the era of digital video advertising€¦ · source:emarketer, digital video viewers (august 2013),...
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The Era of
Digital Video
Advertising
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Video Viewership is Changing
2
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Non-TV Households Grow
2007 2 MILLION homes without a working TV set.
3
Source: Nielsen; Huffington Post “Nielsen Viewership: TV Ratings Will Change With New Measurements”
5 MILLION
2013
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The Reach of Online Video is Growing
4
0
50
100
150
200
250
2012 2013 2014 2015 2016 2017
Digital Video Viewers Smartphone Video Viewers Tablet Video Viewers
MILLIONS
57
142
61 117
172
205 +19%
+149%
+92%
Source:eMarketer, Digital Video Viewers (August 2013), Smartphone and Tablet Viewers (March 2014)
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Digital Video Reaches Coveted Millennials
5
Time Spent on Online Video (Hours:Minutes)
6:08
7:50
11:20
13:14
Boomers
Gen X
Older Millennials
Younger Millennials
Millennials’ time with online video is around
double that of Gen X and Boomers.
Boomers: 50-64 years old; Gen X: 35-49 years old; Older Millennials: 25-34 years old; Younger Millennials: 18-24 years old
Source: Nielsen, “The Cross-Platform Report: Q4 2013, March 2014
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Digital video ad spend will grow to $13 billion in the next 4 years. $13
Billion
Digital Video Ad Spend
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Ad Spending:
Television vs. Digital Video
Digital video ad spend will more than double in the next 4 years.
0
10
20
30
40
50
60
70
80
90
2013 2014 2015 2016 2017 2018
Digital Television
+15%
+113%
$ BILLIONS
Source: eMarketer, June 2014
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Digital Video Ad Spending:
Desktop vs. Mobile
Digital video ad spend will grow for both online and mobile.
0
1
2
3
4
5
6
7
2013 2014 2015 2016 2017 2018
Desktop Mobile
+47 %
+322%
$ BILLIONS
Source: eMarketer, June 2014
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Breakdown Silos:
Think “Total Video” and not
Television vs. Digital
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Opportunity to Optimize Advertising Budget 10
75% Digital is maturing and becoming a viable
competitor to television 49%
Likely to Shift TV Dollars to Digital Video
Top Reasons
Digital has superior targeting and is
more measureable 46%
Digital provides higher ROI than television 33%
Online and Mobile video ads are becoming
viewed as equivalent to television 15%
Source: Interactive Advertising Bureau, “Digital Content NewFronts”, August 2013
Source: Cowen and Company, “Advertising Outlook: Cowen Ad Buyer Survey Says…”, January 2014
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Shifting up to 15% of Ad Spend to online provides incremental and effective reach.
11
% of Television Budget Shifted to Online
58% Reach
60% 61% 62%
0% 5% 10% 15%
9%
4%
47% 42% 38%
13%
6%
16%
8%
Television Only Television/Online Online Only
Source: Nielsen TV/Internet Fusion (January 2011-March 2012)
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Higher Message Recall
Duplicated Reach provides the greatest lift in message recall.
12
52
35
29
17
44
26
19
13
0%
10%
20%
30%
40%
50%
60%
TV Ad GeneralRecall
TV Ad BrandRecall
TV Ad MessageRecall
TV Ad Likeability
TV + Premium Online Video TV Only
+18%
+35%
+53%
+31%
Source: Nielsen IAG, A18-49, Premium Online Video Measurement (2008-09)
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More vehicle buyers are turning to the Internet, so leverage online video to help enforce offline campaign tactics.
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Sources Used To Shop
More buyers are turning to the Internet for their vehicle shopping needs.
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
Base: New-vehicle Buyers 2011 = 2005, 2014 = 1008
14
Significantly higher / lower than 2011
5% 7% 10% 15% 17% 20%
28%
79%
9% 13% 16%
28% 24%
34% 32%
71%
RadioOutdoorAds
DirectMail
NewspaperMagazineTelevisionReferralInternet
2011 2014
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Time Spent Researching
While overall research time is down, time spent online has increased.
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
Base: New-Vehicle Buyers (2011 = 2005, 2014 = 1008)
15
Significantly higher / lower than 2011
0
4
8
12
16
20
2011 2014
Offline
Online
16h 12m 18h 18m
11h 12m 12h 6m
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Online Video is Part of the
Overall Digital Universe
Video Sites
Watch a
Video
Compare
Models
Share
Search
Engines
Request
a Quote
Locate a
Dealer
Radio
Television
Consumer
Review Sites
Dealer Sites
Third-Party
Sites
OEM Sites
Follow
24 Research Touch-Points
(on average)
Source: Google, Millward Brown Digital and Polk, “Digital Drives Auto Shopping”, Nov 2013
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How Important
are Online Videos?
Video is important to vehicle shopping, and growing in importance.
17
Somewhat
Important
41%
Very
Important
27%
Not Very
Important
25%
Not At All
Important
6%
+2%
+2%
Source: J.D. Power Third Party
Automotive Website Evaluation Study,
2014
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Time Spent Watching Videos is Growing 18
50%+
+1hr
1-in-4 watched
while researching, which is up 57% over last year.
Over half of auto shoppers now watch 30 minutes or more.
Source: Google, Millward Brown Digital Vehicle Shopper Path to Purchase Study, September 2013
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The Video Completion Rate is Higher Than Average for auto.
19
0% 20% 40% 60% 80% 100%
Electronics
Travel
Retail
Entertainment
Financial
Telecom
CPG
Auto
Video Completion Rate
Source: DG MediaMind, “Mobile Benchmarks”, December 2013
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Videos can drive results for
advertisers across all three tiers.
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Ads Prompt Brand Consideration
25%
27%
30%
31%
32%
32%
34%
35%
36%
37%
0% 10% 20% 30% 40%
Billboard/Outdoor Ad
Newspaper Ad
Email Ad
Television Ad
Magazine Ad
Online Site Ad
Cell Phone Ad
Direct Mail
Tablet Ad
Online Video AdOnline video was the top ad format for driving Brand Consideration.
21
Source: Millward Brown Digital/Google
Vehicle Shopper Path to Purchase
Study, September 2013.
Q. What role did each of the following
advertisements play while you were
shopping for cars/trucks?
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After Watching Online Video
61% Used computer to find
more information
Source: Google, Millward Brown Digital and Polk, “Digital Drives Auto Shopping”, Nov 2013
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After Watching Online Video
% Visited a Dealership
Source: Google, Millward Brown Digital Vehicle Shopper Path to Purchase Study, September 2013
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AutoTrader.com visitors are highly
engaged with video content.
Average monthly views are up over last year 77% Source: AutoTrader.com Site Data
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A Large and Growing Library
25
600 original videos
Over
Videos for
nearly every
model.
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Adding Video to a Rich Media Campaign 26
22% Higher Click-thru Rates
Results
in
17% And Boosts Interaction Rates
an Average of
Source: AutoTrader.com Site Data
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“This was actually a lot of
fun to watch and I felt like
it was really happening
before my eyes.”
Visitors Like Our Video Ads
27
“I did find this ad interesting and
it held my attention more than
most other car ads.”
“Ads like this catch and hold my
attention more so than still/static ads.”
“I really love this ad and hope other
manufacturers do something similar. It
certainly was not boring, but it told me a
lot about the car.”
“This video is so much fun to
watch and is so different from
regular car commercials. I wanted
to join them in their ride.”
Source: AutoTrader.com Market Research Online Community, 2014
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Video Ads Best Practices
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Break Through the Clutter
0%
50%
100%
150%
200%
250%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Frequency of Online Video Ads
2013
58%
204%
Source: comScore; average number of ads per viewer (2013); desktop/notebooks only
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Video Best Practices
Videos should not be longer than 30 seconds (0:15 or less is ideal).
Animated thumbnail images can be used to make a single video more obvious; however, videos should not auto-play with audio.
Some vehicle attributes are easier to illustrate with video (infotainment, technology, vehicle handling).
Shoppers want videos of how features work, and how the vehicle would function in real life.
Videos should be used as a supplement to information, rather than a replacement.
30
Source: J.D. Power Third Party Automotive Website Evaluation Study
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The Era of
Digital Video
Advertising
THANK YOU!