The New Must Have Content


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  • Hi. My name is Michael Hong. I am a director of marketing communications for LG Electronics. But before I start, could you please raise your hand if you have heard of LG for the first time through this conference? Thank you.
  • The New Must Have Content

    1. 1. The New Must-Have Content: Online Video Michael Hong Director of Marcomm LG Electronics USA. Internet Retailer 2007
    2. 2. About LG
    3. 3. Lion & Sneakers
    4. 4. Charles Darwin “ It is not the strongest or the healthiest will survive but it will be the one that can adapt to change”
    5. 5. <ul><li>Speed </li></ul><ul><li>Division/Integration </li></ul><ul><li>Democratization </li></ul><ul><li>Prosumers </li></ul>The digital era – New Culture
    6. 6. Self actualization Love, Belonging & Self Esteem Safety, Security, Survival Social Consciousness Value pursuit; betterment of the larger collective; community action Emotional Connectedness Sense of community; empowerment (Share Photo/video, self publishing) Utility Task focus, Information access 24/7 (Search, shopping, banking) Maslow’s Hierarchy of Needs Maslow’s hierarchy of needs applied to Digital Evolution
    7. 7. Video… the beginning 1890 1931 1969
    8. 8. Evolution of Media Technology Internet as Multi Media Platform UCC
    9. 9. Broadband is driving change 16% of Internet HH 86% of Internet HH 67% of Internet HH
    10. 10. <ul><li>Convergence of Media (Multi Media) </li></ul><ul><li>High level sensory responsive marketing </li></ul>Brandband opened new opportunities Internet Speed Sensory Impact Video Low-Res High Low High Audio Text Image HD 3D
    11. 11. Broad band Dial-up 2357 Pages 1032 Pages Broad band Dial-up 24.8 Hours Broad band Dial-up 18.2 Days 15.5 Hours 14.3 Days PAGES PER PERSON TIME PER PERSON USAGE DAYS PER PERSON HOME USAGE PER MONTH Broadband Vs. Dial-up Broadband users are active
    12. 12. US Adults 18-54 w/ Home Broadband Connection % of weekly media time Source: 2006 Forrester NACTAS Benchmark Mail Survey-April 2006 Representation of All US Households: N=60,223 They spend more time on internet
    13. 13. More people will watch video on internet Internet Video viewing in two years Source: IDC Internet Video Usage 2006 TV viewing in two years
    15. 15. People are transforming 7 Million Residents
    16. 16. Birth of New Culture & Generation
    17. 17. 33% Internet users watch online video Internet Video Viewers Q: Have you watched internet video in the past 3 month? N=1,000 Source: IDC Internet Video Usage 2006 Frequency of Viewing Q: How often do you watch internet video N=230
    18. 18. Who watches online video? <ul><li>Teens are 10% of the internet population yet they are 16% of the streaming population (149 index – base 12+ pop.) </li></ul><ul><li>Composition of internet and streamers is the same for 18-34 and 35-54 groups </li></ul><ul><li>41% of streams come from adults 35-54 </li></ul><ul><li>Adults 55+ do stream, but less heavily than other age groups </li></ul>comScore Video Metrix, August 2006 – initial measurement methodology
    19. 19. Subtle gender differences <ul><li>48% of Online teens are female, yet 59% of teen streamers are female (123 index) </li></ul><ul><li>46% of Online persons 35-54 are male, yet males make up 53% of streams within this group (114 index) </li></ul><ul><li>Overall even split among males and females, similar to the internet population </li></ul>comScore Video Metrix, August 2006 – initial measurement methodology
    20. 20. What they are watching? Source: IDC Internet Video Usage 2006 <ul><li>User created content is competing with professionally produced content. </li></ul>
    21. 21. Few major players in streaming market <ul><li>Fox Interactive Media </li></ul><ul><ul><li>-MySpace (99%) </li></ul></ul><ul><li>Yahoo! Sites </li></ul><ul><li> </li></ul>comScore Video Metrix, August 2006 – initial measurement methodology
    22. 22. Few major players in streaming market <ul><li>Fox Interactive Media </li></ul><ul><ul><li>-MySpace (99%) </li></ul></ul><ul><li>Yahoo! Sites </li></ul><ul><li> </li></ul><ul><li>Viacom Digital </li></ul><ul><ul><li>-MTV (53%) </li></ul></ul><ul><ul><li>-Nick (35%) </li></ul></ul><ul><li>Microsoft Sites </li></ul><ul><li>Google </li></ul><ul><li> </li></ul><ul><li>Comcast Corp. </li></ul><ul><li> </li></ul><ul><li> </li></ul>comScore Video Metrix, August 2006 – initial measurement methodology
    23. 23. Adults 18-34 Adults 18-34 - Monthly comScore Video Metrix, August 2006 – initial measurement methodology
    24. 24. Adults 35-54 Adults 35-54 - Monthly comScore Video Metrix, August 2006 – initial measurement methodology
    25. 25. Adults 54+ Adults 55+ - Monthly comScore Video Metrix, August 2006 – initial measurement methodology
    26. 26. Slight composition differences between sites comScore Video Metrix, August 2006 – initial measurement methodology
    27. 27. YouTube – disproportionate streams by teens 24% were made by 16% of streamers on the site comScore Video Metrix, August 2006 – initial measurement methodology
    28. 28. 34 Million UU (YouTube) 22% Reach Explosive growth of Gen. C 14th Largest Web Destination
    29. 29. … and Video content sites
    30. 30. Four keys of online video sites <ul><li>Community as founding principal </li></ul><ul><li>Easy to share content </li></ul><ul><li>Statistic to encourage engagement </li></ul><ul><li>Free to express creativity </li></ul>
    31. 31. Rediscovery of Video
    32. 32. Online Video ad Impact *Source: Unicast data, 2006 Avg. Change % <ul><li>Online Video ads are 2 to 3 times more effective over traditional banner ads. </li></ul>
    33. 33. Ubiquity of Video Usage <ul><li>Internet TV/VOD </li></ul><ul><li>Virtual 3D Community </li></ul><ul><li>Online game </li></ul><ul><li>Advertorial, Infomercial, </li></ul><ul><li>Edutainment </li></ul><ul><li>Education/Training </li></ul><ul><li>PR (Company news) </li></ul><ul><li>Online Video ad (Preroll & Rich media) </li></ul><ul><li>Viral intended video content (You Tube) </li></ul><ul><li>UCC </li></ul>
    34. 34. Kleenex <ul><li>Video content to attract visitors attention and participation </li></ul>
    35. 35. <ul><li>Editorial video content to support and influence purchasing decisions. </li></ul>Good Housekeeping
    36. 36. <ul><li>Editorial contents are provided by both marketers and consumers </li></ul>
    37. 37. <ul><li>Supply video contents to keep your site engaging </li></ul>
    38. 38. Mc Donald – UCC <ul><li>Brands are being redefined by consumers </li></ul>
    39. 39. LG <ul><li>Entertainment contents are integrated to product info site </li></ul>
    40. 40. Surge of Online Video Ad Spending
    41. 41. Marketer’s concerns <ul><li>Video contents are not Search friendly </li></ul><ul><li>Down loadable video content can open high risk of negative content meshing activities </li></ul><ul><li>Getting viewer attention is getting harder </li></ul><ul><li>Quality and Quantity of video </li></ul>
    42. 42. Marketer’s options <ul><li>Marketer must continue to create content professionally to deliver your brand story </li></ul><ul><ul><li>Unlike info heavy text media, video media could touch hearts and souls of audiences creating inspiration for brand </li></ul></ul><ul><li>Marketer must utilize voice of consumer </li></ul><ul><ul><li>UCC is double edged sword, It can be a hit or worst nightmare for brand. Creating participation of loyal customers will mitigate negative impact </li></ul></ul>
    43. 43. so what’s next? *Source: 2007 IDC <ul><li>Convergence of Phone, TV, Internet and wireless service will eventually offer new form of communication and entertainment platform to marketers. </li></ul>
    44. 44. Thank You
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