Video Marketing Workshop for Fionn Downhill’s Class

Greg Jarboe

President of SEO-PR

April 21, 2015

First video on YouTube was uploaded almost 10 years ago on April 23, 2005

Source: https://youtu.be/jNQXAC9IVRw

Fionn Downhill’s Irish stepdancingvideo uploaded on March 8, 2008

Source: https://youtu.be/M1vFOvGt4_c

YouTube has more than 1 billion users, making it #2 largest social media site

• Every day people watch hundreds of millions of hours on YouTube and generate billions of views.

• 300 hours of video are uploaded to YouTube every minute.

• YouTube is localized in 75 countries and available in 61 languages.

• Half of YouTube views are on mobile devices.

Source: https://www.youtube.com/yt/press/statistics.html

Would you spend $4.5 million to reach 114.4 million viewers for 30 seconds?

Source: http://money.cnn.com/2015/01/30/media/super-bowl-viral-ads/

Most ad agencies measure the inputs, not the outcomes of their advertising

• In the late 1980s, my father was the director of marketing at Oldsmobile.

• He launched the classic ad campaign, “This is not your father’s Oldsmobile.”

• But sales fell from 900,000 in 1987 before the ad campaign to under 450,000 in 1991.

• So, he asked his ad agency, Leo Burnett, how they were measuring results.

• “GRPs”, they replied.• Dad asked, “How many GRPs

do we need to sell a car?”

Source: http://www.amazon.com/YouTube-Video-Marketing-Hour-Day-ebook/dp/B002MZUPTW

How do you calculate your return on marketing investment (ROMI)?

• Return on marketing investment (ROMI) is the contribution to profit attributable to marketing (net of marketing spending), divided by the marketing invested. – It is not like the other “return on investment” metrics because

marketing is not the same kind of investment. – Instead of moneys that are “tied” up in plants and inventories,

marketing funds are typically “risked.” – Usually marketing spending will be deemed as justified if the return is

positive.

• The purpose of the ROMI metric is to measure the rate at which spending on marketing contributes to profits.

• Return on marketing investment (%) = 100 x [{Incremental revenue attributable to marketing ($) x Contribution margin (%) - Marketing spending ($)} ÷ Marketing spending ($)]– Note: Marketing spending is typically expensed in the current period.

Source: http://www.commonlanguage.wikispaces.net/Return+on+Marketing+Investment

If a VW Passat sells for $29,310, then how many cars do you need to sell?

• Return on marketing investment of 10% = 100 x [{$379,300,710 in incremental revenue attributable to marketing (12,941 more cars) x 2.9% contribution margin ($850) - $10 million for 60-second Super Bowl spot and ad production} ÷$10 million for marketing spending]

Source: http://www.bloomberg.com/bw/articles/2014-03-13/volkswagen-pockets-23-000-when-you-buy-that-new-porsche

Volkswagen needed 2,957 views and 254 shares to sell a car back in 2012

• Volkswagen’s “The Force” is the most shared ad of all time, with more than 61.8 million views and close to 5.3 million shares.

• This Super Bowl ad generated a 127% uplift in website traffic and drove the sale of 20,902 units.

• The price range for a new Passat in 2012 was $19,995 to $32,950, so “The Force” drove from $417,935,490 to $688,720,900 in incremental sales back when margins were higher.

Source: Unruly White Paper, November 2012

VW’s Super Bowl 2014 ad, “Wings,” didn’t get as many views or shares

Source: http://www.thesempost.com/marketing-lessons-learned-2014-vw-super-bowl-commercial-wings/

So, Volkswagen decided it wouldn’t advertise during Super Bowl 2015

Source: http://www.autonews.com/article/20141120/RETAIL03/141129979/volkswagen-wont-advertise-during-2015-super-bowl

All the Super Bowl 2015 ads that did run on NBC also appeared on YouTube

Source: https://www.youtube.com/user/adblitz

Some plays in the marketer’s playbook for winning the big game are classics

• The Kick Return: This is one of the most basic plays in the playbook, but it generates results again and again.

• Budweiser’s “Lost Dog” was the most-shared Super Bowl ad of 2015.

• Budweiser's “Puppy Love” was the most-shared Super Bowl ad of 2014

• Budweiser’s “Brotherhood” was the most-shared Super Bowl ad of 2013.

Source: http://www.momentology.com/4725-best-super-bowl-ads-of-2015-put-new-plays-in-marketers-playbook/

Other plays in the marketer’s playbook for winning big games are brand new

• Half-Back Pass: This trick play has high risks, but high rewards.

• But “Aubrey Plaza Prepares America for Newcastle’s Band of Brands Ad” demonstrates that you don’t need to be an official Super Bowl advertiser to steal the show.

• And Newcastle Brown Ale didn’t pay NBC $4.5 million to air a 30-second spot during the Big Game?

Source: http://www.momentology.com/4725-best-super-bowl-ads-of-2015-put-new-plays-in-marketers-playbook/

YouTube delivered more views, but Facebook videos got more shares

Source: http://www.clickz.com/clickz/news/2394454/facebook-videos-pull-upset-over-favored-youtube-at-super-bowl-2015

Facebook videos got a share rate almost 5 times higher than YouTube

• When comparing campaigns that ran on both YouTube and Facebook, the versions run on Facebook got an average share rate of 6.1% – almost 5 times higher than the 1.3% rate on YouTube.

• Why are share rates higher on Facebook?

• Facebook is a social networking service, while YouTube is video-sharing website.

• What’s the difference?

• Facebook is a place where people scroll through their News Feed and may be more likely to check out content that their friends, family, and colleagues have enjoyed.

• YouTube is a place where people search for content from creators and then share some of it with their friends, family, and colleagues.

Source: http://www.clickz.com/clickz/news/2394454/facebook-videos-pull-upset-over-favored-youtube-at-super-bowl-2015

Video content related to Super Bowl 2015 broke the 1 billion view mark

• According to Tubular Labs, 80,000 videos from 49,000 creators got close to 1.1 billion views.

• And the digital video universe is far more segmented than I suspected.

• I use the term “segmented” instead of “fragmented” because each of these worlds has its own language, its own culture and customs, as well as its own folk heroes.

Source: http://www.reelseo.com/super-bowl-1-billion-online-views/

368.1

321.8

226.0

128.7

11.2

Views (Million)

YouTube Facebook Instagram

Vine Other

Top 5 videos on YouTube were ads, but 3 of top 5 on Facebook were trailers

Source: http://www.reelseo.com/super-bowl-1-billion-online-views/

3 of top 5 Instavids by Victoria’s Secret, but top 5 Vines are all user-generated

Source: http://www.reelseo.com/super-bowl-1-billion-online-views/

Were the folks at Unruly, YouTube, and Pixability watching the same game?

• It’s clear to everyone who watched Super Bowl 2015 that the New England Patriots beat the Seattle Seahawks by a score of 28 to 24.

• But which Super Bowl ads won the Big Game?

• Well, only 3 ads – Budweiser’s “Lost Dog”, Supercell’s “Clash of Clans”, and Snickers’ “The Brady Bunch” – made all 3 of the key lists.

• Were the marketers at Unruly, YouTube, and Pixability watching the same game?

Source: http://www.business.rutgers.edu/executive-education/blogs/which-ads-won-super-bowl-2015-it-depends-metrics-you-use

They were watching the same game, but they were using different metrics

• Pixability’s list of the top Super Bowl ads was based on views.

• YouTube’s list of top ads was determined by an algorithm that factors in paid views, organic views and audience retention (how much of a video people watched).

• And Unruly’s list of top ads was based on the number of times video content was shared on Facebook, Twitter and in the blogosphere.

Source: http://www.business.rutgers.edu/executive-education/blogs/which-ads-won-super-bowl-2015-it-depends-metrics-you-use

So, which metrics should marketers use? The answer is: All of the above!

• Measurement is essential, both for defining success and optimizing towards it.

• Most marketers find it useful to select 1 metric for each of the following 3 buckets that measure engagement with their content:

– Audience. Are you reaching the right audience? How well?

– Expression. Is your target audience engaging with your content? How much?

– Participation. Is your audience endorsing and sharing your content? How much?

• The number of views is a key metric for the first bucket.

• Watch time is a key metric for the second bucket.

• And the number of shares is a key metric for the third bucket.

Source: http://www.business.rutgers.edu/executive-education/blogs/which-ads-won-super-bowl-2015-it-depends-metrics-you-use

Please, don’t rush out and buy my book, YouTube and Video Marketing

• When it was published in November 2011, the second edition legitimately claimed to be “Fully updated with new information, including the latest changes to YouTube!”

• But the only chapter that isn’t out-of-date today is Chapter 1: A Short History of YouTube.

• So, if you want up-to-date information, read my posts on ReelSEO, ClickZ, The SEM Post, or Momentology.

Source: http://www.amazon.com/YouTube-Video-Marketing-Hour-Day/dp/047094501X