VIDEO CREATIVE IN A DIGITAL WORLD Digital analytics afternoon.

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1 VIDEO CREATIVE IN A DIGITAL WORLD Digital analytics afternoon

2 AdReaction Video: 42 countries 13,000+ Multiscreen Users 2

3 3 Screentime is enormous

4 Poor consumer 4

5 5

6 6 So no wonder use of ad blockers is huge

7 7 Right Person How much video are people viewing by screen, and how does targeting improve their receptivity to ads?

8 Most of our screen time is mobile. Despite this, media spend is still skewed towards TV. Daily Screen Share (%) Minutes Global Media Spend MOBILE DESKTOP TV Q: Which of the following did you do yesterday? Source: Zenith Optimedia Advertising Expenditure Forecasts, December 2014

9 TV is the most dominant screen for video Regular live TV remains the top channel (38%) for watching videos, followed by on demand TV (24%). Shares of these oldschool devices is higher than global average. In total, Dutch watch video for almost 3 hours a day (below global average) EXPOSURE (min spent yesterday) % of video time spent per device LIVE TV 1 38 ON DEMAND TV 1 LAPTOP TABLET SMART PHONE (2) (3) (-10) (-8) (-22) (8) (5) (-2) (-3) (-8) Q: Still thinking about video content, roughly for how long yesterday did you watch TOTAL MINS: () Differences vs global average

10 That said, video viewing varies by age SMARTPHONE Average time spent Smartphones are the primary device for multiscreeners ages to view video, but this group also watches a lot of video on TV and PCs. Audiences 25+ favor Live TV over On Demand TV and digital devices. TABLET COMPUTER ON DEMAND TV LIVE TV

11 We like to binge-view or zap around I binge viewed multiple episodes of the same show I just watched what was happening live GLOBAL AVERAGE (%) (20) (19) I explored randomly 22 (31) Some specific content search I searched out my favorite shows/ content I watched something my friends shared (online) (33) (20) I watched a show that I had previously recorded 10 (11) I used an online "catch up" service 9 (11) Q: Which of the following apply to how you watched video yesterday? I watched a video offline that I had previously downloaded (e.g. via itunes) I used a TV "catch up" service 7 7 (10) (11) I watched a show live that I had made an appointment to watch 5 (11) I watched something my friends had been talking about (offline) 5 (11) 11

12 In the current world, control is king Series via Netflix Netflix en popcorn time zijn mijn favoriet. Ik kan kijken wanneer ik wil via mijn tv Humoristische YouTube video s, via mobiel Kijk nu bewust op bepaalde momenten We watch series and short videos, preferably on platforms like Netflix and YouTube. We want control over what and when we watch Ik kijk nu meer op Smartphone, omdat ik dat op elk moment van de dag kan doen Meer ad hoc. Spontaan via een link op internet bijvoorbeeld Ik kijk veel intenser naar de televisie omdat het beeld veel duidelijker is en meer aanbod in films, series etc. Youtube filmpjes. Ik bekijk korte filmpjes op Youtube of die gedeeld zijn op social medoa. Vroeger keek ik meer tv en nu ben ik meer bezig op social media 12

13 0.1 Our mindstate differs greatly per device 0.05 Bored Seeking Stimulation 0 Video on TV is consumed if bored Video use on tablets is goal oriented Seeking Gratification -0.1 Goal Oriented

14 Targeting? A fine line between appropriate and intrusive. Targeted on interests and/or brand favorability is OK. When targeting becomes too personal (by clearly using retargeting), you get aversion Q: Advertisers can target the video ads you see in many different ways. How do you feel about video ad targeting based on? 14 The type of brands you like or follow Your interests The type of surrounding context Where you live Your video viewing history Your demographic profil Your online shopping history Where you are when the video is shown Your social media profile Your web browsing history Your online search history Video ad targeting receptivity (favorable) GLOBAL AVERAGE

15 On the upside: Dutch are keen on privacy, but are willing to trade it. Ze hebben toegang tot teveel informatie. Je weet het wel, maar ik wil er niet mee geconfronteerd worden. Tegenwoordig weten ze alles van je. YouTube, geïrriteerd omdat deze gelinkt was aan mijn browser geschiedenis. Had al een aankoop gedaan dus wil dan niet nog meer reclames over dit product zien Een video over Axe. De reclame was wel aardig op zich, maar ik heb het liever niet dat er in mijn persoonlijke gegevens wordt gekeken. - credits time Google.. In mijn mailbox. Ik voelde me begluurd. Weet het merk nog, dat haal ik dus nooit meer. In een app. Vervelend om onderbroken te worden in een spel tenzij je er punten voor krijgt Dat was vanmiddag via Tapjoy. Ik voelde mij prima omdat ik een beloning hiervoor kreeg. Ik was aan het kijken voor een nieuw telefoonhoesje, en toen later was ik een Youtube aan het kijken en toen rechts zag ik reclame voor telefoonhoesjes. 15

16 Right Context What do people think of video ads and how does this vary by screen and format? 16

17 1717 Bad news

18 Acceptance of advertisement is low Especially for tablet and smartphone ADVERTISING (% favorable) LIVE TV ON DEMAND TV LAPTOP TABLET SMARTPHONE (32) (20) (19) (19) Q: Thinking about all the kinds of ads you see in this place, how would you characterize your attitude towards each of the following formats of advertising? / How would you characterize your attitude towards each of the following formats of video advertising? 18 Stat testing at 90% confidence level: across devices Higher than row average Average Lower than row average () Global average

19 TV gets away with less control over ads due to familiarity Lower control over ads on Live TV does not damage ad receptivity (presumably due to acceptance of status quo).. ADVERTISING (% favorable) VIDEO SKIP CONTROL (% have control) LIVE TV ON DEMAND TV LAPTOP TABLET SMARTPHONE (32) (20) (19) (19) (44) (53) (63) (59) (59) Q: Thinking about all the kinds of ads you see in this place, how would you characterize your attitude towards the following formats of advertising? / How would you characterize your attitude towards the following formats of video advertising? How much control do you feel you have over whether you do or don't watch the following formats of video advertising? 19 Stat testing at 90% confidence level: across devices Higher than row average Average Lower than row average () Global average

20 Lean back Lean forward On Tablet and Smartphone control really is key Smartphone Tablet As users are more in a Lean forward mindset they EXPECT and DEMAND control Laptop Live TV On-Demand TV Q: Now please think about which of these applied to you yesterday when you were / Q: How much control do you feel you have over whether you do or don't watch the following formats of video advertising? 20 Low control High control

21 Marketing receptivity Given importance of control, it makes sense that skippable video formats are preferred In-banner click-toplay Social auto-play Social click-to-play Skippable pre-roll Skippable mobile pop-up Mobile app reward 10 Mobile app pop-up In-banner auto-play Pre-roll Q: Which of the following types of online video advertising have you ever noticed? Q: How would you benefits the attitude toward the ad Noticed

22 Video > and advertising NEGATIVE POSITIVE Tutorial videos NET (+ve minus ve) 55 While more niche, tutorial videos are very popular. Expert review videos Review videos may mean giving up some control over content, but are also well received. User review videos The implication is that brands need a broader video content strategy beyond paid online video. Shopping videos Online celebrity videos Q: Beyond advertising, how would you characterize your attitude towards the following formats of online video? Website videos

23 23 Right Content How to optimize video ads across screens and avoid having viewers skip them?

24 A skippable world brings new creative challenges, so brands need to consider this early in the creative process Reasons not to skip (online) Familiarity Category Situation Brand Humor & rewards are the main ways to stop people skipping ads. Ad It is funny or humorous Gives me something in return (coupon, reward points) It's for a category that I'm interested in It's for a brand that I'm interested in Something intriguing happens in the first few seconds Features music that is appealing to me Is visually appealing or has great design Is something I've seen before and liked Contains a person or a character that I'm interested in Is similar to something good I've seen before Is something I haven't seen before Offers tips or solutions, right from the start I'm relaxed and just passing the time I'm watching with other people I'm watching on my own GLOBAL AVERAGE Q: Sometimes video ads are shown online and you have the option to skip. What makes you less likely to skip and more likely to pay attention to an ad?ˆ

25 Exploring creative response across screens AdReaction Video copy testing Copy testing for 20 ads in eight countries, across TV, online video and mobile video ad formats Surveyed more than 10,000 consumers. Web-based interviewing via Millward Brown s LinkNow solution on ZappiStore. 25

26 Some ads are highly engaging UK BRAZIL These three ads are very strong creative performers which are likely to do well wherever they are placed. But can even great ads such as these be optimized to maximize their performance in digital channels? AUSTRALIA 26

27 Viewer share (%) Beware the cliff Video Playback Behavior 100 Even with highly engaging ads, many skip away as soon as they can We see this pattern for YouTube skippable pre-roll and Facebook auto-play. While advertisers don t pay if the ad is skipped, this is about maximizing impact Duration of ad (seconds) 27

28 Focus on skip resistance GERMANY AUSTRALIA Increase consumer engagement by capturing attention in the first few seconds. AUSTRALIA 28

29 Integrate the brand in the first few seconds GERMANY Unlike ads on TV, if you don t feature the brand within the first few seconds of digital video, you ve lost the opportunity to impact approximately half of your audience. USA 29

30 Viewer share (%) The click-toplay challenge If given a choice, most consumers don t click-toplay. Video Playback Behavior Facebook click-to-play Again, this is not about cost, but maximizing impact Duration of ad (seconds) 30

31 Getting the click UK For Facebook click-to-play, the initial frame and the introductory text is crucial: it needs to be creatively engaging. USA But the ad needs to deliver on the promise of that frame and introduction. These are two good examples. 31

32 Consider length GERMANY AUSTRALIA Shorter ads were more likely to keep people to the end. While this Beggin ad was loved, for some it was too long. USA 32

33 33 Wrapping up

34 Getting it right beyond the click Right person Right context Right content Targeting matters: interest, category or brand-based targeting make a real difference. Do NOT overplay Assume resistance: many people don t like ads, particularly online (ad blockers), so your video needs to earn the right for attention Work with the skip: skippable formats are a creative challenge worth focusing on; aim for early impact Beyond TV: multiscreeners spend as much time watching online video as they do 34 watching TV; start aligning your media spend toward this Control is king: online video formats which offer rewards or provide control (skippable, click to play) are strongly preferred, so use these where possible Assume adaptation: consider digital early in the creative process

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