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Scott Ferber - VideoNuze Online Video Ad Summit - 6-16-15 v1

Videology Chairman and CEO Scott Ferber shares his views on the convergence of TV and online video advertising.

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Scott Ferber - VideoNuze Online Video Ad Summit - 6-16-15 v1

  1. 1. TV & VIDEO: A YEAR OF CONVERGE JUNE 2015 @scottferber
  2. 2. 2 VIDEO: IT’S BEEN QUITE A YEAR… The Great TV Unbundling Has Begun. But Be Careful What You Wish For Oct, 2014 Amazon wins first Golden Globe Jan, 2015 Cord-Cutting Accelerates in Q1 ‘15 as Pay- TV Operators Lose 31K Subscribers May, 2015 ESPN Sues Verizon Over New Cable Packages April, 2015 Verizon Buys AOL for $4.4 billion May, 2015 Dish Network in Merger Talks With T- Mobile June, 2015 Report: AT&T will accept net neutrality if it gets DirecTV June, 2015 Upfront 2015: Major TV Networks Face Severe Pressure on Ad Prices May, 2015 Networks Fret as Ad Dollars Flow to Digital Media May, 2015 Advertisers to lose $6.3 Billion to Fraud in 2015 Dec., 2014 Media Agency Kickbacks. Yes, They’re Real. March, 2015 Epic Wave of Media Reviews Comes at a Crucial Time for Media Buying May, 2015 $25 billion in media money just went up for grabs -- and nobody can agree on why May, 2015 2
  3. 3. 3 ADVERTISING DISRUPTION: WHY (NOW)? Data is defining the winners New players are disrupting the status quo Distribution models have changed Threat to ad dollars is forcing change Consumers are redefining the rules 3
  4. 4. 4.4 4.6 4.6 4.5 4.4 4.3 0.4 0.3 0.3 0.3 0.3 0.4 2.4 2.6 2.5 2.3 2.4 2.4 0.4 0.8 1.6 2.3 2.6 2.8 2010 2011 2012 2013 2014 2015 HoursPerDay Daily Time Spent on Screens Mobile Computer Other Connected Devices TV 7.6 8.2 9.0 9.4 9.6 9.9 CONVERGENCE IS REDEFINING CONSUMERS’ VIEWING 4 source: @KPCB Emarketer 4/15
  5. 5. BUT CONVERGED VIEWING IS NOT ABOUT EITHER/OR…IT’S ABOUT MORE. GOOD NEWS FOR TV. TV Only TV + PC/Laptop TV + PC/Laptop + Mobile TV + PC/Laptop + Mobile + Tablet HoursPerDay Video Viewing Per Day Tablet Mobile Computer TV 4hr 19min 4hr 28min 5hr 6hr 7min 55min 40min 47min 59min 51min 50min 8hr 29min 6hr 50min 5hr 18min 4hr 19min Source: Analysis of NBC broadcast content viewed by screen by discrete viewers, 2012. 5
  6. 6. YET FRAGMENTATION IS STILL FORCING MARKETERS TO RETHINK TV STRATEGIES. 6 Reach Build for Television Networks & Programs Sep ‘09 vs. Sep ‘14 0 10 20 30 40 50 60 0 1000 2000 3000 4000 5000 6000 7000 8000 Reach% GRPs September 2009 September 2014 1990 (21.3) 2000 (16.9) 2014 (7.6) Source: NPower Live+7 TV Data; Adults 18-49
  7. 7. AND INCREASINGLY THESE NEW STRATEGIES MEAN CONVERGED STRATEGIES Source: Videology, Q1 2015. 58% of all campaigns ran on more than one device in Q1 2015, compared to just 17% in Q1 2014. PC, Mobile & OTT 46% PC Only 40% Mobile Only 2% PC & OTT 2% PC & Mobile 10% 7
  8. 8. 8 The New Golden Rule for Converging World: The One with the Gold Rules. 8 DATA
  9. 9. 9 LINEAR TV MVPDS Comcast Dish DirecTV Verizon FIOS, etc. DIGITAL VIDEO Publishers Google Facebook Apple Amazon, etc. 9 DATA OWNERSHIP: CONNECTING TWO WORLDS
  10. 10. CONTENT MATTERS WHY CONVERGENCE MATTERS? DATA-ENABLEMENT + QUALITY CONTENT= BETTER RESULTS 10 13.6% 12.4% 13.7% 6.1% 6.2% 6.4% UNIT SALES RATE LIFT PENETRATION LIFT DOLLAR SALES RATE LIFT Data Targeted vs. Untargeted Impressions Average Targeted Average Untargeted 10.2% 7.6% 2.7% Full Episode Players Only Prime Video Portals (non- FEP) Other (non- Prime, non-FEP) FEP vs. Prime vs. Other Total HH Penetration Sales Lift 32.3% 21.8% 22.5% Online + TV Targeting Online Purchase Targeting Online Demo Targeting Sales Lift of Multi-device vs. Digital Targeting UNITS VELOCITY (units per 100HHs) ADDRESSABILITY WORKS CONVERGENCE DRIVES RESULTSCONTENT MATTERS
  11. 11. 11 3.50% 5.10% 5-year CAGR 2015-2019 Source: eMarketer 2014-2018 ests, June 2014, based on IAB/PwC data; Videology 2019 estimates; 5-year CAGR PwC June 2015 $2.19 $2.06 $3.18 $2.21 $2.66 $2.52 $1.76 $1.81 $1.68 $1.67 $1.59 $1.27 2014 2015 2016 2017 2018 2019 Incremental Annual Spend Increases: US TV vs. Digital Video TV Digital Video Converged TV/Video Total Advertising SPENDING FOLLOWS RESULTS 5 YEAR VIEW: TV REMAINS KEY CONTRIBUTOR TO CONVERGING MARKET
  12. 12. 12 12 Andrew Feigenson Managing Director Nielsen Digital Brian Wieser Senior Analyst Pivotal Research Group Kris Magel Chief Investment Officer Initiative U.S./ Interpublic Group Melissa Roberts GM/ Enterprise Solutions FreeWheel Scott Ferber scott@videologygroup.com WHAT DO THE EXPERTS THINK…

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