eMarketer_Video_Advertising-How_Facebook_Twitter_Instagram_Tumblr_and_Snapchat_are_Changing_the_Rule... (2)

VIDEO
ADVERTISINGHow Facebook, Twitter,
Instagram, Tumblr and Snapchat
Are Changing the Rules
DECEMBER 2014
Debra Aho Williamson
Contributors: Rebecca Chadwick, Danielle Drolet, Corey McNair
Read this on
eMarketer for iPad

VIDEO ADVERTISING: HOW FACEBOOK, TWITTER, INSTAGRAM, TUMBLR AND SNAPCHAT ARE CHANGING THE RULES ©2014 EMARKETER INC. ALL RIGHTS RESERVED 2
CONTENTS
2 Executive Summary
3 Social Properties Are Becoming Major Video Platforms
5 Facebook: Redefining Video Advertising
9 Twitter: Beyond TV Partnerships
10 Instagram: Bid for Exclusivity
11 Tumblr: Reaching Passionate Fans
12 Snapchat: Bringing Video to Real-Time Marketing
13 Two Big Questions About Video in Social Media
(and Some Answers)
16 eMarketer Interviews
17 Related eMarketer Reports
17 Related Links
17 Editorial and Production Contributors
EXECUTIVE SUMMARY
It’s primetime for video in social media.
2015 will see a rapid increase in video advertising on
Facebook and other social platforms. Facebook in
particular is coming on strong and has the potential to
put pressure onYouTube, which captures nearly 20% of
US video advertising spending right now, according to
eMarketer estimates.
Facebook isn’t the only one angling for a slice of the video
advertising pie.Twitter is beta testing Promoted Videos;
Instagram is rolling out video advertising; andTumblr and
Snapchat have new video ad products.
This report details the growth of video on social
properties and assesses the benefits and drawbacks
of placing video ads on Facebook,Twitter, Instagram,
Tumblr and Snapchat. In addition, the report looks at two
important issues: whether these new video ad offerings
are causingTV budgets to shift, and how the social
platforms are complicating the viewability issue.
This is one of two linked reports about video advertising
in social media. See our related report, “Video Advertising
in Social Media: 11 Insights to HelpYou Make the Most of
It,” for advice and insights drawn from in-depth interviews
with executives and thought leaders at agencies,
marketers and publishers.
KEY QUESTIONS
■■ How much video is consumed on social platforms?
■■ How is Facebook redefining video advertising, and
how much of a threat will it be toYouTube?
■■ WillTwitter’s strong ties with theTV business lead
to success in video ads?
■■ What role will Instagram,Tumblr and
Snapchat play?
■■ WillTV ad budgets shift, and how are the social
platforms complicating the viewability debate?
% of respondents
Streaming Sites/Apps Used to Watch Digital Video
Among US Digital Video Viewers, June 2014
YouTube
75%
Facebook
33%
Netﬂix
28%
Yahoo
17%
Hulu
14%
Instagram
10%
Hulu Plus
9%
Vimeo
7%
Dailymotion
7%
Vine
7%
Note: n=2,081 ages 8-64 who watch video on a connected TV, computer,
smartphone or tablet
Source: Frank N. Magid Associates survey as cited in Jefferies, "Internet:
The Evolving Distribution of Content," Oct 20, 2014
181045 www.eMarketer.com

SOCIAL PROPERTIES
ARE BECOMING MAJOR
VIDEO PLATFORMS
Cisco predicted in a June 2014 report that video will
account for 80% to 90% of global consumer internet
traffic by 2018. If Facebook,Twitter and others have
their way, they will be the conduits through which a
significant portion of that video moves.
Facebook already ranks as the second biggest online
video property in the US, according to comScore data
from October 2014.The ranking only includes desktop
viewers, not mobile.
millions
Top 10 Online Video Properties Among US Internet
Users, Ranked by Unique Viewers, Oct 2014
1. Google sites 162.3
2. Facebook 93.8
3. AOL 86.3
4. Yahoo sites 57.1
5. VEVO 48.2
6. Maker Studios 45.6
7. Amazon sites 44.0
8. AnyClip Media42.0
9. Vimeo 38.9
10. Fullscreen 37.3
Note: home and work locations; content videos only; for long-form,
segmented content (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
Source: comScore Video Metrix as cited in press release, Nov 21, 2014
While platforms such asYouTube and streaming video
players still attract many internet users, a greater
percentage use social networks for video than use
other types of video platforms, such as news sites.
According to a 2014 survey by Google andTNS, 73% of
internet users in the US and in Canada used a video site
or app to watch digital video. Social networks ranked
second, at 30% of respondents in Canada and 29% of
US respondents.
% of respondents
Types of Sites/Apps Used by Internet Users in Canada
and the US to Watch Digital Video, 2014
Online video sites/apps
73%
73%
Social networks
30%
29%
News or magazine sites/apps
8%
9%
Catch-up TV player
4%
5%
Other
4%
5%
Canada US
Note: among those who watched digital video in the past 7 days
Source: Google and TNS, "Consumer Barometer," Oct 2014
A study like the one above might be perceived as biased,
considering that Google ownsYouTube, but a study from
Frank N. Magid Associates, conducted in June 2014, had
a similar finding. Here, Facebook was used by 33% of
digital video viewers, trailingYouTube’s 75% but a greater
percentage than other well-known video services like
Netflix and Hulu.

% of respondents
Streaming Sites/Apps Used to Watch Digital Video
Among US Digital Video Viewers, June 2014
YouTube
75%
Facebook
33%
Netﬂix
28%
Yahoo
17%
Hulu
14%
Instagram
10%
Hulu Plus
9%
Vimeo
7%
Dailymotion
7%
Vine
7%
Note: n=2,081 ages 8-64 who watch video on a connected TV, computer,
smartphone or tablet
Source: Frank N. Magid Associates survey as cited in Jefferies, "Internet:
The Evolving Distribution of Content," Oct 20, 2014
“We are seeing a little bit of a shift in how consumers
are consuming video,” said Steve Carbone, managing
director and head of digital and analytics at MediaCom
USA. “It used to beYouTube was the first place that they
go to search and see video, but a lot of those initial video
impressions are happening on [Facebook’s] newsfeed.
And then the second and third views are happening after
they are being searched for onYouTube.”
Social properties provide a different viewing experience
thanYouTube or aTV network’s streaming player. A key
differentiating element is the ease with which users can
share and comment.
The ALS Ice Bucket Challenge typifies this difference.
It showed that Facebook users were not only willing
to upload video of themselves being doused with ice
water, but also that they would use Facebook’s sharing
and tagging features to encourage others to view
and participate.
Between June 1 and September 1, 2014, 17 million
videos related to the ALS challenge were uploaded to
Facebook; they were viewed more than 10 billion times
by 440 million Facebook users.
All of these developments are causing marketers
to change how they think about the role of video in
social media.
■■ “We are looking at social platforms at large as a
new video distribution opportunity.This is a whole
new space for us to be able to distribute our video
assets.”—Natalie Bokenham, vice president and
managing director of digital, UMWorldwide
■■ “It’s not justYouTube anymore. It’s figuring out
how to incorporate snackable video content on
channels like Instagram,Vine, animated GIFs, etc.
Your content has to have a lot of legs that can span
multiple channels.”—Kellee Montgomery, social
and emerging digital marketing manager, Ford
Motor Co.
■■ “Where it used to be every marketer just looked at
YouTube, now we see that shifting to Facebook and
Twitter.”—DavidVogt, associate director of digital
strategy,Vizeum
With the groundwork laid for social media to become a
common place where consumers view and share video
and where marketers distribute video, video advertising is
poised to grow as well.The next sections detail the video
ad opportunities on Facebook,Twitter, Instagram,Tumblr
and Snapchat.

FACEBOOK: REDEFINING VIDEO
ADVERTISING
Facebook is on a global push to make video its next
big ad format.
In marketing presentations from NewYork to Abu Dhabi
this fall, Facebook has been touting its video capabilities.
Facebook’s CEO, Mark Zuckerberg, indicated during the
company’s Q3 2014 earnings conference call that video
could be as important a content type on Facebook as
photos have become. “If you go back five years, most of
the content was text. Now, a lot of it is photos,” he said.
“If you look in the future, as networks get better and
the ability to capture good video and share it in a good
way improves, then I think that going forward a lot of the
content that people share will be video.”
On the same call, chief operating officer Sheryl Sandberg
tried to temper expectations, saying, “We think there is
good opportunity with both video and Instagram ads, but
we’re going to remain deliberate and slow in our approach
to scaling those businesses.”
But Facebook’s recent moves show a major push into
video advertising. In the past six months Facebook has:
■■ Introduced autoplay ads, which start to play as a
user scrolls through the feed
■■ Acquired LiveRail, one of the leading platforms for
programmatic video advertising
■■ Launched a set of video metrics, including the
video-view count, enabling comparisons with
performance onYouTube and other platforms
eMarketer’s interviews confirm there is strong interest in
testing Facebook’s video advertising.
■■ “Facebook’s targeting and mass reach is just so
dominant right now. Having the opportunity to do
Facebook video [advertising] almost seems like a
no-brainer.”—Kevin Hung, senior vice president and
digital innovations director, Havas Media Chicago
■■ “I would expect to see the share of budget going to
Facebook video to increase pretty substantially over
2015.”—Noah Mallin, head of social, North America,
MEC Global
■■ “There may not be any more powerful video
distribution medium than Facebook at the
moment.”—Maikel O’Hanlon, vice president of
social media strategy, Horizon Media
Just how much digital video ad revenue Facebook will
generate will be a closely watched subject. Investment
bank JMP Securities in October 2014 called video “a
multi-billion dollar opportunity for Facebook.”
Facebook won’t get there next year, however. RBC in
August 2014 estimated that it could see $700 million in
worldwide revenue from autoplay video ads in 2015.
eMarketer forecasts that marketers will spend
$7.77 billion on digital video in the US in 2015, up 30.4%
from 2014.
billions and % change
US Digital Video Ad Spending, 2013-2018
2013
$3.82
32.2%
2014
$5.96
56.0%
2015
$7.77
2016
$9.59
2017
$11.25
2018
$12.82
Digital video ad spending % change
Note: includes advertising that appears on desktop and laptop computers
as well as mobile phones and tablets; includes in-banner, in-stream and
in-text
Source: eMarketer, Sep 2014; conﬁrmed and republished, Dec 2014
30.4%
23.4%
17.3%
13.9%
At this point, eMarketer does not forecast video ad
revenue for Facebook.There are a number of factors.
First, the company has not broken out any data for
the video revenue, and, per Sandberg’s comment, it is
attempting to mute expectations for now. Second, the
few third-party estimates of possible revenue levels vary
widely.Taken together, eMarketer does not feel there is
sufficient data to make an estimate.

FACEBOOKVS.YOUTUBE:BY
THE NUMBERS
Just how big a challenge will Facebook be toYouTube?
eMarketer believes that while Facebook has grown
quickly as a video platform, there are many reasons
to thinkYouTube will continue to be a favored video
advertising destination for marketers, and that Facebook’s
entry could help grow the overall video market, rather
than take away fromYouTube.
eMarketer expectsYouTube’s video ad revenues will rise
in 2015. We forecast that it will have $1.55 billion in net
US video ad revenue next year, amounting to a 20.0%
share.That would be up from 18.8% in 2014.
In recent months, media reports have declaredYouTube in
trouble—or even dead—as a result of Facebook’s moves.
But an in-depth analysis of the data behind some of these
reports reveals a different picture.
One set of data that got a great deal of publicity was a
comScore finding that Facebook had more desktop video
views than Google did in August 2014.
billions
Number of Videos Viewed via Facebook vs. Google
Sites* by US Internet Users, June 2013 & Aug 2014
June 2013
15.7
0.7
Aug 2014
11.3
12.3
Google sites* Facebook
Note: ages 15+; desktop only; *includesYouTube
Source: comScore Video Metrix, "5 Things We've Learned About Online
Video," Oct 9, 2014
While the data shows that Facebook has been successful
at incorporating more video in the newsfeed, the change
isn’t as shocking as the chart makes it seem.
■■ In June 2013, there was far less video on Facebook
than in August 2014, and users had to click to
launch a player to view it. August 2014 was the
height of the ALS Ice Bucket Challenge and by then,
autoplay was a standard feature.These two things
led to a bump in video views.
■■ A view on Facebook isn’t the same as a view on
Google/YouTube. Facebook videos autoplay, while
onYouTube, a user must initiate the view by clicking
to play the video.This implies a different level of
engagement on the part of the user.
■■ The data only compares desktop views. Facebook
still trails Google in total video views, including
mobile, according to Beet.tv.
In another study, Socialbakers reported in October 2014
that “social media marketers have done more than just
walked away from usingYouTube for video content—they
have sprinted.”
To support that conclusion, it cited its analysis of 180,000
video posts on 20,000 Facebook pages owned by
businesses, brands or organizations.The company found
that between January and September 2014, Facebook
pages increased their use of native Facebook videos by
64%. Moreover, Socialbakers said that in September 2014
more than 70% of the interactions with videos that pages
posted were with Facebook videos (as opposed to videos
fromYouTube or other companies).
The fact that pages increased their use of native
Facebook video over the past few months isn’t surprising
given Facebook’s heavy push to encourage them to try it.
And while it sounds impressive that 70% of interactions
were with Facebook native videos, Socialbakers’ blog
post indicates that in January, Facebook’s share was
already at around 60%.
A third analysis compared the performance of
#MontyThePenguin, a holiday-themed video that UK
retailer John Lewis uploaded on November 6 to Facebook
andYouTube. In the first 24 hours, according to data
from marketing technology company Unruly cited byThe
Telegraph, the video was shared 202,953 times, with
156,000 shares on Facebook and 47,000 onYouTube.

However, sharing is easier on Facebook than on
YouTube, and is only one measure of success. As of
December 16, the video had 20.5 million views on
YouTube vs. 6.2 million on Facebook.
What this data, along with eMarketer’s interviews with
marketers and agencies, indicate is that while there is
no question Facebook is growing as a video platform, its
impact onYouTube may not be what it seems.
As Carbone of MediaCom USA put it: “I love Facebook
video. I have no issue with it all. But that doesn’t mean
I’m going to stop usingYouTube. I want to use as many
platforms as I can to push my message out.”
For more onYouTube’s advertising business, please see
the report “YouTube Advertising: Ins and Outs of Making
It Work.”
BENEFITSAND DRAWBACKS
Facebook’s efforts to redefine video advertising are
creating several benefits for marketers, but also some
risks to be aware of. Among the benefits are the ease
with which ads can be shared, Facebook’s strong
mobile presence, and its native video player. However,
Facebook’s search capabilities are limited, the feed is
ephemeral and it isn’t a destination for video so much as
it is a sharing tool.
Benefits
Sharing: Marketers that have experimented with video
ads on Facebook say they can get a great deal of organic
distribution on top of paid distribution.The viral potential
is appealing, said O’Hanlon, of Horizon Media. “I see
Facebook becoming an enormous player in the video
distribution space, and that is the byproduct of the level
of targeting and the size of the audience and the way
Facebook has found to present the video experience.”
Mobile: As mobile video grows, Facebook is well
positioned. In Q3 2014, 83% of its worldwide users
accessed Facebook on mobile. Google doesn’t release
comparable figures aboutYouTube, but according to
GlobalWebIndex, in Q3 2014 39% of worldwide internet
users had visitedYouTube on a mobile device.
“The native player on Facebook … offers a better mobile
experience.That’s going to be critically important given
the numbers in mobile video usage and the value of
mobile video viewers,” said Kevin Lange, senior vice
president and social media director at Starcom MediaVest.
Targeting: Facebook’s targeting capabilities are a key
reason why its ad business has grown rapidly.That
same targeting will be available to video advertisers,
enabling them to target the people most likely to respond.
“You definitely get more targeting capability inside a
platform like Facebook than you would get anywhere
else,” said Mark Aikman, department manager for digital
marketing and customer relationship management at
Mercedes-Benz.
Native video player: Facebook is wooing publishers and
marketers to upload their videos directly to Facebook,
rather than link to a third-party site such asYouTube.There
are several benefits to using native video on Facebook,
including the fact that the video appears larger in the
feed and that it autoplays. In addition, Facebook provides
more analytics and the ability to retarget based on
video viewing.
“If you’re looking to retarget consumers off of video
consumption, that is a benefit of a native player vs.
embedding a link,” said Vogt, of Vizeum.
Autoplay: Autoplay is a benefit because it gives users a
taste of what a video is like. An ad that must be clicked to
be played is judged based only on the static image. “The
autoplay feature lets someone get a little snippet of what
you’re offering, and it really brings people in. We love it
as a brand,” said Katie Fischer, US media manager for
Beam Suntory.

Drawbacks
Limited search capabilities: Although Facebook has
improved its search functionality, nothing can beat the
fact thatYouTube is the second largest search engine after
Google, according to comScore. Finding a video that you
saw in your newsfeed a couple days ago got easier only
recently, with the launch of improved search functionality.
But finding videos is still much easier to do onYouTube.
This means that for now, Facebook will not be
somewhere people go to look for videos. “I don’t see
Facebook becoming a video destination, the way that
people know to go toYouTube or Hulu or Vimeo to search
for video,” said O’Hanlon.
It also means marketers must consider people’s mindset
when they view videos on Facebook vs. other platforms.
“Google andYouTube are the two largest search engines
in the world right now. Facebook is a social utility
platform,” said Hung. “The consumers’ frame of mind
when they’re in either of those spaces has a lot to do
with how receptive they are to advertising.”
Not a library: One ofYouTube’s strengths is the fact that
marketers can use it as a library for their video assets.
Many have gotten used to pointing their video advertising
there. Although Facebook is making a strong pitch to
convince marketers to upload videos directly, it’s not
the same experience as they get by uploading videos
toYouTube.
“Where does your video live before it gets distributed?
At the moment it makes sense for it to be onYouTube
because that’s where all your videos can be together and
then you can fish them out as needed,” said Bokenham.
Facebook promises improvements. “We understand
that marketers want this repository of videos, but when
we look at user consumption patterns, it’s mostly in
feed, so that’s why we’ve focused there,” said Fidji
Simo, product director for ads-newsfeed and video at
Facebook. “We recognize that having a central place
would help, especially if you’ve seen it in the feed and
you want to find it later on. So we’re going to make that
experience better.”
CPM pricing: Autoplay isn’t automatic for all advertisers.
Video ads won’t autoplay if advertisers use cost-per-click
bidding to buy them. Facebook recommends advertisers
use either CPM or reach-and-frequency buying optimized
for video views.This can be a drawback for advertisers
that want to pay for ads based on a deeper action than
an impression. It is also a different model thanYouTube or
Twitter uses.
“They’re going to have to start charging in a way that’s
competitive toYouTube. When you have aYouTube player
where you’re only paying for a completed view, and then
you have a Facebook that’s charging with CPMs, that’s
more of aTV model,” said Renee Whittingstall, partner
and digital media director at MediaCom USA.

TWITTER: BEYOND
TV PARTNERSHIPS
Twitter’s foray into video advertising involves two ad
products that may eventually become one.
Last year,Twitter unveiled Amplify, which places pre-roll
ads on short video clips thatTV networks and other video
providers upload toTwitter. Amplify now has over 100
partners, many of whom use it to distribute real-time
video such as exciting moments in a sporting event, clips
from live awards shows and breaking news.
More recently,Twitter began a beta test for Promoted
Video.These are essentially PromotedTweets that include
a video. While Amplify ads are limited to 6 seconds,
Promoted Video ads can be several minutes long and
don’t need to be associated with other content.
Among the advertisers that have tested the newer format
is Budweiser, which promoted a followup to its highly
regarded puppy spot that aired during the 2014 Super
Bowl.The new ad, #FriendsAreWaiting, got more than
2.5 million views in the first week after its release on
Twitter during the fall.Twitter said the ad had a 6:1 earned
to paid ratio, meaning that for every paid view, the ad had
6 unpaid, or earned, views from people retweeting and
sharing it.
The company does not break out its video ad revenue,
but the figure is likely only in the tens of millions of
dollars. In November 2014,Twitter said that four new ad
formats (website cards, mobile app install ads, video ads
and off-network ads) combined to generate $93 million in
revenue in Q3 2014.
Video “is one of our fastest-growing lines of business;
we’re seeing tremendous demand for it,” said Baljeet
Singh, product director forTV, video and music atTwitter.
One difference betweenTwitter’s video ads and
Facebook’s video ads is that theTwitter ads do not
autoplay. A user must click to start the ad. However,
media reports that surfaced as this report was being
published indicated thatTwitter was considering
using autoplay.
Benefits
TV relationships:Twitter’s partnerships withTV make
it appealing to advertisers who want to extend their
message. “We’ve taken assets like our video brochures
and [created an ad that said,] ‘You just saw the C-Class
commercial; explore the C-Class for yourself,’” said
Aikman of Mercedes-Benz. “We’ve found that those not
only break some ofTwitter’s advertising benchmarks, but
they’ve been phenomenal traffic drivers.”
Real-time:Twitter has long been associated with
discussions surrounding real-time news and events, and
its Amplify product is designed to take advantage of
that. Promoted Video also has a real-time component.
“Twitter’s key selling point is real-time conversation
targeting. If you have content that’s specific to a certain
topic, be it fashion or cultural events or cold and flu
conversations, since we’re in that season now, it makes
the video content that much more relevant,” Vogt said.
Vine: Marketers appreciate the creative opportunities
provided by Vine as well as its close ties with parent
companyTwitter. Although there are no plans to monetize
Vine yet, some companies have used Vines as ads on
Twitter and even onTV. HP, for example, turned a series of
Vine videos into aTV spot that showed off the capabilities
of a notebook computer that can turn into a tablet.
Drawbacks
Scale:Twitter’s smaller size is still baggage for some
advertisers. “WithTwitter, there are concerns around the
scale when you stack it up against what Facebook brings
to the table,” said O’Hanlon.
Format:Twitter’s roots as a service for mobile phones
is evident in the fact that it is still very text-heavy, even
as it has tried to incorporate more images and graphics
into the timeline. Video, to some marketers, seems out
of place.
Ease of use (for Amplify): Although Amplify has more
than 100 partners, the process of selling these ads
can be cumbersome, a fact that Singh acknowledged,
saying, “What we want to do is try to figure out ways
to automate some of the process and take some of
the friction out of the process for the brands and for
the publishers.”

In a typical Amplify execution, the publisher sells the
6-second pre-roll ad, and then the advertiser buys a
PromotedTweet to advertise the video.That two-step
process has led to a situation where “today, there’s
been a broader advertiser adoption of Promoted Video,
because the creative canvas is open and it’s a standalone
unit which means it doesn’t have to be associated with
content,” Singh said.
Off-Twitter strategy: While Facebook owns LiveRail,
one of the largest providers of programmatic video
advertising,Twitter is less far along in its own plans to
deliver video advertising outside of its walls. It owns
MoPub, a mobile ad network and technology provider,
but Singh characterized MoPub’s video capabilities as
“early days.”
INSTAGRAM: BID FOR EXCLUSIVITY
Exclusivity is a key benefit of video advertising on
Instagram. Because Instagram is selective about
the types of marketers that can advertise there,
the prospect of being among the chosen ones
is appealing.
Video ads went live on Instagram in October.The first
advertisers included Banana Republic,The Walt Disney
Co., Lancôme and Activision.
“Any advertiser waving a checkbook can’t advertise on
Instagram,” said Jonathan Anastas, vice president of
digital marketing at Activision. “They’re looking at your
current organic community and what kind of engagement
you’re getting. Does it seem like a brand is a fit with the
platform’s users? What is the quality of all of the assets
you’re putting out there?To some degree, you have to be
invited into advertising on Instagram.”
The price of admission is the willingness to live by
Instagram’s rules, however.
“Instagram has a distinct aesthetic.There is a distinct
community and way that people use the platform,” said
Jim Squires, director of market operations at Instagram.
“Then there is the format itself. It is a square format,
and [the ads are] 15 seconds. Repurposing video
content is typically not going to do as well and is not
as encouraged.”
Benefits
Engagement: Instagram’s message to advertisers is that
it is a welcoming place for beautiful brand imagery. For
example, Banana Republic’s ad showed a time-lapse of
a designer sketching an outfit, which fit with the creative
bent of many of Instagram’s users. However, Activision’s
ad for the game Call of Duty was more similar to a
15-secondTV commercial. Still, the results were positive.
“Since the campaign launched, while it’s still early, we’re
seeing engagement metrics much higher than our overall
social media averages,” said Anastas.
Relationship with Facebook: Although Instagram
operates as a separate company within Facebook,
Facebook’s ad sales team can sell Instagram ads if the
client is a customer of both (the buys are done separately,
however). Advertisers also anticipate more opportunities
to cross-promote on both services.

Creative opportunities: Instagram provides an
opportunity to try out new forms of video marketing, such
as its Hyperlapse time-lapse video app. Mercedes did
two such videos, for the CLA model and the ML63 AMG
sport-utility vehicle.
Likewise, Lancôme saw a chance to think past the typical
TV spot when it ran ads for a fragrance and a mascara.
“We want to challenge ourselves in thinking beyond
traditionalTV creative and be able to customize the video
experience,” said Brian Chang, assistant vice president of
media at L’Oréal Lancôme USA.
Drawbacks
Targeting: So far, the targeting capabilities are limited,
particularly in comparison to Facebook. Advertisers
can only target by age, gender and country. “The
Instagram platform should be smarter with the way
that they’re targeting their ads.They have so much
targeting capability, but they are rolling out really broad,”
said Whittingstall.
Restrictions: Instagram’s guidelines for advertising
won’t be a hit with some marketers. In addition to the
fact that the video must be square and no longer than 15
seconds, Instagram doesn’t allow advertisers to overlay
ad imagery with text, Squires said.There are additional
internal guidelines that aren’t published or shared publicly,
a spokesman added.
“The guidelines we have in place are to guide marketers
to understand the platform and to put together creative
that will fit well and ultimately achieve their objectives,”
Squires said.
TUMBLR: REACHING
PASSIONATE FANS
Tumblr this fall launched a native video player with
advertising partners includingThe CW Network,
Lexus, Ford Motor Co. and JCPenney.The ads
autoplay in a user’s stream, as Facebook’s do, but
have a novel twist; on the desktop, users can pop out
the video player and continue watching video content
while they scroll through their feed.
However,Tumblr isn’t expected to be a major player in
video advertising. It will have just $100 million in revenue
in 2015, including video and other forms of advertising,
and most executives interviewed by eMarketer are
intrigued but consider it a lower priority.
Tumblr prices its video ads on a cost-per-view basis.The
ads loop silently unless a user clicks to play.
Benefits
Immersive rather than interruptive experience: Unlike
Twitter, which has been text-heavy and is now trying to
work in more images and video,Tumblr has always been
multimedia-heavy. Video fits more naturally.
“From the user perspective there is really no difference
between an animated gif and an autoplay muted video,”
said Lee Brown, global head of brand partnerships
atTumblr.
Relationship withYahoo: In June,Yahoo began
displaying someTumblr ads on its sites, includingYahoo
News andYahoo Beauty.The ads appear as sponsored
content or in-stream native ads. AlthoughTumblr’s video
ads aren’t yet a part of this, it’s a possibility for the future.
The prospect of displayingTumblr ads acrossYahoo’s
network “is very intriguing,” said Mallin of MEC Global.
“When you add video to that, I think it starts to bring
some of the scale that we look for.”
Time spent:Tumblr users tend to be very active, logging
more time on the service than on other social platforms.
According to November 2014 data from Cowen & Co.,
US users spend an average of 34.2 minutes per day on
the service, second only to Facebook, at 42.1 minutes.
People ages 18 to 29 reported the highest usage, 50.6
minutes per day, almost the same amount of time people
in the same age group used Facebook (51.0 minutes).

Drawbacks
Size:Tumblr’s audience is smaller than other social
properties; in a July 2014 survey, A.T. Kearney found that
11% of US internet users have an account, compared
with 81% who were on Facebook, 37% onTwitter and
23% on Instagram.
Analytics: With the new video player,Tumblr offers many
of the same video analytics as its competitors do, such
as paid views, earned views, number of times the video
is played and average completion rate. It also provides
unique metrics, such as pop-outs and loops. But some
marketers say that they want more. “Even with the new
player, it doesn’t seem to have the same level of analytics
that the other platforms have,” Anastas said.
Targeting: Ads can only be targeted based on location,
gender and interest onTumblr.That has caused it to
fall lower on the list for some advertisers. “We’ve got
some concerns aroundTumblr’s targeting capabilities.
It’s not in our top tier of consideration at the moment,”
O’Hanlon said.
Too much of a good thing:Tumblr’s youthful users
upload a great deal of content and tend to be very
active. While that’s generally a good thing, it can also be
overwhelming for brands. “It’s a community that shares
quite a bit. We wouldn’t be able to properly monitor or
respond or maintain the level of community management
inside a platform likeTumblr that we are able to on
our other platforms,” Aikman said in explaining why
Mercedes-Benz doesn’t yet have a presence onTumblr.
SNAPCHAT: BRINGING VIDEO TO
REAL-TIME MARKETING
Snapchat’s ability to curate video around live events
is intriguing to marketers, but its smaller user base
as well as the newness of its ad products makes it a
lower priority for most.
Snapchat launched Our Story in June; the feature allows
multiple users to upload pictures and videos from the
same location or event.The result is a package that
represents users’ own experience of the event. So far,
Snapchat has curated Our Story packages for events such
as college football games, music festivals as well as the
Indian holiday Diwali.
In November, Samsung became the first advertiser to
sponsor an Our Story. It included images and videos
that were labeled “sponsored” in an Our Story for the
American Music Awards.
The possibilities intrigue marketers, who see similarities
to liveTV sponsorships and also to the wayYouTube
organizes content into ad-supported channels.
YouTube’s channels “monetize user-generated content
video in a way that is safe for advertisers.That’s
exactly what Snapchat is doing with Our Story—
curating user-generated video around live events,” said
Starcom’s Lange.
The Our Story ads follow Snapchat’s first foray into
advertising. In October 2014 it began including occasional
ads in a user’s Recent Updates list. Users can choose
whether or not they want to view the ad, and it
disappears after 24 hours.
Benefits
A fresh take on curated user-generated video:The
collection of images and videos gives an intimate
perspective on an event, one that other services may
not be able to duplicate. During some college football
games, for example, Our Story included footage inside
the locker room before and after the game, which fans
don’t normally get to see, Sporting News reported in
October 2014.
“I think [Our Story] has potential to be game-changing in
terms of how user-generated video is both consumed and
monetized by marketers,” said Lange.

Real-time marketing:This can be both a benefit and
a drawback. On the positive side, for marketers that
routinely useTwitter to share real-time posts tied to
news and events, Our Story provides another way to be
relevant. A smart integration of a football-themed video
ad in an Our Story about a big game would make the
advertiser seem like it is paying attention.
Disappearing creative:This is also both a benefit and a
drawback; the benefit for marketers is if their creative,
or their product, in some way aligns with Snapchat’s
user experience, in which Snaps disappear after they are
viewed. “There’s a huge opportunity to do some really
interesting things that marry media and creative because
there’s a feature that disappears,” said Catherine Davis,
US president for Vizeum. “When you think about the
number of products and services where the ability to
disappear is important, I think there are some incredibly
creative solutions.”
Drawbacks
Disappearing creative: For some marketers, the fact
that ads on Snapchat don’t last long will be a drawback.
There’s no archive of past Our Story collections. And
in keeping with Snapchat’s mission to not make ads
intrusive, users can easily skip over them if they appear in
an Our Story. “They require brands to take a step outside
of the comfort zone of the way that impressions have
always been measured,” said O’Hanlon.
Real-time content is risky: Snapchat curates the content
in Our Story, but there is still a risk that something a user
uploads will not be appropriate or positive regarding a
brand. Marketers that buy Our Story ads will need to
accept this.
Targeting: Snapchat is purposely avoiding ads that it calls
“creepy and targeted.” However, the lack of targeting will
give some advertisers reason to delay using Snapchat.
“I think we’ll have to see how video ads and Snapchat
evolve to see if there are targeting capabilities or if we’re
just talking about reaching broad-based enthusiasts,”
said Aikman.
TWO BIG QUESTIONS ABOUT
VIDEO IN SOCIAL MEDIA (AND
SOME ANSWERS)
All of this activity raises two questions:Will video
advertising in social media help shiftTV budgets
toward digital? And how do social platforms
complicate the ad viewability debate?What happens
in the coming year will help answer those questions.
WILLVIDEO HELP SOCIAL MEDIA GRAB
TV BUDGETS?
For almost as long as social media advertising has
been in existence, the industry has speculated about
whether properties like Facebook could tap into ad dollars
earmarked forTV.
So far, traditionalTV hasn’t been hurt. As social media
advertising and digital video advertising spending has
grown, so has spending on broadcast and cableTV.
eMarketer forecasts thatTV ad spending will reach
$70.59 billion in 2015, up 3.0% from 2014. Digital video
spending will rise to $7.77 billion, a 30.4% increase
over 2014.
US TV* vs. Digital Ad Spending as a Percent of Total
Media Ad Spending, 2013-2018
TV*
Digital**
—Desktop
—Mobile
Digital video***
—Desktop
—Mobile
Total media
ad spending
(billions)
2013
38.8%
25.2%
19.0%
6.2%
2.2%
1.8%
0.4%
$170.95
2014
38.1%
28.2%
17.7%
10.6%
3.3%
2.5%
0.9%
$179.80
2015
37.3%
31.0%
15.9%
15.1%
4.1%
2.7%
1.4%
$189.06
2016
36.8%
33.5%
13.4%
20.1%
4.8%
2.8%
2.0%
$200.27
2017
36.2%
35.6%
12.1%
23.5%
5.4%
2.9%
2.4%
$210.02
2018
35.6%
37.5%
10.9%
26.6%
5.8%
3.0%
2.8%
$220.94
Note: *includes broadcast TV (network, syndication & spot) & cable TV;
**includes advertising that appears on desktop and laptop computers as
well as mobile phones and tablets, and includes all the various formats of
advertising on those platforms; ***includes advertising that appears on
desktop and laptop computers as well as mobile phones and tablets;
includes in-banner, in-stream and in-text
Source: eMarketer, Dec 2014

But with Facebook’s aggressive push into video, and
agencies’ willingness to scrape together a media budget
for digital video from wherever they can find it, it is
possible that marketers will dip more heavily intoTV
spending to fund video ads in social media.
And when a major agency holding company executive
says publicly that his company is encouraging clients to
shift spending fromTV to digital video, the drumbeat gets
louder. Omnicom Group’s Daryl Simm, CEO of media
operations, toldThe Wall Street Journal in October 2014
that the holding company is “counseling our clients to
move between 10% to 25% ofTV dollars to online video.”
Meanwhile, UM, a division of the IPG agency holding
company, inked a two-year, multimillion-dollar deal with
Facebook in September 2014, doubling its expenditures
there. Facebook’s Premium Video Ads were a key driving
factor in the deal, and UM’s head of media, David Cohen,
told Advertising Age that most of the budget would come
from eitherTV or online video.
Whether these drips become a stream will become
more clear in 2015, when advertisers make their upfront
TV buys.
“On theTV side, we’re still not in the right cycle,” said
Facebook’s Simo. “Next year is going to be when we will
see” whether budgets shift.
“I think what Facebook is doing with their premium video
product is a way for them to gain share of upfront video
dollars. I expect to see quite a bit of growth around that
product next year in the video upfronts,” said Lange,
of Starcom.
But video in social media also presents a bucketing
challenge, since it doesn’t fit easily into one media
vertical. And advertisers may also dip into print and
display budgets to fund expenditures.
“I’m not sure it’s banner money going to digital video or
television money going towards digital video, or social
money going towards digital video, so much as it’s a little
bit of all of it,” said Anastas.
Another twist on the budgeting question is that some
believe thatTV budgets and digital video budgets will
come together, with advertisers buying “video” in
whatever platform or device makes sense. As O’Hanlon
put it, “I think it’s a rare occurrence for any brand or even
an agency to put together a unified video effort.That may
be the way of the world going forward, but right now
it still seems to be broken out, as opposed to treating
video as a holistic asset that can run anyplace video can
be served.”
HOW DO SOCIAL PLATFORMS
COMPLICATETHEVIEWABILITY DEBATE?
Viewability is a major concern across the ad industry; in
a December 2014 study of browser-based desktop and
mobile display ads (not including video ads), Google found
that 56.1% of the ads were not seen.
But the issue doesn’t just impact display ads; it includes
video as well. Viewability ranked as the top concern
about video quality among US video buyers and sellers
surveyed by Adap.tv in August 2014.
And because the social platforms have differing standards
for what constitutes a video view, it is creating headaches
for marketers and agencies and pitting the platforms
against each other.
For example, here is howYouTube, Facebook andTwitter
define a view:
YouTube: ForTrueView in-stream ads, a view is recorded
when viewers watch 30 seconds of the ad, or to
completion, if the ad is under 30 seconds. ForTrueView
in-slate ads (which play before long-formYouTube partner
videos over 10 minutes), a view is recorded when viewers
choose to watch the ad, which is one of three they need
to choose from, or if the viewer sees a video ad mid-roll
during the video. ForTrueView in-display ads or in-search
ads, which run next to video content or search results,
respectively, a view is recorded when viewers click on a
video ad and begin watching the video.
Facebook: A view is recorded if the ad autoplays for at
least 3 seconds before the user scrolls away.
Twitter: A view is recorded when someone clicks to play
the ad and the ad starts.

Further complicating the issue, the Media Rating Council
(MRC), an industry body, in June released a standard
defining a viewable video impression as 2 seconds, with
the additional requirement that 50% of the ad’s pixels
must be visible on the browser page. However, the MRC
also said that if a video ad is clicked, it may “in certain
instances, be considered a proxy for viewability.”
The lack of a common standard is worrisome to
advertisers and agencies, which need to know when
an ad is viewed and how to compare view counts
across platforms.
“Facebook and much of the industry define a view as
being at least 3 seconds. ButYouTube, at least with their
TrueView [in-stream] product, only charges advertisers
for a view if the entire video is viewed,” said Starcom’s
Lange. “Until the industry agrees on a more consistent
standard, it’s just going to be important that advertisers
are aware of the differences both when they’re planning
and negotiating buys as well as interpreting results.”
“One of the big pushes that we have not just at MEC
but across all of the GroupM companies is to go to a true
viewability standard, and right now the social networks in
general are just not there,” said Mallin. “Of course, we’re
still buying and we’re still working with them, but the Holy
Grail is having a measurement across every platform.This
isn’t just an issue for social, it’s an issue across digital.”
Most executives interviewed by eMarketer said they
thought Facebook’s 3-second rule was acceptable.
“A lot of advertisers and brands are saying, ‘Three
seconds, is that an accurate measurement of whether
someone’s actually viewed the video? My personal
feeling is that it’s OK,” said JeffTan, director of digital
strategy and communications planning at Vizeum.
“Think about when you’re scrolling through your mobile
newsfeed. If you actually stop and pause for 3 seconds to
watch a video, even if it is on autoplay, that is generally a
long time.”
In Facebook’s opinion, “if you’re just not interested in
the video, you’re going to scroll past it in less than 3
seconds,” said Simo. “Given that there is no click, we try
to find a proxy for intent, and sitting around for 3 seconds
is definitely a strong proxy for that.”
However,Twitter’s Singh, while not specifically calling out
any competitors, said his company is backing a stricter
standard: “A view should be when there’s some sort
of indication from the user that there’s an intention to
view. I think there are some parties that are heading that
direction, and that’s generally where we’re heading.”
Advertisers may have the final say in this debate; if they
gain good results from video ads that play for a few
seconds, then they will effectively back that standard by
buying more ads on Facebook. However, if the ads do
not perform as expected,YouTube andTwitter may be the
beneficiaries of more spending.
There is no question that determining engagement
is easier with the metricsYouTube andTwitter use.
Actively clicking to play an ad signifies a level of interest,
while letting an ad play for a few seconds is a more
passive indicator.

EMARKETER INTERVIEWS
Mercedes-Benz: ExpandingVideo Efforts
BeyondYouTube
Mark Aikman
Department Manager, Digital Marketing and
Customer Relationship Management
Mercedes-Benz
Interview conducted on November 20, 2014
Activision Deploys First ‘Call of Duty’Video Ad Spot
on Instagram
Jonathan Anastas
Vice President, Digital Marketing
Activision
Tumblr onTumblr’sVideo Posts: Authenticity
Wins Fans
Lee Brown
Global Head, Brand Partnerships
Tumblr
Lancôme USA Finds Instagram a Good Fit forVideo
Brian Chang
Assistant Vice President, Media
L’Oréal Lancôme USA
Beam’s New Bourbon Gets #FiredUp withVideo Ads
Across Social
Katie Fischer
US Media Manager
Beam Suntory
Social Networks Becoming More Important as
Video Destinations
Kevin Lange
Senior Vice President and Social Media Director
Starcom MediaVest
Natalie Bokenham
Vice President and Managing Director, Digital
UM Worldwide
Interview conducted on October 29, 2014
Steve Carbone
Managing Director and
Head of Digital & Analytics
MediaCom USA
Catherine Davis
President, US
Vizeum
Kevin Hung
Senior Vice President and
Digital Innovations Director
Havas Media Chicago
Noah Mallin
Head of Social, North America
MEC Global
Kellee Montgomery
Social and Emerging Digital Marketing Manager
Ford Motor Co.
Interview conducted on August 8, 2014
Maikel O’Hanlon
Vice President, Social Media Strategy
Horizon Media
Fidji Simo
Product Director, Ads Newsfeed and Video
Facebook
Baljeet Singh
Product Director –TV, Video and Music
Twitter
Jim Squires
Director, Market Operations
Instagram
JeffTan
Director, Digital Strategy and
Communications Planning
Vizeum

David Vogt
Associate Director, Digital Strategy
Vizeum
Renee Whittingstall
Partner, Digital Media Director
MediaCom USA
Rick Wion
Executive Director
Manifest Social
RELATED EMARKETER REPORTS
Video Ads in Social Media: 11 Insights to HelpYou
Make the Most of It
YouTube Advertising: Ins and Outs of Making ItWork
Social Marketing Update: EightTrends to Help Prepare
for 2015
Facebook Advertising: Next Steps for
Brand Advertisers
RELATED LINKS
A.T. Kearney
Adap.tv
Cisco
comScore
Cowen & Co.
Frank N. Magid Associates
GlobalWebIndex
Jefferies
JMP Securities
RBC
Socialbakers
TNS
Unruly
EDITORIAL AND
PRODUCTION CONTRIBUTORS
Cliff Annicelli Managing Editor, Reports
Ben Clague Chart Data Specialist
Joanne DiCamillo Senior Production Artist
Noah Elkin Executive Editor
Stephanie Meyer Senior Production Artist
Dana Hill Director of Production
Kris Oser Deputy Editorial Director
Ezra Palmer Editorial Director
Heather Price Senior Copy Editor
Katharine Ulrich Copy Editor

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