Transcript

OFF THE GRIDMarketing to the Next Generation Media Consumer

CONSUMER BEHAVIOR IS CHANGING

Consumer Empowerment

CONSUMER BEHAVIOR IS CHANGING

Consumer Empowerment

Consumer Empowerment

CONSUMER BEHAVIOR IS CHANGING

Consumer Empowerment

Consumer Empowerment

CONSUMER BEHAVIOR IS CHANGING

Consumer Empowerment

Consumer Empowerment

CONSUMER BEHAVIOR IS CHANGING

2010 Upfront:

$18 Billion+20% YoY

ADVERTISER BEHAVIOR ISN’T

RESEARCH OBJECTIVESHow do these consumers think about media?

Why are they making the decisions they are making?

What challenges do these consumers pose for interruptive advertising?

How can we reach them more effectively?

OPT OUTS (N=232)Don’t own a TV OR hadn’t watched live TV in the past week AND streamed more than 4 hours in an average week across online, mobile or through their TV.

ON DEMANDERS (N=305)Streamed more than 4 hours in an average week AND spend more time streaming video than watching live TV. Watch less live TV than a year ago.

REST OF INTERNET (N=622)Included in the study for comparison purposes.

QUANTITATIVEcomScore panelists invited to participate in a 20 minute online survey. comScore passively studied the behavior of respondents through their panel.

MORE OF THEM THAN YOU THINK

Off the grid

Audience Size (based on 170MM online adults 18+)

114 MM

34 MM

22 MM

IN-HOME INTERVIEWS

LET’S MEET THEM

WHO IS OFF THE GRID?Opt Outs

Opt-Outs do not watch television live. They watch video, and 90% have a TV, but they access video through the DVR, streaming, or DVD.

On Demanders

On Demanders still watch live TV but watch a lot more of it time shifted through DVR, streaming or DVD. All of them are watching less live TV than a year ago.

14

VITALSMarried, two kidsWorks in IT for non-profitLoves: reading, biking, spending time with family

MEDIA SET-UPNo TVs in the house; has a 22” monitor hooked up to his laptop in the bedroom to stream Netflix video content.

Accesses everything (besides extensive music collection) via the internet.

Only need for viewing live content is sporting events. For a big game, Wes meets friends at a sports bar.

WES / 40OPT-OUT

CURTIS / 30ON DEMANDER

VITALSEngaged, no kidsAttorney Early Adopter

MEDIA SET-UPHas traditional televisions with satellite; streams through Netflix on the Wii; also uses AppleTV, Slingbox. a DVD player, iphone.Bought a Slingbox for his dad so they could watch each others’ content.

OFF THE GRIDDERS: ON MEDIA

QuickTime™ and a decompressor

are needed to see this picture.

ADVERTISERS WANT THEM

ON DEMANDER

SOPT OUTS

REST OF INTERNET

Young Age (mean) 38 36 42

% 18-24 23% 30% 15%

Wealthy Median Income $65,000 $42,000 $54,000

Educated Some College + 86% 73% 70%

Influential Size of online network

245 193 201

Video #1 type of entertainment content

Choice is a right, not a privilege.

Expect to watch what, how, when, and where they want

VIDEO IS KING OF ENTERTAINMENT

“Netflix arrivals are from a big queue of things I’ve been wanting to see; Roku is for impulse desires and search-and-discovery hits; I use bit torrent for off-the-grid films.” – Scott, SF

OPTIMIZE EFFICIENCY THROUGH CHOICE

ON DEMANDERS

OPT OUTSREST OF

INTERNET

# of media devices 5.4 3.9 4.6

% Netflix subscribers 47% 25% 24%

% Mobile Video Devices 40% 25% 31%

ON DEMANDERS WATCH MOREAverage Weekly Video Consumption (Hours)

27%STREAMED

ONLINE

52%STREAMED

ONLINE

16%STREAMED

ONLINE

PRIME TIME IS WHEN THEY WATCH% watching video content from 8pm-11pm

On Demanders Opt-Outs Rest of Internet

97%73%

92%

On Demanders

55%

WHAT’S ON WHAT’S AVAILABLE% watching video content from 8pm-11pm

FINDING A BETTER WAY

STREAMING ONLINE

I prefer to watch on my own schedule

I can skip commercials

I prefer to watch a few episodes all at once

WATCHING ON MOBILE DEVICE

I can do it from any location

I prefer to watch on my own schedule

I travel a lot

Streaming to tv I prefer to watch on my own schedule

I can skip commercials

I prefer to watch a few episodes all at once

FINDING A BETTER WAY

STREAMING ONLINE

I prefer to watch on my own schedule

I can skip commercials

I prefer to watch a few episodes all at once

WATCHING ON MOBILE DEVICE

I can do it from any location

I prefer to watch on my own schedule

I travel a lot

Streaming to tv I prefer to watch on my own schedule

I can skip commercials

I prefer to watch a few episodes all at once

FINDING A BETTER WAY

STREAMING ONLINE

I prefer to watch on my own schedule

I can skip commercials

I prefer to watch a few episodes all at once

WATCHING ON MOBILE DEVICE

I can do it from any location

I prefer to watch on my own schedule

I travel a lot

Streaming to tv I prefer to watch on my own schedule

I can skip commercials

I prefer to watch a few episodes all at once

ADVERTISING

OFF THE GRIDDERS: ON ADVERTISING

QuickTime™ and a decompressor

are needed to see this picture.

Statement LIVE TV Online Mobile

Ads are annoying

The ads interfere with my show

Ads are too long

There are too many ads

I wish I could fast forward through the ads

There are too many ads for each video content segment

Sig Higher at 95%

Sig Higher at 90%

ADS AREN’T LOVED (DUH)On Demanders perceptions of ads within video content vs. rest of internet

MY LIFE

YOUR MESSAGE>

THE NEW MEDIA MENTAL MATH

DESIRE TO AVOID

AVOID AD

>WORK TO AVOID

=

THE NEW MEDIA MENTAL MATH

TOLERANCE IS A POOR BASIS FOR A RELATIONSHIP

Statement Online Mobile

Ads are interesting

Ads are memorable

Ads make me think favorably about the brand being advertised

I enjoy watching the ads Sig Higher at 95%

Sig Higher at 90%

OPTING OUT CHILLS YOU OUTOpt outs’ perceptions of ads vs. on demanders

SEEK ATTENTION, NOT FREQUENCYOPTIMAL FREQUENCY ?123456789?1?=

Top-of-Mind Ad RecallWhat ads do you recall seeing on the site? (first mention)

CHOOSING TO ENGAGE WORKS

Index to standardIAB banner ad.

Off the grid

114 MM

34 MM

22 MM

HOW MANY CAN WE AFFORD TO LOSE?

THANK YOU