Online video is big but getting beyond big viewership numbers is important. Small, targeted audiences defined by their interests and online behaviors are the new focus. Not all video or video advertising is equal - context matters. Successful strategies target niche groups around specific interests and use relevant ads that enhance the user experience rather than interrupt it. While some viewers use video for escape, others see it as a way to learn, so ad context should match viewer intent.

1. Getting Beyond Big in Online Video
Presented by Tania Yuki, comScore

2.  Getting beyond big
 Small (and relevant) is the new big
 Context: not all video or video advertising is created equal
© comScore, Inc. Proprietary and Confidential. 2

3. Video is big
16.8
billion
streams!
© comScore, Inc. Proprietary and Confidential. 3 Video Metrix US April 2009

4. Put another way…
That’s 151mm people who can
be reached an average of 110
times during a video experience,
each
month
…just in the US
© comScore, Inc. Proprietary and Confidential. 4

5. In the US, video is also undeniably big in terms of reaching people
online…
(MM)
Total Internet Users (MM)
90%
180
80%
160
70%
140
60%
120
50%
100
40%
80
30%
60
40 20%
20 10%
0 0%
© comScore, Inc. Proprietary and Confidential. 5

6. Total Videos Streamed (000) in the US Over 15 Months
18,000,000
Total Internet Videos are Up 66% in 15 months
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
Total Videos
© comScore, Inc. Proprietary and Confidential. 6

7. And big elsewhere by reach as well…
Percentage of online population who streamed
video
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
UK Canada France Germany
Source: comScore Video Metrix; December 2008
© comScore, Inc. Proprietary and Confidential. 7

8. Online video is surprisingly big across all age categories…
Online Video Monthly Cume by Age
80% 73.6% 73.4% 72.8%
70.5% 70.0% 70.1%
70% 67.6% 66.7%
61.7%
60%
50%
40%
30%
20%
10%
0%
2+ 2-11 12-17 18-24 25-34 35-44 45-54 55-64 65+
Source: comScore Video Metrix
© comScore, Inc. Proprietary and Confidential. 8

9. And especially big in 18-34’s in terms of time spent viewing
Average time spent viewing video per person (in hours)
1000%
9
900%
800% 7
7
700% 6
600%
5
500% 4
4
400% 3
300%
200%
100%
0%
2-11 12-17 18-24 25-34 35-44 45-54 55-64 65+
Source: comScore Video Metrix
© comScore, Inc. Proprietary and Confidential. 9

10. Top video sites show big growth
8,000,000
YouTube Videos are Up 98% in 15 months
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Youtube
© comScore, Inc. Proprietary and Confidential. 10

11. Top video sites show big growth
 Unique viewers on Hulu and the Hulu video network
Hulu’s audience grew nearly 600% in the last 12 months
© comScore, Inc. Proprietary and Confidential. 11

12. Getting Beyond Big…
© comScore, Inc. Proprietary and Confidential. 12

13. Big does not always equal good…
© comScore, Inc. Proprietary and Confidential. 13

14. Especially when we talk about video in terms of streams
My network did
10 million
What’s a
billion streams
stream?
last month…
© comScore, Inc. Proprietary and Confidential. 14

15. The problem with big streaming numbers…
 A stream is a generic term used to explain that a video file was requested
and viewed (at least in part)
– Can be auto initiated, user initiated, live streaming, progressive download, from
a web server or a content delivery network (CDN), or multiple CDN’s…
 Can be useful to understand scale and tonnage, but---
Web
Server
Content
Request
Consumer
Content
Stream Request
CDN
© comScore, Inc. Proprietary and Confidential. 15

16. We need to look beyond ‘streams’
 A stream really only expresses the result of convoluted, complex
technology-based relationships, and can be confusing as a measure in
itself Web Content
Server Server
Content Content
Request Request
Consumer Content
Stream
Ad Request
?
Ad Stream
Ad Network
CDN
© comScore, Inc. Proprietary and Confidential. 16

17. Looking beyond big streams, to specific audiences
and online behaviors…
…small (and relevant) is the new big
© comScore, Inc. Proprietary and Confidential. 17

18. Big used to matter. Big meant economies of scale. Value came from
hundreds of operators standing by and from nine-figure TV ad budgets.
And then small happened.
Seth Godin
© comScore, Inc. Proprietary and Confidential. 18

19. Three alternatives to ‘big’ streaming numbers
 Specific audiences and audience comps who can be understood and
reached meaningfully by virtue of their behavior
 Niche audiences or online ‘tribes’ who congregate (and can be reached)
around their interests
 Relevant, value-enhancing advertising messages and offers that focus on
the context of the video experience (moving beyond sweeping
generalizations based on demographic composition)
© comScore, Inc. Proprietary and Confidential. 19

20. Specific audiences:
Target: 18+ business travelers who watch video and multi screen
– Of the 39mm in this target group,
52% watched online video in the
last 7 days
– Light, medium and heavy TV
viewers represented 43%, 27%
and 24% reach respectively
– 50% of light TV viewers, 44% of
medium TV viewers and 66% of
heavy TV viewers also watched
online video in the last 7 days
– Only 3.5% never watch TV while
using their computer
26% frequently watch TV while using
their computer ; 12% always did so
© comScore, Inc. Proprietary and Confidential. 20
Plan Metrix, April 2009

21. Video can be used to reach very specific people around their online
searching and buying behavior
Applying for and searching out financial
Where can we reach these people?
products –
 Of the 30mm people who searched  Geico browsers over indexed on
for and/or applied for an array of myspace, msn video, OV guide
financial services products
 Lendingtree browsers loved video
(personal loan, mortgage, 401k,
sharing sites like ebaumsworld,
brokerage account etc) in the last 6
veoh and dailymotion
months…
 Etrade, Schwab and Fidelity
 60% could have been reached via browsers and applicants could be
online video in the last week
found watching video on Hulu,
 The video viewers tended to Spike, Metacafe, Break, MSN Video
concentrate around the higher and Justin.tv among others
income thresholds, and around
 Freecreditreport.com customers
specific video sites
and applicants also visited
Funnyordie, real.com and Break
© comScore, Inc. Proprietary and Confidential. 21 Video Metrix and Plan Metrix report, April 2009

22. Using simple planning tools like Video RF to simplify planning video
against specific targets
© comScore, Inc. Proprietary and Confidential. 22

23. Video is also a powerful way of reaching niche audiences as they
congregate around their interests
gamers
Snow Mom
boarders bloggers
DIY
fashion
and
influencers
© comScore, Inc. Proprietary and Confidential. 23

24.  The fascination with big (and why we’re stuck)
 Small (and relevant) is the new big
 Don’t forget context
© comScore, Inc. Proprietary and Confidential. 24

25. Not all video is the same (and not all viewers can be treated the same)
© comScore, Inc. Proprietary and Confidential. 25

26. Not all video advertising is the same either…
In Water
Branded
Pre-roll banner
marks
content
video
Skinned Mid-roll
Overlays Post-roll
players
In page Sponsor Something
Bugs different?
video driven
© comScore, Inc. Proprietary and Confidential. 26

27. Two kinds of video experiences
Transportation Information
and escape and education
© comScore, Inc. Proprietary and Confidential. 27

28. Online video to…
escape elevate
• immersive • functional, searching
• viewer in ‘passive mode’ • viewer in ‘action mode’
• Less likely to want to interrupt their content • More likely to take action on a relevant
experience or be diverted message, immediately
• Linear video advertising with companions, • Video advertising featuring a call to action:
similar to TV experience clickable overlays, in video ads, companions
© comScore, Inc. Proprietary and Confidential. 28

29. Content as transportation and escape…
 The viewer is typically interested in an
immersive but lean back experience similar
to that of TV
Program or video is the end in itself, the
outcome of searching/seeking
 Includes short or long form programming
 Examples include Lost, Desperate
Housewives, Heroes as well as short form
comedy programming, music, animation
 Viewer is receptive to advertising
messages, albeit in a ‘soft’ way – think
brand lift, awareness
© comScore, Inc. Proprietary and Confidential. 29

30. Content as information and education…
Aka help me do something; find something; be more interesting
• Viewer actively seeks out
information in a shared video format
that is valuable to him/her
• Reveals a lot about interests, and
potentially where they are in the
purchase cycle
• How-to content, news, travel
information, professional talks,
interviews etc
• Ads can become ‘helpful’
• Huge opportunities here for highly
relevant advertising that delivers
value and utility, directly
© comScore, Inc. Proprietary and Confidential. 30

31. The potential in video advertising:
Video viewers are 20% more likely to make a purchase online
Buyers per visitor/
video viewer
25.0%
19.7%
20.0%
15.0%
10.0%
21.3% 21.5% 22%
21.8% 20.5%
5.0%
Total Internet
0.0%
Video Streamers
© comScore, Inc. Proprietary and Confidential. 31

32. Key Takeaways
 Big is not the destination in online video… meaningful is
 Meaningful insights means understanding audiences, as well as
understanding the different types of video experiences available… and
catering our advertising messages to each
 There are huge, untapped opportunities in video advertising
 Do not think streams, think who is watching and what are they telling you
about their interests?
© comScore, Inc. Proprietary and Confidential. 32

33. Next in the Online Video Series
July 14
Cross-Screen Synergy: Show me the (TV) money!
(Why Online Video and TV are not competitors…and what you
can do about it.)
July 29
Thank you! Going Beyond TV on the Web: Finding the Untapped
Advertising Opportunities in Online Video
tyuki@comscore.com Contact: events@comscore.com