Yahoo online video_daily_habit_research


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*Report conducted & published by Yahoo!

This report lays out the process we are taking at Yahoo for understanding a major digital daily habit—Online Video—and for developing products and creating opportunities for advertisers to engage in consumers’ daily lives.

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12 Digital daily habits, pg 3

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Yahoo online video_daily_habit_research

  1. 1. Why Online Video is a Daily Habit Yahoo Insights Team December 2013
  2. 2. Why Online Video is a Daily Habit Yahoo is making the world’s digital daily habits inspiring and entertaining In this pursuit, we are utilizing ever-growing stores of data to understand how and why consumers utilize the digital realm in order to enhance their lives. This report lays out the process we are taking at Yahoo for understanding a major digital daily habit—Online Video—and for developing products and creating opportunities for advertisers to engage in consumers’ daily lives… Why Online Video is a Daily Habit TOP 12 DIGITAL DAILY HABITS Search News Lifestyle Email Video Blogs Sports Q&A Music Shopping Games Socializing Source: 2011 Ipsos survey tracking 2
  3. 3. Why Online Video is a Daily Habit Yahoo holds leadership positions across the top consumer daily habits, which allows us to use signals from many different digital experiences in developing products: TOP 12 DIGITAL DAILY HABITS Search News Lifestyle • Two types of consumer behavior signals: • Explicit (e.g. visits to Sports web pages, clicks on ads) • Implicit (e.g. dwell time in the comments sections of articles, searches for a brand after seeing video ads about the brand) • Data across all major platforms—mobile, tablet, PC—and emerging platforms. • Spanning content types (videos, articles, images, search results) and interactive product experiences (apps, email, shopping, fantasy football, stock quotes). Email Video Blogs Sports Q&A Music Shopping Games Socializing Source: 2011 Ipsos survey tracking 3
  4. 4. Why Online Video is a Daily Habit As we gather signals and work to make sense of them, we are asking ourselves: • How do digital daily habits form? • Why does a particular digital experience become a daily habit? In order to understand how daily habits form, we analyzed two approaches to product design: • Designing for Triggers • REM model Through this analysis, we developed hypotheses that we tested in two-phase research with consumers: • Engaged with twenty 16-34 year olds about the role of online video in their daily lives using an online community tool, SparkStream • Conducted online survey of 1,775 consumers ages 16-44 who watch online video at least several times a week 4
  5. 5. Designing for Triggers In Desire Engine, Nir Eyal’s product design model says habits develop through a cycle that starts with a trigger initiated by the product... Trigger – Entices an action by the consumer Action – Delivers a reward TRIGGER ACTION Reward – Provides emotional reinforcement for the action, invites deeper investment Investment – Strengthens bonds with the experience, builds personal connection and community INVESTMENT REWARD Trigger – The next trigger repeats the cycle, creating a reinforcing loop…a habit develops 5
  6. 6. Designing for Triggers Let’s look at this cycle using a scenario with Yahoo Fantasy Football... Trigger – Receive an email from Yahoo about this week’s game against your office nemesis TRIGGER ACTION Action – Launch the Fantasy Football app to find a player to strengthen your team 3:10 PM Reward – Discover that running back Reggie Bush is available and add him to your team INVESTMENT REWARD Investment – Talk some smack with your nemesis, building community Trigger – Receive a notification about how your nemesis responded…a habit develops Reggie Bush is MINE! Game on!!! 6
  7. 7. REM Model Let’s look at another product development model, REM: • Rational • Emotional • Meaningful RATIONAL Basic everyday needs • Table stakes—every product needs to deliver these basics • Provides sense of trust and control EMOTIONAL REM postulates a hierarchy of needs that, if met, result in habitual behavior. By delivering on each of these elements, a brand can create a habit in its consumers. Engaging and inspiring experience • This is where a product or brand differentiates itself from competitors, in design, voice, feel MEANINGFUL Deep connection to larger community • Creates a social context and feeling of connectedness 7
  8. 8. REM Model Here is the REM model applied to a well-known brand… In the late 80s, coffee was a commodity, until Starbucks turned it into a product experience RATIONAL Basic elements of coffee • Attributes : steaming hot, iced, caffeinated • Performance : efficient service • Psychosocial value : consistency EMOTIONAL Coffee shop as an experience • Sensory : aroma • Affect : pleasure, stimulation, local, décor, music, hangout MEANINGFUL Deep connection with Starbucks brand • Self-concept : fair-trade coffee • Self-expression : personalization • Personal meaning : “my starbucks” • Social meaning : sophistication 8
  9. 9. REM Model + Designing for Triggers As applied to digital experiences MEANINGFUL Feelings people would love to feel daily... Digital experiences must be socially contextualized, create significance within a group, and prevent feeling of missing out EMOTIONAL Feelings people want to feel daily... Digital experiences lead to intrinsic growth, feeling great, and expressing a better version of self. There is also a need for inspiration. RATIONAL Feelings people need to feel daily... Table stakes. Digital experiences must provide a sense of control, safety, and lead to an organized life. 9
  10. 10. Why Online Video is a Daily Habit Now let’s focus on online video in the U.S.… Video is a top daily habit: #5 for PC, #9 for Mobile, #4 for Tablet According to comScore, each day 85M consumers in the U.S. watch 1.6B streams and spend 1.5 hours watching online video, just on the PC. eMarketer estimates that 57.7% of the population or 75% of all internet users watch video online. We wanted to know why and how video got to this place. The following data pieces together why online video is becoming a daily habit. We have identified 3 building blocks: ACCESS – is the rational piece allowing consumers to watch where and when they want CONTENT – provides the emotional layer that inspires consumers and allows them to express the best versions of themselves DISCOVERY – creates social connection and curation through personal digital experiences, ultimately create meaning for consumers 10
  11. 11. Video Daily Habit Building Blocks DISCOVERY how I find what I watch CONTENT what I watch ACCESS where I watch 11
  12. 12. ACCESS where I watch
  13. 13. ACCESS Consumers are viewing video across devices 73% 85% 65% 51% of laptop owners watch video on them 49% The average consumer watches video on 4 devices • 148M people in US now own a smartphone • 62% of mobile phones are smartphones • 72M people now own tablets • Half of all parents own a tablet • Half of households with income $75K+ own a tablet (eMarketer) 38% of consumers say the ability to watch across a wide range of devices is important to make a video destination a daily habit 13
  14. 14. ACCESS Daily video viewers have doubled in two years HOW OFTEN DO YOU WATCH VIDEO ON THIS DEVICE? DEVICE AT LEAST ONCE A DAY SEVERAL TIMES A DAY Desktop 52% 34% Laptop 65% 47% Smartphone 61% 38% Streaming Box 60% 33% Tablet 57% 31% Game console 46% 24% Connected TV 49% 31% 61% Sorted top to bottom by total video viewers per device of consumers are watching video daily, across devices; double the number from two years ago 14
  15. 15. ACCESS Dayparts The next two pages show how online video usage changes from one part of the day to the next. • Mobile video has become important during morning and afternoon dayparts; mobile video usage remains high during prime time as consumers multi-task while watching television. • Video viewing length and discovery modes change throughout the day. Here is a typical scenario: We wake up and snack on some quick, curated videos on our social media feeds, and as we get to the afternoon hours we’re ready for slightly meatier content, but are more open to discovery. This is when we stumble upon content, and that content comes in short form. When we move to the evening hours, we lean back and consume more longform content ondemand via aggregators like Netflix, Hulu, and network websites. 15
  16. 16. ACCESS Mobile & tablet starting to dominate some dayparts VIDEO USAGE THROUGHOUT DAY 16
  17. 17. ACCESS Online video is pervasive and adapting to daily rythms VIDEO USAGE THROUGHOUT DAY 17
  18. 18. ACCESS Reaching viewers where and how they watch User generated content Short form Laptop Long form VIDEO CONTENT MIX BY DEVICE 32% 36% 39% 41% 25% 29% 28% 37% 35% 22% 26% 51% 50% of consumers expect to watch online video content on their TV screens by 2015 18
  19. 19. CONTENT what I watch
  20. 20. CONTENT Content is the biggest driver of the video daily habit WHAT GETS YOU TO USE A VIDEO SITE DAILY? CONTENT 70%  43% Wide variety of videos  26% Videos which are constantly updated (e.g. new videos every couple of hours) 20
  21. 21. CONTENT Short Form: Most-watched short clips SHORT CLIPS: WHICH TYPES DO YOU WATCH? 41% Comedy 38% Music 27% How To 26% Food 22% Gaming Comedy and Music are especially popular among 16-24 year olds 22% News Style 16% Travel 16% Design Video Blogs 10% 10% 21
  22. 22. CONTENT Short Form: “Discovery Mode” 3 in 5 videos are happened-upon as a incidental part of our daily online lives 56% Laughed 61% 67% Entertained of people in “discovery mode” watch short clips What is your mind set when you are in video “discovery mode” 22
  23. 23. CONTENT Long Form: Marathon Viewing With a wealth of newly available TV content, marathon viewing is on the rise 3 in 5 consumers Marathon View Regularly watch more than 2-3 episodes of a series in a row “I have the Netflix Streaming subscription, but only use the free Hulu service. I generally watch shows on my laptop, but will stream to my bluray player on occasion. I usually watch one or two episodes a day and finish the season in about a week or so.” - Male, 35 23
  24. 24. CONTENT Growing expectations of “professional quality” video online 80% of consumers expect TV quality from curated online clips 45% Will watch TV in a series of short form clips 45% Expect most of the online video they watch in 2015 will come from recognized networks 24
  25. 25. CONTENT Expectation of high quality with limited interruptions WHAT GETS YOU TO USE A VIDEO SITE DAILY? EXPERIENCE How do you define quality when it comes to online video? 65% High quality video 54% Limited disruptions 45% 40% HIGH LOW want high definition video, regardless of video type 25
  26. 26. CONTENT Ever-increasing range of sources for daily video fix WEBSITES OR SERVICES USED REGULARLY TO WATCH ONLINE VIDEO Dynamic Landscape Apps like Vine are amassing tens of millions of users within a matter of months 25% APPS 68% 92% SOCIAL NETWORKS DAILY VIDEO SITE 50% TV SERVICES 26
  27. 27. DISCOVERY how I find what I watch
  29. 29. DISCOVERY Many sources of video discovery HOW DO YOU FIND THE VIDEOS YOU WATCH? SOCIALIZATION 50% Social Network Word of mouth 45% Via email or text 36% People I don't know on social 22% Tumblr or Blogs 15% BROWSING Browsing online 45% Recommendations while watching videos 34% Video within article 32% Website with videos around interests 23% Sites like Buzzfeed or Upworthy 16% INTENTIONALLY Video Aggregator 50% Search Engine 36% VIA AN AD An Advertisement 18% 29
  30. 30. DISCOVERY Sharing today: Staying connected & starting conversations WHY DO YOU SHARE VIDEOS ON SOCIAL NETWORKS? 59% Share online video on social networks to connect with friends and family 45% Share videos on social networks of relevance to my friends & family Women and casual users mostly share videos to amuse friends and family 30
  31. 31. DISCOVERY Sharing in the future: Will have to meet a higher bar IN 2015, THIS IS WHERE I EXPECT ONLINE VIDEO TO BE… 49% say that people will be more selective about videos they share Only 33% expect the Facebook news feed to be dominated by video 31
  32. 32. DISCOVERY Video discovery approach varies with content type HOW DO YOU FIND THE VIDEOS YOU WATCH? Online video clips Originals Music videos TV programs Movies Word-of-mouth 39% 29% 32% 33% 33% Search engine 36% 25% 28% 24% 22% Video aggregator 45% 27% 38% 23% 21% Social network 42% 24% 31% 21% 19% Just browsing 41% 24% 30% 18% 17% 32
  33. 33. DISCOVERY Consumers expecting aggregation, curation, personalization IN 2015, THIS IS WHERE I EXPECT ONLINE VIDEO TO BE… 52% 58% a website or app will bring together all forms of online video that interest me, so I can see everything in one place a website or app will curate (i.e. pick, organize & recommend) the majority of videos I watch based on my interests or preferences 33
  34. 34. DISCOVERY Personalization With ease of access and content overload, video viewers are looking for discovery assistance that will include automation, smarter curation, better filtering, crowd sourcing, and relevant recommendations. What this really amounts to is a greater call for personalization. Video will be distributed through two methods of push and pull: 1) Through friends 2) Through normal online routines (using favorite apps/websites, searching) The previous pages show just how important both push and pull will be to driving video views. In order for a video to be discovered and watched, it’s critical to: 1) Have a robust social strategy 2) Be a part of the range of digital daily habits of consumers 3) Optimize search engine marketing while making it search-worthy in the first place This concept of being a “worthy” place to watch is important to Yahoo, what we are calling the next stage of video, or the televisionization of personalized video experiences. 34
  35. 35. PAYMENT how would I pay for this
  36. 36. PAYMENT Ads still preferred over subscriptions WOULD YOU BE WILLING TO PAY FOR ONLINE VIDEO? 35% Only 1 in 3 people would consider making micro payments 25% Only 1 in 4 people would consider making monthly subscription payments 36
  37. 37. PAYMENT Ads expected to be interactive, relevant, viewer-chosen 57% expect online advertising to be more interactive 48% expect online advertising to be directly relevant to them 55% expect to be able to choose the ads they see 37
  38. 38. PAYMENT The most appealing ads are non-disruptive, interactive HOW ACCEPTABILE ARE EACH OF THESE ADS? MORE ACCEPTABLE Pre-rolls 22% 18% Interactive ads Sponsorships Banner ads 18% 15% Wrapped banners Mid rolls 15% 12% LESS ACCEPTABLE 38
  39. 39. PAYMENT Most would consider sharing personal info to get more relevant ads WOULD YOU SHARE PERSONAL INFORMATION IN ORDER TO RECEIVE MORE RELEVANT ADS TARGETED TO YOU? 42% I would be happy to share information about my shopping habits 16% 84% I would be unwilling to share information about my shopping habits 42% I might consider sharing information about my shopping habits 39
  40. 40. Why Online Video is a Daily Habit 40
  41. 41. Why Online Video is a Daily Habit What does this all mean for advertisers? Video is a daily habit as a result of easy access across devices, a wealth of great content, and opportunities to discover through social and personalized experiences ACCESS Table stakes. Work with publishers that provide ease of access, across devices and consumer daily habits. CONTENT Emotional connection. Sponsor or co-create the kinds of content that consumers now expect. Align with the rhythm of the consumer day and mindset. DISCOVERY Deeper significance and meaning. Utilize a push-andpull strategy to drive views that includes social and strong curation powered by personalization engines. 41
  42. 42. Why Online Video is a Daily Habit What does this all mean for advertisers? AD EXPERIENCE • Take into account daypart, device type, and demeanor • Don’t get in the way of what the user wants to do • Use data wisely and respectfully when targeting • Contribute to the value exchange and reciprocity 42
  43. 43. Thank you. 43