A presentation entitled Insights for the Future of Online Video Commercialization given at the Advertising Research Foundation’s (ARF) AM 6.0 conference held in 2011. Test on online commercial viewing done by TBS was presented. The presentation included the research design and methods used as well as the findings. The presentation was given by Stacey Lynn Schulman-SVP, Ad Sales & Sports Research at Turner Broadcasting Sales, Inc.
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Insights for the Future of Online Video Commercialization
1. Insights for the Future of Online
Video Commercialization
Emerging Hot Topics Part I – #3
Stacey Lynn Schulman
SVP, Ad Sales & Sports Research
Turner Broadcasting Sales, Inc.
2. TV Everywhere:
The Elegant Solution
Stakeholder Concern Interest Solution
Broadband HH Protect Exclusivity
MSO do not subscribe to of Content Authentication requirement
cable / satellite / telco Distribution
Greater ad load monetizes
Expand Access of inventory
Content Sustainable Internet content library to Extended screen measurement
Provider video business model grow viewership expands audience delivery for
across platforms program valuation and
marketplace currency
Viewer Control
(fast forwarding) Disabled fast-forwarding
Advertiser Commercial skipping diminishes through commercial breaks in
communication on-demand environments
value of advertising
Expanded access to content
Broadband HH Wider Access and Fresher content
Viewer do not subscribe to Control of Viewer
cable / satellite / telco Experience Greater control of experience
thru greater variety of
on-demand platforms
#ARFAM6
3. The Million Dollar Question
Will consumers watch full length television
programs online with a full linear ad load?
What is the optimal online ad load that
maximizes both the consumer experience, as
well as advertising exposure and revenue?
Is viewing to 30-minute shows (comedies) and
60-minute shows (dramas) affected differently
by varying degrees of advertising load.
#ARFAM6
4. Background
No Real World Research
Previous studies involved attitudinal research
Lack of solid consumer behavior data
Most survey based studies were directionally the
same, revealing online advertising acceptance
has largely been studied:
– In comparison to television
– Across demographic groups
– Based in general acceptance
Results had conflicting findings
Some behavioral research emerged in last 6 months
(CW/Freewheel)
#ARFAM6
5. Methods
A First Step
Turner and MAGNAGLOBAL partnered in order
to get a first look
– Designed study to give users an unobtrusive and unbiased
viewing experience
– Expectations of uncovering differences in claimed versus
observed online tune-out
Self report data subject to speculation
Mechanical observational methods are not open to conjecture
#ARFAM6
7. Research Design
Online multivariate test design using Turner and
Optimost technology
Panelists were randomly selected once arriving at
TNT.tv or TBS.com – not pre-recruited to participate
This was a “blind” test – consumers were completely
unaware of our intervention
#ARFAM6
8. Research Design
Fast forwarding was disabled during the ad breaks,
but was enabled during the program content, simulating
Turner’s current TV Everywhere environment
#ARFAM6
9. Research Design
Ad load was varied across 6 test cells
– Included a mix of different ad creative and network promos,
as well as :30’s ad :15’s
Optimost randomly selected, rotated and served ads
from a pool of TV commercials provided by Magna &
Turner, eliminating bias
#ARFAM6
10. Panelists Were Randomly Assigned
to One of Three Test Cells
TNT Dramas = 5 ad blocks TBS Comedies = 4 ad blocks
Cell 1 Cell 2 Cell 3
Linear+ Ad Load Modified Ad Load Online Ad Load
20 Min Ad Load 10 Min Ad Load 1:15 Min Ad Load
Cell 1 Cell 2 Cell 3
Linear+ Ad Load Linear Ad Load Online Ad Load
16 Min Ad Load 8 Min Ad Load 1 Min Ad Load
n = 1000+ per cell. Note: on average, hour long original TNT dramas contain ~17.5 mins of non-program content, including national
and local commercials, as well as network promotion. TBS original comedies, such as Meet The Browns, contain ~8 minutes of
non-program content.
#ARFAM6
11. Magna Global Provided Turner with
Prominent Brands Across Categories
Automotive
Packaged Goods
Technology
Pharma / OTC
Financial
QSR
Travel
Entertainment
Durable Goods
#ARFAM6
12. Precise Time Spent Measurement
Stream viewing and ad viewing were both tracked in
5 second increments to ensure precision in analysis
Optimost Beacons
V. Start 5 10 15 20
0 5 10 Ad Block
13. What Did We Already Know About How
Consumers Watch Long Form Content Online?
On average, consumers watch about half of
full length sitcoms and dramas on
TBS.com and TNT.tv with limited ad load
riginal Series Multiplatform Viewing Summary - TBS andViewing Summary - TBS and TNT
2010 Original Series Multiplatform Viewing Summary - TBS and TNT
2010 Original Series Multiplatform TNT
Linear Premieres of June 31, 2010
Through Linear Premieres ofof June 31, 2010
Through Linear Premieres June 31, 2010
Online2 VODOnline2
3
VOD
Online2
Avg. Episode Estimated Avg. #Episode
Avg. Estimated Avg. #
Avg. Episode Estimated Avg.
Starts (000) TSV per Ep. Orders (000) Avg.TSV per Ep.
Starts (000) TSV Orders (000)
Starts (000) TSV per Ep. Orders
Episodes Per Episode Start (mins)
Episodes Episode per Order (mins)
Per Per Episode Start Per Episode
Episodes Per Episode Start (mins) Per Epi
rowns Meet the Browns 16 67 16 16 308 67 21 16 308
Meet the Browns 16 67 16 308
My Boys 2 74 18 2 97 74 21 18 97
My Boys 2 74 18 97
from Hell Neighbors from Hell 10 39 16 10 115 39 18 16 115
Neighbors from Hell 10 39 16 115
Online2 VODOnline2
3
VOD
Online2
Avg. Episode Estimated Avg. #Episode
Avg. Estimated Avg. #
Avg. Episode Estimated Avg.
Starts (000) TSV per Ep. Orders (000) Avg.TSV per Ep.
Starts (000) TSV Orders (000)
Starts (000) TSV per Ep. Orders
Episodes Per Episode Start (mins)
Episodes Episode per Order (mins)
Per Per Episode Start Per Episode
Episodes Per Episode Start (mins) Per Epi
The Closer 3 170 23 3 317 170 36 23 317
The Closer 3 170 23 317
d Isles Rizzoli and Isles 3 190 29 3 312 190 41 29 312
Rizzoli and Isles 3 190 29 312
Hawthorne 6 97 24 6 216 97 38 24 216
Hawthorne 6 97 24 216
Beat Memphis Beat 6 84 29 6 221 84 39 29 221
Memphis Beat 6 84 29 221
Leverage 7 176 29 7 301 176 38 29 301
Leverage 7 176 29 301
Source: Broadband data from Omniture; VOD data from Rentrak.
14. Varying Ad Loads Did Not Affect
Time Spent Viewing
Viewers watched ~29 minutes across all 3 test cells
Consumers watched more of the program in the Modified and
Online Ad Load scenarios, but they do not watch longer
Average Minutes Viewed Per Viewer
and % Program Completion Rate
30 29
Mins Mins 26
Mins
(49%) (56%) (59%)
Linear+ Ad Load Modified Ad Load Online Ad Load
n = Total Sample. Differences across cells are not statistically significant.
#ARFAM6
15. Online Video Commercial Retention
HIGHER Than Live Television
Commercial Retention Rates on TNT
100% 98%
92% 94%
Live TV Linear+ Ad Modified Ad Online Ad Load
Load Load
“Commercial Retention Rate” = live commercial rating / live program content rating for Live TV and average # panelists viewing per ad
minute / average # panelists viewing per program content minute. n = Total Sample.
#ARFAM6
16. Viewing Pattern Is The Same
Regardless of Length of Ad Breaks
% Of Panelists Viewing By Segment
100%
Episode credits
80%
60%
40%
20%
0%
1
2
3
4
5
t1
t2
t3
t4
t5
t6
ck
ck
ck
ck
ck
en
en
en
en
en
en
lo
lo
lo
lo
lo
m
m
m
m
m
m
B
B
B
B
B
eg
eg
eg
eg
eg
eg
d
d
d
d
d
A
A
A
A
A
S
S
S
S
S
S
w
w
w
w
w
w
ho
ho
ho
ho
ho
ho
S
S
S
S
S
S
Linear+ Ad Load Modified Ad Load Online Ad Load
n = Total Sample. Differences across cells are not statistically significant.
#ARFAM6
17. Varying Ad Loads Did Not Affect
Time Spent Viewing
Viewers watched ~14 minutes across all 3 test cells
Consumers watched more of the program in the Modified and
Online Ad Load scenarios, but they do not watch longer
Average Minutes Viewed Per Viewer
and % Program Completion Rate
15
Mins 14
Mins 13
Mins
(37%) (45%) (40%)
Linear+ Ad Load Linear Ad Load Online Ad Load
n = Total Sample. Differences across cells are not statistically significant.
#ARFAM6
18. Commercial Retention for Linear Ad
Load Online Is on Par with Live TV
Linear+ Ad Load was well in excess of Linear Ad Load and
resulted in more ad skipping.
Commercial Retention Rates on TNT
96% 92% 93%
79%
Live TV Linear+ Ad Linear Ad Load Online Ad Load
Load
“Commercial Retention Rate” = live commercial rating / live program content rating for Live TV and average # panelists viewing per ad
minute / average # panelists viewing per program content minute. Note: Heavy Ad Load exceeds TBS’ current linear ad load for original
comedies by ~8 minutes. n = Total Sample.
#ARFAM6
19. Viewing Behavior Follows
a Similar Pattern
% Of Panelists Viewing By Segment
100%
Episode credits
80%
60%
40%
20%
0%
1
2
3
4
5
1
2
3
4
k
k
k
k
t
t
t
t
t
en
en
en
en
en
oc
oc
oc
oc
gm
gm
gm
gm
gm
Bl
Bl
Bl
Bl
Ad
Ad
Ad
Ad
Se
Se
Se
Se
Se
ow
ow
ow
ow
ow
Sh
Sh
Sh
Sh
Sh
Linear+ Ad Load Linear Ad Load Online Ad Load
n = Total Sample. Note: Heavy Ad Load exceeds TBS’ current linear ad load for original comedies by ~8 minutes. Differences across
cells are not statistically significant.
#ARFAM6
20. What We Learned...
Time Spent Viewing
Regardless of ad load, consumers will spend approximately the
same amount of time watching full length episodes online
Commercial Retention
Commercial audience retention in an online environment is
equal to or better than Live TV for full length episodes
These findings are consistent for both hour-long dramas and
half-hour sitcoms
Advertising Exposure
Online episodes with ad loads resembling traditional linear
television drive significantly more ad exposures than limited
advertising scenarios
#ARFAM6
21. Conclusions
TV Everywhere is a WIN-WIN-WIN-WIN
for the industry
– WIN for Viewers – More content on more platforms
at no additional cost
– WIN for Cable Operators - Better offering for their customers
– WIN for Cable Networks – More platforms and more viewing
for harder to reach viewers
– WIN for Advertisers – More impressions and better
demographics for their TV advertising
Online commercialization is a well-tolerated
trade-off for consumers to avoid paying for content
#ARFAM6