Tuning in the rise of Online Video in Latam

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¡¡LA ERA DEL VIDEO ONLINE ESTÁ AQUÍ!!

Y en América Latina, no nos quedamos atrás! Crecemos a pasos agigantados hacia la tendencia global que posiciona al Video Online como el mejor medio de engagement y resultados.

Chéca este estudio!

Isela Abarca
Ad Sales Manager
isela@impaktu.com
www.impaktu.com
Skype: isela.abarca

Published in: Technology, Business
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Tuning in the rise of Online Video in Latam

  1. 1. Tuning In: The Rise of Online Video in Latin America Festival of Media LatAm | 24 September 2012 Gian Fulgoni Executive Chairman and Co-founder, comScor
  2. 2. 1 Online Video Viewing in Latin America 2 What Can We Learn from the U.S.? 3 Some Thoughts for the Future
  3. 3. The U.S. is No Longer the Center of the Online Universe U.S. Internet Population vs. Rest of the World Rest of the World Middle East Latin Africa, America, 8,8% 9,0% 34% 87% U.S. 66% 13% 1996 Distribution of Worldwide Internet Audience North America, 14,6% Asia Pacific, 41,3% Asia Pacific Europe, 26,4% 2011  In 1996, 2/3 of world’s Internet population was in the US, yet today Asia Pacific is the largest region with over 40% of online population.  Many emerging regions likely to bypass old modes, skipping dial-up to go straight to broadband, making multimedia, video, and collaborative content immediately accessible.  Early adoption of mobile web in addition to PC web will likely be popular in many of these highgrowth areas. Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, Dec-2011
  4. 4. Latin America is World’s Fastest-Growing Region  Growth expected to continue as Worldwide Online Population (Millions) home broadband penetration increases in Asia and Latin America +8%  Growth in developing regions 1.383 likely to continue as people move from shared-access to home & work use Jun-11 +8% 568 613 2011 Jun 2012 Jun Jun-12 +8% 369 398 +3% 206 213 Asia Pacific 1.491 Europe North America +11% 120 133 Middle East Africa +12% 119 134 Latin America Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, June 2011 vs. June 2012
  5. 5. Focus: Latin America Latin America Argentina Brazil Chile Mexico July 2010 Penetration Data V0910
  6. 6. Online Video’s Blockbuster Year Videos Viewed Grew by Double Digits Across LatAm Region Growth in Video Viewing in 2011 Total Videos Viewed Percent Growth (000) Dec-2011 vs. Dec. 2010 BRAZIL 4.7 Billion +74% MEXICO 3.0 Billion +80% ARGENTINA 1.5 Billion +75% CHILE 1.0 Billion +91%
  7. 7. Driven by YouTube, Google Sites Account for More than 60% of Videos Viewed in LatAm MEXICO CHILE Videos (Millions) Share of Videos 2,164 62% Google Sites 927 80% VEVO 219 6% VEVO 58 5% Viacom Digital 54 2% Viacom Digital 17 2% 1 Google Sites Videos Share of (Millions) Videos BRAZIL ARGENTINA Videos (Millions) Share of Videos 4,435 75% Google Sites 988 63% Globo 359 6% VEVO 65 3% VEVO 193 3% Facebook.com 22 1% Google Sites Videos Share of (Millions) Videos Source: comScore Video Metrix, July-2012
  8. 8. Video Consumption in LatAm skews younger … with under 34 age segment accounting for almost 60% of videos viewed % Composition of Video Time Spent 28% 30% 21% 14% 8% 15-24 25-34 35-44 45-54 55+ Source: comScore Video Metrix, July-2012
  9. 9. Reach of online video is slightly greater in the LatAm region than Worldwide Monthly Online Video Reach / Web Population Worldwide 84% USA 85% Argentina Brazil 96% 81% Chile Mexico 92% 82% Source: comScore Video Metrix, July-2012
  10. 10. Room for growth in video consumption in LatAm Videos per Viewer Worldwide 169,5 USA Argentina Brazil Chile Mexico 245,9 120,0 139,2 168,6 151,2 Source: comScore Video Metrix, July-2012
  11. 11. Room for growth in video engagement in LatAm Monthly Hours per Viewer Worldwide 19,40 USA Argentina Brazil Chile Mexico 22,05 11,32 11,61 12,45 13,63 Source: comScore Video Metrix, July-2012
  12. 12. While growing rapidly in LatAm, time spent watching online video equivalent to only a percentage point or two of the time spent watching TV
  13. 13. What Can We Learn from the U.S.?
  14. 14. IAB says U.S. online ad spend is now larger than newspapers, magazines and radio, and equivalent to 46% of TV +22% vs. year ago 10X Faster Growth Than All Media $31.7 Billion U.S. Online Ad Spending in 2011 SOURCE: IAB for Internet Advertising Revenue and KANTAR for Total Mediaedia Measurement
  15. 15. In the U.S, time spent watching traditional TV is essentially flat while online video is growing strongly US Monthly Total Hours (millions) Spent Watching TV vs. Online Video -0.6% 44.581 Video now equals 5% of total time spent watching TV 44.334 Monthly Total Hours (millions) in Q4 2010 Monthly Total Hours (millions) in Q4 2011 +74% 1.338 TV 2.321 Online Video SOURCE: TV: Nielsen Cross Platform Report – Q4 2011. Online Video: comScore Video Metrix
  16. 16. IAB says U.S. online video ad spending is surging +40% vs. year ago $1.8 Billion U.S. Online Video Ad Spending in 2011 Equivalent to 6% of all online ad spending
  17. 17. Online ad spend in Latin America* is growing twice as fast as in the U.S. +42% vs. year ago 3.5X Faster Growth Than All Media Latin America $2.5 Billion Online Ad Spending in 2011 *Argentina, Brazil, Chile, Colombia, Mexico, Peru SOURCE: IAB for Online and Various for Total Media dia Measurement 2011
  18. 18. Online video allows convenient viewing of TV content and is an incremental audience – it’s not about avoiding ads  Recent comScore study sought to answer: why do viewers choose to watch TV content online? – NOT out of ad-avoidance – Main factor is convenience and time-shifting Missed episode on TV 71% Convenience 57% Less ads 38% Like to see past episodes 25% Prefer the online experience Don’t subscribe to cable/don't have a TV 13% 7%
  19. 19. Online viewers of TV programs are open to more ads – at least 6.5 minutes per TV hour Optimal length of commercials for an hour of TV viewed online 100,0 80,0 60,0 40,0 20,0 0,0 1 min 2 min 3 min 4 min Negligible 5 min 6 min 7 min Minimal 8 min 9 min 10 min 11 min 12 min 13 min 14 min 15 min Long Enough Too Long *Respondents were asked questions on a sliding scale from ‘how much advertising is so negligible that it would not interfere at all’, through to ‘how much advertising is too long and would interfere completely with the viewing experience’? Base sizes: Total=640
  20. 20. A CBS Perspective on TV and Video Advertising from 2009
  21. 21. CBS: Online video ads can demand a premium price because of heightened consumer attention and more precise targeting
  22. 22. CBS: Even with lower ad loads than TV but a premium price, video ads can have same value as TV ads
  23. 23. The Limitation of TV: Brands Trying to Reach their Target with TV Alone Hit A Plateau of Diminishing Returns Total Reach and Effective Reach for a TV Campaign as a Function of Cost 100 87,9 85,1 90 Total Reach 80 70 74,1 67,8 60 50 Effective Reach 40 30 20 10 0 0 2.500 5.000 7.500 Cost ($000) 10.000 12.500 15.000 Typically 30%+ of Target Audience is not Effectively reached
  24. 24. Adding Branding Advertising to TV With Online Video Builds Reach and Effective Reach Impact of a 90/10 Allocation Media Plan GRPs Total Reach Effective Reach TV Only 1,000 85% 68% TV (90%) 900 84% 66% Online Video (10%) 500 64% 44% TV + Online Video 1,400 90% 84% 400 5% 16% TV + Video Combination TV Only vs. 90% TV + 10% Online Video Source: comScore simulation using single source TV and Internet data
  25. 25. Summary Thoughts 1 Online video viewing in LatAm is surging 2 Lessons from U.S. Online video viewing of TV content incremental to TV Consumers will accept online video ad loads of 10%+ Premium pricing possible for video ads 3 Online video advertising can add effective reach to a TV campaign –especially among younger age segments

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