Hemlock grove digital_strategyPresentation Transcript
Hemlock Grove:Digital StrategyCrash Course in Digital Strategyby Julian Cole TERRY LAWYER Integrated Creative Producer
1 The Brief
All episodes of Hemlock Grove, Netflix’snew original series, will premiere on April19th for Netflix subscribers...And Netflix wants to use the series togenerate new subscribers and sustain anupward trend in user growth.But Netflix needs tocreate awareness ofthe new series in orderto use it to attract newsubscriptions.
2 The Key Insights
Customer Insight #1Set-top device users are highlylikely to subscribe to movie and TVstreaming services.
And the research confirms it...“64% of consumers who use their videogame consoles to access online contentdownload television shows and movies via “80% of consumers who use their Blu-subscription video-on-demand services such ray players to access online contentas Hulu and Netflix.” download television shows and moviesNPD Group Sept. 2012 via subscription video-on-demand services such as Hulu and Netflix.” NPD Group Sept. 2012“69% of consumers who use their TVs to accessonline content download television shows andmovies via subscription video-on-demand “79% of Netflix Watch Instantlyservices such as Hulu and Netflix.” customers use it to watch movies andNPD Group Sept. 2012 television shows on a TV, and 59% of this group access Netflix via a video“Consoles have become strategically positioned game system.”as a secondary gateway to TV content, and can Leichtman Research Apr. 2012now be found in 45% of TV homes.”Nielson May 2012
Customer Insight #2These set-top device users andvideo streamers are also likelyto be a part of the show andNetflix’s target audience:18-34 YOs who enjoy sci-fi and supernaturalcontent in movies, TV, and games.
They over-index at most of the largeststreaming platforms.Netflix HuluPlaystation (online) Xbox Live
And streaming is quickly becoming a part of their everyday experience.Netflix InstantWatch Night
Surprisingly, they might even appreciate abit of advertising. Excerpts from a message thread on a Star Trek message board about Netflix’s “House of Cards.” trekbbs.com/showthread.php?p=7624447
Customer Insight #3Of the series’ creative elements, Eli Rothand Famke Janssen have the most brandawareness in digital.Eli Roth: known for directing “Hostile” and his Famke Janssen: known for roles inrole in Quentin Tarantino’s “Inglorious Basterds.” “Goldeneye”, the “X-men” series, and “Taken.”Generates 6-7 million Google search results. Generates 6-7 million Google search results.
3 The Big Idea
The Hemlock Grove preview experience...Presented by Eli Roth...Exclusive to set-top users.Why this approach?Banners and trailers are standard for driving audienceto movies and TV as both are typically “high feel, lowinformation” purchase decisions. It doesn’t take that long todecide if you want to buy a movie ticket or tune-in for a TVprogram. But a monthly subscription is a bit different—slightlymore of a long-term commitment than an impulse purchase.So, as Netflix learned with “House of Cards,” users appreciatea “test drive” to help them decide if the show is worth thecost of subscribing. The “House of Cards” test drive wasa free episode for non-subscribers. But at nearly 30 to 60minutes long and tasked with introducing the series’ principalelements, the first episode of any series isn’t designed toconvert non-subscribers to subscribers.Perhaps a different format would helpnon-subscribers make a decision?
About the preview experience...The content will be housed in apps forXbox Live and PSN.Should include 1 to 3 full scenes from thepremiere episode.Eli Roth features prominently along withFamke Janssen in vignettes where theyoffer their thoughts on elements in theseries. Other members of the principalcast also describe their roles in the series.Should include interactive content, suchas info about the fictional town, Peter’sGypsy family, the Godfreys, and/orwerewolf legends.For other set-top device users and thetraditional web audience, the previewexperience’s video content can berepackaged in short form as a teaser.
4 Media Planning
Where to place messaging?A cross-platform campaign that covers the major video game consoles (Xbox Liveand PSN offer ad solutions) and set-top devices (Roku, Boxee, and Blu-ray players)with the remaining half of impressions targeting Hemlock Grove’s audience atYoutube, Hulu, and Facebook. The geography is limited to North America.How to structure the messaging?Banner ads and streaming spots that deliver the campaign creative concept: “TheMonster Within,” plus the “by Eli Roth” and “only on Netflix” mandatories. A CTA for thepreview content will be placed before or after the creative concept.When to activate?The campaign should go live when the episodes premiere in April and run for amonth at maximum if the budgeted click-thrus aren’t reached within the first fewweeks. Also, Netflix activity (searches and traffic) peaks on weekends, so the Saturdayrelease day is ideal for launching the campaign.
5 The Metrics
Impressions and Conversions200,000 New Subs Generated by the campaignThis target is derived from the Q4 2012 new subscriber results, when Netflix added 2 millionsubscribers. That averages to roughly 700K additions per month. Also, going by Google searchvolume from 2010 - 2012, the holiday season is a peak period for interest in Netflix while Apriland May is when search volume levels off. So we estimate this April’s new subscriber number tobe 600,000: 400,000 from other sources, 200,000 from the Hemlock grove campaign.80 million Impressions required to hit the targetHow to arrive at this number? It’s basically:80MM impressions x 5% click-through = 4MM preview viewers4MM preview viewers x 5% subscriber conversion = 200K new subscribersThe numbers are reasonable given the size of the audiences at the major platforms. Youtubereaches nearly 200 million users each month, so 20 to 40 million impressions is 10% to 20% oftheir total inventory. Xbox Live and PSN have about 40MM and 70MM users respectively. WithFacebook added to the mix, the major platforms should have plenty of audience available forthe 80 million impressions target.
Total Budget = $2.1 MillionMedia CostGaming Platforms = $28 CPM x 30MM Impressions = $900,000Traditional Web = $22 CPM x 50MM Impressions = $1.1 millionCreative CostDesign and development of the gaming platform apps = $50,000Banner design = $8,000Shooting, editing, and post for video work = $50,000
And why it’s worth itThere a few different analyses of Netflix’s subscriber acquisition cost,but a conservative estimate might be $15 to $19 per new subscriber.Our campaign spend of $2 million for 200K new subscribers comes inat $10.50 per subscriber, leaving a little more margin for the companywhen compared to its typical marketing programs.
6 A Quick Recap
The ObjectiveUse Hemlock Grove to drive new subscriptions.The Key InsightsGamers and other set-top device users in the 18-34 Y/O demo are highly likely tosubscribe to streaming services. Also, of the series cast and creative elements, Eli Rothand Famke Janssen currently have the most brand awareness.The Big IdeaGive gamers a unique and engaging preview experience—something that getsthem excited about the series and Netflix. Eli Roth and Famke Janssen guide viewersthrough the series, and the users also get some “interactive goodies” to encourage theirengagement with the story.The Media PlanWhen the series premieres, launch targeted banner and video ads for Xbox Live, PSN,Youtube, and Facebook. The messaging presents the series and the preview offer CTA.The Metrics$2.1 million at $10.50 per new subscription. The campaign creates 80MM impressions,4MM preview viewers (5% CTR), and 200K new subscribers (5% conversion).
TERRY LAWYERIntegrated Creative Producerterry@terrylawyer.com | www.terrylawyer.comFinal Project For:Crash Course in Digital Strategy,by Julian Cole