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Social Video: the Next Wave in Digital Advertising, October 2012

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Social Video: the Next Wave in Digital Advertising, October 2012 October 2012 Social Video: The Next Wave in Digital Advertising Paul Verna [email protected] Contributors: Mitchel Winkels, Lauren McKay Executive Summary: The power of social video represents an evolution in digital advertising. Marketers are starting to move past the interruptive model of the 15- or 30-second pre-roll ad and toward a broader strategy that includes longer opt-in videos with built-in sharing capabilities. This branded content is designed to be consumed and shared on the social web, driving earned media and raising the potential for viral success. 140121 In some cases, social sharing has resulted in ad campaigns Social Video Ad Views Worldwide, Q1 2011-Q1 2012 millions vastly exceeding their original audience targets. Furthermore, 1,326.9 social video campaigns can deliver a richer set of metrics than traditional web ads. In addition to collecting performance indicators such as total views and clicks to web sites, agencies and technology providers typically harness qualitative feedback that brands use to measure consumer sentiment. This 773.4 747.0 combination of hard and soft metrics helps marketers determine 598.6 596.8 the return on investment of their social video campaigns. Key Questions Q1 Q2 Q3 Q4 Q1 ■ How is social video changing the nature of digital advertising? 2011 2012 ■ How are marketers using social video to amplify their Note: data is based on social video ads served over the Visible Measures messages and how are consumer-sharing behaviors network to English-speaking audiences; all views are user-initiated where a person needs to press the play button to watch an ad informing marketers’ decisions about where, when and how Source: Visible Measures, "Q1 2012 Social Video Advertising Report," to seed branded video content? April 30, 2012 140121 www.eMarketer.com ■ What metrics are marketers using to gauge the success of social video campaigns? From Pre-Rolls to Branded Content 2 Tapping into Sharing Behavior 3 Metrics and ROI 5 Conclusions 6 eMarketer Interviews 6 Related Links 7 Copyright ©2012 eMarketer, Inc. All rights reserved. From Pre-Rolls to Branded Content A recent campaign by Giant Media illustrated the use of longer clips and the integration between traditional TV spots The widespread sharing of video clips on social and social video. The company helped Honda and its agency, RPA, with the social video component of a 2012 Super Bowl venues has ushered in a new mindset about online campaign for the CR-V featuring film star Matthew Broderick video advertising. Marketers who used to focus their in a spoof of his role in 1986’s “Ferris Bueller’s Day Off.” campaigns on 15- or 30-second pre-roll ads are now The campaign launched with a 10-second teaser that showed complementing that strategy with freestanding clips Broderick in a scene reminiscent of the film but did not reveal designed to be shared via social channels. any other information, including the product being advertised. Capitalizing on the intense interest around the teaser, Giant David Segura, CEO of social video company Giant Media, said, secured placements in more than 80 influential blogs, including “The difference between this and the previous online video AutoBlog, BuzzFeed, MediaBistro’s AgencySpy and The Wall Street model, which revolved around pre-roll, is you move from looking Journal’s Driver’s Seat. The clip was followed by the 30-second spot at the media to focusing on consumer behavior. The concept is that ran on TV during the Super Bowl and a 2:25 version for online to blur the lines between advertising and entertainment, so every distribution. In total, the campaign garnered more than 79 million form of advertising becomes an advertorial that accomplishes earned media impressions, according to Giant. the brand’s goal but at the same time has a realistic chance of exciting the consumer to share content.” Most social video campaigns use YouTube, Facebook and other sharing destinations as anchor points, and provide Another key difference is that pre-rolls are inherently interruptive, sharing buttons for users to disseminate clips through other but social clips are user-initiated. means, including Twitter, Google+, Pinterest, email contact lists “The social video ad market is the concept of brands and embed codes. producing content with the express purpose of getting it Some companies are also experimenting with a movement seen and shared by people who actually want to watch it, as known as native advertising, which involves seeding branded opposed to producing ads where the goal is to just interrupt content in the content stream of web sites as opposed to people and push the message on them,” said Dan Greenberg, in a corner or in a banner position. These ads are inherently CEO of video advertising platform Sharethrough. social in that they are designed to be shared, but they usually Mitchell Reichgut, CEO of social video platform provider Jun originate on publisher sites such as Forbes.com as opposed to Group, said it even more succinctly: “Social video is 100% opt-in.” on YouTube or Facebook. Another important difference between traditional ads and “With native media you’re buying media the same way you’d social video is length. Pre-roll ads, which play essentially buy a display ad on Yahoo.com, it just happens that the ad is against the user’s wish, are by necessity short—typically 30 bigger and in the actual content well,” said Sharethrough’s seconds or less. A social video can be any length. Greenberg, who is a pioneer of this practice. Greenberg added that native ads are “still trackable and targetable by the same Indeed, an August 2012 Jun Group survey showed that 70% of metrics and technology systems you’d use for display ads.” the opt-in online video ad views of Fortune 500 brands were at least 1 minute long. What Is Social Video? US Opt-In Online Video Ad Views of Fortune 500 Brands, eMarketer defines social video as video advertising or by Length, Aug 2012 content designed to be easily shared on social media % of total venues such as Facebook, Twitter and Google+, as well 30-60 seconds as through email lists and embed codes. Unlike pre-rolls, 0-15 seconds 7% social video ads are typically non-interruptive and often 6% longer than 15 or 30 seconds. Some marketers see social 16-30 seconds 16% video as a blurring of the line between advertising and 2+ minutes 37% branded entertainment. 60-120 seconds 33% Note: numbers may not add up to 100% due to rounding Source: Jun Group, "The State of Opt-In Video & Consumer Engagement," Sep 27, 2012 145878 www.eMarketer.com 145878 Social Video: The Next Wave in Digital Advertising Copyright ©2012 eMarketer, Inc. All rights reserved. 2 Tapping into Sharing Behavior Because of its dominance in the video space, YouTube remains the leading venue for social video campaigns. The The widespread use of social media on PCs, site attracted more than 150 million unique viewers in the US in August 2012, according to comScore. By comparison, smartphones and tablets is raising new possibilities Facebook, the second-most-popular US social video for marketers and content owners to enhance their destination, had nearly 48 million unique video viewers videos with sharing features. These one-click buttons that month. can potentially turn any clip into a viral powerhouse. Top 10 Online Video Properties Among US Internet Many ad campaigns have already benefited from the Users, Ranked by Unique Viewers, Aug 2012 multiplying effects of the social web, and more success Unique viewers Videos* Average time (millions) (millions) per viewer stories are likely to follow as marketers, agencies and (minutes) platform providers fine-tune their tactics. 1. Google sites 150.2 13,772.3 443.4 2. Yahoo! sites 55.0 529.0 58.6 In a July 2012 MediaBrix survey of 2,236 US internet users, 8% 3. Microsoft sites 53.7 522.4 40.6 of Facebook users said they had shared a video advertisement 4. VEVO 49.3 595.2 41.4 for a brand on Facebook and 16% of Facebook app users said 5. Facebook 47.7 261.2 16.1 6. AOL 45.7 725.2 62.8 they had shared a video ad for a brand shown inside an app or 7. Viacom Digital 38.7 405.3 50.3 game on Facebook. 8. NDN 37.5 396.0 73.2 A Visible measures report showed that user-initiated, English- 9. Grab Media, Inc. 29.9 231.6 40.6 10. Amazon sites 27.9 103.9 16.0 language social video ad views served on its network reached Total 188.0 37,689.5 1,335.4 1.33 billion in Q1 2012, a 77.6% increase over the previous Note: home and work locations; content videos only; for long-form content quarter’s total of 747 million. (e.g., TV episodes with ads in the middle) each segment is counted as a distinct video stream; video views are inclusive of both user-initiated and auto-played videos that are viewed for longer than 3 seconds; *a video is defined as any streamed segment of audiovisual content (both progressive Social Video Ad Views Worldwide, Q1 2011-Q1 2012 downloads and live streams) millions Source: comScore Video Metrix as cited in press release, Sep 19, 2012 1,326.9 146416 www.eMarketer.com 146416 Choosing a venue for a social video campaign depends as much on raw audience numbers as on target demographics, the ability of the site to deliver metrics and the extent to 773.4 747.0 which a brand has an established presence there.
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