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2 The Impact of YouTube Homepages On Brand Engagement Google/Compete U.S., December 2010
3 Study Objectives Objectives Quantify the role of homepage media in generating brand engagement Determine the impact ad format has on engagement Determine the role frequency has on increased user engagement Provide insights by vertical and ad format Assess the set of demographics that are most apt to take action in aggregate and by vertical 2
4 Methodology 301 Homepage Campaigns Analyzed Exposed Consumers Consumers who visited YouTube homepage on the day(s) advertiser ran campaign Control Consumers Consumers who visit the YouTube homepage the 7 days prior to the campaign date but not on the campaign date Test/Control Comparison Identifies impact of ad exposure on online behavior Activity Period All activities are measured on the day of the campaign 3
5 Homepage Impact Findings
6 Key Takeaways: Homepage Campaigns Homepage advertising on YouTube drives a significant increase in engagement with the advertiser s brand Exposed consumers are 4X more likely to visit the advertiser site, search for the brand or watch the company s videos on YouTube Incremental investment in Masthead ad format drives twice the impact Masthead campaigns drive a 4X lift in engagement compared to 2X for standard video ads Impact of YouTube homepage campaigns increases with more ad impressions Consumers who see the ad 2 or 3 times are twice as likely to interact with the advertiser s brand post exposure compared to those who see the ad once Entertainment campaigns achieve the strongest lifts activity outside of YouTube (brand search on search engines and site visitation) 5
7 Exposed Consumers Are 5X More Engaged Consumers who see an advertiser s ad on the YouTube homepage are 437% more likely to engage in a key brand activity on the same day than those who did not see the ad Lift in Exposed Behavior for YouTube Homepage Campaigns (Median Exposed/Control Rates of 301 campaigns, June 2008 Nov 2010) 0.70% Lift of 437% Lift of 416% Lift of 450% Lift of 451% Lift of 116% 0.64% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 0.12% 0.09% 0.07% 0.02% 0.01% 0.21% 0.08% 0.04% 0.04% Any Engaged Activity Brand Query on YouTube Video Watch on YouTube Same day visit to Advertiser Site Brand Query on Search Engine Exposed Activity Rate Control Activity Rate 6
8 Frequency Drives High Rates of Engagement Frequency of exposure to the homepage ad unit is highly correlated with brand engagement. Consumers are 6X more likely to conduct an activity after just one exposure vs. the control and 22X more likely after 4-6 impressions 4.5% 4.0% Overall Engagement with Advertiser by Impression Frequency (Median Exposed Activity Rate of 50 campaigns, January November 2010) 3.81% 3.5% 3.0% 2.5% Read as: 3.8% of consumers who are exposed to the YouTube homepage campaign 7 or more times perform at least one of the key activities measured 2.24% 2.0% 1.5% 1.27% 1.0% 0.73% 0.5% 0.0% 0.11% Control 1 Impression 2-3 Impressions 4-6 Impressions 7+ Impressions 7
9 Frequency Drives Greater Viewthrough Frequency of exposure to the homepage ad unit drives a strong lift in advertiser site visitation after 2 or more exposures. 1.0% Advertiser Site Visitation by Impression Frequency (Median Exposed Activity Rate of 50 campaigns January November 2010) 0.85% 0.8% 0.6% 0.42% 0.45% 0.4% 0.22% 0.2% 0.05% 0.0% Control 1 Impression 2-3 Impressions 4-6 Impressions 7+ Impressions 8
10 Mastheads Are 2X More Effective Mastheads drive +65% greater advertiser site visitation and +90% greater brand queries on search engines vs. Standard YouTube Video Ads 500% 450% YouTube Homepage Campaigns by Ad Format (Median Lift Mastheads N=151, YVA N=95,June November 2010) 438% 441% 400% 350% 300% 336% 301% 367% 250% 200% 218% 193% 150% 100% 50% 79% 44% 48% 0% Any Engaged Activity Video Watch on YouTube Brand Query on YouTube Same day visit to Advertiser Site Brand Query on Search Engine Masthead Standard YouTube Video Ads 9
11 Homepage Ads Drive Significant Lifts For All Strongest lifts in engagement across the board YouTube Homepage Campaigns (Median Lifts for Any Exposed Activity, June 2008 November 2010) Movies (theatrical release) CPG 865% 849% Games 602% TV Shows Financial Services Retail 159% 158% 340% Read as: Exposure to CPG homepage campaigns are +849% more effective in driving a specific behavior for exposed consumers vs. the control group Automotive 150% Technology 130% 0% 100% 200% 300% 400% 500% 600% 700% 800% 900% 1000% 10
12 Industry Benchmarks
13 Homepage Results for Movie Campaigns Exposed consumers engaged in brand activities on YouTube as well as outside of YouTube representing a +341% lift in video watch on YouTube, +729% lift in brand queries on search engines and +340% lift in advertiser site visit Activities Measured Median Exposed Activity Rate and Lifts (56 Homepage Campaigns, June 2008 November 2010) Median Exposed Activity Rate Median Lift Any Engaged Activity 0.71% 865% Brand Query on YouTube 0.09% 179% Video Watch on YouTube 0.20% 341% Same day visit to Advertiser Site 0.09% 340% Brand Query on Search Engine 0.34% 729% 12
14 Homepage Results for CPG Campaigns Consumer Packaged Goods homepage ads achieved a strong lift in overall activity compared to the control group (+849%) Activities Measured Median Exposed Activity Rate and Lifts (46 Homepage Campaigns, June 2008 November 2010) Median Exposed Activity Rate Median Lift Any Engaged Activity 0.27% 849% Brand Query on YouTube 0.03% 289% Video Watch on YouTube 0.11% 512% Same day visit to Advertiser Site 0.05% 254% Brand Query on Search Engine 0.01% 47% 13
15 Homepage Results for Retail Campaigns Retail campaigns on YouTube generate interest YouTube activities such as video watch on YouTube and brand search Activities Measured Median Exposed Activity Rate and Lifts (44 Homepage Campaigns, June 2008 November 2010) Median Exposed Activity Rate Median Lift Any Engaged Activity 0.68% 158% Brand Query on YouTube 0.03% 353% Video Watch on YouTube 0.05% 154% Same day visit to Advertiser Site 0.35% 50% Brand Query on Search Engine 0.11% 39% 14
16 Homepage Results for Automotive Campaigns Automotive homepage placements drove strong lifts in advertiser site visit (+179% lift vs. control) and video watch on YouTube (+381%) Activities Measured Median Exposed Activity Rate and Lifts (21 Homepage Campaigns, June 2008 November 2010) Median Exposed Activity Rate Median Lift Any Engaged Activity 0.42% 150% Brand Query on YouTube 0.10% 207% Video Watch on YouTube 0.02% 381% Same day visit to Advertiser Site 0.18% 179% Brand Query on Search Engine 0.12% 24% 15
17 Homepage Results for Gaming Campaigns The Gaming industry achieved the highest engaged activity rate across all behaviors measured which translated into a +602% lift in overall activity Activities Measured Median Exposed Activity Rate and Lifts (28 Homepage Campaigns, June 2008 November 2010) Median Exposed Activity Rate Median Lift Any Engaged Activity 1.07% 602% Brand Query on YouTube 0.46% 372% Video Watch on YouTube 0.10% 228% Same day visit to Advertiser Site 0.33% 395% Brand Query on Search Engine 0.18% 141% 16
18 Homepage Results for Technology Campaigns Technology campaigns drive a high rate of engagement with advertiser videos on YouTube (+558% lift). Engaged consumers research information about the brands and products advertised via videos on YouTube Activities Measured Median Exposed Activity Rate and Lifts (42 Homepage Campaigns, June 2008 November 2010) Median Exposed Activity Rate Median Lift Any Engaged Activity 0.84% 130% Brand Query on YouTube 0.08% 213% Video Watch on YouTube 0.01% 558% Same day visit to Advertiser Site 0.43% 114% Brand Query on Search Engine 0.18% 49% 17
19 Homepage Results for TV Show Campaigns Exposure to TV show homepage units yielded strong lifts in brand queries and visits to the advertiser site Activities Measured Median Exposed Activity Rate and Lifts (31 Homepage Campaigns, June 2008 November 2010) Median Exposed Activity Rate Median Lift Any Engaged Activity 0.64% 340% Brand Query on YouTube 0.14% 259% Video Watch on YouTube 0.09% 225% Same day visit to Advertiser Site 0.27% 241% Brand Query on Search Engine 0.07% 118% 18
20 Appendix 19
21 Metric Definitions YouTube Video Watch Visited advertiser's YouTube watch pages or channel Advertiser Brand Query Searched for any form of advertiser's brand term on the top search engines (AOL, Ask, Google, MSN, Yahoo) or YouTube search bar Competitive Site Visit Visited competitor site(s) Competitive Brand Query Searched for any form of competitors' brand terms on the top search engines (AOL, Ask, Google, MSN, Yahoo) or YouTube search bar Generic Query Searched for any form of product terms on the top search engines (AOL, Ask, Google, MSN, Yahoo) or YouTube search bar 20
22 Definitions Lift Calculated as a percentage increase over the control rate Aggregate Activity Engaged in one or more activities Advertiser Site Visit Visited advertiser site/landing page 21
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