GET REAL VIDEO ADVERTISING
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1 015 GET REAL VIDEO ADVERTISING 1
2 DEAR ADVERTISER: This condensed report exists for a simple reason you asked for it. Early in 2015, agencies and advertisers were reacting to an early version of this report on the rapidly evolving video advertising environment. We took an unflinching look at the combination of Multi-Screen TV and Adtech Video and you advertisers consistently told us two things: First that the report s data was useful because of how simply it cut though the growing deluge of ad video stats, surveys & claims from a myriad of sources; our report uses only 2015 trading currency - Nielsen and comscore in combination. Second you wanted us to get the word out to increase the pace of deploying this report s insights. Advertisers asked us to both make the flow of fewer charts as intuitive as possible and to produce this report in as many forms as possible. You hold the result in your hands, Get Real speaks to thinking through the balance of Multi-Screen TV and Adtech Video from the perspectives of scale, brands/content and viewability. We hope we have struck the right balance of macro insights and detailed proof points to get the 2015 ad video conversation further heated up. As always, we want your: questions, feedback, what ifs, challenges and requests for more and different looks at the data it s what we do. Sean Cunningham, CAB President & CEO 2 3
3 THE MARKETER S MIX OF VIDEO ADVERTISING CHANNELS CONTINUES TO EVOLVE Atop the Sheer Number of Options, DIFFERENT FORMS of Video Ad Vehicles are Being Actively Mixed, Tested & Analyzed 4 5
4 Two DIFFERENT FORMS of video ad options work perfectly in combination: MULTI-SCREEN TV BRANDS Content-Driven Audience Assembly with Targeting and Critical Mass AD TECH BRANDS Data-Driven Precision Targeting with Alogrithmic Audience Aggregation 6 7
5 THE MISTAKE is a mindset or strategy that looks to use Ad Tech Video Brands as a surrogate, substitute or replacement for Multi-Screen TV Brands Ad Tech Video Works Best as a TARGETED EXTENSION of the Multi-Screen TV Plan MULTI-SCREEN TV BRANDS Content-Driven Audience Assembly with Targeting and Critical Mass AD TECH BRANDS Data-Driven Precision Targeting with Alogrithmic Audience Aggregation 8 9
6 SCALE We explore the relative scale-ability of Multi-Screen TV and AdTech Video options with the needs of top 500 in mind, as well as local marketers. Scale is critical for the 2015 advertisers that need to mobilize thousands-to-millions of customers into a frequent purchase cycle along a national business footprint or with geographic precision. Scale is also supply-in-quality: it s the ability to find the genuine bonding agents of content commitment that sends customers swarming across screens for just-in-time activation. Ad Video scale is also about promises kept to the advertiser s channel partners on everything from retail floor traffic to productive traffic into the on-line sales queues. 11
7 144:18 Hrs:Mins Total Ad-Supported TV Brands 4-Screens of Activity: TV & Internet (with mobile) combined THE AVERAGE US CONSUMER SPENDS 181 HOURS PER MONTH WITH AD-SUPPORTED TV PLUS THE 4 PORTALS/FACEBOOK: 181:13 Hrs:Mins Ad-Supported Video + 4 Portals / Facebook 36:55 Hrs:Mins 4 Portals + FB 19:08 Facebook 144:18 Total Ad- Supported TV Brands THOSE 181 HOURS OF AVERAGE CONSUMER USAGE SPLIT: 80% AD-SUPPORTED TV & 20% 4 PORTALS + FACEBOOK 6:47 YouTube 11:00 4 Portals (Google, AOL, Yahoo!, msn) All Activity: Video, Search, , Mobile, Social, etc. Monthly Time Spent / January 2015 (Average mins per visitor, Hrs: Mins) Monthly Time Spent / January 2015 (Average mins per visitor, Hrs: Mins) SOURCE: Nielsen Npower Live+7 January 2015 P2+, CAB analysis of com Score duplicated January 2015 data (mediametrix, multiplatform). Cable Television represents all measured Ad-Supported Cable nets; Cable network websites represents 61 cable network websites.broadcast Television represents FOX, CBS, NBC, ABC, ion and CW 12 SOURCE: Nielsen Npower Live+7 January 2015 P2+, CAB analysis of comscore duplicated January 2015 data, P2+ (mediametrix, multiplatform). Cable Television represents all measured Ad-Supported Cable nets; Cable network websites represents 61 cable network websites. Broadcast Television represents FOX, CBS, NBC, ABC, ion and CW. 4 portals = Google, AOL, MSN, Yahoo! Total Ad-Supported TV Brands include cable + MVPDs + broadcast: TV + Web + Mobile 13
8 BROKEN OUT BY SCREEN : AD-SUPPORTED TV CONTENT IS ONE OF THE CRITICAL DRIVERS OF MULTI-SCREEN CONSUMPTION Hrs:Mins Monthly Time Spent Television Computer Mobile Social Ad-Supported TV Brands 144:18 109:33 21:08 13:37 79MM Tweets 4 Portals Google/YouTube, MSN, AOL & Yahoo! 17:47 15:29 2:18 Facebook 19:08 5:47 13:21 Average minutes per visitor. SOURCE: Nielsen Npower Live+7 January 2015 P2+, CAB analysis of comscore duplicated January 2015 data, P2+ (mediametrix, multiplatform). Nielsen Social January Ad-Supported Television Brands represents all measured Ad- Supported Cable nets, MVPDs and broadcast TV (FOX, CBS, NBC, ABC, ion and CW). 4 portals = Google, AOL, MSN, Yahoo! 14 15
9 DRILLING DOWN TO YOUTUBE 95% OF VIDEO TIME IS SPENT WITH TV VS. 5% WITH YOUTUBE ANALYZING REACH REVEALS SAME PATTERN OF SCALE DIFFERENCES 113,053 99:29 Hrs:Mins P13+ 5:03 Hrs:Mins Top 20 TV Network Avg (Cable + Broadcast) Ad-Supported TV Brands YouTube 64,059 User Generated Content (UGC) Longer-Tail TV Network Avg (21-50 rank) 55:02 Hrs:Mins P :21 Hrs:Mins Ad-Supported TV Brands YouTube 20,976 Top 20 YouTube Network Avg User Generated Content (UGC) Professionally Produced Content User Generated Content (UGC) Monthly Video Time Spent (Avg. Mins per visitor, Hrs:Mins) Monthly Reach Average (P13+): TV Cume Reach vs. YouTube Unique Visitors (000) SOURCE: Nielsen Npower Live+7, Total Day, P13+, 1/1-1/31/15; comscore Video Metrix January 2015, P13+ (desktop only] SOURCE: Nielsen Npower Live+7, Total Day, P13+, 1/1-1/31/15; comscore Video Metrix January 2015 YouTube Partners Report, P13+ (desktop only) 16 17
10 DRILLING DOWN TO ONE PROGRAM OR NETWORK VS. YOUTUBE P15+ (Jan. 2015) A18-24 (Jan. 2015) P15+ (Jan. 2015) A18-24 (Jan. 2015) Chopped on Food Network Top 10 YouTube Networks (represents over 28,000 channels) Family Guy on Adult Swim Top 10 YouTube Networks (represents over 28,000 channels) Hallmark Channel All YouTube TBS Channel All YouTube 2.79 Million 2.72 Million Million Million Billion Billion 2.6 Billion 2.6 Billion The Monthly Ad Impressions of One TV Program Equals The Monthly Views of The Top Ten YouTube Networks Combined The Monthly Ad Impressions of One TV Network Equals The Monthly Views of ALL YouTube SOURCE: Nielsen Ad*Views, P15+ & A18-24, 1/1-1/31/15; com. Score Video Metrix January 2015 YouTube Partners Report, P15+ & A18-24, (desktop only) SOURCE: Nielsen Ad*Views, P15+ & A18-24, 1/1-1/31/15; comscore Video Metrix January 2015, P15+ & A18-24, (desktop only) 18 19
11 Monthly Time Spent / January 2015 (Avg. Mins per visitor, Hrs:Mins) 19:08 Facebook 144:18 Total Ad- Supported TV Brands 6:47 You tube 11:00 4 Portals (Google, AOL, Yahoo!, msn) Monthly Video Time Spent (Avg. Mins per visitor, Hrs:Mins) 99:29 Hrs:Mins Ad-Supported TV Brands 55:02 Hrs:Mins P13+ P18-24 User Generated Content (UGC) 5:03 Hrs:Mins YouTube 7:21 Hrs:Mins SCALE Summary Ad-Supported TV Brands YouTube User Generated Content (UGC) 113,053 Top 20 TV Network Avg Monthly Reach Average (P13+): TV Cume Reach vs. YouTube Unique Visitors (000) 64,059 Longer-Tail TV Network Rank Avg 20,976 OVERWHELMING SCALE ADVANTAGE IS ONE REASON WHY AD TECH VIDEO CAN T SUBSTITUTE OR REPLACE MULTI-SCREEN Professionally Produced Content User Generated Content (UGC) Top 20 YouTube Network Avg TV BRANDS 20
12 BRANDS/ CONTENT In an era of exponentially more branded video options, we look at the content DNA behind both Multi-Screen TV brands/content and AdTech Video brands/content and the results of their differing investment priorities. Of all the report s charts, the examinations of The Brand Illusion and Infinite Attention Splitting have consistently been among the most requested in the entire report. 23
13 AD-SUPPORTED TV BRANDS REFLECT BILLIONS INVESTED IN PROFESSIONALLY PRODUCED CONTENT VS. PREDOMINANTLY USER GENERATED CONTENT Content Investment vs. Algorithmic Investment $45B ANNUAL INVESTMENT IN PREMIUM, LONG FORM CONTENT BY AD-SUPPORTED TV BRANDS $200M YouTube $1.2B Hulu $2.3B $45B PROFESSIONALLY PRODUCED CONTENT (PPC) PREDOMINATELY USER-GENERATED CONTENT (UGC) Netflix Total Ad-Supported TV Brands $1.4B Amazon Estimated 2015 Content Investment (Original & Acquired) 24 Total Ad-Supported TV Brands include Cable & Broadcast SOURCES: TV Brands: SNL Kagan 2015; all other services based on CAB analysis of existing projections and estimated for U.S content rights only. Amazon: Various analyst reports including RBC Capital Markets; Netflix: SNL Kagan & Netflix financial reports; YouTube: based on YouTube announcements through their corporate blog postings in 2014; Hulu: estimated based on investment projections announced through Hulu & further projected by RBC Capital Markets. 25
14 THE BRAND ILLUSION: CONTENT FRONTED BY A YOUTUBE BRAND IS ACTUALLY AN - RayWilliamJohnson (10M) - Rooster Teeth (7M) - machinimarespawn(2m) - Rooster Teeth (7M) - Simons s Cat (3M) - Dane Boe (1M) - RocketJump (7M) - Epic Meal Time (6M) - Annoying Orange (4M) - UltraMusic (2M) - Colinfurze (709k) - Unicoos (349k) AGGREGATION OF THOUSANDS OF - MachinimaRealm (2M) - Dane Boe (1M) - DotaCinema (1M) - Element Animation (1M) - Cinema Sins (3M) - CorridorDigital (3M) - Musical Freedom (252k) - What s Trending (151k) (MOSTLY UGC) CHANNELS - Happyhour (1M) - Nerdist (1M) - Tiesto (1M) - Improv Everywhere (1M) - VintageBeef (1M) - xrpmx13 (1M) - HouseholdHacker (2M) - Wassabi Productions (2M) - JustKiddingFilms(1M) - Ashley Mardell (106k) - PM Recordings(40k) - Video Creators (31k) - deadmau5 (807K) - Na Vi.Dota 2 (914k) - Lindsey Hughes (980k) - Justkissmyfrog (20k) - Inside Gaming (630k) - Jumpinthepack (797k) - Node(976k) - SshakeTV (9k) - xsgtxsmurfx (590) - PauseUnpause (641k) - HollywireTV (879k) - Flyotw Film( 8k) - PressHeartToContinue (522k) - GuudeBoulderfist (464k) - Rob Dyke (758k) - JimbleJam (7k) - Machinima ETC (412k) - TheDevildogGamer (435K) - isekc (751k) - Alexxparkour (6k) - Samandniko (336k) - OK Go (414k) - Alexa Losey (474k) - Jaguar Skills Videos (6k) - Tobuscus (6M) - Bart Baker (4M) - Stampylonghead (4M) - TheDiamondMinecart (4M) - Bad Lip Reading (3M) - Glozell Green (3M) - Kassem G (2M) - ERB (1M) - Westfesttv (1M) - HuskyStarcraft (889k) - Katilette (667k) - Gardea23 (624k) - Polaris (619k) - ItsMyRayeRaye (595k) - EpicLloyd (475k) - HeyKayli (422k) - The Platform (379k) Plus 1,000+ More Channels - CarlieStylez (345k) - Kandeeland (325k) - The Mom s View (316k) - DaveChaos (293k) - Animonster (306k) - MakerMusic (235k) - Mary Doodles (231k) - Bobbylee (145k) - FriendlyPaw (138K) - Caroonium (100k) - Maker Gen (100k) - SanctionedTV (14k) - David Barbara (5k) - The Daily Connoisseur (18k) - Emily Valentine (1K) - Emily Hughes (436) - TheFineBros (10M) - fouseytube (4M) - Shane (4M) - megannicolesite (2M) - TiffanyAlvord (2M) - our2ndlife (2M) - Tyler Ward Music (1M) - WHATTHEBUCKSHOW (1M) - DavidSoComedy (947k) - TantrumJas (877k) - Avbyte (752k) - Casey Holmes (747k) - COOP3RDRUMM3R (503k) - Jefferson Bethke (490k) - AverageBroTV (487k) - Chrissy Costanza (395k) - 5secondfilms (385k) Plus 5,000+ More Channels - Rachel Ballinger (357k) - RAJIV DHALL (356k) - Matt Stonie (337k) - FrankieJGrande (312k) - Brittani (278k) - Lycia Faith (154k) - Molo Nation (102k) - AndrewQuo (80k) - Siennaspaldingtv (69k) - Digital Tour Bus (33k) - Glitterglam95 (25k) - Erik Shaw (15k) - Soulection (10k) - Collegefession (6k) - Derrion Tolanski (6k) - FullscreenCommunity (1K) - Black Nerd Comedy (321k) - ThatGuyWhoCamps (314k) - MachinimaVS (227k) - MachinimaLatino (180k) -ItsJustSomeRandomGuy (176k) - AndrewQuo (80k) - RCSuperPowers (70k) - Team Respawn (66k) - Ken Burton (48k) - xcaligrrlx (11k) - Danstreet123 (7k) - Ash Sowesby (6k) - LenzyDaGreat (5k) - Radnerdtv (4k) - JustinIsAProdigy (3k) - ApoKHD(798) - ting6345 (733) - Energizer (354) - NothingtodowithCats (111) - TGN (395k) - First Person Troller (384k) - Team Epiphany (342k) - TheMinecraftHippie (326k) - OMGitsfirefoxx (294k) - Sparkles CSGO&more (286k) - AgentXPQ (276k) - BajheeraWoW (235k) - stonewall008 (187k) - NukemDukem (169k) - HaloFollwer(167k) - Golden GS (134k) - TCTNGaming (122k) - The Solar Gamer (86k) - OneCheesyMofo (81k) - Cutewithchris (33k) - EmpowerYourBody (24k) - Blackdogfilms (1k) - The DanseSociety (30) - BaratsAndBereta (417k) - Beatdownboogie (393k) - Pogo (380k) - Goldiestarling (371k) - Andrewmfilms (328k) - Bart Kwan (302k) - Inside the Magic (284k) - Yourharto (283k) - Gina Morano (263k) - BloodBlitz (208k) - The Axis of Awesome (206k) - RUNAGROUND (179k) - Jhaller (153k) - LazyPillow (135k) - Belated Media (118k) - TVNweather (112k) - Lena Danya (101k) - Alligator Tub (94k) - Film4 (70) - Matthias Mayer (6k) - Nikki Yanofsky (6k) - Funk Stylers TV (5k) - Flair20TV (4k) - Mick Woods (4k) - NextTime onlonny (4k) - N1Project (3k) - ILUVLIVE (2k) - Leoleove (2k) - OfficiallyEricJoel (1k) - Sarah Grimstone (1k) - NFoxMUA (885) - BairesFamilyMedia (880) - Tiny Bag Productions (414) - CHOKOHAYS (397) - FourFourTwoUK (394) - fdsmusiclabel(91) - Empire Divide (77) - Cristian Jermane (66) Plus 250+ More Channels Plus 6,000+ More Channels Plus 650+ More Channels Plus 1,500+ More Channels (#) = YOUTUBE CHANNEL SUBSCRIBERS Abbreviated Channel List By Network 26 27
15 INFINITE ATTENTION-SPLITTING: TOP 20 YOUTUBE NETWORKS ARE 32,800 CHANNELS, MOSTLY UGC AD-SUPPORTED TV S PROFESSIONALLY PRODUCED CONTENT ATTRACTS A FULLY ASSEMBLED, COMMITTED AUDIENCE ACROSS SCREENS The Top 20 Networks average over 1,600 channels Network Primary Genre P13+ Unique Visitors (OOO) Standalone / Multichannel? # of Channels YouTube Music 40,933 Multichannel 500+ Maker YouTube Entertainment 39,789 Multichannel 1,000+ YouTube Video Curation 34,026 Multichannel 5,000+ YouTube Gaming 32,884 Multichannel 275+ Warner YouTube Music 26,012 Multichannel 100+ YouTube Video Curation 24,605 Multichannel 15, Habitual, Daily Consumption for Hours - Fully Assembled, Committed Audiences YouTube Video Curation 22,607 Multichannel 6,000+ YouTube Video Curation 19,909 Multichannel 150+ YouTube Entertainment 19,418 Multichannel 800+ YouTube Entertainment 18,059 Multichannel Pursuing Brands/ Programs Across Screens SOURCE: comscore Video Metrix January 2015 YouTube Partners Report (desktop only); excluding networks with TV-related content like NBC Entertainment YouTube Games / News 17,784 Multichannel 50+ The YouTube Music 17,092 Multichannel 1,000+ YouTube Entertainment 17,098 Multichannel 690+ Jukin YouTube Video Curation 13,921 Multichannel 30+ YouTube Music 13,567 Multichannel 50+ Defy YouTube Video Curation 13,479 Multichannel 25+ YouTube Music 11,892 Multichannel 500+ PROFESSIONALLY PRODUCED CONTENT (PPC) - Predictable, Ad-Integrated & At Scale YouTube Sports 10,933 Multichannel 1,500+ YouTube Entertainment 10,731 Multichannel 135+ YouTube Movies 9,576 Multichannel
16 ESPN THIS CONTENT DRIVES AD- SUPPORTED TV SITES TO THE TOP OF THE INTERNET RANKS : Top 5 Website Properties by Genre Sports Comedy TV Ent. Black General News Music Gaming College Humor/ Cracked NBCU TV ABC News VEVO EA Websites NBC Sports Network Comedy Central Tribune broadcasting CNN MTV Networks Zynga FROM OVER 1,000,000 APPS: ON MOBILE, TV BRANDS RANK AMONG TOP DOWNLOADED APPS Sports Comedy TV Entertainment News Music NBC Sports Live Extra Top 5 Downloaded ipad Apps by Genre Comedy Central Shazaam FOX News VEVO Watch ESPN Pandora HBO Go BBC News MTV Networks FOXSports.com thechive.com AOL On Huff Post TV NBC News SoundCloud.com Midas Player ScoreCenter for ipad Viki Xfinity TV Go Flipboard: Social News Magazine SoundCloud.com NFL.com Adult Swim BET CBS News Myspace.com GSN Bleacher Report Team Stream Ellen Max Go NBC News Myspace.com Bleacher Report TheOnion.com A+E Networks USA Today Bandsintown Amplified PCH Digital NBA Gametime TBS Presents: The Big Bang Theory Starz Play Wall Street Journal Bandsintown Amplified Home Weather TV Entertainment Food Kids TV Networks Weather Finance Business Kids Wayfair The Weather Channel NBCU TV Food Network Disney Entertainment The CW The Weather Channel Wall Street Journal CNBC Nickelodeon Hearst Accuweather.com Tribune Broadcasting BlogHer Food Totally Kidz Watch ESPN Weather Bug Bloomberg TV+ BBC News Watch Disney Channel HOUZZ.com Yahoo! Weather AOL On Huff Post TV AllRecipes.com COOL- MATHGAMES.com History Yahoo! Weather CNBC Wall Street Journal TBN Mobile HGTV Weatherbug.com ABC Digital MyRecipes.com Nickelodeon Kids & Teens Lifetime Accuweather CNN Money Bloomberg TV+ Nick JR. Home & Garden MSN Weather TV Guide Mode Foodie PBSKIDS.org Showtime Anytime Weather+ Yahoo Finance New York Times Yo Gabba Gabba Source: CAB analysis of multi-platform comscore data, January 2015 SOURCE: Apple app store 1/15/15; Most popular ipad apps by category search term (excluding gaming apps) 30 31
17 BRANDS/ CONTENT Summary $45 BILLION ANNUAL INVESTMENT IN CONTENT IS ANOTHER REASON WHY AD TECH VIDEO CAN T SUBSTITUTE OR REPLACE MULTI-SCREEN TV BRANDS
18 VIEW- ABILITY How should video advertisers frame questions about bots, fraud, viewabilty standards and other complex supply-chain issues that pervade the AdTech Video supply chain? We ve had consistently good reaction to the few stats/facts we ve packaged into a dispassionate look at the remedial work the ad industry is focused on in Internet Video accountability. 35
19 THE NEED FOR INDUSTRY OVERSIGHT, STANDARDS CREATION & QUALITY MONITORING MARK THE CURRENT PHASE OF THE INTERNET S EVOLUTION AS AN AD MEDIUM THE NEED FOR INDUSTRY OVERSIGHT Non-Human Impressions & Views are a Big Issue THE BOT BASELINE: FRAUD IN DIGITAL ADVERTISING White Ops, Inc. Association of National Advertisers Overall Study of Bot Percentages 23% 11% Video Bots Display Bots Up to 63% Average Bot Traffic in Video Ad Campaigns by Participant December 2014 Report Reveals a Pervasive, Complex Internet Video Problem Source: The Bot Baseline: Fraud in Digital Advertising - White Ops, Inc.; Association of National Advertisers December
20 THE NEED FOR STANDARDS CREATION MRC/IAB Viewability Standards - DISPLAY ADS: 50% of pixels in view for 1 seconds - VIDEO ADS: 50% of pixels in view for 2 seconds - No Audio Requirements.Has Produced a Lot of INDUSTRY DEBATE Rejected by Agency Trade Association 38 39
21 THE NEED FOR QUALITY MONITORING IN THIS TIME OF DIGITAL MEASUREMENT CONCERNS/ISSUES ONE VIDEO ENTITY STILL DELIVERS - The top brand risk categories for display impressions were Adult Content and Violence. - Viewability for display impressions ranged from 36.7% to 53.4% while 30% of video impressions were viewable. -While 76.7% of video ads were played to completion, only 20% were actually in view to the users. -Fraud levels of display impressions for Networks and Exchanges are more than four times higher than direct publishers. - Professionally Produced Content - 100% Viewing Potential - Fully Assembled, Committed Audience - Highest Quality Digital Assets Big Range of Varying Performance on Viewability, etc. - Still Issues Going Into 2015 AD-SUPPORTED TELEVISION BRANDS - World Class Advertising Environment 40 41
22 SCALE CONTENT / BRAND VIEWABILITY AD TECH VIDEO WORKS BEST AS A TARGETED EXTENSION OF THE MULTI- SCREEN TV PLAN BUT IS NOT A SURROGATE, SUBSTITUTE OR REPLACEMENT FOR MULTI-SCREEN TV VIDEO
23 QUESTIONS? Contact: SEAN CUNNINGHAM
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