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eMarketer Digital Video Advertising Around the World Roundup
SEPTEMBER 2013
sponsored by
Video is the fastest-growing of any digital ad format around the
world, with marketers and consumers both flocking to the channel.
eMarketer has curated a roundup of key trends, statistics and
information relevant to marketers around the world looking to
target local consumers with video content and ads.
-
Digital Video Advertising Around the World Roundup Copyright
2013 eMarketer, Inc. All rights reserved. 2
Digital Video Advertising Around the World Roundup SEPTEMBER
2013
Digital Video Advertising Around the World Overview
Digital video viewing has taken hold around the world, with
Cisco Systems estimating 1.3 billion people worldwide will watch
video downloaded or streamed over the internet this year. comScore
counted the same number doing so in December 2012. eMarketer
estimates there will be 185.2 million digital video viewers in the
US this year, and another 34.1 million in the UK--just a fraction
of the worldwide total. And in these developed markets, significant
video consumption is moving to mobile, just as in the developed
world many internet users are bypassing the desktop to get their
digital video fix straight from smartphones.
More digital video viewers means more marketers jumping on the
video advertising bandwagon, trying to take advantage of the
branding opportunities afforded by video, as well as an increase in
ad spending. PricewaterhouseCoopers estimates video ad spending
will be up 33.8% worldwide this year, to $5.1 billion. MAGNA GLOBAL
released an estimate of $6.6 billion in spending, up 21%. Another
firm, Strategy Analytics, predicts 38% growth in online video ad
spending this year, more than twice the average growth rate for
online ads worldwide.
% of respondents
Smartphone Users Worldwide Who Have Watched orUploaded/Shared a
Mobile Video While Passing theTime, by Region, 2013
Asia-Pacific40%
34%
North America39%
28%
Europe, the Middle East and Africa30%
24%
Latin America25%
19%
Worldwide34%
28%
Watched video Uploaded or shared video
Note: ages 18-54Source: Initiative, "Mobile Experience Study,"
July 30, 2013161983 www.eMarketer.com
% change
Online Ad Spending Growth Worldwide, by Regionand Format,
2013
Online video
Social networks
Search
Classified
Display & other
Total
CentralAmerica/Latin
America
55%
38%
27%
30%
26%
29%
Europe
35%
19%
11%
7%
4%
10%
US
31%
30%
14%
2%
6%
14%
Worldwide
38%
27%
14%
8%
6%
14%
Note: excludes mobile ad spendingSource: Strategy Analytics,
"Global Advertising Forecast 2013" as cited inpress release, June
19, 2013160104 www.eMarketer.com
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Digital Video Advertising Around the World Roundup Copyright
2013 eMarketer, Inc. All rights reserved. 3
For Driving Engagement, Digital Video Ads Beat TV by a Wide
Margin
Targeting is a key advantage for digital video
Almost three-quarters of marketing professionals worldwide
planned to increase their spending on branded video content or
video ads in the next year, according to a survey conducted by AOL
Networks in April 2013. More than 50% of that group said that the
added investment would come from TV and display budgets. Only 4% of
respondents planned to draw back spending on digital video ads.
In keeping with digital advertisings frequent role as a
direct-response vehicle, the study found that digital video ads
beat out TV ads for achieving engagement goals: 58% of marketers
thought digital video ads performed better than TV ads by this
measure, compared with 15% who said engagement was worse for
digital video ads.
A smaller percentage47%also thought digital video ads were
better at driving awareness than TV ads. But this was still more
than the 31% of marketers who said TV ads got better awareness
results.
Targeting seems to be the secret sauce behind digital video ad
success. The highest percentage of marketers (87%) said targeting
was an important factor when planning a branded digital video
campaign, just ahead of those who cited reach (85%) and content
(81%).
And when marketers determine whether to put more dollars toward
digital video adsand by how muchtargeting is key, with 73% of
respondents saying better targeting would affect how much more they
would spend on the format.
But even as marketers go all in on digital video ads, they must
contend with consumer resistance to the ad format, especially
compared with TV, where advertising is expected.
A Starcom study from January 2013, in which participants in the
US were shown a controlled series of clips and told that they were
either traditional TV programming or original streaming content,
found that consumers remained more resistant to commercials in
digital formats, with 45% having a negative attitude to such ads
vs. 39% who had negative opinions of ads shown on TV.
But the study also showed that viewers may simply have a
stronger reaction to video ads overall, whether good or bad. More
consumers reported having a positive attitude toward ads in
original streaming content (25%) than in TV programming (22%), as
well.
It seems there is huge potential for digital video ads to
deliver strong results for marketers, as long as they can identify
the right audience and create compelling enough content such that
viewers dont mind the intrusion.
% of respondents
Ability of Marketing Professionals Worldwide toAchieve Better
Share of Awareness and Engagementwith Digital Video than TV*, April
2013
Better47%
58%
Same24%
14%
Worse31%
15%
Awareness Engagement
Note: read as 47% of respondents believe that digital video
drivesawareness better than TV and 58% of respondents believe that
digital videodrives engagement better than TV; includes branded
video content andvideo ads; *for the same investmentSource: Be On,
a division of AOL Networks as cited in press release, June
5,2013158476 www.eMarketer.com
% of respondents
Factors that Will Affect the Increase in Digital VideoSpending
According to Marketing ProfessionalsWorldwide, April 2013
Better targeting 73%
Measurement 67%
Scale/reach 54%
Note: includes branded video content and video adsSource: Be On,
a division of AOL Networks as cited in press release, June
5,2013158474 www.eMarketer.com
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Digital Video Advertising Around the World Roundup Copyright
2013 eMarketer, Inc. All rights reserved. 4
Worldwide, Digital Video Viewers Spend More Time with Live Video
than VOD
Smartphones and tablets increasingly used to watch content
Digital video continues to work its way into the content-viewing
habits of consumers around the world. No longer willing to have
digital video habits dictated by programmers, networks and cable
companies, viewers have shown a fondness for on-demand content. But
is video-on-demand (VOD) the most popular form of online video?
Research from video publisher Ooyala suggests otherwise. A March
2013 analysis by the company of its customer and partner database
found that digital video viewers were spending substantially longer
periods of time watching live video than they were VOD content. In
fact, those on PCs spent an average of 40 minutes watching live
video on a per-play basis, compared with 3.15 minutes for VOD.
Those on tablets spent an average of 16 minutes with live content,
and only 3.6 minutes with VOD. A gap also existed among those
watching on a mobile device.
Digital video viewers are also spreading their habit across an
increasing number of devices, with smart mobile devices such as
smartphones and tablets continuing to grow in popularity. Ooyala
found that mobile and tablet views, when added together, accounted
for 10% of the total number of online video plays.
Interestingly, tablets showed a higher video completion rate
than either PCs or other mobile devices, underscoring how quickly
viewers have taken to these portable devices for online video.
Ooyala reported that 41.5% of tablet viewers in their database
watched videos until their end on the devices, compared with 38.3%
on a PC and 33.4% on a mobile device.
Marketers have been quick to follow audiences to these new
platforms. A survey by AOL Networks conducted in April 2013 found
that a majority of marketing professionals worldwide believed that
digital video was better at engaging viewers than traditional
television. Almost half thought online video was an improvement
over television in creating awareness.
minutes
Time Spent with Video-on-Demand (VOD) and LiveVideo per Play
Worldwide, by Device, Q1 2013
VOD
CTV & GC 5.1
Desktop 3.2
Tablet 3.6
Mobile 2.4
Live video per play
45.0
40.0
16.0
8.0
Note: over Ooyala's customer and partner databaseSource: Ooyala,
"Global Video Index Q1 2013," June 19, 2013159220
www.eMarketer.com
Digital Video Completion Rates Worldwide, by Device,Q1 2013
Tablet CTV & GC Desktop Mobile
25% completion 72.9% 68.8% 63.1% 60.5%
50% completion 64.3% 62.7% 54.5% 52.9%
75% completion 56.2% 57.7% 48.5% 46.9%
100% completion 41.5% 47.2% 38.3% 33.4%
Note: over Ooyala's customer and partner databaseSource: Ooyala,
"Global Video Index Q1 2013," June 19, 2013159221
www.eMarketer.com
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Digital Video Advertising Around the World Roundup Copyright
2013 eMarketer, Inc. All rights reserved. 5
Brazil Among Fastest Growth Markets for Online Video
Online video viewing in Brazil becomes increasingly social and
on-demand
Brazil remains a hot-paced internet uptake market, but that
doesnt mean more internet users translates to more online video
viewers. According to comScore data, between December 2011 and
January 2013, Brazil kept its 42.9 million online video viewers,
but the share of internet users watching videos online actually
shrank from 83% to 81.4% during that period.
This means that growth is coming from deepening usage, with
virtually the same number of viewers watching more videos and
spending more time doing so. comScore showed that the number of
online videos per viewer in Brazil grew 18%from 109 to 128while
online viewers were spending almost 50 more minutes streaming
videos compared to just more than a year before. These numbers put
Brazil ahead of UK, US and worldwide averages in terms of online
video growth.
As expected, Google sites captured the attention of the majority
of online video viewers in Brazil. But videos shared on social
networks are gaining ground. Facebook showed over 400% growth in
video viewing between December 2011 and December 2012, compared to
a 7% drop for YouTube.
When it comes to content, consumer data from ad network Hi-Midia
and research company M.sense revealed online video viewers in
Brazil had strong interest in musicwhich reinforces VEVOs second
place in comScores ranking. Following the traditional popularity of
humorous videos, movies were one of the leading interests among
respondents.
Helping to explain the popularity of movies online, a May 2013
study from research institute Dataxis showed 2.48 million
video-on-demand (VOD) subscribers in Brazil this year. Dataxis
forecast the market will reach 4.2 million subscribers by the end
of 2014, and breaking 13 million by 2017an average 50% growth per
year that puts Brazils VOD market ahead of Mexico, Argentina,
Chile, Colombia, Peru and Venezuela.
Online Video Metrics in Brazil, Jan 2013
Unique visitors (millions) 42.9
Penetration rate 81.4%
Videos (billions) 5.51
Videos per viewer 128.4
Minutes per viewers 684.5
Minutes per video 5.3
Total minutes 29,358
Source: comScore Video Metrix as cited by Interactive
Advertising BureauBrasil (IAB Brasil), "Indicadores de Mercado
Online - Mtricas de Audinciae Pesquisa de Mercado," April 12,
2013160759 www.eMarketer.com
millions
Top 10 Online Video Content Properties AmongInternet Users in
Brazil, Ranked by Unique Viewers,Dec 2011 & Dec 2012
1. Google sites
2. VEVO
3. Facebook
4. Globo
5. Viacom Digital
6. UOL
7. Yahoo! sites
8. Terra-Telefonica
9. R7 Portal
10. Videoslasher.com
Dec 2011
42.1
18.1
3.4
8.0
8.4
4.8
1.5
1.7
1.4
-
Dec 2012
38.9
17.7
17.5
14.9
8.4
6.5
6.2
4.1
3.7
3.2
% change
-7%
-2%
408%
86%
1%
34%
318%
136%
172%
-
Note: ages 15+; home and work locations; excludes traffic from
publiccomputers, such as internet cafes, mobile phones and
PDAsSource: comScore Video Metrix as cited in press release, Feb 6,
2013152517 www.eMarketer.com
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Digital Video Advertising Around the World Roundup Copyright
2013 eMarketer, Inc. All rights reserved. 6
UK Consumers, Ambivalent to Mobile Video Ads, Get More Ad-Free
Options
ITVs subscription-based mobile catch-up service takes ads out of
the equation
According to May 2013 research from QuickPlay Media, only 22% of
UK smartphone or tablet owners found video ads on their mobile
device more appealing than those on TV. By all measures, UK viewers
were less engaged by mobile video ads than viewers in the US.
It is not particularly surprising that UK viewers were more
comfortable with ad programming on TV, given the UKs longstanding
comfortability with this medium, and the associated acceptance of
ads as part of that landscape. But as TV and video-on-demand (VOD)
viewing become available on mobile devices, consumers are
developing new expectationsand less intrusive advertising is one of
them.
There is evidence to suggest that VOD is gaining traction in the
mobile space. The UKs most popular catch-up service, BBCs iPlayer,
saw requests to PCs drop in March 2013. While requests to nontablet
mobile devices also dropped slightly in February, those requests
seem to have leveled off, while tablet requests saw a marked rise.
The upshot is that combined requests to both mobile and tablet
devices were reaching parity with those to PCs.
The commercial broadcaster ITV has taken these two pieces of
evidence into account and launched a subscription-based ad-free
catch-up TV service. This service is offered for a flat fee of 3.99
($6.33) per month. Meanwhile, the traditional ITV Player service
that carries advertising remains in service, giving consumers a
choiceif their aversion to mobile video ads is strong enough, there
is now an option open to them; otherwise, its business as usualeven
on mobile.
% of respondents
Attitudes Toward Mobile Video Ads According to USand UK
Smartphone/Tablet Owners*, May 2013
I'm more likely to react to a video ad on a smartphone or
tabletthan on a TV
30%
25%
I pay more attention to video ads on my mobile device(s) than
onTV
27%
23%
Video ads are more appealing on my mobile device(s) than on
TV25%
22%
US UK
Note: US n=457; UK n=479; ages 18-60; *who use their device for
liveTV/video-on-demand (VOD) viewingSource: QuickPlay Media, "2013
Consumer Survey," June 10, 2013158604 www.eMarketer.com
millionsBBC iPlayer TV Requests*, by Device, Jan-March 2013
Jan 2013 Feb 2013 March 2013
Computers 87 76 79
Tablets 37 35 38
Mobile devices 38 33 33
TV platforms 30 31 31
Video game consoles 13 11 8
Unknown 2 3 6
Total 212 194 200Note: includes on-demand catch-up (streams and
downloads) and livesimulcasts; excludes download playback and
web-only content;*successful requests to stream or download a
programSource: BBC iStats, "BBC iPlayer Monthly Performance Pack
March 2013,"April 19, 2013156179 www.eMarketer.com
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Digital Video Advertising Around the World Roundup Copyright
2013 eMarketer, Inc. All rights reserved. 7
Big Leap for Digital Video Views in India
Regular viewers tune in more often
As internet penetration rises in India, the digital video
audience is growing fast. Between March 2011 and March 2013, unique
visitors to video sites rose 69%, for a total of 54 million unique
video viewers at the end of the observation period, according to
comScore Video Metrix. But not only are more web users tuning in to
video in India, they are watching more videos and spending more
time streaming.
The number of videos viewed grew even faster than unique
visitors, doubling to 3.71 billion. And the average viewer watched
68.7 videos in March, for a total of 431.5 minutes of digital video
viewing.
Unsurprisingly, Google, which owns YouTube, was the top video
site in India by a wide margin, visited by 31.5 million unique
viewers. Facebook came in second, with 18.6 million viewers.
Meanwhile, Dailymotion did not make the top five list for unique
viewers, but it did garner the third-highest number of viewing
sessions per month, at 83 million, suggesting that when users
stream via Dailymotion, they come back for more.
With its massive population, India ranked as the No. 5 country
for online video viewers in an earlier, December 2012 study from
comScore Video Metrix, but it was much lower down the list that
month for total videos viewed, at No. 20. As web use rises, unique
video viewers and videos consumed will also go way up.
Online Video Viewer Metrics in India, March 2011 & March
2013
March 2011
March 2013
% change
Unique visitors(millions)
31.9
54.0
69%
Videos(millions)
99%
1,863.9
3,713.1
Videos perviewer
58.3
68.7
18%
Minutes perviewer
337.8
431.5
28%
Note: ages 15+; home and work locationsSource: comScore Video
Metrix as cited in press release, May 7, 2013156872
www.eMarketer.com
Top 10 Online Video Properties Among Internet Usersin India,
Ranked by Unique Video Viewers, March 2013
1. Google sites
2. Facebook
3. Yahoo! sites
4. VDOPIA.com
5. TubeMogul Video Ad Platform
6. Dailymotion
7. Adotube
8. Komli Play
9. Viacom Digital
10. VEVO
Total video viewers in India
Uniqueviewers
(millions)
31.5
18.6
8.2
6.4
5.5
4.3
4.0
3.9
3.7
2.9
54.0
Viewingsessions(millions)
2,068.2
150.6
37.6
23.5
29.1
83.0
6.0
17.4
11.7
13.7
3,713.1
Average timeper viewer(minutes)
257.8
21.9
14.6
1.5
1.4
59.6
0.6
2.3
7.1
13.6
431.5Note: ages 15+; home and work locationsSource: comScore
Video Metrix as cited in press release, May 7, 2013156926
www.eMarketer.com
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Digital Video Advertising Around the World Roundup Copyright
2013 eMarketer, Inc. All rights reserved. 8
More Digital Video Views in China Go Mobile
PC still dominates
The PC remains the dominant place where viewers in China watch
digital video. But there is no question that mobile is quickly
supplanting some of that activity. In September 2012, mobile
accounted for only 4.5% of total time spent with digital video in
China, according to research from iResearch Consulting Group. Just
nine months later, in May 2013, that share had almost doubled to
8.8%.
The study found the digital video ad market rose 49% in Q2 2013,
compared to Q2 2012. Advertising accounted for about three-quarters
of total digital video revenues.
An iResearch Consulting Group study from March 2013 showed the
significant devotion web users in China have toward digital video.
Time spent viewing videos on the PC reached 5.3 billion hours that
month. However, that was down from the 5.4 billion hours spent
viewing online video in October 2012.
Mobile could account for some of this decline. The number of
hours spent viewing video on the PC likely decreased as more mobile
users looked to their phones and tablets to watch the latest short-
and long-form video content.
comScore estimated that 289.9 million residents in China watched
online video in December 2012. That is already a substantial
audience, and with the addition of mobile viewers, the digital
video ad market will continue to see strong growth.
% of total
PC vs. Mobile Share of Time Spent with Digital Videoin China,
Sep 2012-May 2013
Sep 201295.5% 4.5%
Oct 201294.4% 5.6%
Nov 201294.0% 6.0%
Dec 201293.6% 6.4%
Jan 201392.7% 7.3%
Feb 201391.8% 8.2%
March 201392.0% 8.0%
April 201391.5% 8.5%
May 201391.2% 8.8%
PC Mobile
Source: iResearch Consulting Group as cited in company blog,
July 31, 2013162526 www.eMarketer.com
billions of hours and % change vs. same period of prior year
Monthly Time Spent Viewing Online Video by OnlineVideo Viewers
in China, Oct 2012-March 2013
% change vs. sameperiod of prior year
Oct 2012
Nov 2012
Dec 2012
Jan 2013
Feb 2013
March 2013
Time spent viewingonline video
5.4
5.2
5.5
5.7
4.7
5.3
18.6%
11.2%
14.3%
10.7%
-5.0%
9.7%
Note: PC only; excludes mobileSource: iResearch Consulting
Group, "Q1 2013 China Online Video Report,"July 2, 2013160205
www.eMarketer.com
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Digital Video Advertising Around the World Roundup Copyright
2013 eMarketer, Inc. All rights reserved. 9
Mobile, Video Drive Up Digital Ad Investment in the UK
Search to retain more than a 50% share through 2017
Though the UK economy continues to struggle, digital ad
investments, which include online and mobile formats, are growing
robustly. Spending is expected to reach 6.1 billion (more than
$9.68 billion) this yeara 12.0% increase from 2012and grow by
another 12.5% in 2014.
eMarketer expects expenditures on digital advertising to surpass
7 billion (over $11.11 billion) by 2015 and 8 billion (nearly $12.7
billion) by 2017.
Estimates for UK digital ad spending are close in line, with
most figures ranging from $8.3 billion to $8.6 billion in 2012 and
$9.2 billion to $9.7 billion in 2013. Projections from
ZenithOptimedia are lower than other sources, primarily due to the
exclusion of mobile advertising. Four of the five firms providing
estimates for 2013, with the exclusion of ZenithOptimedia, expect
UK digital ad spending to be over $9 billion.
The majority of research firms providing forecasts for UK
digital ad spending growth in 2013 predict increasesand expect
gains to continue on a steady trajectory.
Search remains the most popular digital ad format, though
display is steadily gaining momentum among advertisers. eMarketer
expects search spending in the UK to increase from more than 3.57
billion (around $5.67 billion) this year to nearly 4.46 billion
(over $7.07 billion) in 2017. At the same time, display investments
are projected to climb from almost 1.5 billion (about $2.38
billion) to more than 2.73 billion (around $4.34 billion),
primarily driven by strong demand for video and real-time
bidding.
Videos share of the digital ad spending pie will grow
dramatically, as marketers develop more advertising content for the
expanding UK digital video audience. eMarketer projects that the
number of internet users who watch video content online at least
once per month will rise from 34.4 million to 40.0 million between
2013 and 2017. During that same time period, video will increase
from 4.0% to 12.4% of digital ad investments in the UK and more
than quadruple in ad dollars.
billions of and % changeUK Digital Ad Spending, 2011-2017
2011
4.8
17.4%
2012
5.4
12.6%
2013
6.1
12.0%
2014
6.8
12.5%
2015
7.4
8.0%
2016
7.9
7.0%
2017
8.4
6.0%
Digital ad spending % change
Note: eMarketer benchmarks its UK digital ad spending
projections againstthe IAB UK/PwC/Warc data for which the last full
year measured was 2012;includes categories as defined by IAB
UK/PwC/Warcbanners, classifieds,email (embedded ads only), lead
generation, mobile SMS/MMS, rich media,search, sponsorships and
video; includes mobile ads within the existingformatsSource:
eMarketer, June 2013; confirmed and republished, Aug 2013159001
www.eMarketer.com
millions of UK Digital Ad Spending, by Format, 2011-2017
Search
Display*
Video
Classifieds
Other**
Total
2011
2,769
1,143
109
778
118
4,809
2012
3,168
1,304
160
854
89
5,416
2013
3,573
1,498
244
898
97
6,066
2014
3,965
1,802
378
955
102
6,824
2015
4,164
2,093
565
1,002
111
7,370
2016
4,290
2,453
834
1,025
118
7,886
2017
4,455
2,733
1,039
1,045
125
8,359
Note: eMarketer benchmarks its UK digital ad spending
projections againstthe IAB UK/PwC/Warc data for which the last full
year measured was 2012;includes mobile ads within the existing
formats; *banners, rich media,sponsorships, video; **lead
generation, mobile SMS/MMS, solus emailSource: eMarketer, June
2013; confirmed and republished, Aug 2013159002
www.eMarketer.com
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Digital Video Advertising Around the World Roundup Copyright
2013 eMarketer, Inc. All rights reserved. 10
Mobile, Video Drive Up Digital Ad Investment in the UK
Mobile ad spending will help drive digital ad growth throughout
the forecast period, with percentage gains of 90.0% expected for
2013. The UK has a solid mobile internet audience and strong
smartphone and tablet adoption rates. Advertisers are investing in
mobile search and display formats to engage the countrys
increasingly multiscreen user base.
With ad investments totaling 999 million (nearly $1.58 billion),
the UK is the worlds third-largest market for mobile ads. In 2013,
only the US and Japan will outrank the UK in mobile ad
spending.
millions of and % changeUK Mobile Ad Spending, 2011-2017
2011
203
144.8%
2012
526
158.9%
2013
999
90.0%
2014
1,599
60.0%
2015
2,319
45.0%
2016
3,014
30.0%
2017
3,707
23.0%
Mobile ad spending % change
Note: eMarketer benchmarks its UK mobile ad spending projections
againstthe IAB UK/PwC data for which the last full year measured
was 2012;includes display (sponsorship, standard display, video and
other displayformats), search, and other (classified, mobile
SMS/MMS, tenancies andother)Source: eMarketer, June 2013; confirmed
and republished, Aug 2013159015 www.eMarketer.com
-
Digital Video Advertising Around the World Roundup Copyright
2013 eMarketer, Inc. All rights reserved. 11
Case Study: NIVEA Uses Humor to Get Men to Face Grooming
Facts
Eight-episode online comedy series becomes digital CPG
campaign
As personal care brands expand their offerings to men beyond the
basics of body wash, shampoo and shave cream, they are thinking
differently about how to engage the male shopper, who can be
overwhelmed by choice and underwhelmed by traditional
advertising.
NIVEA MEN, a skincare brand from Beiersdorf AG, used the
knowledge it gleaned from consumer research showing that men found
shaving to be irritating to their skin. The company created an
eight-episode online comedy series that became the backbone of the
brands digital campaign. Nivea partnered with Break Media, which
creates online digital content targeted to men to create the
series, called Just Face It. It featured comedian Damon Wayans,
Jr., living through daily irritations such as enduring annoying
co-workers and dealing with overcomplicated technology.
According to Mitch Rotter, executive vice president of
programming for Break Media, the insights, which came from Breaks
Acumen research platform, helped structure the storyline and shape
the humor of the series. In addition, Rotter said Wayans insights
added to the authenticity of the situations and made the series
funnier.
Humor is an especially effective method of engaging male
consumers online, as noted in the eMarketer report, Groomed For
Growth: Digital Strategies Reach Men in the Personal Care Aisle. To
guide the campaign, NIVEA leveraged that knowledge, as well as July
2012 data from Break Media, which showed 70.4% of male web users
streamed video from free sites. Ultimately, the campaign included a
branded hub on MadeMan.com, where the series aired, as well as
sweepstakes and editorial content on the site.
We felt creating a comedy series would capture the audience and
continue to engage them over the course of the campaign, said
Carole Rissmann, senior director of marketing at Nivea North
America. The effort, she said, created relatable situations that
not only spoke to our audience, but reinforced the brand
message.
According to NIVEA, the success of the campaignthe series
received more than 3 million views, and the NIVEA MEN-branded hub
on MadeMan.com received more than 270,000 page viewsproved that men
are interested in engaging content about personal care, especially
in the digital realm.
The main goal was to educate men on the role quality skincare
products can play in the shaving routine, Rissmann said. But by
leveraging the irritating insights, we were able to approach the
topic from another perspective, and create an engaging experience
for its target audience.
Metrics for NIVEA's MadeMan.com Campaign, June 2013
More than 3 million video views
More than 25,000 "likes" on Facebook
5,200 mentions of the campaign across Twitter
740,000 total user interactions with video across YouTube,
Twitter and Facebook
Visitors spent more than 3 minutes on the NIVEA Men-branded hub
on MadeMan.com
Note: campaign ran from May 7-June 7, 2013Source: Break Media,
July 19, 2013161044 www.eMarketer.com
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Digital Video Advertising Around the World Roundup Copyright
2013 eMarketer, Inc. All rights reserved. 12
What Is the Value of Made-for-Web vs. Linear TV Video?
Colleen Whitney
Senior Vice President, Media Director for Chicago and San
Francisco
DigitasLBi
Whirlpools KitchenAid brand rolled out three of its first
made-for-web video spots this past July on Hulu as part of its
Theres So Much More to Make campaign. Colleen Whitney, senior vice
president and media director for Chicago and San Francisco at
DigitasLBi, spoke with eMarketers Danielle Drolet about the
KitchenAid digital effort, as well as advertisers increasing
curiosity to align original, made-for-web ad creative with
exclusive web programming.
eMarketer: When is a brand right for and ready to activate a
made-for-web video ad format?
Colleen Whitney: KitchenAid, in particular, has a highly engaged
audience that is very targeted. Its an upper-income woman who has a
passion for expressing herself through cooking. This, coupled with
the core insight that these consumers are looking for the tools to
inspire and help them achieve that passion, led us to the idea that
we can create highly engaging content for this narrow audienceand
deliver it in a very targeted and contextually relevant way that
will increase engagement and return on investment.
eMarketer: Why are these video spots a likely next step for
brands beyond linear television?
Whitney: Consumers are hungry for more online content, whether
thats premium-produced content from publishers or brand-produced
content thats relevant to a particular consumer group. There
continues to be increased demand, as well as time spent with that
content online. We are encouraging our brand clients to play in
that space in a strong way.
We look at it in a couple of different ways, either partnering
with the publishing community to create the content or, such as in
the case with KitchenAid, create exclusive content for our clients.
It comes in a couple of different models for us, but we certainly
believe there is a huge opportunity.
eMarketer: Do you have any metrics to share for the KitchenAid
campaign?
Whitney: Its only been in the market for a couple of weeks, and
we dont have specific metrics for this effort yet. Anecdotally, we
are seeing a lift in social sharing and conversation around the
video, as well as the associated content thats being put out. There
is a whole series of associated custom recipes, as well.
Across the industry, about 10% of the digital budget is going to
online video. But many of our clients are already spending more
than this.
The primary role of online video for this brand is to drive
brand lift. The measurement plan includes looking at both
attitudinal and behavioral metrics. For attitudinal metrics, were
looking at brand studies to check lift post-exposure. Then, from a
behavioral perspective, were looking at the in-view experience,
which includes monitoring completion rates, engagement with
interactive companion banners, and so forth. We are also looking at
brand site engagement metrics such as looking at attribution
modeling to understand how online video is going to assist in
driving conversion.
eMarketer: Are marketers looking to increase spending in
made-for-web video ads?
Whitney: Without a doubt our clients are going to increase
spending on online video overall. Across the industry, about 10% of
the digital budget is going to online video. But many of our
clients are already spending more than this. Its at a tipping
point, where dollars are going to start to follow the consumer time
spent.
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Digital Video Advertising Around the World Roundup Copyright
2013 eMarketer, Inc. All rights reserved. 13
What Is the Value of Made-for-Web vs. Linear TV Video?
Within that we will increase investment in made-for-web content
because the quality gets better and better. When we use it, we see
positive lift in engagement metrics. The key, though, is that the
online publishers have to continue to help us drive the model by
investing in the discoverability of the programming. Its important
that we continue to increase the scale and reach. Online video is
growing, but its still behind in reach compared with linear
television.
eMarketer: How does an ad buy differ for a made-for-web show vs.
a linear TV show?
Whitney: There is a big cost differential between the full
episode players (FEPs) vs. made-for-web video content. FEPs can be
as much as 50% or 60% higher from a cost-per-impression
perspective. In addition, when you look at industry research,
Tremor Video reported earlier this year that the results are
virtually the same for made-for-web content and TV content online.
It was looking at things like clickthrough and ad completion.
Online video is growing, but its still behind in reach compared
with linear television.
However, we have found for some of our advertisers, and again,
theyre in more vertical categories, that awareness measures are
indeed equitable. Engagement metrics such as clickthrough and
activity around high-value tasks are better for the short-form,
midtier content than they are for the FEPs. These are based on
studies via DART Logic.
eMarketer: Will the recent Emmy nod for Netflixs House of Cards
for best drama series present more opportunities for brand
marketers?
Whitney: We are watching Netflix very closely, as is everyone
else in the industry. There are two big impacts to date based on
what it is doing. It is really raising the bar for the standard of
quality for online original programming. There is no doubt about
it. It took HBO 25 years to get its first Emmy nomination. It took
Netflix six months.
Netflix also has this deal with DreamWorks Animation, which is a
game changer in terms of the quality of the content thats going to
continue to come into the online
ecosystem. But the other element is that it is changing the
distribution model, which means we need to ensure were driving
discoverability of this high-quality content.
Netflixs move to release all of its episodes simultaneously is
different from the linear TV model, and it changes consumer
expectations. Its only a matter of time before we figure out ways
for brand marketers to partner with and capitalize on this.
eMarketer: On Hulu in particular, ad loads are getting heavier,
yet these ads are more repetitive than on TV. Does this need to be
discussed more?
Whitney: Yes. Clutter is a big issue. Historically, one of the
benefits of advertising with online video vs. linear TV was that it
offered an environment that was less cluttered, which is
detrimental to key metrics like awareness as well as brand and
message recall. Its key to be mindful of frequency capping in
addressing clutter on behalf of consumers.
Its also about looking at creating more ad executions and
creating truly compelling ad executions, such as the KitchenAid
video, to engage consumers. Its a numbers game, but its also about
the quality of the content brands are putting out there that
engages consumersso you dont drive them away.
eMarketer: Besides streaming platforms, what opportunities are
there in gaming platforms? Microsoft is planning on creating its
own original video programming for Xbox, which could potentially
carry ads.
Clutter is a big issue. Its key to be mindful of frequency
capping in addressing clutter on behalf of consumers.
Whitney: All of our clients are really interested in what Xbox
is doing and how you can use the gaming platform as a marketing
effort. Xbox is positioning itself as more of an entertainment
destination and less of a specific gaming platform. Were interested
in the Kinect technology and the opportunity it provides to build
native interactive brand experiences.
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Digital Video Advertising Around the World Roundup Copyright
2013 eMarketer, Inc. All rights reserved. 14
What Is the Value of Made-for-Web vs. Linear TV Video?
Xbox is still in the development phases in how this all comes
together with original content as a pillar, but it is making a huge
investmentin talent as well as in infrastructure. Were watching it
closely.
eMarketer: What are clients concerns when considering
made-for-web video ads?
Whitney: At a high level, it still can often be a decision
between linear TV dollars and online video dollars. The historical
momentum behind what we know works on linear TV sometimes causes
clients to pause. At the end of the day, dollars are finite, and we
have to make decisions about where to invest in various
channels.
We get many questions about the efficacy of online video vs.
linear television. That said, within the online video environment,
there are a couple of things we discuss a lot with clients. Its a
very complex marketplace with FEPs, online originals, endemic
short-form [content], live streaming of events, multiple players,
ad networks, and so forth. Frankly, its not easy to buy. A
challenge we have put forth to publishers is to partner with us to
make it easier to buy for our clients. We will all win in that
scenario.
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The way people watch video is evolving.The way to buy and sell
video advertising should evolve, too.
Media evolves. Adapt.
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