Delivered at Casual Connect USA 2016. This year’s Acumen Report by Defy Media takes a deep-dive into the video diet of 13-24 year olds, a key target demographic in the growing F2P mobile gaming market. We will learn what sources they watch, what devices they use, and much more. We will also dig into youth attitudes toward digital advertising and what kinds of ads they find acceptable.

2. STARTING POINT
• Youth are spending fewer hours on TV and more hours on digital video
because digital better suits their lifestyles.
• Thumb-stoppers get youth to pay attention to videos.
• Friends/family are trusted most for content discovery; social media and
YouTube are the top vehicles for delivering content.
• YouTube stars influence youth more than TV/Movie stars because they are
more relatable.
RESEARCH ROAD MAP
• What video sources are youth using? What sources are used by day-part?
• Has social media made significant in-roads as a video platform?
• Are videos more than entertainment? Do they fulfill other needs?
• What video sources can youth not live without?
• What kinds of advertising are most acceptable to youth?
A C U M E N R E P O R T / / Y O U T H V I D E O D I E T
INTRODUCTION
2

3. DEFINITIONOFA
VIDEO
By videos we mean movies, TV
shows, shorts, clips, music videos,
fails, pranks, etc. We do NOT mean
videos showing your friends, family,
or other people you know
personally. DO NOT include time
reading posts or other activities
that aren’t video watching.
METHODOLOGY
VIDEO AUDITION
• Ensures youth can articulate thoughts and aren’t camera shy
14-DAY ONLINE JOURNAL
• Completed by 54 youth ages 13-24
• Logged videos watched each day (by device and time of day)
• Daily questions; e.g. “How are TV and YouTube the same and
how are they different?”
IN-DEPTH INTERVIEWS
• 27 youth total
• 13-17 year olds — 9 buddy pairs (18 youth)
• 18-24 year olds — 9 individual interviews
• In Chicago, Raleigh-Durham, Seattle
ONLINE SURVEY
• 1,300 respondents ages 13-24
• Representative by age, gender, race and parent education
A C U M E N R E P O R T / / Y O U T H V I D E O D I E T 3

4. A C U M E N R E P O R T / / Y O U T H V I D E O D I E T
WHAT’SONTHE
VIDEOMENU

5. FAVORITEDEVICES
More than one-third (38%) said there was no
cable/satellite box in the household
For watching video, it’s smartphones and PCs; teens 13-15
use tablets significantly more often than older youth.
“If you’re just watching a 5 minute video,
then it’s fastest and easiest to watch on
your phone; if it’s a longer video…then I’d
watch it on my laptop.”
- KATE, 16
A C U M E N R E P O R T / / Y O U T H V I D E O D I E T 5
DEVICE AVAILABLE
USES DEVICE TO WATCH VIDEOS93%
SMARTPHONE
LAPTOP/
DESKTOP
TABLET
GAMING DEVICE BLU-RAY/DVD STREAMING DEVICE
76%
86%
66% 63%
45%
78%
41%
58%
32% 35%
24%
CABLE/
SATELLITE BOX
62%

6. DIGITALDOMINATESTHEMENUWith the explosion of digital sources, youth have many choices of where to watch.
“Netflix would be the main course, because that’s
where you can find more mainstream videos that
are directed and professionally put together.”
- ANTON, 19
DIGITAL TERRESTRIAL
PAID TV 62%
BLU-RAY/DVD 33%
“When you think of Vines, you think of
funny, hilarious… just humor that’s
from the 21st Century.“
- Madeline, 13
6
SOCIAL (total of 5) 91%
FACEBOOK 53%
INSTAGRAM 37%
SNAPCHAT 33%
TWITTER 19%
TUMBLR 14%
YOUTUBE 85%
NETFLIX 66%
VINE 27%
HULU 25%
DIGITAL BUY/RENT 22%
AMAZON 19%
HBO NOW / SHO.COM 12%
TWITCH 10%
SPORTS APPS 9%
SLING TV 2%

7. SMALLERAPPETITEFORTVTV consumption declines significantly as youth age, while use
of most digital video sources increases or remains flat.
Social
[Facebook, Instagram, Snapchat, Tumblr, Twitter]
YouTube
Netflix
Cable/Satellite TV
Vine
Hulu
Amazon
HBO/SHO
13-15 years 16-18 years 19-21 years 22-24 years
90%
86%
67%
59%
32%
22%
21%
14%
93%
82%
64%
72%
26%
23%
20%
11%
7A C U M E N R E P O R T / / Y O U T H V I D E O D I E T
“There's nothing good on TV these days, especially
when you can find much better content on YouTube.”
- Sadie, 17

8. NOTJUSTSNACKINGONSOCIALYouth socialize and watch video in equal amounts on the top
platforms—excluding video made by friends and family.
Brands
6%
8
VIDEOS USUALLY
WATCHED ON SOCIAL
Digital celebs
25%
People not known
personally
25%
Friends & family
15%
Musicians
12%
TV/movie celebs
12%
Sports celebs
5%
FACEBOOK
60%
40%
INSTAGRAM
48%
52%
SNAPCHAT
48%
52%
TWITTER
31%
69%
TUMBLR
30%
70%
Uses for video and socializing
Uses only for socializing

9. DIGITALTASTESBETTERFree and social combined surpass TV in users and hours, but cost isn’t the primary reason.
Using Hours Per Week
SOCIAL
Facebook, Instagram, Snapchat, Tumblr, Twitter
91% 5.9
FREE
YouTube, Vine, Twitch
88% 6.2
SUBSCRIPTION
Netflix, Amazon, Hulu, Sling, HBO/SHO, Sports apps
76% 8.8
Cable/Satellite TV
Live, DVR, app
62% 8.2
“For TV, you have channels
but you’re limited to that. On
YouTube I can just look up
what I’m interested in.”
- LEAH, 16
Less expensive options available 40%
Not interested in content/shows 24%
Can't afford 24%
Free video available elsewhere 19%
Can afford but cost not worthwhile 18%
Can only watch at home 12%
REASONS FINANCIALLY INDEPENDENT YOUTH DON’T HAVE PAID TV
9
“I can do without cable TV because
there are options out there for me to
avoid having to pay that amount.”
- MATT, 22

10. GOODTASTEISWORTHTHEPRICE
“Twitch.tv takes $15, and
that’s like two hours of
one of my shifts. That’s
not really that much.”
- Johnny, 17
“My parents pay for Netflix and
cable, and if they stopped paying
for them I wouldn’t pay for cable,
but I would pay for Netflix.“
- Jack, 18
Youth Pays
All or Some
Someone
Else Pays
“Borrows”
HBO/SHO 56% 39% 5%
Hulu 55% 37% 8%
Amazon 50% 45% 4%
Sports apps 48% 39% 13%
Sling TV 44% 50% 6%
Netflix 41% 48% 11%
Cable/Satellite TV 37% 63% <1%
Youth have clear ideas of what is worth paying for;
“borrowing” passwords is not frowned upon.
A C U M E N R E P O R T / / Y O U T H V I D E O D I E T 10
Based to those who use source

11. CONVENIENCEISKEYYouth rely heavily on smartphones to watch video, but they
haven’t given up their PCs.
“Most of the time when I’m on my phone or something,
I’m just scrolling through stuff. I wouldn’t usually watch
something that’s more than ten minutes.”
- Peyton, 13
“Even when I go to lunch, sometimes I get on my phone
and go to Vine.”
- Carlos, 15
“People choose what device to watch videos on based
on which one is most accessible. Screen size doesn’t
affect enjoyment.”
- AOL Research, 2015
VS
11
SNAPCHAT 81% 16%
INSTAGRAM 80% 27%
VINE 80% 22%
FACEBOOK 79% 52%
TUMBLR 75% 54%
TWITTER 74% 38%
YOUTUBE 73% 57%
NETFLIX 45% 52%
HULU 41% 57%
AMAZON 37% 57%
SLING TV 33% 45%
HBO/SHO 28% 51%

12. A C U M E N R E P O R T / / Y O U T H V I D E O D I E T
DAILY VIDEO
REQUIREMENTS

13. 65%
BEFORE WORK/
SCHOOL 42%
AT WORK/ SCHOOL
62%
BREAKS/
LUNCH
81%
AFTER WORK/
SCHOOL
52%
DURING DINNER
83%
AFTER DINNER
67%
FALLING ASLEEP
ROUND-THE-CLOCKSATISFACTIONYouth are no longer constrained to the home in order to satisfy their video hunger.
Peak day-part
13-18 year
olds
88%
Peak day-part
19-24 year
olds
82%
13
“First thing in the morning: check my Facebook,
check my Instagram. During my lunch break, I'll do
Netflix. And then before bed I'll do Netflix.”
- ILEANA, 22

14. CONSTANTCRAVINGFOR
SOMESOURCES
Social video and YouTube are the most
watched sources throughout the day;
Netflix and TV kick in after dinner.
A C U M E N R E P O R T / / Y O U T H V I D E O D I E T 14
50%
BEFORE WORK/SCHOOL
AT WORK/SCHOOL
BREAKS/LUNCH
AFTER WORK/SCHOOLDURING DINNER
AFTER DINNER
FALLING ASLEEP
40%
30%
20%
10%
DAY-PARTS: % WATCHING TOP VIDEO SOURCES

15. NOTJUSTFORAMUSEMENTVideo helps youth manage life’s ups-and-downs; it’s particularly important for connecting with peers and family.
Reasons Youth Watch Videos
Boredom killer / Time filler 77%
Keep up with shows, sports, YouTubers, etc. 63%
Stress relief / Wind down from day 61%
Stay up-to-date on latest videos or events 60%
Spend time with others / Family time 58%
Mood lifter/changer 57%
Learn how to do something 47%
Fall asleep 44%
Background noise 33%
Power up / Get energized 25%
“I want to be distracted from
being bored. TV is always
there…it's easy to use and I
don't have to think too hard
about it.”
- Paige, 21
“I depend entirely on tutorials…on
how to sew a hem, or whatever, and if
I got stuck on my projects just
because I didn't have the right
YouTube tutorials, I'd be really mad.”
- Sadie, 17
A C U M E N R E P O R T / / Y O U T H V I D E O D I E T 15

16. YouTube, Netflix, social video and—to a lesser extent—TV are
the top sources youth can’t live without regardless of age.
Youth of ALL Ages Can’t Live Without
YOUTUBE 67%
NETFLIX 51%
SOCIAL (total of 5)
FACEBOOK
INSTAGRAM
SNAPCHAT
TUMBLR
TWITTER
48%
27%
14%
15%
4%
4%
CABLE/SATELLITE TV 36%
WOULDSTARVEWITHOUTVIDEO
16
“I don’t think I can live without YouTube because
like, everything is on there!”
- Taylor, 16
“Vine and Instagram are most important; my
friends are all on it..“
- Peyton, 13
“I would give up watching Vine or looking through
Twitter to watch my favorite YouTube channel.“
- Logan, 13
“YouTube is like a Swiss Army knife. It does
everything you need it to, and more.”
- Jake, 17
A C U M E N R E P O R T / / Y O U T H V I D E O D I E T

17. A C U M E N R E P O R T / / Y O U T H V I D E O D I E T
RECIPE FOR AD
SUCCESS

18. Youth call digital pre-roll “ads”—and express frustration because
they impede need fulfillment; “commercials” are different.
“Commercials are the Yankees and
ads are the Mudcats. The Mudcats
are our local team and nobody
really likes them.”
- Peyton, 13
“COMMERCIALS” are usually found on TV and even
may be worth sharing but they also facilitate together
time—an important need for today’s youth.
“I think of the ad as traffic, and
the video is where I’m trying to
get to and it’s stopping me from
getting there.”
- Julia, 16
“I like the Always commercials. I don’t think of them
as commercials; they’re more kind of little videos…
showing something inspiring.“
- Ileana, 22
USE AD
BLOCKERS
ON AT LEAST
ONE DEVICE
52%
“ADS”AREN’TAFAVORITEFOOD
A C U M E N R E P O R T / / Y O U T H V I D E O D I E T 18
“If I’m watching TV [with others] and a commercial comes
on, I can talk, “’What do you think is going to happen
next? Wasn’t that a good plot twist?”’
- Amber, 17

19. SAY DON’T MIND
WATCHING ADS TO
SUPPORT THEIR
FAVORITE DIGITAL
CELEBS
AGREE DIGITAL
CELEBS NEED ADS
ON THEIR CHANNELS
TO EARN A LIVING
“I haven’t really thought about it. I don’t want people
to be struggling financially. I’m like: ‘You’re funny,
you’re a good person; you should get money.’”
- AMBER, 17
“If I’m on YouTube, on a channel that I like…I
turn my ad block off because a percentage
of that can actually go to them.”
- Johnny, 17
Youth are more willing to watch an ad when they know it helps their favorite
digital celebrity continue to make videos.
HUNGERFORDIGITALCELEBS
19
63%
58%

20. SOMEADSTASTEBETTERSponsorships and branded content are more palatable to youth than standard preroll.
ADS THAT ARE “ALWAYS OR SOMETIMES OKAY”
5-sec intro-screen showing brand sponsor 89%
5-sec end-screen advertising product 88%
Product placement 87%
Digital celebrity announces brand sponsor 87%
Digital celebrity demonstrates product 87%
15-second preroll 80%
Digital celebrity uses product in an off-beat way 78%
30-second preroll 67%
1-minute preroll 53%
“To even have a story behind it like, ‘I bought
this pan because Jenna Marbles dressed up
like Rapunzel and used it.’”
- Aubrey, 20
“YouTubers can get so caught up in
making money that they lose their
personality. When it strays too far from
that I wonder: Are you just doing it
because you were paid to sponsor it?”
- Amanda, 19
20
But if the digital celeb is out of character and lacks authenticity, youth will reject the promotion.

24. WHAT WE LEARNED
• Social media, YouTube, Netflix, and TV are the most used video
sources among youth 13-24 years old.
• Social media has become a can’t live without video source—
along with YouTube and Netflix.
• Social media and YouTube are watched throughout the day;
Netflix and TV don’t reach the same viewership levels as social
and YouTube until after dinner.
• Videos are more than just entertainment and distraction for
youth; they are a vital tool for connecting with peers and family.
• Youth are willing to watch ads if they know it allows their favorite
digital celebrities to continue making videos. Sponsorships and
branded content are preferred because these formats don’t
interfere with the needs youth turn to video to satisfy.
A C U M E N R E P O R T / / Y O U T H V I D E O D I E T
INSUMMARY
24

25. THANK YOU
ALISSA BRODSKY, SENIOR GAMES PRODUCER
abrodsky@defymedia.com