how i learned to stop worrying and love online video · how i learned to stop worrying and love...
TRANSCRIPT
Bill Lederer – Chief Executive Officer, Kantar Video
How I Learned to Stop Worrying and
Love Online Video
©2010 Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved.
December 8, 2010
Kantar by the numbers– 14 specialist companies
– 26,500+ employees operating in 95 countries
– 300 of Fortune 500 are clients
– 1/3rd of WPP’s revenue
– Digital data collection will exceed 50% by FYE 2011
– How Kantar collects and measures data:
Spider Technology
Kantar SignatureTM (fingerprinting)
Technology
Direct Page-Level Tagging
ISP/ASP/Toolbar
Set top box data
Opt-In Panels
Media Monitoring
People Meters
Surveys
In-Player SWF file
Pixel Tracking 2
©2010 Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved.
Introduction to Kantar Video
Comprehensive 360o approach provides unparalleled content capture and measurement
capabilities to effectively and efficiently measure and help monetize online and mobile video ads
and content worldwide.
Combined with descriptive, behavioral and attitudinal data from other KANTAR business units, the
Kantar VideolyticsTM platform enables clients to assess and improve the impact of online and mobile
video on their brands, audiences and marketing plans.
Kantar Video Measures: Content (Adverts and programs)
UCG
Long form and Short form
Branded Entertainment
Prosumer/Independent
Repurposed Television
Web Series
Viral3
©2010 Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved.
SYNDICATE TRACK
OPTIMIZE
Kantar VideolyticsTM
0
2000
4000
6000
8000
10000
12000
14000
2007 2008 2009 2010 2011 2012 2013 2014 2015
$324 734 1,046 1,469 2,000 2,800 3,780 4,914 6,143 32 147 419 882 1,500
2,520 3,780
5,405
7,371
356 881 1,465 2,351
3,500
5,320
7,560
10,319
13,514
US Non-US Global
in USD Millions
©2010 Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved.
Video Marketing Spend Experiencing Exponential Growth2010: the Inflection Point for mainstream campaign spending
Estimated US and Global Video Marketing Spend 2007 – 2015
Kantar Video’s POV is that the influx of larger and DR advertisers will drive global video marketing spend
to grow by at least 30% per annum compounded through 2015 reaching at least $15B/year (USD).
Video marketing spend outside the US will eclipse the US in 2014 or 2015. By 2015, so much marketing-driven
video content will be streaming to computer screens, web-enabled televisions, and mobile devices that the annual
additional dollars going to video marketing spend in that year will surpass the annual increase in any other ad format.
Online Video Value Chain: 2010
5
©2010 Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved.
12.09AM 03 MARCH 2010
The year that was2010
– Over 35 hours of video is uploaded to YouTube every minute and with over 2 billion videos
viewed per day
– 2 billion videos viewed each month on Facebook, despite not offering a video portal
– Live stream video viewing increased by 650% year/year
– 1,000+ US and 500+ global or local brands buying in pre-, mid- and post-rolls
– 4 million video ads were served to the U.S. online population in September 2010 alone
– 200+ top US brands have released viral videos, of those 100 have surpassed ½ million views
without an identifiable supporting media buy
– Online video viewing measured against TV viewing time spent is being monetized at only 4-
5% the rate of TV…Why?
6
©2010 Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved.
Lessons Learned #1GRPs are needed, but equivalency is not enough, this medium is different…it is NOT TV
Consider this starter formula:
Effective Reach x Frequency x Effectiveness
CPM
7
©2010 Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved.
Lessons Learned #2Embrace and Measure OPE as a reporting metric
8
©2010 Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved.
Owned
EarnedPaid
Bought media space
or audience: TV,
Print, banner ads,
radio, billboards
Channels of communication a
company develops or uses without a
media buy: Facebook, microsites,
email databases, retail stores
Consumer created media or
exponential discussion or
activity resulting from a brand
or it’s campaigns: Word of
Mouth, reviews, organic
search results, forwarding
Lessons Learned #3Budget will come primarily from print and TV
9
©2010 Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved.
Lessons Learned #4The medium is still lacking sufficient premium content to monetize properly
10
©2010 Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved.
Lessons Learned #5Early testing is pointing us to consider
Audience targeting trumps context (source: TidalTV)
Context trumps length (source: Tremor/ScanScout)
Audience trumps message length (source: TidalTV)
Frequency of 3-5x is optimal (source: Kantar)
The interplay of behavior, attitude, and deep online/offline audience
profiling as audience ratings are critical to understanding this
medium (source: Kantar)
11
©2010 Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved.
Lessons Learned #6Video Campaign Cycle “Best Practices”
12
©2010 Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved.
StrategyCreative & Production
Planning, Buying &
Syndication
Tracking (Measurement) & Optimization
Video Opportunity
Assessment
Customer and Prospect
Lifecycle
Video Use Segmentation
Audience Profiling
Competitive Intel
Targeting and Key
Message Tailoring
Marketing Research and
Consumer Insights
CRM Enhancement
Video Platform Analysis
Recommend Video
Solution
Creative Brief and
Strategic Alignment
Script and Content
Development
Creative Design and
Branding
User Experience
Pre-production
budgeting, scheduling,
casting, storyboarding
Production
Post-Production motion
graphic and visual effects,
sound design, color
correction, music
composition, compression,
DVD Encoding and
Authoring
Syndication and
Metadata Strategy
Social Network Strategy
Online Media Planning
and Buying Plan
Distribution Platforms
VSEM/VSEO
A/B and Multivariate
Testing
Measurement of
Business Impact (MROI)
Comprehensive Analytics
Campaign Verification
Key Performance
Indicators
Campaign Verification
Competitive Intel
Survey Development,
Execution and Analysis
Campaign Goal-Updating
Campaign Optimization
By 2015, we expect…– Higher than current % of spend on creative & multivariate testing of video creative will be typical
– The rise of the Video Agency of Record (VAOR)
– UCG & ProSumer content becomes New Premium Content due to safety/targeting
improvements
– Global Online + Mobile Video Ad Spend will reach $10 Billion (USD), earning its way into
virtually every media mix model
– The majority of video will be bought by audience and context (as Ad Targeting becomes even
more laser-like in precision), not by program
– Typical video campaign investment will be composed as follows:
– 55% will be devoted to media spend
– 25% will be spent on modeling, data, targeting, ad serving
– 15% will go toward creative and other agency services
– 5% will be invested in media/market research, verification, safety, and optimization
– 3-screen global digital measurement and campaign analysis will be commonplace and will
depend upon real-time behavioral, attitudinal and audience analytics13
©2010 Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved.