory to go around and it may be cost prohibitive depending on themarketers budget. There is another option: in-banner video, which is videoembedded within an expandable banner ad.

In-banner video is as eye catching as in-stream but it is also easier to trafc

there is more available inventory, you can place it contextually and its morecost-effective. It is tracked with the same metrics you use for online buysimpressions, click throughs and view throughs. Ads with TV-level productionvalues can be placed in any banner spot. Marketers can synch up their visuafrom TV by integrating them into their banner buys during key campaignperiods for cross-media impact. Interactive elements, such as polls, store

locators, maps and social objects such as Facebook and Twitter feeds can beincorporated into in-banner video units.

Marketers who do not have TV creative are also discovering that they caninexpensively create video assets that relate to their brand even 30 secondtutorials on product use that get displayed without the user having toinitiate a video player or leave the site they are on. In-banner video can beexecuted by any of the rich media vendors including Ogginogi.

Its a myth that onlypre-roll videos getviewed. Dependingon the length o the

content, mid-rolls andpost-rolls also havegreat value or theadvertiser.

Video Ad Completion Rate by Video Length and Placement

Mid-rolls have highest completion rates across content lengths;long-orm video highest overall

postroll

69%

49%

38%

midroll

96% 95%

84%

preroll

73%

64% 61%

long

mid

short

Source: FreeWheel, December 2010



15/16

1. Is this really television?Of course it is. Its just television ondemand viewed on various devicesand with higher engagementlevels, less clutter and unparalleledmeasurement. Its also reachingaudiences for whom broadcastviewing is a thing of the past.

2. I hear the inventory is all YouTube pet videoshowquality/safe is the inventory?Professionally produced online video content is growingexponentially online and buying online video is easierthan ever. There is a lot of great inventory out there. AscomScore data shows, 61% of all video viewing takes place

outside of either YouTube or Hulu. You just have to knowwhat you are buying just like any ad environment you areconsidering.

3. Is it a good place for premium brands to advertise?Theyre buying now: auto, telecommunications andentertainment companies and even packaged goods aresome of the heaviest buyers of online video its a naturalextension of their TV buys. In fact, were seeing moreclients budget online video out of their TV budget, nottheir digital spend.

4. Whos watching it?Who isnt? Watching online video is a very common activity

and nearly half the US population does it. Viewership isespecially pronounced among the 18 34 demo as it tstheir lifestyle and viewing habits. No different than cable,the internet is providing even greater programmingoptions with the exibility to watch on demand.

5. Does it work?Even Nielsen, the grand arbiter of TV measurement, saysthat its impact is multiples of that of broadcast advertising.In fact when online video runs in combination with TV,the ad recall and effectiveness is at its highest.

6. Do Ior how do Icoordinate online video with myTV strategy?

There are tools from vendors like comScore (whichproduced what they call an iGRP) that can makeconnections from TV to online. Online video complementsa TV schedule and research from sources like Nielsen IAG,comScore and Dynamic Logic show that the combinationof the two has an additive impact.

7. What are my choices for creative units and formats?Why choose one over another?The same units used in broadcast work online: usually:15s and :30s but longer formats can work within longerform content. The rule of thumb is that if you are usingshort form video (under 5 minutes) a shorter ad is a betterbet. Online also offers options not available on TV likeinteractive units that drive ad and social engagement.

8. How do I measure it?Same way as you do regular television: you can use aninteractive version of GRPs available from either Nielsen orcomScore. Just like display, online video measures clicksand conversions, but there are better ways to measuresuccess, including completion rates of the video ads,

engagement and attitudinal lift.

9. How can I achieve reach with efciency?This is the greatest challenge with online video. You canbuy high quality video inventory directly from some ofthe largest sites that produce it but the challenge is thatthey may not have enough volume and the CPMs may betoo high. An audience engine like Collective aggregatesaudiences across sites where video is delivered to providereach and frequency with efciency.

10. How do I get started?Find a partner that helps you nd the right audiences andvets the right ad environment and ad units for your plan.

Online video absolutely works if done right, but you needto understand the myriad of options available. Collectivehelps top brands achieve efcient scale with their onlinevideo buying every day.

11. What does the future hold for online video?Convergence in short. Look for online video to be acomponent of every TV budget moving forward. Whileonline spend overall has grown dramatically over the past10 years and recovered more strongly from the recessionthan other media, this has come largely at the expenseof print. TV budgets have once again increased whilethe audiences for top shows have declined. Lets faceit - TV is easy to buy. But as online video aggregators(whether networks or portals) perform the role of broadcastnetworks, marketers will shift spend more easily to onlinevideo. Theyll be rewarded with lower levels of clutter,greater measurability and ad effectiveness.

online video: your questions answered by Collective CEO Joe Apprendi

Find a partner that helps you fnd the right audiences andvets the right ad environment and ad units or your plan.


16/16

CONTACT

Press:

Laura Colona,Director of Communications,

[email protected]

Sales:

Chip Russo,

Senior Vice President, Collective Video

[email protected]

ABOUT COLLECTIVEFounded in 2005, Collective is a fullservice provider of media and technology

solutions for display and video advertising.We help brand advertisers and leadingpublishers monetize trusted audience dataand brand safe ad inventory. Collectivesindustry expertise provides a strategicadvantage to its clients by leveragingproprietary audience modeling, insightsand ad effectiveness metrics. Our agshipproducts, Collective Display and CollectiveVideo, are powered by AMP, our market-tested data and media managementplatform. Collective is headquartered inNew York with ofces in Atlanta, Boston,Chicago, Dallas, Detroit, Los Angeles, SanFrancisco and London. Collectives investorsinclude Accel Partners, Greycroft Partnersand iNovia Capital. For more information,please visit www.collective.com

Documents

Brand Marketer's Guide to Video_May2011