How I Learned to Stop Worrying and Love Online Video
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1 How I Learned to Stop Worrying and Love Online Video Bill Lederer Chief Executive Officer, Kantar Video (Bill.Lederer@kantar.com) December 8, 2010
2 Kantar by the numbers 14 specialist companies 26,500+ employees operating in 95 countries 300 of Fortune 500 are clients 1/3 rd of WPP s revenue Digital data collection will exceed 50% by FYE 2011 How Kantar collects and measures data: Spider Technology Kantar Signature TM (fingerprinting) Technology Direct Page-Level Tagging ISP/ASP/Toolbar Set top box data Opt-In Panels Media Monitoring People Meters Surveys In-Player SWF file Pixel Tracking 2
3 Introduction to Kantar Video Comprehensive 360 o approach provides unparalleled content capture and measurement capabilities to effectively and efficiently measure and help monetize online and mobile video ads and content worldwide. Combined with descriptive, behavioral and attitudinal data from other KANTAR business units, the Kantar Videolytics TM platform enables clients to assess and improve the impact of online and mobile video on their brands, audiences and marketing plans. Kantar Video Measures: Content (Adverts and programs) UCG Long form and Short form Branded Entertainment Prosumer/Independent Repurposed Television Web Series Viral Kantar Videolytics TM SYNDICATE OPTIMIZE TRACK 3
4 Video Marketing Spend Experiencing Exponential Growth 2010: the Inflection Point for mainstream campaign spending Estimated US and Global Video Marketing Spend in USD Millions , ,351 1,500 3,500 2,520 5,320 $ ,046 1,469 2,000 2,800 3,780 3,780 7,560 5,405 10,319 4,914 6, ,371 13,514 US Non-US Global Kantar Video s POV is that the influx of larger and DR advertisers will drive global video marketing spend to grow by at least 30% per annum compounded through 2015 reaching at least $15B/year (USD). Video marketing spend outside the US will eclipse the US in 2014 or By 2015, so much marketing-driven video content will be streaming to computer screens, web-enabled televisions, and mobile devices that the annual additional dollars going to video marketing spend in that year will surpass the annual increase in any other ad format.
5 Online Video Value Chain: AM 03 MARCH
6 The year that was 2010 Over 35 hours of video is uploaded to YouTube every minute and with over 2 billion videos viewed per day 2 billion videos viewed each month on Facebook, despite not offering a video portal Live stream video viewing increased by 650% year/year 1,000+ US and 500+ global or local brands buying in pre-, mid- and post-rolls 4 million video ads were served to the U.S. online population in September 2010 alone 200+ top US brands have released viral videos, of those 100 have surpassed ½ million views without an identifiable supporting media buy Online video viewing measured against TV viewing time spent is being monetized at only 4-5% the rate of TV Why? 6
7 Lessons Learned #1 GRPs are needed, but equivalency is not enough, this medium is different it is NOT TV Consider this starter formula: Effective Reach x Frequency x Effectiveness CPM 7
8 Lessons Learned #2 Embrace and Measure OPE as a reporting metric Owned Channels of communication a company develops or uses without a media buy: Facebook, microsites, databases, retail stores Bought media space or audience: TV, Print, banner ads, radio, billboards Paid Earned Consumer created media or exponential discussion or activity resulting from a brand or it s campaigns: Word of Mouth, reviews, organic search results, forwarding 8
9 Lessons Learned #3 Budget will come primarily from print and TV 9
10 Lessons Learned #4 The medium is still lacking sufficient premium content to monetize properly 10
11 Lessons Learned #5 Early testing is pointing us to consider Audience targeting trumps context (source: TidalTV) Context trumps length (source: Tremor/ScanScout) Audience trumps message length (source: TidalTV) Frequency of 3-5x is optimal (source: Kantar) The interplay of behavior, attitude, and deep online/offline audience profiling as audience ratings are critical to understanding this medium (source: Kantar) 11
12 Lessons Learned #6 Video Campaign Cycle Best Practices Strategy Creative & Production Planning, Buying & Syndication Tracking (Measurement) & Optimization Video Opportunity Assessment Customer and Prospect Lifecycle Video Use Segmentation Audience Profiling Competitive Intel Targeting and Key Message Tailoring Marketing Research and Consumer Insights CRM Enhancement Video Platform Analysis Recommend Video Solution Creative Brief and Strategic Alignment Script and Content Development Creative Design and Branding User Experience Pre-production budgeting, scheduling, casting, storyboarding Production Post-Production motion graphic and visual effects, sound design, color correction, music composition, compression, DVD Encoding and Authoring Syndication and Metadata Strategy Social Network Strategy Online Media Planning and Buying Plan Distribution Platforms VSEM/VSEO A/B and Multivariate Testing Measurement of Business Impact (MROI) Comprehensive Analytics Campaign Verification Key Performance Indicators Campaign Verification Competitive Intel Survey Development, Execution and Analysis Campaign Goal-Updating Campaign Optimization 12
13 By 2015, we expect Higher than current % of spend on creative & multivariate testing of video creative will be typical The rise of the Video Agency of Record (VAOR) UCG & ProSumer content becomes New Premium Content due to safety/targeting improvements Global Online + Mobile Video Ad Spend will reach $10 Billion (USD), earning its way into virtually every media mix model The majority of video will be bought by audience and context (as Ad Targeting becomes even more laser-like in precision), not by program Typical video campaign investment will be composed as follows: 55% will be devoted to media spend 25% will be spent on modeling, data, targeting, ad serving 15% will go toward creative and other agency services 5% will be invested in media/market research, verification, safety, and optimization 3-screen global digital measurement and campaign analysis will be commonplace and will depend upon real-time behavioral, attitudinal and audience analytics 13
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