CROSS-DEVICE MARKETING ROUNDUP

Transcription

1 October 2015 CROSS-DEVICE MARKETING ROUNDUP Consumers have more devices than ever and they re spending more time using them. emarketer estimates that total time spent with media will continue to rise thanks to the multitasking, multiscreen media experience enabled by digital, and especially mobile. We have curated this Roundup of articles, insights and interviews to help marketers understand their audience s cross-screen behaviors and reach targets on a variety of devices. presented by

2 CROSS-DEVICE MARKETING ROUNDUP Overview Time spent with mobile devices has grown at a torrid pace over the past five years. In 2011 and 2012, growth was nearly in the triple digits, as more and more consumers adopted and quickly became addicted to smartphones and tablets. The pace has cooled significantly, to the point that emarketer now expects growth of time spent with mobile to fall to the single digits in It will be the first time that mobile usage has grown at such a slow pace. Still, mobile is the only major channel we expect to grow (in terms of time spent) this year and next year. Time spent with every other major channel TV, desktop, print, radio will decline. As a result of mobile s slowing growth, we expect the growth of total time spent with media, after rising rapidly earlier in the decade, to level off. Total time spent with all types of media will be 12 hours per day this year, an increase of just 3 minutes over It will edge up only a further 5 minutes, to 12 hours and 5 minutes, in Consumers are continuing to shift their media habits to the same, or similar, content, but different screens. For example, video consumption will hold relatively steady over the next couple years, but the way people are viewing video is continuing to change. The same pattern is occurring even more starkly with radio listening, which will be more than 40% digital by Growth of Average Time Spent per Day with Major Media by US Adults, % change Digital 19.0% 16.7% 15.0% 7.4% 6.5% 4.7% 3.1% Mobile 96.8% 90.9% 53.1% 15.8% 11.3% 7.9% 5.2% (nonvoice) Video 228.6% 218.0% 99.9% 25.8% 20.4% 11.5% 7.6% Social networks 359.4% 145.3% 87.4% 26.9% 17.9% 11.8% 7.9% Radio 163.3% 61.9% 20.2% 21.6% 15.6% 9.2% 6.6% Other 49.3% 87.2% 56.2% 7.8% 4.4% 4.4% 2.5% Desktop/laptop* 7.7% -3.9% -5.4% -1.8% -1.2% -1.0% -1.0% Video 115.4% 68.2% 8.1% 7.4% 4.5% 1.7% 1.1% Radio -19.4% -42.0% -7.4% -3.4% -3.2% -3.0% -2.2% Social networks 20.6% 3.0% -21.2% -7.3% -6.2% -5.4% -4.7% Other 3.6% -9.1% -4.6% -2.9% -1.6% -0.8% -0.9% Other connected 4.0% -1.5% -8.3% 15.0% 21.2% 13.6% 8.4% devices Radio** -2.1% -2.1% -2.1% -2.0% -1.9% -1.8% -1.7% TV** 3.8% 1.5% -2.5% -3.5% -4.1% -3.1% -2.1% Print** -11.5% -12.7% -13.9% -9.1% -6.2% -5.3% -4.3% Magazines -10.0% -11.1% -12.5% -8.5% -6.0% -5.0% -3.9% Newspapers -12.4% -13.8% -14.9% -9.4% -6.3% -5.4% -4.5% Other** -13.2% -2.3% -18.7% -16.5% -7.3% -6.8% -6.6% Total 4.7% 4.7% 2.3% 0.3% 0.6% 0.4% 0.2% Note: ages 18+; time spent with each medium includes all time spent with that medium, regardless of multitasking; for example, 1 hour of multitasking on desktop/laptop while watching TV is counted as 1 hour for TV and 1 hour for desktop/laptop; *includes all internet activities on desktop and laptop computers; **excludes digital Source: emarketer, Oct Average Time Spent per Day with Video by US Adults, by Device, hrs:mins 0:20 0:35 0:46 0:54 1:02 1:08 1:12 4:34 4:38 4:31 4:22 4:11 4:03 3: TV Digital video devices* Note: ages 18+; time spent with each medium includes all time spent with that medium, regardless of multitasking; for example, 1 hour of multitasking with digital video while watching TV is counted as 1 hour for TV and 1 hour for digital video; *includes time spent watching digital video via game console, connected TV or OTT device Source: emarketer, Oct Cross-Device Marketing Roundup Copyright 2015 emarketer, Inc. All rights reserved. 2

3 Consumers Admit to Too Much Screen Time Majority of internet users say they spend too much time using digital devices emarketer estimates that US adults will spend 5 hours, 38 minutes each day with digital media on PCs, mobile devices and other connected devices (such as connected and smart TVs and connected game consoles) this year, representing 46.7% of daily media time. Meanwhile, TV will grab 4 hours, 15 minutes of adults daily media time, or 35.2% of the total. While consumers can t resist all of these screens, recent research finds they think they may be overdoing it. In a July 2015 study by YouGov and The Huffington Post, 54% of US internet users said they spent too much time using digital devices, including computers, mobile phones, TVs and video game consoles. Responses were even between males and females. However, feelings of too much screen time correlated with age. While respondents from every age group were more likely to agree that they spent too much time with screens, younger consumers were far more likely to say so compared with their older counterparts. Fully 63% of 18- to 29-year-olds said they spent too much time using the devices, vs. 49% for those 45 and older. Whites and Hispanics were also much more likely than blacks to admit to too much screen time. In terms of income, respondents who had a household income over $80,000 were more apt to say they spent too much time using digital devices than those in lower income brackets. This year, advertisers in the US will spend $58.61 billion to reach consumers on digital devices, representing a yearover-year rise of 15.5%, or 31.3% of total media ad dollars. Spending on TV advertisements will total $70.59 billion. US Internet Users Who Feel They Spend Too Much Time Using Digital Devices*, by Demographic, July 2015 % of respondents in each group Gender Female Male Age Race/ethnicity White Hispanic Black Household income <$40K $40K-$80K $80K+ Total Yes No Not sure 54% 37% 9% 54% 36% 10% 63% 25% 11% 55% 31% 14% 49% 44% 7% 49% 44% 6% 56% 36% 8% 53% 34% 13% 42% 41% 17% 54% 34% 12% 51% 43% 6% 62% 32% 6% 54% 36% 10% Note: numbers may not add up to 100% due to rounding; *includes computer, mobile phone, TV and video game console Source: YouGov and Huffington Post survey, July 21, Cross-Device Marketing Roundup Copyright 2015 emarketer, Inc. All rights reserved. 3

4 Mobile TV Streaming More Likely at Night Smaller and larger screens prevail for evening and late-night viewing Digital video viewers stream their favorite TV shows to PCs and mobile devices all day and all night. According to 2015 data on when accompanying pre-roll video ads were served, daypart plays a role in determining which devices they use. Mobile devices, including tablets, appear to be more congenial to latenight viewing. According to TubeMogul data about activity on its platform from April through June 2015, among pre-roll ads supporting streaming TV being viewed on computers, just 12% were served overnight, from midnight until 6am. On mobile phones, the overnight share of pre-roll ads was more than twice as high, at 25%. Tablets saw a similarly strong 22% of streaming TV ads served between midnight and 6am. Evening viewing was stronger on all mobile devices, but heaviest on tablets. More than two in five (41%) streaming TV pre-roll ads served to tablets were served between 6pm and midnight. That compared to 29% of ads served to mobile phones and 33% of ads served to computers. A majority of TV streaming to computers occurred during the day, with 56% of ads served between 6am and 6pm. For mobile phones, the daytime share was 46%, and for tablets just 37%. Q data from FreeWheel Also found a stronger daytime share of digital video ad views for desktop and laptop computers, along with higher nighttime usage of smartphones and tablets. The FreeWheel data also included over-the-top (OTT) devices, which had the highest concentration of primetime and late-night viewing of any device and among the lowest daytime viewership. US Digital Video Ad View Share on Streaming TV Sites, by Daypart and Device, April-June 2015 % of total ads served on TubeMogul platform Tablet Mobile phone Computer 12am-3am 17% 16% 8% 3am-6am 5% 9% 4% 6am-9am 8% 12% 10% 9am-12pm 10% 12% 16% 12pm-3pm 10% 12% 16% 3pm-6pm 9% 10% 14% 6pm-9pm 13% 10% 16% 9pm-12am 28% 19% 17% Note: represents activity on the TubeMogul platform, broader industry metrics may apply; pre-roll video ads only; numbers may not add up to 100% due to rounding Source: TubeMogul as cited in company blog, Aug 27, US Digital Video Ad View Share, by Daypart and Device, Q % of total ads served by FreeWheel OTT device 13% 23% 16% 31% 17% Desktop/laptop 11% 31% 20% 28% 10% Smartphone 11% 27% 20% 31% 11% Tablet 10% 23% 20% 37% 10% 6am-10am 10am-4pm 4pm-7pm 7pm-1am 1am-6am Note: represents activity on FreeWheel's platform, broader industry metrics may vary Source: FreeWheel, "Video Monetization Report: Q2 2015," Aug 26, Results such as these are common, and mesh with what media consumers report about their device usage habits. Cross-Device Marketing Roundup Copyright 2015 emarketer, Inc. All rights reserved. 4

5 What Are Millennials Up to with Digital Video? More than nine in 10 watch digital video monthly Millennials are the most active video viewers of any US age group. But understanding their video viewing habits can be difficult, thanks to the changing landscape for digital content viewing and shifting time spent with various screens. A new emarketer report, US Millennials and Video: Seven Insights into Their Evolving Screen Choices and Viewing Habits, explores what marketers need to know. hours per week. While this is less time spent than older generations, it still made up the majority of millennials media time. US Millennial Digital Video Viewers and Penetration, millions and % of millennial internet users % 92.2% 92.5% 92.4% 92.2% 91.9% 92.0% emarketer predicts there will be 77 million millennial digital video viewers in 2015, representing more than 92% of all US millennial internet users. Additional growth in new millennial digital video viewers is expected to remain mostly flat for the foreseeable future, given that video viewing is already near ubiquitous for this age group. emarketer forecasts that the total audience will increase by 1 million or fewer viewers annually through The video consumption habits of US millennials are more pronounced when compared with other age groups. In 2015, emarketer expects 25- to 34-year-olds to make up the largest segment of digital video viewers of any age group, accounting for more than 18% of the million digital video viewers in the US. Adults in the 18-to-34 age group, along with 12- to 17-year-olds (some of whom are millennials) have the highest levels of digital video viewer penetration among all age groups, reaching levels of more than 90%. Much as marketers and experts try, there is no single unifying theme that explains the video habits of US millennials. Instead, there is a shifting landscape of video viewing options, fluid boundaries between traditional TV and digital video, and changes in the millennial mindset toward video content all of which contribute to their screen time and content choices Millennial digital video viewers % of millennial internet users Note: internet users born between 1981 and 2000 who watch digital video content via any device at least once per month Source: emarketer, Feb 2015; confirmed and republished, July Weekly Time Spent with Select Media Among US Consumers, by Age, Q hrs:mins Watching on traditional TV 18:33 24:52 32:24 42:31 50:00 Using the internet on a computer 4:45 5:51 7:13 5:37 3:07 Using a game console 4:09 2:56 1:06 0:22 0:07 Watching time-shifted TV 1:42 3:20 4:11 4:16 3:36 Watching video on internet 1:41 1:52 1:45 1:10 0:29 Using DVD/Blu-ray device 0:55 1:18 1:12 1:02 0:38 Watching video on a mobile phone 0:26 0:17 0:13 0:07 - Note: based on total users for each medium Source: Nielsen, "The Total Audience Report: Q4 2014" as cited in Barclays Capital and Television Bureau of Advertising (TVB), "Local Broadcast TV Media Planning and Buying," April 8, For example, they still watch lots of TV at least for now. According to Nielsen, US adults ages 18 to 24 watched more than 18.5 hours of traditional TV per week, while those in the 25-to-34 age group watched nearly 25 Cross-Device Marketing Roundup Copyright 2015 emarketer, Inc. All rights reserved. 5

6 Video Behaviors Shift as Multiscreen Usage Progresses Video habits steadily moving to mobile Time spent watching video on TV is still greater than on other devices. However, with the proliferation of mobile devices entering the market and multiscreen usage growing, video habits are shifting. Millward Brown, which surveyed via smartphone or tablet more than 13, to 45-year-old multiscreen users across 42 countries, found that half of all video viewing happens on TV sets split between live TV and on-demand TV. The other half comprises mainly mobile devices, which includes smartphones and tablets. Smartphones take the largest digital share, encompassing 22% of total daily time spent viewing video. Breaking it down by age, daily time spent viewing video via a TV set is greatest among 33- to 45-year-olds. Smartphones, on the other hand, are the primary video viewing channel among 16- to-24-year-olds. Although this is their core video platform, this group also watches a lot of video on live TV, on demand TV and via their laptops. from Unruly found that 81.4% of US internet users muted digital video ads. Clearly users are not fond of them, but marketers must look at ways to have users pay attention, whether by making it appealing or through an incentive. Daily Time Spent Viewing Video Among Mobile Users Worldwide, by Device/Channel, July 2015 minutes and % of total Daily time % of total spent viewing Live TV* 66 32% On-demand TV* 37 18% Computer 37 18% Tablet 20 10% Smartphone 45 22% Note: n=13,600 age 16-45; total time spent=204 minutes; used yesterday; *via a TV set Source: Millward Brown, "AdReaction: Video Creative in a Digital World" conducted by On Device Research, Oct 14, The rise in mobile video viewing is part of a larger transition to multiscreen usage. In fact, mobile users worldwide spend 52% of their daily internet and viewing video time on mobile phones. To compare, the share of daily time spent with computers makes up 21%, while TV accounts for 27%. Because a majority of video content out there is free, video advertising comes with the territory. And, unsurprisingly, mobile users are not very receptive to it. In the US, only 19% said they are open to digital video ads. Hence, there is work to be done to enhance the video experience. More than a third of mobile users worldwide said they would be less likely to skip digital video ads and pay more attention to them if they were funny or humorous. Other top reasons included watching an ad if it was in a category they were interested in, if it gave them something in return or if it was for a brand they were interested in. User attitudes toward video advertising are a hurdle marketers need to overcome. A separate July 2015 study Cross-Device Marketing Roundup Copyright 2015 emarketer, Inc. All rights reserved. 6

7 Smartphone Video Creeps into TV Time Majority of smartphone video viewers multiscreen during TV time Smartphone video viewing is a nighttime, athome activity. According to May 2015 research conducted by On Device Research for the Interactive Advertising Bureau, smartphone video viewers worldwide were most likely to watch via such devices between 8pm and 11pm. As such, and despite smartphones on-the-go factor, viewing was most likely to take place at home, with 90% of respondents reporting watching smartphone video at home, vs. 49% who watched it away from home. Most respondents hadn t cut back on TV time too much, as just 22% said they watched less television because they viewed video on their smartphones. However, smartphone video still found its way into the TV viewing experience for the majority of respondents. Fully 53% said they watched smartphone video simultaneously while watching TV. The study noted that multiscreening was a two-edged sword. While it could potentially offer a pathway to creating more engaging and creative multimedia campaigns, it also presented marketers with the challenge of maintaining viewers split attention. January 2015 research by IAB also found that 69% of US smartphone-owning internet users not limited to video viewers used such devices while watching TV. Possibly in an effort to reach these multiscreen viewers, IAB s May 2015 study found that many advertisers were repurposing the same TV advertisements for mobile. Fully 28% of respondents said they often saw ads on mobile video that they had also seen on TV, and an additional 38% saw them sometimes. Just 6% never reported seeing this. they were of interest, vs. 18% who didn t care if they were tailored at all. The most-desired tailoring was to include ads related to the video being watched, while viewing history, context and location also mattered. Frequency with Which Smartphone Video Viewers Worldwide Watch Smartphone Video Simultaneously While Watching TV, May 2015 % of respondents Never 15% Rarely 25% Never watch TV 6% Often 22% Sometimes 31% Note: n=4,800 ages 16+; numbers may not add up to 100% due to rounding Source: Interactive Advertising Bureau (IAB), "Mobile Video 2015: A Global Perspective" conducted by On Device Research, June 8, Frequency with Which Smartphone Video Viewers Worldwide See Mobile Video Ads They Have Also Seen on TV, by Region, May 2015 % of respondents Often Sometimes Rarely Never Never watch TV Latin America 30% 41% 20% 7% 3% Europe 29% 38% 23% 6% 5% North America 27% 43% 19% 6% 6% Australia & New 23% 37% 27% 8% 5% Zealand East Asia* 22% 37% 31% 5% 5% Total 28% 38% 24% 6% 5% Note: n=4,800 ages 16+; numbers may not add up to 100% due to rounding; *China, Japan and Singapore Source: Interactive Advertising Bureau (IAB), "Mobile Video 2015: A Global Perspective" conducted by On Device Research, June 8, Though this may seem like a good way to reach dualscreening viewers, IAB noted that marketers might be missing out with this approach, as it limits them from satisfying consumer demand for relevant mobile placements. Fully 82% of respondents said the ads that appeared in mobile videos should be tailored in any way so Cross-Device Marketing Roundup Copyright 2015 emarketer, Inc. All rights reserved. 7

8 TV, Radio Commercials Trigger Digital Research Shopping and web browsing are common second-screen activities Even today, many consumers watch TV commercials, and some of those commercials drive further action. The main one is more research, according to July 2015 polling. Market Track found that more than half of US internet users watch commercials on TV, as opposed to fast-forwarding through them, channel-surfing or simply leaving the room when they came on. And when commercials do spur viewers to act, digital research is far and away the most common response. Another 17% research items in-store. Digital research is a natural activity to pair with commercials when so many people are already using a second screen besides the television. Nearly half of internet users polled by Market Track said they used a laptop while watching TV, and 42% used a mobile phone of some kind. Tablets and desktops were less popular, but still used by around a quarter of respondents. Only 21% did no multitasking. Shopping while watching TV was a common activity among second-sceeners. Nearly half of those using a laptop did so, along with 41% of tablet users, 40% of desktop users and 31% of smartphone users. Surfing the web which could easily include searching for product information after viewing a commercial was even more common. Only checking was done more frequently across all devices, though checking social media was also more common on smartphones. Primary Action Taken by US Internet Users Before Purchasing a Product/Service Advertised in a TV/Radio Commercial, July 2015 % of respondents Look at reviews from other buyers 12% Research in-store 17% Get opinions from friends/family 4% Buy immediately 4% Research digitally 62% Note: ages 18+; numbers may not add up to 100% due to rounding Source: Market Track, "Media Usage Survey," Sep 1, Digital Activities Conducted Simultaneously While Watching TV Among US Internet Users, by Device, July 2015 % of respondents Checking Surfing the web Checking social media Shopping digitally Playing a game Texting/online chat Searching for more info Desktop 83% 64% 47% 40% 37% 24% 14% Laptop 79% 68% 55% 48% 35% 28% 12% Smartphone 71% 52% 57% 31% 41% 67% 12% Tablet 70% 62% 57% 41% 47% 33% 12% on a TV commercial Note: ages 18+; among those who use each device simultaneously while watching TV Source: Market Track, "Media Usage Survey," Sep 1, Perhaps surprisingly, research has suggested that secondscreening draws more attention away from shows than from ads, though TV advertisers are still looking to digital video to get their commercials in front of mobile users who may not be paying attention to the traditional TV set. Cross-Device Marketing Roundup Copyright 2015 emarketer, Inc. All rights reserved. 8

9 How The Onion Holds the Audience s Attention in a Multiscreen World Mike McAvoy President, COO The Onion Satirical news organization The Onion has tickled readers since 1988, when it was a weekly college print publication. Its video network, Onion Studios, features programming from The Onion and other properties including The AV Club and ClickHole. Mike McAvoy, president and COO of The Onion, spoke to emarketer s Sean Creamer about the opportunities and obstacles in executing in-house video production. emarketer: What are some best practices for digital video advertising on your platform? Mike McAvoy: Video now lives everywhere and that includes on social. As a publisher, it s important to acknowledge the existence of our social audience and its ability to give us volume. Across video-driven campaigns, whether it s in a native player or linking towards our own, it is important to distribute that content equally across social platforms where our following is strong. We have to be smart about where the content we want to expose the audience to lives. Sometimes that is above the fold, sometimes it is in a specific section and other times it can accompany a piece of editorial content. When we look back at our most successful, which is to say funny executions, we ve been able to strike a balance between a client s objectives and the voice and tone of our editorial. emarketer: What about branded video advertising? McAvoy: When we create branded video content, we always try to keep messaging as simple as possible. Branded content needs to pay off a brand s essence, but it s rare that a great video is going to tell a product story with a clear emotional benefit or product attributes. When we look back at our most successful, which is to say funny executions, we ve been able to strike a balance between a client s objectives and the voice and tone of our editorial. A brand must be format-driven because branded video content is most effective when the audience drives the distribution strategy, and the channels that make up that strategy drive creative choices. Starting with the creative conceit of a six-second Vine [video] is going to lead to a different end product than a 15-second Instagram video or a 90-second Facebook video. emarketer: Are there difficulties in producing video inhouse for your clients? McAvoy: Unlike an agency, we have the scale to produce anything that a client asks us for in-house, but we re not a production company. A CPG [consumer packaged goods] client owns factories, intellectual property and relationships with retailers. Onion Inc. s most valuable asset is the value of our audience. We could do more business in the short term if we were willing to jeopardize the good will of our audience, but we d be killing the goose that has consistently laid golden eggs. emarketer: What about video advertising or branded content experiments in 2015 that did not perform particularly well on your platform what didn t work and what might you do differently next time? McAvoy: Across a few large, branded campaigns, we found that distribution on traditional platforms, such as YouTube, did not perform as well as campaigns distributed across our own platforms, networks and social channels. This was one of the factors that led to the launch of Onion Studios. We also looked at campaign success in more holistic terms budget and production value vs. marketing dollars can t be looked as two distinct buckets anymore. There will always be hard costs associated with production, but with increasingly short formats, we look at both line items as a single sliding scale. Cross-Device Marketing Roundup Copyright 2015 emarketer, Inc. All rights reserved. 9

10 Onion Inc. s most valuable asset is the value of our audience. emarketer: What challenges and opportunities does multiscreen viewing present for your business? McAvoy: Our challenge is obvious: Getting a viewer s attention is becoming harder and harder, and it requires splitting focus across multiple channels the potential to misallocate resources is huge. There are at least a dozen important channels for video distribution. Some are video destinations, but others blend and bleed content types and formats. The amount of time our audience spends on any one channel is always in flux, as is the amount of engagement they actually produce. However, we re presented with an opportunity to innovate new content formats and drive new paid and organic distribution with these multiscreen strategies. Cross-Device Marketing Roundup Copyright 2015 emarketer, Inc. All rights reserved. 10

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