Going Beyond TV on the Web:

Finding the Untapped Advertising Opportunities in Online Video

Prepared by Tania Yuki

– A look at online video advertising

 Types of online video and the opportunities beyond TV on the web

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“What we‟ve lost in viewers and advertising dollars on the analog side isn‟t
being made up for at all on the digital side.
We want to find an economic model that makes sense.”
Jeff Zucker‟s keynote at Digital Hollywood

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Online video advertising: trends and projections
© comScore, Inc. Proprietary and Confidential.
■ Video advertising was worth $587
million in 2008*
■ Video advertising projected to hit $850
million this year (+45% over last year)
…Projected to reach $1.85 billion by 2011
(emarketer), and $7.1 billion by 2012
(Forrester Research**)
*emarketer
**This has since been revised in some Forrester communications to over 3 billion by
4 2014
Online video advertising - a few quick facts

 Based on comScore‟s ads and content preview data*, linear video advertising
reached approx:
65% video
viewers

Over 1.3 billion

linear video ads
50% total web
are served
across the web
in a month,
reaching the
average video
viewer 13 times
33% total US
population

*Video ads and content data relates to linear video advertising only (that is, pre-roll,
post-roll, mid-roll, ad insertions) and for this presentation we drew on April 2009
© comScore, Inc. Proprietary and Confidential. 5 Video Metrix
The tension between standardization and customization

Customization,
specificity

Standardization,
scale

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Standardization: IAB Compliance Seal Program

 Digital Video Ad Format

– Gives advertisers and their agencies the ability to develop advertising
content with consistent specifications

 VAST
– Standardizes communication between third party video ad servers and
publisher players, allowing for a plug-and-play integration environment.

 VPAID
– Compliant publishers can render any type of video advertising created
and/or trafficked by a VPAID-compliant video ad created using the same
client technology

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IAB Video Ad Standards

 Set Standards
– Length of ads
– Coding to deliver the
ads
– Coding for players to
play the ads
– Ad sizes
 Why Standards?
– Scale
– Create an easy-to-buy
set of products on
publisher sites
– Allow agencies a „create
once, run everywhere‟
solution in video

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 A look at online video advertising: types, trends, challenges
– The opportunities beyond TV on the web

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Types of online video

Web Video UGC

Premium
*Professionally produced by traditional
media and entertainment companies
* Typically using union talent
*Producing studio or company usually
holds rights
*Independently produced content
* Made by individuals, digital studios or small
teams
*Using professional and semi-professional
crews and production teams
*Often using non-union talent
* Everything else
* Includes video uploaded on social
networking or video sharing sites
* Typically one off‟s, unscripted and with
little or no editing
*Youtube‟s users are uploading 20 hours
of videos every 60 seconds

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What is web video?

 Aka prosumer, independent, best of web, etc

 A new class of content– independents producing quality, original Web
shows that attract specialized, niche audiences
 Video content created primarily (although not exclusively) for online
broadcast
 Opportunities in branded entertainment, sponsorships

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Why should we care about web video?

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Web video is a powerful way of reaching niche audiences as they
congregate around their interests

gamers

Snow Mom
boarders bloggers

DIY
fashion
and
influencers

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Web video represents massive growth potential in terms of available
audience…

160000

140000

120000

100000
Average video viewers total internet
80000

60000

40000

20000
Hulu, NBC, ABC, CBS, FOX average viewers trend
0
1 2 3 4 5 6

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Online video – breakdown of unduplicated audiences by content type

Where the audience is…

Web video and the wild west of UGC Hulu, ABC, CBS, NBC, FOX

26%

74%

*Total unduplicated audience approximations are based on May Media Metrix

© comScore, Inc. Proprietary and Confidential. 15 Audience Duplication and May Video Metrix data,
How can we scale the opportunities beyond TV on
the web?

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Case Study: Warner Bros and Next New Networks
Indy Mogul, sponsored by Warner Bros‟ Friday the 13th

 Objective:
– Drive awareness for the release of latest installment of the popular Warner Bros horror franchise in a
deeply integrated campaign
 Solution:
– MediaCom partnership to develop cross-network promotional campaign: “Jason Month” takes over our
shows for weeks leading up to the movie‟s release
– Indy Mogul shows integrated “Jason Month” into programming: Backyard FX recreated the “axe in the
back” effect; a special edition of Best Short Films in The World integrated a Jason and Bobby Miller
scary storyline; and Beyond the Trailer‟s Grace Randolph presented an episode recapping the Friday
the 13th franchise to date
– Cross-promotional media on Next New Networks sites and YouTube in-video overlay and companion
banner
 Results:
– Delivered over 4 million brand impressions
in under two weeks

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Case Study: For Your Imagination and Watchmen

 Create interest in and introduce audience to WATCHMEN story through a

Mini Web Series of 6 themed KYLE PICCOLO videos 2/16/09 to 3/2/09
 WATCHMEN movie trailers as pre and post rolls, title cards, product
placements and banner overlays
 Interactive video player with easter eggs
 Results:
– Video views 2+MM views
– Average video
viewed 75%
– 11.46 % CTR
per view

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Case Study: Blip.tv and Skype

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3 Simple ways to scale web video

 Complete reporting that includes video syndication and viral embeds

– Hybrid methodology captures syndicated traffic and content producer
information for total web video coverage
– Simple beaconing implementation across network of sites
 Create custom program „verticals‟ that aggregate specific audiences
around their interests, or that aggregate specific audiences around their
behaviors
– Then, implement with simple planning tools such as Video Reach and
Frequency (currently in beta)
 Working with video content networks, distributors and video ad networks
is an important starting point

© comScore, Inc. Proprietary and Confidential. 20

Thank you!
tyuki@comscore.com