The Alignment Ef fe c

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1 The Alignment Ef fe c t

2 Table of Contents Introduction 1 Industry Overview 2 The Power of Relevance 3 Methodology 4 The Content Driving CPG Success 5 The Content Driving Entertainment Success 6 The Content Driving Retail Success 7 Conclusion 8 Appendix 9 2

3 Introduction The kind of content an ad aligns with There s a good reason why no one has to identify and filter all of YouTube into video landscape creates and get a has a large impact on how someone shared lists of this kind. Historically content types - from verticals to tentpole glimpse into insights gleaned from reacts to it. That s true in a magazine there has been insufficient data and events to seasonal trends. The tech millions of brand category/video and it s especially true in video formats. technology to work with, and with only allows for very specific content choices content alignments. With the explosive growth in digital video, we can finally be picky about where ads are placed. Which begs the limited amount of video to advertise against, brands could more easily keep track of successes. (over 13,000 types and counting), based on the topics that are great for brands on YouTube. The data within this report Sincerely, Rich Raddon question - where should they run? provides a sampling of findings around With the rise of YouTube, video has which of these topics work best for What kind of content is the most evolved. There are more than 400 hours brand categories. effective for specific categories of of video added to the platform every brands to run their video ads against? minute, and nearly a billion monthly Introducing The Alignment Effect, a Brands spend billions of dollars to users. The scope and scale of YouTube report that reveals what types of topics secure placement in the right TV shows, allows for new approaches in video - and work best for brands across multiple they invest in third party research and the breadth and reach to answer some verticals. By focusing on the content data to understand what programs best long-asked questions. that s driving results, marketers can align with brand content. Given the deliver ads that are more effective and limited number of video options in the YouTube s massive reach delivers an less annoying. When an ad runs against past - those insights could only go so incredible opportunity for brands to the right content it s more valuable to far. The following report provides an align with relevant content. To harness the consumer and, in turn, that analysis of the best types of content the massive scale of YouTube, deep interaction provides a better outcome for specific brand verticals. It s the technology also needed to be developed for advertisers. This research provides first time this type of research has to understand and categorize all that the start of a roadmap for brands so been published. content. ZEFR has developed technology they can see the opportunity the new 1

4 Digital video spending is strong, growing by double digit percentages every year. Industry Overview Digital media has become the growth engine for the advertising business. In fact, by the end of this year spending against digital platforms will for the first time eclipse spending on television advertising. This is an important moment in the evolution of advertising. Ad Spend Reach $10.3B this year Total Digital Spend $ 15.1% 14.3% As digital spending increases, so does consumption, as younger consumers are increasingly choosing to view content on platforms like YouTube and moving away from traditional TV. Figure 1 As the industry transforms to become more and more digital, the possibilities around targeting expand into areas never before possible on traditional TV In year olds spent 4% less time watching TV While time on YouTube went up to platforms. The rise of digital offers the opportunity for a better experience for -4% 74% both the brand and consumer. *1 - emarketer *2 - Think with Google Figure 2 2

5 The Power of Relevance In August 2016, an emarketer report stated that YouTube is the most mature of the digital video ad platforms, and an essential destination for premium pre-roll advertising, and goes on to say that contextual targeting is the best way to reach audiences on the platform. According to the report, the message is clear: US internet users generally respond most favorably to the relevance of contextual targeting on YouTube. 3 Last year, IPG + ZEFR conducted a study in a controlled setting (cited by emarketer) the impact of content alignment for video ad units. That study was conducted with 8,600+ consumers in a lab environment, and quantified the large impact content alignment on ad efficacy for brands. 4 The Alignment Effect is the next step in that dialogue. In the same way advertisers have traditionally aligned with relevant TV shows, they can now apply content-specific targeting to YouTube - with huge scale and greater specificity. 3 emarketer 4 The Power of Relevance 3

6 Methodology The following data is based on a sample set of campaigns run by ZEFR over an 8 month period, from January to August Hundreds of campaigns are included, spanning more than 100 advertisers. Powered by ZEFR s BrandID technology, targeting for each of these campaigns aligned ads with contextually relevant types of content that were mapped across more than 13,000 content segments. The segments are created based on first and third party research on the topics driving YouTube viewership and engagement ADVERTISERS 300+ CAMPAIGNS 13K CONTENT SEGMENTS For the purposes of this paper, viewthrough rate was measured and a strong VTR correlated to optimal alignment between brand and content type. 4

7 The Content Driving CPG Success The CPG category encompasses a wide variety of brands and products, and the breadth of top performing content types reflect that. Major CPG related YouTube trends like Food Challenges and 4th of July Party Planning are massive on YouTube, with over 2.2 million combined daily views and, as expected, they performed well for brands. However, most of the top performing content types did not feature food or consumer goods. For example, premium entertainment content from food-loving popular comedian Aziz Ansari and EDM powerhouse Swedish House Mafia also proved to be effective for CPG brands. Top Content Segments for CPG Aziz Ansari Swedish House Mafia Homecoming Queens and Kings Travel - New York City Food Challenges Spring Break Ricky Martin Tubing Aziz Ansari: Intimate Moments for A Sensual Evening (2010) ULTIMATE KOREAN STREET FOOD TASTE TEST 4th of July Party Romeo Santos Fun Layered 4th of July Drinks!! 5

8 The Content Driving Entertainment Success 5 ZEFR BrandID Entertainment content is incredibly vast on YouTube. To give a sense of scale, there were 3.2 million videos and 97.8 billion views as of late and the numbers are only getting larger. Those billions of views represent a massive and diverse category on YouTube, and the opportunity for brands is immense. One might expect that consumers seeking out entertainment content on YouTube would be receptive to messages from entertainment advertisers. Content including mainstream movie stars like George Clooney and Adam Sandler performed well - both are hugely popular on the platform with over 800K combined daily views. It was interesting to note that content from YouTube stars like Miranda Sings and Sam Tsui also performed well. With the huge amount of gaming and entertainment content on YouTube, some less obvious types of content also emerged among some of the top performers, such as Lego Video Games - a topic that generates over 3.2 million views every day. 5 Top Content Segments for Entertainment Adam Sandler Sam Tsui Family Vloggers Lego Video Games Comic Con Bleach Miranda Sings The Real Daytime Female Comedy George Clooney Adam Sandler - Before They Were Famous Comic-Con Best Cosplay 2016 #ThatCosplayShow 2015 Golden Globes Tina Fey and Amy Poehler Full Monologue HD Cosby 7

9 The Content Driving Retail Success YouTube has become a major part of the consumer decision journey. Consumers turn to YouTube to both learn about products for the first time, and to dive deeply into product reviews to inform purchase decisions. When we looked at the content types that drove high performance for retail, many were related to research for children s items, with Children s Car Seats, Snack Foods and Toy Reviews - the latter of which drives an incredible 23 million views per day. Less obvious segments that also emerged included Easter Egg Hunts - a topic that generates almost 400K YouTube views every day. Top Content Segments for Retail Toy Reviews Snack Foods Children s Car Seat Halloween Costume for Children Kids DIY Art Kids Soccer The Muppets Easy Hairstyles PAW PATROL Pup Racers Game Chase Rubble Toy Reviews For You Crayola Paint Maker PINK Edition Play Kit Easy DIY Easter Egg Hunt Craft Store Hauls Easter Egg Hunt

10 Conclusion It s time for brands to take action and to think about how to align with the right content - on YouTube and beyond. By digging into the various expected and unexpected content alignment success stories, we hope to inspire marketers to harness new technologies and opportunities that can result in more satisfying experiences for consumers and more impactful business results for brands. As the massive progression of digital video advertising continues to evolve, brands can take advantage of the Alignment Effect and platforms like YouTube to understand the content that s the most suitable for their brand - with video and beyond to guide their entire marketing strategy. 10 9

11 Appendix 1,2 US Digital Ad Spending to Surpass TV this Year 3 The Latest Video Trends: Where Your Audience Is Watching 4 The Power of Relevance 5 ZEFR BrandID 10