February 16-17, 2016 RAMADA Hotel Alexanderplatz
Berlin
Organized by
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Yahoo 2016 Confidential & Proprietary. 3 Yahoo 2014 Confidential & Proprietary.
Innovation through Insights The view from Yahoo
PRESENTED BY Eva Herzog⎪ 16th February 2016
Yahoo 2016 Confidential & Proprietary. 4
The compression of product cycles
A D O P T I O N C U R V E F O R M O D E R N C O N V E N I E N C E S
100
50
1900 1915 1930 1945 1960 1975 1990 2005
Source: Visual Economics
TELEPHONE
ELECTRICITY
AUTO RADIO
STOVE
CLOTHES DRYER
MICROWAVE
DISHWASHER
COLOR TV
CELL PHONE
INTERNET
VCR
FRIDGE
CLOTHES WASHER
AIR CONDITIONING
COMPUTER
Yahoo 2016 Confidential & Proprietary. 5
‘I find
content’
Old
World
‘Content
finds me’
New
World
Content
consumed in
fixed silos.
Interruption-
tolerance
‘advertising’
relationship.
Constant feed of
relevant content
flows to them.
Happy to accept
sponsored content
in return for
aggregation
services.
News
Music
Connection
Interests
Visuals
Humour
New World Order of digital consumption
News
Connection
Visuals
Music
Interests
Humour
Source: Return on Inspiration Qualitative Research, EMEA Yahoo 2015
Yahoo 2016 Confidential & Proprietary. 6
Yahoo 2016 Confidential & Proprietary. 7
Where to start?
Yahoo 2016 Confidential & Proprietary. 8
Goal #8: Understanding Our Users
Spend an hour,
learn a lot
Insight as cultural foundation
Yahoo 2016 Confidential & Proprietary. 9
Increase
stickiness
Increase
app
downloads
Sell more
product
Increase
customer
satisfaction
Drive
considera-
tion of
product
Shift from
PC to
mobile
Shift from
mobile web
to app
Understand
user appetite
Increase
ROI
Drive usage
across
product
range
Drive more
time spent
Shift brand
perceptions
Inspire the
audience
Increase
market
share
Drive word
of mouth
Memorable
Broaden
target
audience
Drive
unique
users
Laser focus on the core goal
Increase
purchase
intent
What do we
want to
achieve?
Yahoo 2016 Confidential & Proprietary. 10
Yahoo Research
Mobile Video Native Social
Yahoo 2016 Confidential & Proprietary. 11
SMARTPHONE DOMINANCE
T H E S H I F T T O
Yahoo 2016 Confidential & Proprietary. 12
US: 2,768
UK: 1,010 DE: 1,016
FR: 1,011
Methodology: Quantitative + Analytics WHO
5,805 18-64 year old
smartphone owners
Data population and
ownership
WHEN
January 2015
WHAT
30-minute online survey
FLURRY ANALYTICS
Aggregated All Global Data
from January 2015
Source: Smartphone Dominance Research, Global Yahoo 2015
Yahoo 2016 Confidential & Proprietary. 13
57% WITHIN 5 YEARS
SMARTPHONE DOMINANT
18% TODAY 47% WITHIN 2-3 YEARS 67% AT SOME POINT
33% NOT LIKELY TO BE
Currently, 1/5 of users are Smartphone Dominant
Source: Smartphone Dominance Research, Global Yahoo 2015
Mobile
Yahoo 2016 Confidential & Proprietary. 14
Light
This 20% dominates the most sessions and time spent on mobile devices
21%
87% 78%
30%
11% 19%
49%
2% 3%
DEVICES SESSIONS TIME SPENT
Medium
Heavy: Smart Phone Dominant
DEVICE USAGE
Source: Smartphone Dominance Research, Flurry data, Global Yahoo 2015
Mobile
Yahoo 2016 Confidential & Proprietary. 15
FULL-SIZE TABLETS
9.74 MIN
Screen size correlates to engagement
SMALL TABLETS
6.88 MIN MEDIUM PHONES
4.18 MIN
SMALL PHONES
3.8 MIN
Average time spent per session | Minutes
The Industry
responded with
more Phablet
choices
Mobile
Source: Smartphone Dominance Research, Flurry data, Global Yahoo 2015
Yahoo 2016 Confidential & Proprietary. 16
78%
It's more efficient to do
things on my computer
than on my smartphone
More efficient, better user experiences will accelerate the shift Factors that are holding back consumers from being Smartphone Dominant Among Future Smartphone Dominant Users
UX
(easier to type, read, easier
to browse/compare)
67%
Data & Internet
Improvements
54%
Better Apps
44%
Source: Smartphone Dominance Research, Global Yahoo 2015
Mobile
Yahoo 2016 Confidential & Proprietary. 17
AGE 13-17
AGE 18-24
AGE 25-34
AGE 35-54
AGE 55+
51%
47%
35%
38%
17%
28%
31%
36%
37%
30%
21%
22%
29%
25%
53%
Medium User Light User Heavy User
Smartphone Dominant consumers are more likely to be younger
Source: Smartphone Dominance Research, Flurry data, Global Yahoo 2015
Mobile
Yahoo 2016 Confidential & Proprietary. 18
Technology Equals Identity A study of Gen Z
Yahoo 2016 Confidential & Proprietary. 19
Listened to in their natural environment
Source: Gen Z Research, Germany Yahoo 2015
Secondary Analysis Online Diary Webcam Interviews Online-Survey
Synopsis of existing
studies on Gen Z
Moderated,
partly-structured
Online Diary
Follow-up individual
interviews
Comparison Gen Z vs.
Online total
7 days 90 minutes per interview 20 minute survey
N=20 N=8 (out of 20 participants of the
online-diary)
N=734 12-19 years old
N=929 20+ years old
Yahoo 2016 Confidential & Proprietary. 20
Smartphone is the #1 go to device for Gen Z
12 to 15
years
Yahoo 2016 Confidential & Proprietary.
“My phone helps
me organizing my
daily life”
62% 46%
76% 86%
Source: Gen Z Research, Germany Yahoo 2015
Mobile
Yahoo 2016 Confidential & Proprietary. 21
Use of mobile internet is significantly higher
1,7h 0,9h 0,5h
2,7h 2,0h 0,8h
GenZ
Onliner
2,3h
1,2h
2,7h
3,2h
Source: Gen Z Research, Germany Yahoo 2015
Mobile
Yahoo 2016 Confidential & Proprietary. 22
The beginning of a new era?
“My cell phone is more
entertaining than my TV” 60%
21%
Watch online
videos daily 66%
24%
Source: Gen Z Research, Germany Yahoo 2015
Video
Yahoo 2016 Confidential & Proprietary. 23
Short videos are most relevant, while catch-up TV is a lot less important
92
47
29
23
18
Short videos on YouTube, MyVideo,
Vimeo etc.
Videos on social networks
TV-shows on websites of
TV channels
Movies and series on fee-based
platforms
Videos on news websites
90
46
41
22
32
16
23
12 to15 years
old
Source: Gen Z Research, Germany Yahoo 2015
Video
Yahoo 2016 Confidential & Proprietary. 24
Growing up with digital also means …
“I am used to Advertising”
25%
41% 39%
12 to 15
years
Source: Gen Z Research, Germany Yahoo 2015
Native
Yahoo 2016 Confidential & Proprietary. 25
Yahoo 2016 Confidential & Proprietary. 26
Non-reactive attention measurement via eye-tracking
Yahoo 2016 Confidential & Proprietary. 27
93% see the native ad
on a desktop
High visibility with native ads
85% see the native ad
on a smartphone
21% higher visibility
than mobile
display
advertising
Source: Native Advertising Research, eye-tracking, Germany Yahoo 2014
Native
Yahoo 2016 Confidential & Proprietary. 28
Native ad reception is equal to content reception
0 - 1 0 s 1 0 - 2 0 s 2 0 - 3 0 s
Source: Yahoo study “Native Advertising“, Germany, 2014; Basis: eye-tracking 30 users (desktop: n = 20, mobile: n = 10)
Source: Native Advertising Research, eye-tracking, Germany Yahoo 2014
Native
Yahoo 2016 Confidential & Proprietary. 29
Native ads lead to better recall of specific content
Following contact with a native ad
the ad‘s specific content is recalled
+13% on desktop
than display advertising content
Native ad +19% on mobile Native
Ad Native ad
Source: Yahoo study “Native Advertising“, Germany, 2014; Basis: n = 4014 users
Native
Source: Native Advertising Research, Germany Yahoo 2014
Yahoo 2016 Confidential & Proprietary. 30
Yahoo 2016 Confidential & Proprietary. 31
Which factors drive content impact?
We showed 1,000 consumers a set of
best-in-class content marketing and
asked them a number of questions about
different aspects of it.
Purchase
Intention
Brand
Affinity Advocacy We took this data to model out which
aspects are most likely to drive:
Source: Yahoo Return On Inspiration Research, EMEA 2015
Social
Yahoo 2016 Confidential & Proprietary. 32
It doesn’t
have a
hidden
agenda
I believe
what it is
saying
It is
something to
talk about
It is topical
Shows me
new ways
of doing
things
It helps me
improve my
everyday
life
It is sincere
It provides
plenty of
useful info
It evokes
strong
feelings
Open my
eyes to new
perspectives
It makes
me feel
closer to
the brand
It’s a fresh
take
It interests
me
I would
return to it
in the future
Inspires me
to try new
things
Memorable
It looks
beautiful
Catches my
attention
Which factors drive content impact?
It helps me
learn new
things
Content
marketing
Source: Yahoo Return On Inspiration Research, EMEA 2015
Social
Inspires me
to try new
things
Yahoo 2016 Confidential & Proprietary. 33
Purchase Intention More likely to purchase
Brand Affinity Feel more positive about brand
Advocacy More likely to share
Inspiration. The primary influencer
+ inspires me
to try new things
Baseline
Potential
multiplier effect 1.84 1.75 1.76
+ inspires me
to try new things
+ inspires me
to try new things Source: Yahoo Return On Inspiration Research, EMEA 2015
Social
Yahoo 2016 Confidential & Proprietary. 34 Yahoo 2014 Confidential & Proprietary.
Innovation through Insights The view from Yahoo
PRESENTED BY Eva Herzog⎪ 16th February 2016
Gold Sponsor
Silver Sponsor
Video Sponsor Networking Reception Sponsors
February 16-17, 2016 RAMADA Hotel Alexanderplatz
Berlin
Organized by