mobile video disruption - how facebook & snapchat are changing the game

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THE DISRUPTION OF MOBILE VIDEOHow Facebook And Snapchat Are Changing

The Game

“CHARLIE BIT MY FINGER” (2007)

YOUTUBE HAS HISTORICALLY DOMINATED VIDEO

Unique US Video Viewers (Desktop Only)

Source: comScore

Oct-13

Nov-13

Dec-13Jan-14

Feb-14

Mar-14Apr-1

4

May-14Jun-14

Jul-14

Aug-14Se

p-14Oct-

14

Nov-14

Dec-14Jan-15

Feb-15

Mar-15Apr-1

5

May-15Jun-15

Jul-15

Aug-15Se

p-15Oct-

15020,00040,00060,00080,000100,000120,000140,000160,000180,000200,000

Google Sites (YouTube) Facebook Yahoo Sites

Millions

AND IS STILL WELL AHEAD OF THE COMPETITION ON DESKTOP

Google Sites (YouTube) Facebook Yahoo

173,722

91,083

56,946

Unique Desktop Video Views, October 2015 (Millions)

Source: comScore

BUT WHAT ABOUT THIS VIDEO?

“WATCH HILLARY CLINTON WHIP, WATCH HER NAE NAE” (2015)

IN 2015 VIDEO BECAME MOBILE FIRST

MOBILE VIDEO ACCOUNTS FOR 50% OF MOBILE TRAFFIC AROUND THE WORLD

Source: Ericsson Mobility Report

AND BY 2021, VIDEO WILL ACCOUNT FOR

70% OF MOBILE TRAFFIC

Source: Ericsson Mobility Report

BUT ONLY HALF OF YOUTUBE’S AUDIENCE IS WATCHING ON MOBILE

Source: comScore, Company releases, BI Intelligence estimates

MAKING YOUTUBE LAG BEHIND OTHER PLATFORMS ON MOBILE

Share Of Monthly Active Users Who Access Each Platform On Mobile (2015)

Source: comScore, Company releases, BI Intelligence estimates

Snapchat

Instagram

Facebook

Twitter

YouTube

100%

100%

90%

80%

50%

FORCING CONTENT CREATORS TO PUBLISH VIDEOS ON OTHER PLATFORMS

THE NUMBER OF VIDEOS POSTED ON YOUTUBE BY BRANDS FELL OVER THE PAST

YEARNumber Of Videos Posted To YouTube By US Brands

Source: Socialbakers

Oct. 2014 Oct. 2015

7,5297,036

Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-150

5001000150020002500300035004000

BRANDS MORE THAN DOUBLED THE NUMBER OF VIDEOS PUBLISHED ON MOBILE-

FIRST PLATFORMSNumber Of Videos US Brands Posted To Each Platform, Per Month

Source: Socialbakers

+225%

+145%

THE INFLUX OF VIDEOS HAS ALLOWED OTHER PLAYERS TO EXPLODE IN VIDEO

VIEWS

Source: Company releases

Facebook Snapchat

8,000,000,000

6,000,000,000

Source: Company releases

Daily Video Views (November 2015)

LOOKING TO 2016

FACEBOOK WILL BECOME THE VIDEO WINNER

MOBILE FIRST

Source: Facebook, BI Intelligence estimates

1 OUT OF 8PEOPLE AROUND THE WORLD

ACCESS FACEBOOK ON A MOBILE PHONE AT LEAST

ONCE A DAY

AND ITS MOBILE BASE IS GROWING STEADILY

Facebook’s Daily Active UsersQ3 2015

Source: Facebook

Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3150

200

400

600

800

1000

1200

Mobile Mobile Mobile Mobile Mobile Mobile Mobile Mobile Mobile

Total

Total Total Total Total Total Total Total Total

Millions

MOBILE FIRST MILLENIAL AUDIENCE

MILLENNIALS LOVE FACEBOOK

Facebook Instagram Snapchat Tumblr Twitter

25.7

7 5.9 5.73.5

Average Hours Spent On Social Mobile Apps By US Millennials June 2015

Source: comScore

MILLENNIALS LOVE FACEBOOK

Facebook Instagram Snapchat Tumblr Twitter

25.7

7 5.9 5.73.5

Average Hours Spent On Social Mobile Apps By US Millennials June 2015

Source: comScore

4x

MILLENNIALS LOVE FACEBOOK

Facebook Instagram Snapchat Tumblr Twitter

25.7

7 5.9 5.73.5

Average Hours Spent On Social Mobile Apps By US Millennials June 2015

Source: comScore

+4x

MOBILE FIRST MILLENIAL AUDIENCE

PRIORITIZATION OF VIDEO

FACEBOOK PUTS VIDEOS RIGHT IN FRONT OF ITS MOBILE AUDIENCE

Source: Facebook

AND IN 2016, FACEBOOK IS EXPECTED TO LAUNCH A MOBILE VIDEO PORTAL

MOBILE FIRST MILLENIAL AUDIENCE

PRIORITIZATION OF VIDEO

CONTENT CREATORS ARE PUBLISHING MORE VIDEOS ON THE PLATFORM

THAN EVER BEFORE

MEDIA COMPANIES MORE THAN QUADRUPLED THE NUMBER OF VIDEOS

POSTED TO FACEBOOKYear-Over-Year Growth In Videos Published To Each Platform(October)

Source: Socialbakers

353%

4%Facebook YouTube

AND BRANDS MORE THAN DOUBLED THE NUMBER OF VIDEOS POSTED TO FACEBOOK

Year-Over-Year Growth In Videos Published To Each Platform(Brands)

Source: Socialbakers

145%

-7%Facebook YouTube

ALTHOUGH BRANDS AND MEDIA COMPANIES CURRENTLY PUBLISH MORE VIDEOS TO

YOUTUBE… Total Number of Videos Published To Each Platform (Brands and media companies)

Source: Socialbakers

Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 -

20,000

40,000

60,000

80,000

100,000

120,000

Oct-15 Oct-16

41,000

176,000

109,000 112,000

Facebook

YouTube

THE TABLES WILL TURN NEXT YEAR

Source: Socialbakers, BI Intelligence estimates

Total Videos Posted To Each Platform (Brands and media companies)

IN 2016 THERE WILL BE ANOTHER PLAYER TO WATCH

SNAPCHATTHE UP-AND-COMING DISRUPTOR

SNAPCHAT ISN’T JUST MOBILE FIRST

SNAPCHAT IS MOBILE ONLY

AND ITS MOBILE AUDIENCE IS GROWING FAST

Estimated Snapchat Monthly Active Users (Global)

Source: Snapchat, BI Intelligence estimates

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q150

50

100

150

200

250

Mill

ions

MILLENNIALS LOVE SNAPCHAT…

Share Of US Millennials Who Use Snapchat Each Month (2015)

Source: BI Intelligence US Millennials Survey, Q3 2015

18-22 23-28 29-34

61%

40%

24%

IT’S THE MESSAGING APP OF CHOICE FOR YOUNGER MILLENNIALS

Active Users Of Top Messaging Apps, Ages 16-24

Source: GlobalWebIndex

Snapchat

WeChat

LINE

Messenger

WhatsApp

55%

35%

32%

31%

29%

SNAPCHAT’S MOBILE AUDIENCE IS MORE THAN 6.5X SMALLER THAN FACEBOOK’S…

Mobile Monthly Active Users, By Platform (2015, Millions)

Source: Company releases, BI Intelligence estimates

Facebook Snapchat

1,385,000,0

00

200,000,00

0

BUT FACEBOOK ONLY GETS ONE-THIRD MORE VIDEO VIEWS PER DAY

Average Daily Video Views Compared To Monthly Active Users (Millions)

Source: Company releases, BI Intelligence estimates

1,385,000,

000 200,000,0

00

8,000,000,000

6,000,000,000

Source: Company releasesFacebook Snapchat

VIDEO CREATORS ARE CHASING AFTER SNAPCHAT’S AUDIENCE

SNAPCHAT DISCOVER ALLOWS

PUBLISHERS TO DIRECTLY

UPLOAD PHOTO AND VIDEO

CONTENT TO SNAPCHAT

27%

23%21%

14%

6%4%

2% 3%

AND DISCOVER DRIVES CONTENT VIEWS

Where BuzzFeed Receives Its Content Views (September 2015)

Sources: Recode, BuzzFeed

“LIVE STORIES”: SNAPCHAT’S EVENT COVERAGE

USER GENERATED

VIDEOS ORIGINAL VIDEOS

“LIVE STORIES” ALSO GENERATES TRAFFIC FOR PARTNERING MEDIA COMPANIES

2015 MTV Video Music Award Viewers (Millions)

Source: Digiday

Snapchat "Live Story" views Broadcast viewers

12

9.8

MORE AND MORE BRANDS AND MEDIA COMPANIES ARE CHOOSING SNAPCHAT

RISING MOBILE

AUDIENCE

SOCIAL VIDEO FOCUS

ORIGINAL MEDIA

CONTENT

SNAPCHAT IS MORE THAN JUST A SELFIE APP FOR MILLENNIALS

COMMUNICATION

NEWS AND LIVE EVENTS

ENTERTAINMENT