Online video by the numbers july2011

Online Video by the NumbersWhere weve come from, where were headed, and why you should care.#DanPiech, Product Manager, comScore July 2011

101 MILLION PEOPLE IN THE UNITED STATES ARE GOING TO WATCH © comScore, Inc. Proprietary. 2 Source: comScore Video Metrix, June 2011

101 MILLION PEOPLE IN THE UNITED STATES ARE GOING TO WATCH1.3 BILLION VIDEOS © comScore, Inc. Proprietary. 3 Source: comScore Video Metrix, June 2011

101 MILLION PEOPLE IN THE UNITED STATES ARE GOING TO WATCH1.3 BILLION VIDEOS TODAY © comScore, Inc. Proprietary. 4 Source: comScore Video Metrix, June 2011

706% GROWTH SINCE 2006 © comScore, Inc. Proprietary. 5 Source: comScore Video Metrix, June 2011

WHERE WE’VE COME FROM CHARACTERISTICS OF THE VIDEO AUDIENCE WHAT WE’RE WATCHING THE VIDEO AD UNIVERSE WHY VIDEO IS A POWERFULLY UNIQUE AD MEDIUM! ACTION ITEMS © comScore, Inc. Proprietary. 6 Icon Source: Dale Morrell, 19eighty7.com

WHERE WE’VE COME FROMCHARACTERISTICS OF THE VIDEO AUDIENCEWHAT WE’RE WATCHINGTHE VIDEO AD UNIVERSEWHY VIDEO IS A POWERFULLY UNIQUE AD MEDIUMACTION ITEMS © comScore, Inc. Proprietary. 7 Icon Source: Dale Morrell, 19eighty7.com

1985: The Internet is Text-Based 1985 © comScore, Inc. Proprietary. 8

1995: The Internet becomes HTML-based 1995 © comScore, Inc. Proprietary. 9 Source: archive.org

HTML increases Internet penetration Total Internet Users (MM)220200180160140120100 80 60 40 20 0 JAN 1999 June 2011 © comScore, Inc. Proprietary. 10 Source: comScore Media Metrix June 2011

2000: Dial-up connections stifle online video growth 2000 56 kbps © comScore, Inc. Proprietary. 11

2000-2006: Explosion of Broadband Connectivity Broadband Penetration100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% © comScore, Inc. Proprietary. 12 Source: comScore Media Metrix June 2011

2006: Video Reaches the Big Stage 2006 <embed src=“video.swf”> © comScore, Inc. Proprietary. 13

2006: Online Video Viewership Nearly Doubles180,000160,000140,000120,000100,000 80,000 60,000 40,000 20,000 0 May… May… May… May… May… Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Jul 06 Jul 07 Jul 08 Jul 09 Jul 10 Nov 06 Nov 07 Nov 08 Nov 09 Nov 10 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 JAN 2006 JAN 2007 JAN 2009 JAN 2010 JAN 2011 © comScore, Inc. Proprietary. 14 Source: comScore Video Metrix

2006: Beginning to Monetize 2006 $324 MILLION (ad spend) 63 BILLION VIDEOS © comScore, Inc. Proprietary. 15 Source: comScore Video Metrix; eMarketer, December 2009; IAB, 2010

Premium video content achieves scale en-masse 2009 <video> © comScore, Inc. Proprietary. 16

2009: The late majority become video viewers180,000160,000140,000120,000100,000 80,000 60,000 40,000 20,000 0 May… May… May… May… May… Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Jul 06 Jul 07 Jul 08 Jul 09 Jul 10 Nov 06 Nov 07 Nov 08 Nov 09 Nov 10 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 JAN 2006 JAN 2007 JAN 2009 JAN 2010 JAN 2011 © comScore, Inc. Proprietary. 17 Source: comScore Video Metrix

Crossing the Chasm analogy as it applies to Online Video © comScore, Inc. Proprietary. 18 Concept Source: Crossing the Chasm by Geoffrey Moore; Image Source: Craig Chelius

2006 was the year of the early majority, 2009 the late majority180,000160,000140,000120,000100,000 80,000 60,000 40,000 EARLY LATE MAJORITY MAJORITY 20,000 0 May… May… May… May… May… Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Jul 06 Jul 07 Jul 08 Jul 09 Jul 10 Nov 06 Nov 07 Nov 08 Nov 09 Nov 10 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 JAN 2006 JAN 2007 JAN 2009 JAN 2010 JAN 2011 © comScore, Inc. Proprietary. 19 Source: comScore Video Metrix

2010: Video is the fastest growing online ad format 2010$1,440 MILLION (ad spend) 441 BILLION VIDEOS © comScore, Inc. Proprietary. 20 Source: comScore Video Metrix; eMarketer, December 2009; IAB, 2010

Online video is by far and away the fastest growing Internet segment 2006 – 2010 $ Ad Spend: +344% # Videos: +600% © comScore, Inc. Proprietary. 21

Online Video’s Paradigm Shift 2000= An Occasionally Viewed Medium for Peripheral, Low-Quality Media Consumption 2011= A Regularly Targeted Medium for Engaged, High-Quality Media Consumption © comScore, Inc. Proprietary. 22

Online video is now a significant aspect of our online lives TODAY NUMBER OF VIEWERS per month 183MM % OF INTERNET AUDIENCE 86% VIDEOS VIEWED per month 39B VIDEOS PER PERSON per month 211 VIEWING TIME PER PERSON per month 16 hr © comScore, Inc. Proprietary. 23 Source: comScore Video Metrix, June 2011

China and the US lead the way with scale 300 Unique Viewers by Country (MILLIONS) 250Unique Viewers per month 200 150 100 50 0 Italy Germany Turkey France China India US UK Singapore Brazil Mexico Australia Spain Japan Russia Argentina Chile Canada Hong Kong Malaysia New Zealand © comScore, Inc. Proprietary. 24 Source: comScore Video Metrix, April 2011

Canada has the most active video viewing population 200 180 Monthly Videos per Viewer by Country 160Videos per viewer per month 140 120 100 80 60 40 20 0 Germany Turkey France Italy India US UK Singapore Brazil Mexico Australia Spain Japan Russia Chile Argentina Canada Hong Kong Malaysia New Zealand © comScore, Inc. Proprietary. 25 Source: comScore Video Metrix, April 2011

All ages consume online video Percentage of Internet Audience that View Video 100 89.43 87.17 86.31 90 85.92 85.51 84.61 85.19 80Percent per month 70 60 50 40 30 20 10 0 12-17 18-24 25-34 35-44 45-54 55-64 65+ © comScore, Inc. Proprietary. 27 Source: comScore Video Metrix, June 2011

18-34 Year-olds are heaviest consumers of online video 350 325 Monthly Videos Per Viewer 300 269 240Videos per viewer per month 250 211 200 179 150 140 119 100 50 0 12-17 18-24 25-34 35-44 45-54 55-64 65+ © comScore, Inc. Proprietary. 28 Source: comScore Video Metrix, June 2011

Men and women are equally likely to have watched online video Percent of Viewers 49.7% Male 50.3% Female 48% 52% 42% 58% © comScore, Inc. Proprietary. 29 Source: comScore Video Metrix, June 2011

Men watch 1.7x as many videos online as women Video Views 38% Male Female 63% 48% 52% 42% 58% © comScore, Inc. Proprietary. 30 Source: comScore Video Metrix, June 2011

Men account for more than 2/3rds of the time spent viewing online Time Spent Viewing 31% Male Female 69% 48% 52% 42% 58% © comScore, Inc. Proprietary. 31 Source: comScore Video Metrix, June 2011

Where are viewers watching content videos? Total Unique Web Property Viewers (000) (of content videos) Google Sites 149,281 VEVO 63,003 Yahoo! Sites 52,665 Microsoft Sites 50,663 Viacom Digital 49,493 Facebook.com 47,687 AOL, Inc. 43,915 Turner Digital 30,063 Hulu 26,701 NBC Universal 19,602 © comScore, Inc. Proprietary. 33 Source: comScore Video Metrix, June 2011

Duration moves upwards as long-form TV content moves online 180 Total US Viewing Duration +162% 160 140 Billions of Minutes 120 100 80 60 40 20 0 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 © comScore, Inc. Proprietary. 34 Source: comScore Video Metrix

Viewing of long-form TV content online doubled from 2009-2010 2009-2010 Yearly growth among long-form TV programming sites Videos Viewed Videos per Viewer 104% 75% increase increase © comScore, Inc. Proprietary. 35 Source: comScore Video Metrix, Dec 2009 – Dec 2010

8% of long-form TV websites’ viewers view video on any given day Average percent of a long-form TV site’s viewers that view videos on any given day 4% 2009 8% 2010 © comScore, Inc. Proprietary. 36 Source: comScore Video Metrix, Dec 2009 – Dec 2010

How the new TV audience tunes in: by platform Online-Only Cross Platform Viewers Viewers 0 TV 29%0% 6% Cross Platform Viewers 24% Online-Only TV-Only Viewers TV Viewers 70% 6% © comScore, Inc. Proprietary. 37 Survey conducted by comScore in August, 2010 Sample Size: 2053

Platform viewing by age: TV + Online Online18-24 TV Only 57% 35% 8%25-34 55% 36% 9%35-49 75% 20% 5% © comScore, Inc. Proprietary. 38

The average online viewer is reached 35 times a month by video ads5.2 Billion video ad impressions per month Billion2.2 video ad minutes per month148 Million viewers exposed to video ads 35 video ads per person per month © comScore, Inc. Proprietary. 40 Source: comScore Video Metrix, June 2011

The ad market is growing, but has room for more 21 % Growth YOY video ad impressions per month % Growth 22 video ad minutes per month YOY 8 % Growth viewers exposed to video ads YOY 13 % Growth video ads per person per month YOY © comScore, Inc. Proprietary. 41 Source: comScore Video Metrix, June 2011

Online video advertising reaches half of the total US population 81% video viewers 70% total web 48% total US Population © comScore, Inc. Proprietary. 42 Source: comScore Video Metrix, June 2011

Only 1.3% of time spent viewing video online is spent watching ads All Online Video Television 1.3% Ads Content 25% 98.7% 75% 1.3% of time spent viewing video online is spent viewing ads compared to 20-30% on TV © comScore, Inc. Proprietary. 43 Source: comScore Video Metrix, June 2011

Television is far more monetized than online video Entertainment Sites Television 3.1% Ads Content 25% 96.9% 75% 3.1% of time spent viewing video online on entertainment sites is spent viewing ads compared to 20-30% on TV © comScore, Inc. Proprietary. 44 Source: comScore Video Metrix, June 2011

There is significantly less clutter in the online world Long-Form Premium TV-content Television 8.1% Ads Content 25% 91.9% 75% 8.1% of time spent viewing video online on long-form premium TV content is spent viewing ads compared to 20-30% on TV © comScore, Inc. Proprietary. 45 Source: comScore Video Metrix, June 2011

Online viewers are more receptive to advertising How would you rate the commercials you see when watching original TV shows on ONLINE vs. TV? Online Rating TV Rating Commercials make me think favorably about the brand being 31.2% advertised 18.7% 29.8% Commercials are relevant to me 18.6% 30.1% Commercials are memorable 21.8% The commercials interfere with my show viewing 32.1% 32.0% I enjoy watching the commercials 19.5% 34.3% Commercials are annoying 25.6% 35.8% Commercials are interesting 22.0% © comScore, Inc. Proprietary. 47 Source: comScore TV Everywhere Survey | n = 1825

Online viewers can easily and immediately pursue a brand further What are the reasons you visited an advertiser’s website while watching a show online? A video commercial played during the show A product that you noticed in the program A video commercial played before the show A text or image-based commercial surrounding the video player Other 0 10 20 30 40 50 60 Percentage of respondents © comScore, Inc. Proprietary. 48 Source: comScore TV Survey, 2010

Nearly 100% of online spenders are video viewers Non-Video Viewers 4% Video Viewers 96% © comScore, Inc. Proprietary. 49 comScore Video Metrix and comScore E-Commerce Online Spend Data – June 2010

Video viewers spend more online comScore Online Buying Power Index 170 180 145 136 160 115 140 100 120 100 80 60 40 20 0 All Internet All Video Video Ad Earned Media Premium Long- Users Viewers Networks & Social Video Format Video © comScore, Inc. Proprietary. 50 comScore Video Metrix and comScore E-Commerce Online Spend Data – June 2010

Cross-platform viewers are 21% more likely to have $100k+ HHI Cross-platform viewers are 21% more likely to have $100,000+ household incomes than television-only viewers TV Only Viewers Cross-Platform Viewers 11.7 14.2 Household Income < $100k > $100k 88.3 85.8 © comScore, Inc. Proprietary. 51 comScore cross-media survey, May, 2011

WHERE WE’VE COME FROM CHARACTERISTICS OF THE VIDEO AUDIENCE WHAT WE’RE WATCHING THE VIDEO AD UNIVERSE WHY VIDEO IS A POWERFULLY UNIQUE AD MEDIUM! ACTION ITEMS © comScore, Inc. Proprietary. 58 Icon Source: Dale Morrell, 19eighty7.com

The market has plenty of room to grow! Ad Spending (MM) Streams (MM) $6,000 500000 $5,202 450000 440,692 $5,000 400000 350000 $4,000 $3,844 300000 260,049 $2,858 $3,000 250000 200000 $1,966 $2,000 142,254 150000 $1,440 102,141 $1,029 100000 $1,000 $734 63,515 $324 $410 50000 $135 $225 $40 $55 $85 $0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 © comScore, Inc. Proprietary. 59 Source: comScore Video Metrix, December 2010 and eMarketer, December 2009

Action Plan: Put together a video action plan with discrete goals – Is your goal to… Increase website/microsite visits? Improve brand opinion? Introduce a brand message to a larger audience or a more niche audience? Drive direct online or offline purchase behavior? The technology infrastructure of the Internet affords these opportunities to you Determine where and how your target audience is consuming video Keep your mind open to using the new opportunities online video affords: – Using a YouTube Partner as a brand advocate – Developing branded content that spurs conversation – Cross pollinating your social media campaigns with video Use the many resources and measurement companies available to determine if your goals have been met – Most any goal can be easily and discretely measured © comScore, Inc. Proprietary. 60

Thank you!@DanPiech | dpiech@comscore.com

Online video by the numbers july2011

by Mediamax, Inc. on Dec 20, 2011

Accessibility

Categories

Upload Details

Usage Rights

Statistics

Online video by the numbers july2011 Presentation Transcript