Yume + LG at DBS: Debunking the Myths Of Video Advertising and Connected TV
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Join YuMe, LG, Razorfish, and Accedo for a look at common CTV myths around scale, demographics, content, creative, and measurement. From high level insight and the latest CTV research, learn why CTV is working now, why it’s worth investing in, and the value of reaching consumers on the biggest screen in a low clutter environment. Speakers: Christie Hartbarger, vp, strategic alliances and field marketing, Yume Megan Tweed, vp media, Razorfish Wendell Wenjen, director, advertising and interactive TV platforms, LG David Adams, vp corporate development, Accedo
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Yume + LG at DBS: Debunking the Myths Of Video Advertising and Connected TV
- 2. ©2012 YuMe. All rights reserved. CONFIDENTIAL2 LG Wendell Wenjen, Director, Advertising & Interactive TV Platforms Razorfish Megan Tweed, VP Media Accedo David Adams, VP Corporate Development YuMe - moderator Christie Hartbarger VP Strategic Alliances & Field Marketing
- 3. ©2012 YuMe. All rights reserved. CONFIDENTIAL A “connected TV” is a TV connected to the Internet 3 Smart TV Blu-ray Player Game Console Set-Top Box
- 4. 4 Myth #1 Connected TV has no scale
- 5. ©2012 YuMe. All rights reserved. CONFIDENTIAL Source: eMarketer Jan 2013, includes households with at least one connected TV set, where at least one person of any age uses the internet through a connected TV at least once per month. 5 29% connected TV US household penetration in 2013
- 6. ©2012 YuMe. All rights reserved. CONFIDENTIAL6 Source: Monetizing Apps on Connected Devices , 2012 Parks Associates
- 7. 7Source: Interpret & Discovery Communications “The Evolution of TV Everywhere” Oct 2012 Myth #2 Only young men are using CTV
- 8. ©2012 YuMe. All rights reserved. CONFIDENTIAL8 Source: YuMe, “The Who, What, Where, When , Why and How of Connected TV & Advertising,” in conjunction with Frank N, Magid Associates Aug 2012 93% 90% of other members are using the devices 58% male 42% female of connected TV users live in multi-member Households 34 mean age
- 9. ©2012 YuMe. All rights reserved. CONFIDENTIAL9
- 10. 10Source: Interpret & Discovery Communications “The Evolution of TV Everywhere” Oct 2012 Myth #3 On CTV: everyone is just watching Netflix
- 11. 11
- 12. ©2012 YuMe. All rights reserved. CONFIDENTIAL12 Source: YuMe, “The Who, What, Where, When , Why and How of Connected TV & Advertising,” in conjunction with Frank N, Magid Associates Aug 2012 stream movies from the Internet several times a week or more often watch movies that cannot be found on TV or cable watch high quality, professionally produced full length video programs or short videos you cannot find on TV or cable 54% 46% 67%
- 13. Myth #4 CTV ads are mostly pre-roll 13Source: Interpret & Discovery Communications “The Evolution of TV Everywhere” Oct 2012
- 14. ©2012 YuMe. All rights reserved. CONFIDENTIAL 14
- 15. ©2012 YuMe. All rights reserved. CONFIDENTIAL15 Source: Oooyala Global Video Index Report Q3 2012; YuMe & IPG Media Lab, “Are All Screens Created Equal?” Sept 2012; Altman Vilandrie & Co., “2012 Consumer Video Research” in partnership with Research Now, Sept 2012 »highest video completion rate of all devices »38% unaided ad recall compared with 27% (lowest) on Linear TV
- 16. Myth #5 Campaign learning's are too limited 16Source: Interpret & Discovery Communications “The Evolution of TV Everywhere” Oct 2012
- 17. ©2012 YuMe. All rights reserved. CONFIDENTIAL17 Impressions (with 3rd party tracking) Video completion rates Interaction rates Brand lift Delivery by day or day-part Delivery by hour (for larger campaigns) Performance by creative (to better understand creative best practices, by product, call to action, etc)
- 18. ©2013 YuMe. All rights reserved. CONFIDENTIAL 18 Source: Forrester/ANA 2012 US TV And Everything Video Online Survey; DIGIDAY, “Video State of the Industry Report Q1 2012” US marketers not currently experimenting with Internet- connected TV online video streaming ads, planning to in 2013 (higher than PC, tablet, and smartphone) 28% Advertisers/agencies spent on connected TV ads in 2012 vs. 26% of publishers who support connected TV 39%Advertising demand on connected TV is outpacing publisher support!
Notes de l'éditeur
- A “Connected TV” is a TV connected to the Internet, through a game console, a Blu-ray player, a smart/upgrader box, or a Smart TV (does not include computer/laptop hook up). It provides web access, streaming content, and applications.(Clarify connected TV as a category vs. a “smart TV” as an object)
- 29% represents actual reach of active HHs and may be on the conservative side. There are at least 40% of homes with a TV that connect to the internet overall. With activation rates growing each quarter, potential reach is significant.
- Wendell – does this align with the growth and activation trends you’re seeing at LG?Megan – while growth is strong in CTV, reach is still not a core selling proposition yet. What else does Razorfish look at when evaluating new platforms and deciding where to invest new $? David – you need to make platform recommendations to clients on where to go first. What trends are you seeing to make these recommendations?
- Internet connected devices in statistic:gaming consoles, Smart TVs, set top boxes, etc. that were connected to a television .Among US internet users who watched TV content, 48% said they streamed it through an internet-connected device to their television. The research found the following device breakdown in the connected TV audience streaming:30%, game console19%, set-top box or Blu-ray player12%, smart TVOther stats: -Movies On Demand nearly doubled in usage with 40% of TV viewers reportedly using the service in 2012 -55% of US TV viewers used Netflix’s online streaming service in 2012, compared to only 36% in 2011 – most popular used app on connected TVs – Netflix now streams more than 1 billion hours of content each month!-Amazon Instant Video, a newer player in the market, saw its service more than triple in usage—34% of TV viewers said they used the service in 2012 (compared to only 10% in 2011)
- Ethnically diverse – 44% are non-whiteHigh Affluent households –33% HHI $75k+
- Megan – the children’s networks have been trending down for over a year now. Is this type of research having an impact in how you plan during the holidays and other key tentpole events?Wendell – have you seen traffic patterns to support the idea that families are relying more on CTV for movie nights and general viewing?
- Wendell – what trends have you seen regarding software based OTT replacements, such as Verizon FiOs, and how they’re enhancing content in CTV?David – you’re working with a wide range of premium content providers. What are some recent companies you’ve seen jump into the space?Megan – possibly syndication story for brands if we have time?
- Connected TV has come a long way in just a year in terms of the types of advertising opportunities available. Megan, what advances have you seen that excite you most, in terms of unlocking more of the true potential within CTV?Standardization is still limited though, Wendell, how is LG working to move this conversation forward and make the space easier for brands to buy? (great place to speak to the Smart TV Alliance)
- David – what new metrics/systems are your clients putting into place to enhance back end measurement?Megan – what have you been looking at to help evaluate success post campaign? What do you see as the advantages of getting into a space like CTV on the earlier side?
- In closing, we wanted to include a slide from Forrester, to show what progress has been made and is continuing to be made in terms of investment in connected TV. Connected TV is evolving rapidly and is still a low clutter version of our beloved traditional TV. The time is prime now to enhance your multi-screen buy with connected TV.