Marketing Magazine Consumer and Marketer Video Study Commissioned by Videology for Canada

consumers lead marketers on path to cross-screen convergenceMarketers bullish on video’s growth, but advertising strategies yet to fully mature

January 2015

contents

I. executIve summary: vIdeo In canada................................................................. 1

II. IntroductIon Connected Device Ownership & Usage.......................................................................... 3

III. the consumer Video Consumption........................................................................................................... 7

Who’s viewing?

Where are they viewing?

What are they watching?

Why are they watching?

Cross-screen Viewing.........................................................................................................15 Time spent viewing

Shifting consumption patterns

Simultaneous viewing and the second screen

Viewing Experience & Advertising Preferences........................................................... 21 Three Year Outlook.......................................................................................................... 23

Expected Shifts in Viewing

the canadIan marketer

Video Advertising Perspectives...................................................................................... 27 Expected video growth

Video advertising adoption

Second screen

Challenges with Video Advertising................................................................................ 33 Biggest challenges holding marketers back

How is technology being used?

The Role of Technology.................................................................................................... 35 Three Year Outlook........................................................................................................... 37

The benefits of video

Is convergence the new normal?

Who will benefit?

appendIx a: Methodology....................................................................................................... 42 appendIx B: Demographics...................................................................................................... 42

executIve summary

Videology’s advertising technology platform is used by our clients to deliver the right message to the right consumer on the right screen. We are committed to understand-ing and sharing insights on the growing trend of video and television convergence. As a global company, we see cross-device video viewership escalating around the world. But each market is different. In this paper, we set out to discover how video convergence is progressing in Canada—both from the perspective of consumer adoption and marketers’ strategic use of new video channels.

To achieve this, we conducted our study in two parts. One survey focused on Canadian consumers’ use of and attitudes surround-ing video and TV. The other focused on Canadian marketers’ understanding of and response to this new viewing environment. The results were interesting, revealing areas of convergence —and truthfully some areas of divergence—that were quite startling. What we did see from both sides, however, was the acknowledgement that the way we watch TV and video is evolving—and more change is on the horizon.

What consumers saId…The lines between TV and video have blurred irrevocably. The growing number of connected devices owned by Canadians, and concurrently the increasing opportunity

to consume content across multiple platforms, has transformed the way that consumers view TV and video. Yet, new video options have not replaced the old. While seven out of ten consumers, and nine out ten Millennials, are viewing video on computers, smartphones or tablets, traditional TV viewing remains strong. And while devices offer the benefit of added mobility—or the promise of TV anywhere—the majority of total viewing still happens in the living room.

It’s not about either/or, it’s about more. Despite the growth of online video, almost 70% of Canadians still subscribe to cable TV or satellite services. Moreover, there is no significant difference between “cord cutters” and TV subscribers’ likelihood to watch video. They are all watching!

consumers want choice and control over what they watch and when. And they often want it at the same time. “Second-screen” viewing is a huge trend engaged in by over half of all Canadians.

consumers understand that advertising is the price of free content and prefer it that way. Good news for advertisers—over 70% of Canadians prefer ad-supported content over pay services with no ads. What’s more, one in five uses the second screen to get more information about products advertised on TV.

1

What marketers saId…

marketers are bullish on video’s growth. In fact, compared to consumers’ own estimates of expected increases in time spent with video over the next three years, marketers are far more optimistic. Conversely, marketers expect consumers’ traditional TV usage to decrease, while consumers are more likely to say it will stay the same or increase.

yet, despite this optimism, video ad strategies are lagging. Half of all marketers say that they do not currently have a video advertising strategy in place.

Marketers could benefit from greater education on video buying opportunities. For instance, 68% of marketers were unfamiliar with the term “second-screen” viewing. Also, over one third did not know what programmatic buying was, and only 10% said that their company used it.

perceived challenges in video advertis-ing may be holding it back. Among the biggest challenges cited by marketers include campaign measurement, cross-screen measurement, quality concerns and targeting questions. Again, lack of knowledge as to what data and technological solutions are available may be fueling these concerns.

looking to the future, however, marketers do expect money to shift from other media to new video options. Some of the biggest advantages that marketers see in video advertising include the ability to match ads with target audiences, the ability to evaluate audiences based on buying behavior and the ability to buy audiences across screens.

Big changes are not far off, as holistic planning and buying will become the new norm. A very significant 85% of respondents said that planning for online video and linear TV will merge within the next three years. Moreover, 52% said that their agencies are likely to merge their TV and online video buying groups within that timeframe.

convergence will be good for buyers and sellers. Marketers believe that video convergence will bring benefits across the ecosystem, with media outlets earning higher CPMs and increasing their revenue with video ads, and advertising effective-ness improving.

2

IntroductIon

Canadians have access to more connected technology than ever before, enabling consumption of more content from a wider array of devices. The growing use and ownership of devices, along with the supporting advertising technology to target and measure holistically across platforms, represents a strong and growing opportunity for marketers to reach and engage with consumers across screens.

study oBjectIves

Videology’s research was conducted by Marketing Magazine and Rogers Connect Market Research and Client Services. It was designed to give a snapshot of the way Canadians are consuming video—in all its incarnations—in today’s cross-screen, cross-device environment. In addition, the research sought to learn marketers’ views on shifting video consumption among their customers and the challenges and opportu-nities that these changes posed. The goal was to determine the areas of divergence and congruity between the way consumers are watching TV and video, and the way advertisers are using media and available technologies to reach them.

overall approach

The study, in the form of an online survey, was conducted across Ontario, Quebec, the Atlantic region and Western Canada. A nationally representative sample of 1,011 consumers and 104 marketers completed the online interviews. All responses were collected between September and October 2014. Data was compiled by Marketing Magazine, and the corresponding analysis and commentary was prepared by Videology.

3

Which of the following technology/services do you currently own/use?

how do you connect to the internet?

connectIvIty across devIcesIntro graph 2

50%

43%

26% 20%

13% 13%

27% 25% 29%

26% 22% 21%

6% 13% 12% 11%

15% 16% 16% 20%

33%

43%

50% 51%

0

10

20

30

40

50

60

Laptop/Notebook Desktop Smartphone Tablet Internet enabled console (i.e. Xbox,

Roku)

Connected TV

How do you connect to the internet?

Most of the Ome % Regularly % Very rarely % Never %

4

Intro graph 1 devIce oWnershIp

68%

58% 55%

38%

20% 23%

76%

54%

76%

50%

25% 27%

73%

61% 65%

40%

23% 24%

68% 68%

40%

30%

21%

13%

62% 62%

21% 19% 23%

4%

0 10 20 30 40 50 60 70 80

Laptop/Notebook Desktop Computer Smartphone Tablet Connected TV (internet-‐enabled)

Connected TV via separate device (Roku, Xbox, etc)

Which of the following technology/services do you currently own/use?

TOTAL % Millennials % Gen X % Boomer % Pre-‐Boomer Seniors %

Laptop/Notebook Desktop Computer Smartphone Tablet Connected TV Internet-enabled (Internet-enabled) Console (Roku, Xbox, etc.)

Laptop/Notebook Desktop Computer Smartphone Tablet Internet-enabled Connected TV Console (Roku, Xbox, etc.)

TOTAL Millennials Gen X Boomer Pre-Boomer Seniors

Most of the time Regularly Very Rarely Never

Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.


the canadIan consumer

Who’s VieWing?

Overall, three-quarters of Canadians say that they now watch online video. But these percentages vary widely by age group.

While slightly more than one-third (36%) of Seniors watch online video, more than 90% of Millennials tune in online. (Graph 1.)

Interestingly, despite this increase in online viewing and the reports of increased cord-cutting, our survey showed that the vast majority of the population—84%—still subscribes to cable or satellite TV services. And while the number of cord-cutters is highest among Millennials, 80% of them still subscribe to TV services.

As Chart 1 below shows, while a slightly higher percentage of non-subscribers view online video than those who do subscribe, the difference is small, through perhaps directional.

Currently it is safe to say that online video viewing is done for the most part in conjunction with traditional viewing, not in place of it.

The growing number of connected devices owned by Canadians, and concur-rently the increasing opportunity to consume content across multiple platforms, has transformed the way that consumers view television and video. In fact, the boundaries between the two have blurred irrevocably.


7

Video Consumption

consumer graph 1

consumer graph 2

consumer chart 1

Who’s WatchIng

suBscrIBers to caBle and satellIte servIces

cord cutters

8

do you watch video online?

75%

93% 84%

62%

36% 25%

8% 16%

38%

64%

0 10 20 30 40 50 60 70 80 90

100

% % % % %

TOTAL Millennials Gen X Boomer Pre-‐Boomer Seniors

Do you watch video online?

Yes No

TOTAL Millenials Gen X Boomer Pre-Boomer Seniors

do you subscribe to any of the following tv services?


Watch Video Online

SATELLITE / CABLE SUBSCRIBERS

Satellite Subscribers Cable Subscribers Do Not Subscribe

YES 74% 76% 78%

NO 25% 24% 22%




75%

93% 84%

62%

36% 25%

8% 16%

38%

64%

0 10 20 30 40 50 60 70 80 90

100

% % % % %


Do you watch video online?

Yes No

68% 65% 66% 74% 59%

20% 23% 19% 16% 29%

16% 20% 18% 11% 11%

0 20 40 60 80

% TOTAL % Millennials % Gen X % Boomer % Pre-‐Boomer Seniors

Do you subscribe to any of the following TV services?

Cable Services Satellite Dish Do not subscribe

68% 65% 66% 74% 59%

20% 23% 19% 16% 29%

16% 20% 18% 11% 11%

0 20 40 60 80

% TOTAL % Millennials % Gen X % Boomer % Pre-‐Boomer Seniors

Do you subscribe to any of the following TV services?

Cable Services Satellite Dish Do not subscribe

Where are they WatChing?

The question of where consumers are watching goes hand in hand with the question of which device they are watching on. The influx of smartphones, tablets, and even laptops, has given consumers the ability to watch where and when they want, with the screen choice often coming down to a “best screen available” scenario.

When asked specifically about video viewing, most consumers said that they watch on a desktop or laptop computer. This makes sense considering that computers are still the primary way that consumers connect to the Internet, as discussed in the Introduc-tion of this report. As we also noted in the Intro, accessing the internet via the televi-sion, whether through a connected console or a connected TV, is only done by half of Canadian consumers. Despite this relatively low percentage, the television is still the 2nd most popular device on which to view videos.

Smartphones and tablets are used to view video by roughly the same percentage of consumers at 29% and 23% respectively.

In terms of the physical location of viewing, despite the promise of mobility, most viewing still occurs in the home. The vast majority— 74%—view video primarily in the living room. Almost half also regularly watch in other rooms within the home. Watching while commuting, at work, or other places outside the home is much more limited.


9

Video Consumption

consumers graph 4.VIEWING LOCATION

Which device do you watch video on?

Where do you regularly watch video?

consumer graph 3

consumer graph 4

vIeWIng devIce

vIeWIng locatIon

77%

45% 29% 23%

0

50

100

Laptop/Desktop TV Screen Smartphone Tablet

What device do you watch video on?

TOTAL %

74%

46%

11% 10% 10% 12%

0 10 20 30 40 50 60 70 80

At home in living room

At home in rooms other

than the living room

While commu=ng

While traveling (airport, hotel,etc)

At work/school In public places (beach, park,

etc)

Where do you regularly watch video?

TOTAL %

10



At home in rooms other than the

living room

While commuting

While traveling (airport, hotel, etc.)

At work/school

In public places (beach,

park, etc.)

At home in living room

Laptop/Notebook TV Screen Smartphone Tablet

What are they WatChing?

So we know that three out of four Canadians are watching video online. But what type of content are they viewing? The answers range from YouTube clips to the same professionally produced content shown on traditional TV.

In many cases, viewers are simply accessing traditional TV content on an alternate screen. While a relatively low percentage (24%) say that they access content directly from a broadcaster’s site, 39% say that they access “TV Everywhere” from their cable provider.

Almost an equal percentage (35%) say that they access content from a subscription-based service, such as Netflix. And the highest percentage of respondents said that they access video through content aggregators, such as YouTube.

In terms of genre, movies are by far the type of video content that respondents watch most regularly.

Canadian and US/Internationally produced programming placed a close 2nd and 3rd in terms of video content viewed regularly.

Local news was mentioned by 31% of respondents, while 22% cited US/International news, followed closely by local sports at 21%.


Video Consumption

11


Which of the following best describes how you access the videos you watch?

What types of video content do you watch on-line on a regular basis?

consumer graph 5

consumer graph 6

accessIng content

programmIng genres

69%

38% 36% 31%

22% 21%

11% 2% 1% 2%

0

10

20

30

40

50

60

70

80

Movies Canadian Produced

Programming

US/InternaBonal Programming

News from Local TV Networks

News from US/InternaBonal

Local Sports US/InternaBonal Sports Not Easily Accessible on TV

Music videos YouTube clips/selecBons

Other

What types of video content do you watch on-‐line on a regular basis?

TOTAL %

12

40%

39%

35%

30%

24%

Video Content Aggregator (i.e. Youtube)

TV Everywhere/Cable Provider

SubscripHon streaming service (ie. NeKlix)

Non-‐subscripHon Streaming Site/Service

Site or Broadcaster Direct

Which of the following best describes how you access the videos you watch?

TOTAL %

Site or broadcaster direct

Non-subscription streaming site/service

Subscription streaming service (ie. Netflix)

TV everywhere/cable provider

Video content aggregator (i.e. Youtube)

Movies US/International Programming

Local TV Network News

US/International News

Local Sports US/International Sports Not Easily Accessible on TV

Music videos YouTube clips/selections

OtherCanadian Produced

Programming



Why are they WatChing?

No technology or new behavior achieves mass adoption unless there is a correspond-ing consumer need. So why are consumers viewing video beyond traditional TV?

By far, the top reason is one of control; control over when they watch and what they watch, i.e. more programming options.

Of course, reasons for viewing do vary significantly among the various age groups:

• Millennials value control the most of all age groups, and also are the most likely to say that they watch video because it is less expensive than traditional TV services. They are least likely to cite fewer ads as a reason to watch. And they also value the freedom to watch outside of the home more than any other group.

• GenX is similar to Millennials in their reasons for watching video, though lower percentages across all choices show that they are more selective in their reasons than younger consumers.

• Boomers want control over when they watch. Interestingly, they value fewer ads more than any other age group, and are least concerned about the cost savings.

• Pre-Boomer Seniors also want control over when they watch and are least interested in the freedom to watch outside of the home.

What about those who are not watching video? The top reason cited was satisfaction with current options, i.e. “TV is sufficient.” Over 60% of Boomers and Seniors who don’t watch video said TV is sufficient. Among Millennials who do not watch video, answers were more diverse, with top choices includ-ing TV is sufficient, my internet costs would increase, and not enough choice.


Video Consumption

13

you indicated that you do not watch video online, why not?

What are the primary reasons that you use digital video rather than traditional tv?

consumer graph 7 reasons for not WatchIng vIdeo

14

consumer chart 2 reasons for WatchIng vIdeo

No need – TV sufficient

Services too expensive

Don’t know how to do it

My Internet costs would

increase

Not enough choice

available

Difficult to find programming

to watch

Internet connection

too slow

Too many ads

Don’t have the right

technology to access

No interest in watching

TV

OtherNo interest in Internet TV

52%

35%

20% 16% 14% 9% 8% 8% 8% 8% 7%

1% 0 10 20 30 40 50 60

No need – TV sufficient

No interest in Internet TV

Services too expensive

Don’t know how to do it

My Internet costs would increase

Not enough choice available

Difficult to find programming to

watch

Internet connecNon too

slow

Too many ads No interest in watching TV

Don’t have the right technology

to access

Other

You indicated that you do not watch video online, why not?

TOTAL %

Base: Respondents who view video online TOTAL Millennials Gen X Boomer

Pre-Boomer

Seniors

More control over when I watch 51% 59% 51% 49% 41%

More programming options 44% 54% 43% 31% 21%

Less expensive than traditional TV services 31% 40% 33% 21% 27%

Fewer ads than TV 29% 28% 30% 33% 30%

More freedom where I watch (outside the home) 27% 31% 28% 21% 10%

Other 16% 13% 16% 16% 41%



time spent VieWing

In many ways, TV is still king. Canadians are watching more traditional television than any other kind of programming, spending 14.3 hours on average watching live television, and an additional 4.2 hours watching recorded shows.

And while it’s clear that Canadians love TV content, they are now spending more than 6 hours in the average week consuming that content via the Internet.

Time spent viewing original video content, i.e. not created for television, is still relatively low. This will likely increase as more quality, made-for-video programs become available.

On average, Canadians are spending 3.6 hours with streaming video services, such as Netflix. These services generally include both original programming, as well as TV shows and movies.

In terms of when consumers are viewing content, both traditional TV and video consumption follow the same daypart pattern. Viewing is relatively low in the morning (the peak time for general internet usage), gradually increases throughout the day, and peaks in the traditional evening “primetime” viewing period. (Graph 9.)


Interestingly, despite the increase in video viewership, the time that Canadians spend with traditional TV remains high. In fact, collective research suggests that rather than substituting one medium for another, consumers are simply increasing their overall time spent with media. In some cases, this increase is the result of new access to media in locations and at times when media consumption would have been impossible previously. In other instances, this increase is due to simultaneous usage on different screens.

15

Cross-sCreen VieWing

What time do you most frequently engage in the following activities?

please indicate how many hours per week do you typically do any of the following?

consumers graph 8

consumer graph 9

Weekly vIeWIng hours

vIeWIng By daypart

16

14.3 6.2

4.2 3.6

2.5 2.5

0 2 4 6 8 10 12 14 16

Watch tradi3onal/Broadcast TV Watch Internet TV (TV programming/movies

Watch personally recorded TV content (i.e. Watching streaming services (i.e. NeElix)

Watching snippets TV/Movies streamed on Watching Original Online Video (non-‐TV

Please indicate how many hours per week do you typically do any of the following?

Hrs

Watching original online video (non-TV programming) Watching snippets TV/movies streamed on sites like YouTube

Watching streaming services (i.e. Netflix)Watch personally recorded TV content (i.e. DVR)

Watch internet TV (TV programming/movies watched via Internet) Watch traditional/broadcast TV

Hours

0

5

10

15

20

25

30

% Before 9AM % 12PM to 2PM % 4P-‐Before 6PM % 8PM-‐ Before 10PM

What &me do you most frequently engage in the following ac&vi&es?

Using the Internet

Watching Digital Video on Computer/Mobile Devices

Watching Digital Video on TV via Internet

Watching TradiLonal Television

30%

25%

20%

15%

10%

5%

Using the Internet

Watching Digital Video on Computer/Mobile Devices

Watching Digital Video on TV via Internet

Watching Traditional Television Before 9AM 12PM to 2PM 4PM-Before 6PM 8PM Before 10PM



shifting Consumption patterns

As we stated in the Intro section, very few Canadians say that they are doing “less” of anything when it comes to media consumption!

As shown, when asked how their media usage had changed compared to a year ago, upwards of 25% said they consumed “more” across every media type listed (Graph 10.) More respondents (37%) said that they were watching more internet TV (TV programming watched over the internet) than any other category.

The only categories with over 10% of respondents saying that they were watching less than a year ago were traditional/broad-cast TV (18%) and TV content recorded via DVR (11%).

When looked at by age group, it becomes clear that Milllennials are by far the most vora-cious consumers in terms of growing media consumption.

In fact, more than 10% of Millennials say that they are watching “much more” content across every media category (including tradi-tional television).

In all categories involving video viewing, upwards of 20% of Millennials say that they are consuming “much more” than a year ago.

In general, Boomers and Pre-Boomer Seniors are showing the lowest increases in media consumption. This is not to say, how-ever, that they are not already strong viewers of traditional/broadcast TV, as most research indicates.


17

those viewing “much more” compared to a year ago?

how has your usage of the following changed compared to a year ago?

18

consumer graph 10 change In vIeWIng consumptIon

consumer graph 11 change In vIeWIng By age group

17%

13% 11% 11% 11% 10% 9% 8%

26%

21% 21% 20%

16% 11% 11% 12% 11%

14% 10% 9% 10% 8%

6% 6% 8%

6% 1% 2%

5%

10% 7%

3% 4% 2% 2% 4%

6% 4% 4%

0% 0

5

10

15

20

25

30

Watch Internet TV (TV programming/movies watched via Internet)

Watching snippets TV/Movies streamed on sites like YouTube

Accessing the Internet via tablet Watch personally recorded TV content (i.e. DVR)

Those viewing “MUCH MORE” compared to a year ago?

Total % Millennials % Gen X % Boomer % Pre-‐Boomer Seniors %

37% 29% 30% 29% 27% 28% 26% 25%

34% 31% 39%

31% 31%

48% 39% 41%

6% 6% 8% 8% 6%

18% 11% 9%

23%

34%

23%

32% 35%

7%

24% 25%

0 10 20 30 40 50 60


Watching streaming services (i.e. NeFlix)


Accessing the Internet via Smartphone

Accessing the Internet via tablet

Watch tradiPonal/Broadcast TV

Watch personally recorded TV content

(i.e. DVR)

Watching Original Online Video (non-‐TV

programming)

How has your usage of the following changed compared to a year ago?

More Same Less NA %

Watch internet TV (TV programming/movies watched

via Internet)

Accessing the inter-net via smartphone

Watching streaming services (i.e. Netflix)

Accessing the internet via tablet

Watch personally recorded TV

content (i.e. DVR)

Watching snippets TV/movies streamed on sites like YouTube

Watch traditional/broadcast TV

Watching original online video (non-TV programming)

37%

29% 30% 29% 27% 28% 26% 25%

34% 31%

39%

31% 31%

48%

39% 41%

6% 6% 8% 8% 6%

18% 11% 9%

23%

34%

23%

32% 35%

7%

24% 25%

0 10 20 30 40 50 60


Watching streaming services (i.e. NeFlix)


Accessing the Internet via Smartphone

Accessing the Internet via tablet

Watch tradiPonal/Broadcast TV

Watch personally recorded TV content

(i.e. DVR)

Watching Original Online Video (non-‐TV

programming)

How has your usage of the following changed compared to a year ago?

More Same Less NA %

Watch internet TV (TV programming/movies watched

via internet)

Accessing the internet via smartphone

Watching streaming services (i.e. Netflix)

Accessing the internet via tablet

Watch personally recorded TV

content (i.e. DVR)

Watching snippets TV/movies streamed on sites like YouTube

Watch traditional/broadcast TV

Watching original online video (non-TV programming)

17%

13% 11% 11% 11% 10% 9% 8%

26%

21% 21% 20%

16%

11% 11% 12% 11% 14%

10% 9% 10% 8%

6% 6% 8%

6%

1% 2% 5%

10%

7%

3% 4% 2% 2%

4% 6%

4% 4%

0% 0

5

10

15

20

25

30



Accessing the Internet via tablet Watch personally recorded TV content (i.e. DVR)

Those viewing “MUCH MORE” compared to a year ago?

Total % Millennials % Gen X % Boomer % Pre-‐Boomer Seniors %



simultaneous VieWing and the seCond sCreen

Despite the large percentage of Canadians who say that they are viewing more TV and video in different ways, the fact remains—there are a finite number of hours available in a given day. So how are consumers making time for all of this increased media consumption? In many instances, the answer is simultaneous viewing across multiple devices, or what has become known as “second-screening.”

In fact, over half of all Canadians say that they use an internet-connected device on a daily basis while watching TV. (Graph 12.) And among Millennials, that percentage jumps to 65%.

The majority of consumers are using their laptop as the second-screen, however, smartphones, tablets and even desktop computers all received significant mentions. It is likely that as tablet ownership increases, which is now at 38%, so too will its use in second screening.

So what are consumers doing on the second screen while watching TV? While 38% are accessing content related to the television content, an equal percentage (39%) are accessing unrelated entertainment content—the age of multitasking is here!

An interesting fact for television advertisers is that 20% of consumers say that they are using the second screen to search, browse or buy the products being advertised on TV. Clearly, the second-screen now offers brands an important opportunity for additional inter-activity and engagement with consumers.


Cross-sCreen usage

19



how often would you say you use an internet-connected device at the same time as you are watching traditional tv?

Which devices do you use when watching traditional tv?

What activities do you do on the second device?

53% 65%

59%

44%

23% 18% 20% 18% 14% 10% 8% 7% 7% 9% 2%

0

20

40

60

80

% % % % %


How o%en would you say you use an internet-‐connected device (i.e. tablet, phone, etc.) at the same <me as you are watching tradi<onal

TV?

Daily (NET) Weekly (NET) Monthly (NET)

53 65

59

44

23 18 20 18 14 10 8 7 7 9 2

0

20

40

60

80

% % % % %



TV?


20

Access other unrelated

entertainment content


Laptop

Smartphone

Desktop

Tablet

Other

Search/browse/ buy products

unrelated to TV

Access other unrelated

entertainment content

Search/browse/buy products

advertised on TV

Write posts, messages or

communicate online related

to program

Play games Check emailsAccess content related to

TV program

consumer graph 14 actIvItIes on second screen

consumer graph 13 devIces used for second-screenIng

consumer graph 12 frequency of second-screenIng

50%

33%

30%

26%

11%

Laptop

Smartphone

Desktop

Tablet

Other

What devices do you use when watching tradi3onal TV?

39% 38%

29%

21% 20% 14%

3% 2%

Access other unrelated entertainment content

Access content related to TV program

Search/browse/buy products unrelated to TV

Write posts, messages or communicate online unrelated to program

Search/browse/buy products adverEsed on TV

Write posts, messages or communicate online related to program

Play games Check emails

What ac'vi'es do you do on the second device?




53 65

59

44

23 18 20 18 14 10 8 7 7 9 2

0

20

40

60

80

% % % % %



TV?


72% of Canadians prefer to access free, ad-supported digital content. (Graph 15.)

This is related to the point that 48% strongly consider costs when choosing what to watch and how to watch it. (Graph 16.)

Yet, despite their acceptance of advertising, consumers are split on whether it is acceptable to track online behaviour to improve the relevancy of ads. Among respondents, 45% agree it is acceptable, while 55% say that it is not.Generationally, however, Millennials are much more likely to say behaviour tracking is accept-able (56%) than Seniors (24%). (Chart 3.)

In general, Canadians are also quite happy with their viewing choices (81%), yet remain covetous of the choices available to those in the U.S.(78%). Younger consumers (85%) are more likely than Seniors (65%) to say that they would like the same level of choice as U.S. consumers. (Chart 3.)

In addition, younger viewers (80%) are the most likely to change the way they watch video in order to get a better quality image.


consumers graph 4.VIEWING LOCATIONhow would you prefer to access digital video content?

VieWing experienCe & adVertising preferenCes

28 29 25 20 22

72 71 75 80 78

0 20 40 60 80

100

% % % % %


How would you prefer to access digital video content?

Pay to access with no adverGsements Access free with adverGsements 21

Despite the negative connotations that sometimes surround advertising interruptions or perceived clutter, the vast majority of Canadians across all age groups prefer the advertising versus paid subscription model when it comes to accessing digital content. Moreover, the vast majority are also satisfied with their overall programming experience in terms of programming choice and quality.bo


consumer graph 15 advertIsIng vs. suBscrIptIon models

28 29 25 20 22

72 71 75 80 78

0 20 40 60 80

100

% % % % %


How would you prefer to access digital video content?

Pay to access with no adverGsements Access free with adverGsements

thinking about your media usage, please indicate how strongly you agree or disagree with the following statements.

consumer graph 14 attItudes toWard advertIsIng experIence

22

consumer chart 3 attItudes toWard advertIsIng By age group

It is acceptable to track my behaviour online in order to direct online ads best fitted to my interests

If the quality of image is better, I will change the way I view videos

I wish I had the level of choice available to consumers in U.S. as far as TV/ video goes

I feel I have an abundance of choices as a media consumer

I consider the costs when choosing what to watch and how I watch it

87%

81%

78%

73%

45%

48%

31%

34%

24%

14%

6%

5%

8%

9%

28%

13%

19%

22%

27%

55%

0 10 20 30 40 50 60 70 80 90 100

I consider the costs when choosing what to watch and how I watch it.


I wish I had the level of choice available to consumers in USA as far as TV/ video goes

If the quality of image is beJer, I will change the way I view videos

It is acceptable to track my behaviour online in order to direct on-‐line ads best fiJed to my interests

Thinking about your media usage, please indicate how strongly you agree or disagree with the following statements?

Disagree (NET) % Strongly Disagree % Strongly Agree % Agree (NET) %

Base: All Respondents answering AGREE (NET)

TOTAL Millennials Gen X Boomer Pre-

Boomer Seniors

I consider the costs when choosing what to watch and how I watch it. 87% 89% 87% 87% 80%

I feel I have an abundance of choices as a media consumer 81% 81% 82% 83% 80% I wish I had the level of choice available to consumers in U.S. as far as TV/ video goes 78% 85% 84% 72% 65% If the quality of image is better, I will change the way I view videos 73% 80% 76% 66% 49% It is acceptable to track my behaviour online in order to direct online ads best fitted to my interests

45% 56% 48% 32% 24%

87

81

78

73

45

48

31

34

24

14

6

5

8

9

28

13

19

22

27

55

0 10 20 30 40 50 60 70 80 90 100

I consider the costs when choosing what to watch and how I watch it.


I wish I had the level of choice available to consumers in USA as far as TV/ video goes

If the quality of image is beIer, I will change the way I view videos

It is acceptable to track my behaviour online in order to direct on-‐line ads best fiIed to my interests

Thinking about your media usage, please indicate how strongly you agree or disagree with the following statements?

Disagree (NET) % Strongly Disagree % Strongly Agree % Agree (NET) %



expeCted shifts in VieWing

Across the entire respondent base, the majority of consumers said they expected their viewing on each device to remain about the same over the next three years.

But it’s not a flat story by any means. A significant number, in the range of 22-28%, expect their viewing to increase across the major connected devices currently available. And another 16% expected their viewing of traditional TV via cable or satellite to increase as well. (Graph 17.)

This story varies dramatically by age group, however, as seen in Chart 4. There is a clear inverse relationship between age and expected viewing increases.

Upwards of 30% of Millennials expect to watch more video on most devices over the next three years, while the percentages of Seniors expecting to watch more seldom top the single digits. Gen X’s responses skew closer to Millennials’, while Boomers’ expect-ed increases were more closely aligned with those of the Seniors.

In some ways, we are seeing a bifurcated population, with those under 50 years voraciously embracing the new video options, and those over 50 years adopting change more slowly.

three year outlook

23

As the previous pages show, the majority of Canadian consumers are already embracing video viewing across a variety of devices. In terms of video usage, however, it appears that we are still on the upside of the growth curve. When asked about their expected viewing patterns over the next three years, approxi-mately one-quarter to one-third of consumers expected to spend more time watching video on the “big four” connected devices: computers, smartphones, tablets and connected TVs.


In your opinion, how will your time spent viewing videos on the following devices change over the next 3 years?

In your opinion, how will your time spent viewing videos on the following devices change over the next 3 years?

consumer graph 17 expected vIeWIng changes

consumer chart 4

24

Laptop computer Smart TVs, i.e., TVs with a direct

internet connection

Tablet Desktop computer Smartphone Television set via an internet

connected device, e.g., Apple TV,

Other types of devices yet to be

identified

Television set, via an antenna

or cable/satellite provider

28 26 25 23 23 22 18 16

56 56 55 56 58 56 62

57

17 18 19 21 19 22 21 27

0 10 20 30 40 50 60 70

Laptop computer Smart TVs, i.e., TVs with a direct internet

connecAon

Tablet Desktop computer Smartphone Television set via an internet connected

device, e.g., Apple TV, Roku, XboxOne

Other types of devices yet to be idenAfied

Television set, via an antenna or cable/satellite provider

In your opinion, how will your .me spent viewing videos on the following devices change over the next 3 years?

Increase (NET) % Stay the same % Decrease (NET) %

28% 26% 25% 23% 23% 22% 18% 16%

56% 56% 55% 56% 58% 56% 62%

57%

17% 18% 19% 21% 19% 22% 21% 27%

0 10 20 30 40 50 60 70


connecBon



Other types of devices yet to be idenBfied


In your opinion, how will your .me spent viewing videos on the following devices change over the next 3 years?

Increase (NET) % Stay the same % Decrease (NET) %



Increase (NET) Total Millennials Gen X Boomer

Pre-Boomer Seniors

Laptop computer 28% 36% 31% 20% 3% Smart TVs, i.e., TVs with a direct internet connection 26% 31% 26% 21% 16% Tablet 25% 33% 27% 16% 8% Desktop computer 23% 29% 24% 17% 12% Smartphone 23% 33% 23% 12% 10% Television set via an internet connected device, e.g., Apple TV, Roku, XboxOne 22% 27% 24% 15% 9% Other types of devices yet to be identified 18% 24% 17% 11% 6% Television set, via an antenna or cable/satellite provider

16% 18% 17% 13% 8%


expeCted Video groWth

The vast majority of marketers believe consumers’ time spent viewing video on connected mobile devices like Smartphones and Tablets will grow strongly over the next three years (Marketer Graph 1.)

Meanwhile, 38% of marketers predict a decrease in consumers’ time spent viewing video on a desktop, and 74% predict a decrease in time spent watching linear television. This is in contrast to the consumers themselves, who mostly think viewership of these devices will remain the same (Consumer Graph 17.)

Comparing these results to the same question for consumers, it’s clear that marketers are more bullish in their predictions. (Marketer Graph 2.) For example, while only 23% of consumers expect their video viewing on Smartphones to increase, a very large majority (84%) of marketers believe viewing on Smartphones will grow; the same holds true for Tablets, where 25% of consum-ers expect growth, while 80% of marketers expect growth.

Marketers’ strong belief in the future growth of new media and connected devices suggests that they see plentiful opportunities ahead for marketing on new screens.


Video adVertising perspeCtiVes

27

From the perspective of marketers, consumers’ adoption of new media and connected devices is expected to grow rapidly in the coming three years. Ironically, though, marketers’ adoption of strategies and programs to run advertising on these screens is not as aggressive. While they appear eager to embrace these new channels, few of those surveyed had a deep understanding of the tools and technology currently available to help reach consumers along this new multi-screen, multi-device media path.


In your opinion, how will time spent viewing videos on the following devices change over the next 3 years?

marketer graph 1

marketer graph 2

expected vIdeo groWth

expected vIdeo groWth – consumer comparIson

84 80 80

63 61 49

23

4 2 3 6 6 13 13

38

74

0 10 20 30 40 50 60 70 80 90

n=95-‐104 Smartphone Tablet Smart TVs, i.e., TVs with a

direct internet connecCon

Other types of devices yet to be idenCfied

Television set via an internet


Roku, XboxOne

Laptop computer

Desktop computer



In your opinion, how will consumers’ 3me spent viewing videos on the following devices change over the next 3 years?

Increase (NET) Decrease (NET)

28

Smartphone Tablet Other types of devices yet to be identified



Roku, XboxOne

Laptop computer Desktop computer



Smart TVs, i.e., TVs with a direct

internet connection

Smartphone Tablet Other types of devices yet to be identified



Roku, XboxOne

Laptop computer Desktop computer



Smart TVs, i.e., TVs with a direct

internet connection

In your opinion, how will consumers’ time spent viewing videos on the following devices change over the next 3 years?

49

80 80

23

84

61 63

4

28 26 25 23 23 22 18 16

0

10

20

30

40

50

60

70

80

90


connecAon



Other types of devices yet to be idenAfied


In your opinion, how will .me spent viewing videos on the following devices change over the next 3 years?

Marketers ExpecAng Increase % Consumers ExpecAng Increase %

84% 80% 80%

63% 61% 49%

23%

4% 2% 3% 6% 6% 13% 13%

38%

74%

0 10 20 30 40 50 60 70 80 90

n=95-‐104 Smartphone Tablet Smart TVs, i.e., TVs with a

direct internet connecDon

Other types of devices yet to be idenDfied



Roku, XboxOne

Laptop computer

Desktop computer



In your opinion, how will consumers’ 3me spent viewing videos on the following devices change over the next 3 years?

Increase (NET) Decrease (NET)

Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.


49%

80% 80%

23%

84%

61% 63%

4%

28% 26% 25% 23% 23% 22% 18% 16%

0

10

20

30

40

50

60

70

80

90


connecBon






Marketers ExpecBng Increase % Consumers ExpecBng Increase %

49%

80% 80%

23%

84%

61% 63%

4%

28% 26% 25% 23% 23% 22% 18% 16%

0

10

20

30

40

50

60

70

80

90


connecBon







49%

80% 80%

23%

84%

61% 63%

4%

28% 26% 25% 23% 23% 22% 18% 16%

0

10

20

30

40

50

60

70

80

90


connecBon







49%

80% 80%

23%

84%

61% 63%

4%

28% 26% 25% 23% 23% 22% 18% 16%

0

10

20

30

40

50

60

70

80

90


connecBon







49%

80% 80%

23%

84%

61% 63%

4%

28% 26% 25% 23% 23% 22% 18% 16%

0

10

20

30

40

50

60

70

80

90


connecBon







49%

80% 80%

23%

84%

61% 63%

4%

28% 26% 25% 23% 23% 22% 18% 16%

0

10

20

30

40

50

60

70

80

90


connecBon







49%

80% 80%

23%

84%

61% 63%

4%

28% 26% 25% 23% 23% 22% 18% 16%

0

10

20

30

40

50

60

70

80

90


connecBon







49%

80% 80%

23%

84%

61% 63%

4%

28% 26% 25% 23% 23% 22% 18% 16%

0

10

20

30

40

50

60

70

80

90


connecBon







Video adVertising adoption

Surprisingly, despite being very bullish about the growth of connected “new media” devices, it does not appear that marketers have strong strategies set for reaching consumers on these channels.

A full 50% of marketers say that while digital video is part of their day-to-day work, they do not have a video advertising strategy in place. (Marketer Graph 3.)

Meanwhile, 42% say they have an informal strategy in place, and only 8% say they have a formal, company-wide strategy.

Among those who have strategies set, there is a diversified use of video advertising across all connected devices. Close to half of respondents report advertising in video on tablets and smartphones, and a larger percentage report running video advertising on more traditional desktops. (Graph 4.)

In some cases, there is a disconnect between the perceived usage of a device and the advertising being done on the device. For example, while 61% of marketers expect consumer usage of TVs with connected devices to grow, and 80% expect Smart TV usage to grow, (Marketer Graph 1) only 9% and 26% respectively advertise on these devices. (Marketer Graph 4.)

The research suggests that while they predict a growth in consumers’ usage of these devices, their advertising strategies and approaches still have some catching up to do.



29

typically speaking, what type of video platforms does your company advertise on?

as far as you know, does your company have a digital video marketing strategy to assist in reaching consumers?

marketer graph 4

marketer graph 3 vIdeo strategy

vIdeo platforms for advertIsIng

30

No, but we work in the area and it’s part of our day-to-day actions

Yes, but it’s more informal

Yes, we have a formal, company-wide strategy 9%

42%

50%

0 10 20 30 40 50 60

Yes we have a formal, company-‐wide strategy

Yes but it’s more informal

No but we work in the area and it’s part of our day-‐to-‐day acFons

As far as you know, does your company have a digital video marke9ng strategy to assist in

reaching consumers?

TOTAL %


Pay TV

Connected TV (internet-enabled)

Wireless home internet

Tablet

Smartphone

Laptop notebook

Desktop computer 56%

45%

42%

41%

32%

26%

10%

9%

0 10 20 30 40 50 60

Desktop Computer

Laptop Notebook

Smartphone

Tablet

Wireless Home Internet

Connected TV (internet-‐enabled)

Pay TV


Typically speaking, what type of video pla6orms does your company adver:se at?*

TOTAL



seCond sCreen

While “second-screening” has become the norm for most consumers, especially Millennials, it seems that few marketers have strategies in place to take advantage of the behaviour, and many do not know the meaning of the term.

When asked about their familiarity with the idea of “second-screen” viewership, 68% of marketers were unfamiliar with the concept. (Marketer Graph 5.)

Of those marketers who have heard of “second-screening,” over 90% say they have not developed a strategy to reach “second screen” customers. (Marketer Graph 6.)

These numbers show a disconnect between consumer habits and the advertising strategies to reach them, as 71% of consumers (and 85% of Millennials) report “second-screening” at least once a week. (Consumer Graph 12). It appears there is a powerful opportunity for marketers to reach the underserved, second-screen audience.

Cross-screen strategies are especially important since 20% of consumers use the second screen to interact with products being advertised on TV. (Consumer Graph 14.)


31


have you ever developed a strategy to reach “second-screen” consumers?

how familiar are you with the concept of “second-screen” viewers?

32

14%

68%

0

20

40

60

80

Familiar (NET) Unfamiliar (NET)

How familiar are you with the concept of “second screen” viewers?

TOTAL

9%

91%

Have you ever developed a strategy to reach “second screen” consumers?

Yes No

yes

no

marketer graph 5 second-screen famIlIarIty

marketer graph 6 second-screen strategIes



Biggest Challenges holding marketers BaCk

When asked about the biggest challenges they face today, nearly half (48%) of marketers cited the ability to measure campaign perfor-mance. (Marketer Graph 7.)

Following the ability to measure, the most common challenges cited were measurement specifically across multiple screens or devices (37%), the ability to achieve sufficient reach (36%) and the ability to evaluate quality placements. (34%.)

18% of marketers say measurement is the single biggest challenge they face today (Marketer Graph 8.), followed by the ability to understand their target’s behaviours (11%) and ability to target (11%).


So why don’t marketers have firm strategies in place to reach consumers in the places they know they can be found? What is holding them back? Although successful measurement seems to be a common concern, the other responses are varied, ranging from lack of sufficient reach or frequency, to a lack of under-standing about inventory quality. All answers suggest there is an opportunity for more education in the area of multi-screen and multi-device advertising.

33

Challenges With Video adVertising

What are the biggest challenges in video advertising you face today?

marketer graph 7 current challenges

34

18%

11% 11% 10%

8% 7%

5% 4%

2%

8%

10%

0

2

4

6

8

10

12

14

16

18

20

Measuring campaign

performances

Understanding cross=pla>orm

viewing behaviours of my target audience

TargeEng specific

consumers

Achieving sufficient reach

Measuring the campaign audience

across all video screens or devices

IdenEfying content that is right for your

brand

IdenEfying content that your target

audience views

EvaluaEng the quality of placement

(e.g., viewability)

Planning mulE-‐screen or

mulE-‐device video

campaigns

Other None

Of these, which is the single biggest challenge you face today?

48%

37% 36% 34% 32% 31% 31% 29%

16% 15% 12% 11%

0

10

20

30

40

50

60

Measuring campaign

performance

Measuring the campaign

audience across all video screens

or devices


EvaluaCng the quality of

placements (e.g., viewability)

IdenCfying content that your target

audience views

TargeCng specific

consumers

Understanding cross-‐plaQorm

viewing behavior of my target audience

IdenCfying content that is right for your

brand

Lack of standardizaCon

Achieving sufficient frequency

Planning mulC-‐screen or mulC-‐device video campaigns

HolisCcally planning linear TV and digital

video campaigns

What are the biggest challenges in video adver2sing you face today?

TOTAL

of these, which is the single biggest challenge you face today?

marketer graph 8 BIggest sIngle challenge

Measuring campaign

performance

Understanding cross-screen

behaviour of target audience

Targeting specific

consumers


Measuring audience

across all video screens

Identifying content right

for brand

Identifying content

that target audience

views

Evaluating quality of

placements (e.g., view-

ability)

Planning multi-screen

video campaigns

Other None

Measuring campaign

performance

Measuring audience across all

video screens

Achieving sufficient

reach

Evaluating quality of

placements (e.g., view-

ability)

Identifying content

that target audience

views

Targeting specific

consumers

Under-standing

cross-screen-behaviour of target audience

Identifying content right

for brand

Lack of stan-dardization

Achieving sufficient frequency

Planning multi-screen

video campaigns

Holisti-cally planning linear TV and digital video



hoW is teChnology Being used?

Very few marketers in Canada say that they are leveraging technology to solve their advertising challenges—with only 10% saying their company makes use of programmatic buying today. (Marketer Graph 9.) However, it is worth noting that the agencies may be leveraging programmatic technology on the marketers’ behalf without their knowledge.

39% of marketers can definitively say they are not using programmatic buying, but 15% are uncertain and 36% do not know what programmatic buying is.

For those who are familiar with program-matic buying, targeting is the key priority by a huge margin. When asked about the top features they look for in a technology, nearly half said having multiple ways to target, with another 9% saying real-time-bidding and 9% more citing the ability to transact both programmatically or with reserved inventory. (Marketer Chart 10.)


As the previous graphs have shown, there are many challenges facing marketers in Canada today. Marketers are finding that as the number of video screens grows, so does the complexity of video advertising. The solution to most of their biggest challenges may be the use of technology to pull the pieces together, yet many do not yet understand how they might leverage a programmatic approach to their advertising.

35

the role of teChnology

does your company make use of programmatic buying?

programmatIc vIdeo strategIes

What are the top three features in a technology platform that you look for to assist video ad buying or selling?

marketer graph 10 key technology features

marketer graph 9

36

I don’t know whatprogrammatic

buying is36%

Yes 10%

Uncertain 15%

No 39%

Yes 10%

No 39%

Uncertain 15%

I don’t know what

programma=c buying is 36%

Does your company make use of programma1c buying?

Multiple ways to target

audiences (e.g., demo, purchase

behaviour, etc…)

Availability of inventory via real

time bidding

Ability to transact both programmati-

cally and reserved inventory

Ability to import CRM data to use in targeting ads

Ability to track consumers on

multiple devices

Ability to provide cross-device GRP metric

Ability to serve ads into videos of networks’ online streaming sites

Ability to serve ads into Video on Demand on cable/satellite

systems

Other

47%

9% 9% 8% 6% 6% 5% 3% 8%

0 5

10 15 20 25 30 35 40 45 50

Having mul6ple ways to target audiences (e.g., demographics,

product purchase behavior, etc…)

Availability of inventory via real 6me bidding

Ability to transact both

programma6cally and reserved inventory

Ability to import CRM data to use in targe6ng ads

Ability to track consumers on mul6ple devices

Ability to provide cross-‐device GRP

metric

Ability to serve ads into videos of networks’ online streaming sites

Ability to serve ads into Video on Demand on cable/satellite systems

Other

What are the top THREE features in a technology pla7orm that you look for to assist video ad buying or selling?

Rank 1



Video to groW, along With programmatiC teChnologies

Over the next three years, marketers predict that the industry will continue to shift money into video. (Graph 11.) Specifically, 64% believe money will be shifted from other media channels into video, and 67% think money will be shifted specifically from TV.

Moreover, while currently only 10% of marketers are knowingly making use of programmatic buying, and 36% are unfamil-iar with the concept, 34% of total respon-dents said that they think video buying will become more programmatic over the next three years. This suggests that those with knowledge of programmatic are enthusiastic about its growth.

Of course, one of the benefits of pro-grammatic video buying is the ability to reach discrete consumer groups through the application of data. Similarly, continu-ing with themes that arose in the previous

section, the key potential advantage that marketers see in video is its ability to target specific consumers (45%). They also see the ability to reach consumers not exposed to TV ads (16%) and enhanced interactivity (9%) as key video advantages. (Graph 12.)

When marketers were asked about the most important future video buying capa-bilities, responses were generally in line with video’s potential advantages. Ability to target again topped the list, including target-ing by buying behaviour. And 40% cited the ability to reach consumers across screens as a key capability. (Graph 13.) Ability to buy video programmatically was mentioned by only 24% of respondents as “key.” Since targeting is a key component of programmatic strategies, however, again this may suggest more of an education gap on programmatic capabilities rather than a lack of support.


37

three year outlook

Despite their perceived challenges with video advertising and limited familiarity with the technologies currently available to assist in video planning and buying, marketers believe that over the next three years, video will command a stronger presence in their advertising plans. But video will not remain a siloed channel: the vast majority of marketers predict that the industry will move towards a model that is more holistic, supporting the convergence of content and advertising across screens. And marketers seem optimistic that all groups–from brands, to agencies, to publishers–will see a better return on investment by taking this type of holistic approach to advertising.

What do you see as the three greatest future potential advantages for video advertising?*

In the future, which of the following will be the most important capabilities for buying video advertising?

marketer graph 13 vIdeo BuyIng capaBIlItIes

respondents who believe the following are likely in the next three years

38

Ability to target ads to individuals

based on their match with my target audience

Ability to evaluate audiences on

buying behavior in my product

category

Ability to buy audiences across all screens including

TV / video platforms

Ability to buy ads on specific

programs

Ability to buy online video ads

programmatically

Ability to work directly with media outlets to customise packages of video

advertising opportunities

Ability to buy linear TV ads

programmatically

Advertisers will reallocate money currently spent on linear TV to new video options

Advertisers will shift more money from other media into advertising on new video options

67%64%

Video buying will become more programmatic

34%

*Note: top five responses

marketer graph 12 advantages of vIdeo

marketer graph 11 groWth trends

71%

48% 40%

33% 24% 22%

10%

0 10 20 30 40 50 60 70 80

Ability to target ads to individuals based on their match with my

target audience

Ability to evaluate audiences on buying

behavior in my product category

Ability to buy audiences across all screens

including TV / video plaDorms

Ability to buy ads on specific programs

Ability to buy online video ads

programmaFcally

Ability to work directly with media outlets to customise packages of

video adverFsing opportuniFes

Ability to buy linear TV ads programmaFcally

In the future, which of the following will be the most important capabili6es for buying video adver6sing?

TOTAL

Targeting specific

consumers

Reaching new consumers not

exposed to ads on TV

Enhancing video with

interactivity

Better message communication

ability

Greater ROI accountability

45%

16% 9% 7% 6% 5% 4 3 3 2

0 10 20 30 40 50

Targe1ng specific

consumers

Reaching new consumers not exposed to ads

on TV


interac1vity

BeFer message communica1on

ability


Higher audience aFen1on

Ability to deliver messages to a consumer at

different 1mes of day

Viewabilty overall

To control reach and frequency across devices

New ad formats other than :15 or :30 second

spots

What do you see as the THREE greatest future poten5al advantages for video adver5sing?

Ranked 1st

45%

16% 9% 7% 6% 5% 4 3 3 2

0 10 20 30 40 50

Targe1ng specific

consumers


on TV


interac1vity


ability





Viewabilty overall



spots


Ranked 1st

45%

16% 9% 7% 6% 5% 4 3 3 2

0 10 20 30 40 50

Targe1ng specific

consumers


on TV


interac1vity


ability





Viewabilty overall



spots


Ranked 1st

45%

16% 9% 7% 6% 5% 4 3 3 2

0 10 20 30 40 50

Targe1ng specific

consumers


on TV


interac1vity


ability





Viewabilty overall



spots


Ranked 1st

45%

16% 9% 7% 6% 5% 4 3 3 2

0 10 20 30 40 50

Targe1ng specific

consumers


on TV


interac1vity


ability





Viewabilty overall



spots


Ranked 1st





39

ConVergenCe is the neW normal

On the prior page, we saw that 40% of marketers believed that the ability to buy audiences across screens, including TV and video platforms, would be a key capability in the future. (Graph 13.)

Another sign that marketers believe television and video convergence are here to stay…an overwhelming percentage (85%) predict that in the coming years, planning for online video and linear television will merge. (Graph 14.)

Less clear is who would take the lead if these two sides merged, with 71% predicting specialized digital media buying compa-nies would lead, and a split response on whether traditional media buying firms would lead.

As the digital and traditional disciplines merge, 52% of marketers predict agencies will merge their existing teams–leaving the possibility that new teams could also be created with a focus on cross-screen buying and planning.

About half of marketers also predict that agencies will plan video advertising campaigns holistically across all video viewing options–almost twice as many as those who believe it will be done in siloes. This shows there is a growing expectation that the siloes of today will break down as agencies and advertisers look more holistically at all of their dollars across screens. (Graph 15.)

three year outlook

thinking about how video advertising will change in the next three years, please indicate how strongly you agree or disagree with the following statements.

plannIng and BuyIng In the future marketer graph 14


thinking about the next three years, in your view how likely are the following to happen?

Agencies will merge their TV and online video

buying groups

Agencies will plan video advertising campaigns holistically across all

video viewing options

Agencies will plan video advertising on each platform separately

marketer graph 15 the Impact of convergence on agencIes

52% 48%

0

10

20

30

40

50

60

Agencies will merge their TV and online video buying

groups

Agencies will plan video adver@sing campaigns

holis@cally across all video viewing op@ons

Agencies will plan video adver@sing on each plaAorm

separately

Thinking about the next 3 years, in your view how likely are the following to happen?

85

71

46

15

29

54

0 10 20 30 40 50 60 70 80 90

Planning for online video and linear television will merge

Specialized digital media buying agencies will lead all video buying

TradiDonal media buying firms will lead all video buying

Thinking about how video adverDsing will change in the next 3 years, please indicate how strongly you agree or disagree with the following statements?

Agree (NET) Disagree (NET)



Traditional media buying firms will lead all video buying


85%

71%

46%

15%

29%

54%

0 10 20 30 40 50 60 70 80 90



TradiEonal media buying firms will lead all video buying

Thinking about how video adverEsing will change in the next 3 years, please indicate how strongly you agree or disagree with the following statements?


26%

40

Who Will Benefit?

When all is said and done, who will benefit from the more cross-platform, cross-screen approach marketers are predicting we’ll see in the coming years? The answer is that everyone can benefit.

A large majority of marketers believe that media outlets will increase their overall video advertising revenue in the next three years. (Graph 16.)

Additionally, almost three-quarters believe that media outlets will also benefit, by earning higher CPMs for video advertising (74%).

Finally, 64% of marketers predict that advertising effectiveness will improve, sug-gesting that the brands themselves will also benefit. Overall this suggests that the changes ahead for video advertising will be a win-win across the board.


thinking about how video advertising will change in the next 3 years, please indicate how strongly you agree or disagree with the following statements?

41

three year outlook

81% 74%

64%

19% 26%

36%

0 10 20 30 40 50 60 70 80 90

Media outlets will increase their overall adver=sing revenue by selling video

adver=sing

Media outlets will earn higher CPMs for video adver=sing

Adver=sing effec=veness will improve

Thinking about how video adver=sing will change in the next 3 years, please indicate how strongly you agree or disagree with the following statements?


Media outlets will increase their overall advertising revenue by

selling video advertising

Media outlets will earn higher CPMs for video advertising

Advertising effectiveness will improve

marketer graph 16 ecosystem BenefIts


81% 74%

64%

19% 26%

36%

0 10 20 30 40 50 60 70 80 90

Media outlets will increase their overall adver=sing revenue by selling video

adver=sing

Media outlets will earn higher CPMs for video adver=sing

Adver=sing effec=veness will improve

Thinking about how video adver=sing will change in the next 3 years, please indicate how strongly you agree or disagree with the following statements?


ConsumersMale 48

Female 52

Millennial (18-34) 32

Gen X (35-49) 27

Boomer (50-69) 36

Seniors 6

< High School 5

High School 26

Some College/Univ 21

College 20

University 20

Post-Graduate 9

Work Full Time 37

Work Part Time 14

Retired 20

Self Employed 6

Not Employed 17

Student 6

Single/Div/Widow 45

Married/Common Law 55

Children in Home 36

Major Metro 49

Medium Metro 33

Small/Rural 17

Atlantic (Net) 7

Quebec 23

Ontario 39

West (Net) 31

HHI <$50K 45

HHI $50K-99.9K 32

HHI $100K+ 14

HHI Not Avail 10

Mean HHI $58k

Canadian 81

French Canadian 5

Other Ethnic 14

marketerssegments of Industry your company Works With:

Online/Internet 67

Publishing 43

Digital 27

Broadcast 23

Other 4

Job TitleC-suite Executive 44

Brand/Account Manager 17

Other Executive 16

CMO/Director Marketing 9

Other 15

size of company

1-99 78

100-499 11

500+ 12

Mean 92

years in Industry

<1 year 8

1-5 years 14

6-10 years 19

11-20 years 32

21+ years 26

Mean 13

co.’s total revenue

<$1 Mil 42

$1-$99 Mil 35

>$100 Mil 23

Mean 136K

other

Male 56

Female 44

Atlantic (Net) 10

Quebec 21

Ontario 39

West (Net) 32

appendix a: methodology

appendix B: demographiCs

In Fall 2014, Marketing Magazine and Rogers Connect Market Research and Client Services conducted an independent online survey of 1,011 Canadians (nationally repre-sentative) and 104 Canadian marketers (those working in a marketing-related, or executive-level role). The survey did not include marketing professionals working at advertising or media agencies—only brand direct advertisers. All responses were collected between September and October 2014. Data was compiled by Marketing Magazine, and the corresponding analysis and commentary was prepared by Videology.

42

For more information, please contact [email protected]

videologygroup.com

Documents

Marketing Magazine Consumer and Marketer Video Study Commissioned by Videology for Canada