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consumers lead
marketers on path
to cross-screen
convergence
Marketers bullish on video’s growth, but
advertising strategies yet to fully mature
January 2015
CONTENTS
I. Executive Summary: Video in Canada................................................................. 1
	
II. Introduction
Connected Device Ownership & Usage.......................................................................... 3
	
III. The Consumer
Video Consumption........................................................................................................... 7
	 Who’s viewing?
	 Where are they viewing?
	 What are they watching?
	 Why are they watching?
Cross-screenViewing.........................................................................................................15
	 Time spent viewing
	 Shifting consumption patterns
	 Simultaneous viewing and the second screen
Viewing Experience & Advertising Preferences........................................................... 21
Three Year Outlook.......................................................................................................... 23		
	 Expected Shifts in Viewing
The CANADIAN Marketer
Video Advertising Perspectives...................................................................................... 27		
	 Expected video growth
	 Video advertising adoption
	 Second screen
Challenges with Video Advertising................................................................................ 33
	 Biggest challenges holding marketers back
	 How is technology being used?
The Role of Technology.................................................................................................... 35
Three Year Outlook........................................................................................................... 37	
	 The benefits of video
	 Is convergence the new normal?
	 Who will benefit?
Appendix A: Methodology....................................................................................................... 42	
Appendix B: Demographics......................................................................................................42
EXECUTIVE SUMMARY
Videology’s advertising technology platform
is used by our clients to deliver the right
message to the right consumer on the right
screen. We are committed to understand-
ing and sharing insights on the growing
trend of video and television convergence.
As a global company, we see cross-device
video viewership escalating around the
world. But each market is different. In this
paper, we set out to discover how video
convergence is progressing in Canada—
both from the perspective of consumer
adoption and marketers’ strategic use of
new video channels.
To achieve this, we conducted our study in
two parts. One survey focused on Canadian
consumers’ use of and attitudes surround-
ing video and TV. The other focused on
Canadian marketers’ understanding of and
response to this new viewing environment.
The results were interesting, revealing areas
of convergence —and truthfully some areas
of divergence—that were quite startling.
What we did see from both sides, however,
was the acknowledgement that the way we
watch TV and video is evolving—and more
change is on the horizon.
What consumers said…
The lines between TV and video have
blurred irrevocably. The growing number
of connected devices owned by Canadians,
and concurrently the increasing opportunity
to consume content across multiple
platforms, has transformed the way that
consumers view TV and video.
Yet, new video options have not replaced
the old. While seven out of ten consumers,
and nine out ten Millennials, are viewing
video on computers, smartphones or tablets,
traditional TV viewing remains strong.
And while devices offer the benefit of
added mobility—or the promise of TV
anywhere—the majority of total viewing
still happens in the living room.
It’s not about either/or, it’s about more.
Despite the growth of online video, almost
70% of Canadians still subscribe to cable
TV or satellite services. Moreover, there is
no significant difference between “cord
cutters” and TV subscribers’ likelihood to
watch video. They are all watching!
Consumers want choice and control over
what they watch and when. And they often
want it at the same time. “Second-screen”
viewing is a huge trend engaged in by over
half of all Canadians.
Consumers understand that advertising
is the price of free content and prefer it that
way. Good news for advertisers—over 70% of
Canadians prefer ad-supported content over
pay services with no ads. What’s more, one
in five uses the second screen to get more
information about products advertised on TV.
1
What marketers said…
Marketers are bullish on video’s growth.
In fact, compared to consumers’ own
estimates of expected increases in time
spent with video over the next three years,
marketers are far more optimistic.
Conversely, marketers expect consumers’
traditional TV usage to decrease, while
consumers are more likely to say it will stay
the same or increase.
Yet, despite this optimism, video ad
strategies are lagging. Half of all marketers
say that they do not currently have a video
advertising strategy in place.
Marketers could benefit from greater
education on video buying opportunities.
For instance,68% of marketers were unfamiliar
with the term “second-screen” viewing.
Also, over one third did not know what
programmatic buying was, and only 10%
said that their company used it.
Perceived challenges in video advertis-
ing may be holding it back. Among the
biggest challenges cited by marketers
include campaign measurement, cross-
screen measurement, quality concerns and
targeting questions. Again, lack of knowledge
as to what data and technological solutions
are available may be fueling these concerns.
Looking to the future, however, marketers
do expect money to shift from other media
to new video options. Some of the biggest
advantages that marketers see in video
advertising include the ability to match ads
with target audiences, the ability to evaluate
audiences based on buying behavior and
the ability to buy audiences across screens.
Big changes are not far off, as holistic
planning and buying will become the new
norm. A very significant 85% of respondents
said that planning for online video and
linear TV will merge within the next three
years. Moreover, 52% said that their
agencies are likely to merge their TV and
online video buying groups within that
timeframe.
Convergence will be good for buyers
and sellers. Marketers believe that video
convergence will bring benefits across
the ecosystem, with media outlets earning
higher CPMs and increasing their revenue
with video ads, and advertising effective-
ness improving.
2
INTRODUCTION
Canadians have access to more connected
technology than ever before, enabling
consumption of more content from a wider
array of devices. The growing use and
ownership of devices, along with the
supporting advertising technology to target
and measure holistically across platforms,
represents a strong and growing opportunity
for marketers to reach and engage with
consumers across screens.
study objectives
Videology’s research was conducted by
Marketing Magazine and Rogers Connect
Market Research and Client Services. It
was designed to give a snapshot of the
way Canadians are consuming video—in
all its incarnations—in today’s cross-screen,
cross-device environment. In addition, the
research sought to learn marketers’ views
on shifting video consumption among their
customers and the challenges and opportu-
nities that these changes posed. The goal
was to determine the areas of divergence
and congruity between the way consumers
are watching TV and video, and the way
advertisers are using media and available
technologies to reach them.
Overall approach
The study, in the form of an online survey,
was conducted across Ontario, Quebec,
the Atlantic region and Western Canada.
A nationally representative sample of 1,011
consumers and 104 marketers completed
the online interviews. All responses were
collected between September and October
2014. Data was compiled by Marketing
Magazine, and the corresponding analysis
and commentary was prepared by Videology.
3
Which of the following technology/services
do you currently own/use?
How do you connect to the internet?
CONNECTIVITY ACROSS DEVICESINTRO GRAPH 2
50%	
  
43%	
  
26%	
  
20%	
  
13%	
   13%	
  
27%	
  
25%	
  
29%	
  
26%	
  
22%	
   21%	
  
6%	
  
13%	
   12%	
   11%	
  
15%	
   16%	
  16%	
  
20%	
  
33%	
  
43%	
  
50%	
   51%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
Laptop/Notebook	
   Desktop	
   Smartphone	
   Tablet	
   Internet	
  enabled	
  
console	
  (i.e.	
  Xbox,	
  
Roku)	
  
Connected	
  TV	
  
	
  How	
  do	
  you	
  connect	
  to	
  the	
  internet?	
  
Most	
  of	
  the	
  Ome	
  %	
   Regularly	
  %	
   Very	
  rarely	
  %	
   Never	
  %	
  
4
INTRO GRAPH 1 DEVICE OWNERSHIP
68%	
  
58%	
  
55%	
  
38%	
  
20%	
  
23%	
  
76%	
  
54%	
  
76%	
  
50%	
  
25%	
  
27%	
  
73%	
  
61%	
  
65%	
  
40%	
  
23%	
   24%	
  
68%	
   68%	
  
40%	
  
30%	
  
21%	
  
13%	
  
62%	
   62%	
  
21%	
   19%	
  
23%	
  
4%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
Laptop/Notebook	
  Desktop	
  Computer	
   Smartphone	
   Tablet	
   Connected	
  TV	
  
(internet-­‐enabled)	
  
Connected	
  TV	
  via	
  
separate	
  device	
  
(Roku,	
  Xbox,	
  etc)	
  
Which	
  of	
  the	
  following	
  technology/services	
  do	
  you	
  currently	
  own/use?	
  	
  
TOTAL	
  %	
   Millennials	
  %	
   Gen	
  X	
  %	
   Boomer	
  %	
   Pre-­‐Boomer	
  Seniors	
  %	
  
Laptop/Notebook Desktop Computer Smartphone	 Tablet Connected TV	 Internet-enabled 	
								 (Internet-enabled)	 Console 		
												 (Roku,Xbox, etc.)
Laptop/Notebook Desktop Computer Smartphone	 Tablet Internet-enabled Connected TV		
						 	 	 Console 					
									 (Roku,Xbox, etc.)
TOTAL	 Millennials	 Gen X		 Boomer Pre-Boomer Seniors
Most of the time	 Regularly	 Very Rarely	 Never 	
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
THE CANADIAN CONSUMER
Who’s Viewing?
Overall, three-quarters of Canadians say
that they now watch online video. But these
percentages vary widely by age group.
While slightly more than one-third (36%)
of Seniors watch online video, more than 90%
of Millennials tune in online. (Graph 1.)
Interestingly, despite this increase in
online viewing and the reports of increased
cord-cutting, our survey showed that the
vast majority of the population—84%—still
subscribes to cable or satellite TV services.
And while the number of cord-cutters is
highest among Millennials, 80% of them still
subscribe to TV services.
As Chart 1 below shows, while a slightly
higher percentage of non-subscribers
view online video than those who do
subscribe, the difference is small, through
perhaps directional.
Currently it is safe to say that online video
viewing is done for the most part in conjunction
with traditional viewing, not in place of it.
The growing number of connected devices owned by Canadians,and concur-
rently the increasing opportunity to consume content across multiple platforms,
has transformed the way that consumers view television and video.In fact,the
boundaries between the two have blurred irrevocably.
THE CANADIAN CONSUMER
7
Video Consumption
CONSUMER GRAPH 1
CONSUMER GRAPH 2
CONSUMER CHART 1
Who’s watching
Subscribers to Cable and Satellite Services
CORD CUTTERS
8
Do you watch video online?
75%	
  
93%	
  
84%	
  
62%	
  
36%	
  
25%	
  
8%	
  
16%	
  
38%	
  
64%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
100	
  
%	
   %	
   %	
   %	
   %	
  
TOTAL	
   Millennials	
   Gen	
  X	
   Boomer	
   Pre-­‐Boomer	
  Seniors	
  
Do	
  you	
  watch	
  video	
  online?	
  
Yes	
   No	
  
TOTAL 		 Millenials		 Gen X		 Boomer 	 Pre-Boomer Seniors
Do you subscribe to any of the following TV services?
TOTAL 	 Millenials	 Gen X		 Boomer Pre-Boomer Seniors
Watch
Video Online
SATELLITE / CABLE SUBSCRIBERS
Satellite Subscribers Cable Subscribers Do Not Subscribe
YES 74%	
   76%	
   78%	
  
NO 25%	
   24%	
   22%	
  
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
75%	
  
93%	
  
84%	
  
62%	
  
36%	
  
25%	
  
8%	
  
16%	
  
38%	
  
64%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
100	
  
%	
   %	
   %	
   %	
   %	
  
TOTAL	
   Millennials	
   Gen	
  X	
   Boomer	
   Pre-­‐Boomer	
  Seniors	
  
Do	
  you	
  watch	
  video	
  online?	
  
Yes	
   No	
  
68%	
   65%	
   66%	
   74%	
  
59%	
  
20%	
   23%	
   19%	
   16%	
  
29%	
  
16%	
   20%	
   18%	
   11%	
   11%	
  
0	
  
20	
  
40	
  
60	
  
80	
  
%	
  TOTAL	
   %	
  Millennials	
   %	
  Gen	
  X	
   %	
  Boomer	
   %	
  Pre-­‐Boomer	
  
Seniors	
  
Do	
  you	
  subscribe	
  to	
  any	
  of	
  the	
  following	
  TV	
  services?	
  
Cable	
  Services	
   Satellite	
  Dish	
   Do	
  not	
  subscribe	
  	
  
68%	
   65%	
  	
   66%	
  	
  
74%	
  	
  
59%	
  	
  
20%	
  	
   23%	
  	
   19%	
  	
   16%	
  	
  
29%	
  	
  
16%	
  	
   20%	
  	
   18%	
  	
   11%	
  	
   11%	
  	
  
0	
  
20	
  
40	
  
60	
  
80	
  
%	
  TOTAL	
   %	
  Millennials	
   %	
  Gen	
  X	
   %	
  Boomer	
   %	
  Pre-­‐Boomer	
  
Seniors	
  
Do	
  you	
  subscribe	
  to	
  any	
  of	
  the	
  following	
  TV	
  services?	
  
Cable	
  Services	
   Satellite	
  Dish	
   Do	
  not	
  subscribe	
  	
  
Where are they watching?
The question of where consumers are
watching goes hand in hand with the question
of which device they are watching on.
The influx of smartphones, tablets, and even
laptops, has given consumers the ability to
watch where and when they want, with the
screen choice often coming down to a
“best screen available” scenario.
When asked specifically about video
viewing, most consumers said that they
watch on a desktop or laptop computer. This
makes sense considering that computers are
still the primary way that consumers connect
to the Internet, as discussed in the Introduc-
tion of this report. As we also noted in the
Intro, accessing the internet via the televi-
sion, whether through a connected console
or a connected TV, is only done by half of
Canadian consumers. Despite this relatively
low percentage, the television is still the 2nd
most popular device on which to view videos.
Smartphones and tablets are used to view
video by roughly the same percentage of
consumers at 29% and 23% respectively.
In terms of the physical location of viewing,
despite the promise of mobility, most viewing
still occurs in the home.The vast majority—
74%—view video primarily in the living room.
Almost half also regularly watch in other
rooms within the home. Watching while
commuting, at work, or other places outside
the home is much more limited.
THE CANADIAN CONSUMER
9
Video Consumption
CONSUMERS GRAPH 4.
VIEWING LOCATION
Which device do you watch video on?
Where do you regularly watch video?
CONSUMER GRAPH 3
CONSUMER GRAPH 4
VIEWING DEVICE
VIEWING LOCATION
77%	
  
45%	
  
29%	
   23%	
  
0	
  
50	
  
100	
  
Laptop/Desktop	
   TV	
  Screen	
   Smartphone	
   Tablet	
  
What	
  device	
  do	
  you	
  watch	
  video	
  on?	
  
TOTAL	
  %	
  
74%	
  
46%	
  
11%	
   10%	
   10%	
   12%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
At	
  home	
  in	
  
living	
  room	
  
At	
  home	
  in	
  
rooms	
  other	
  
than	
  the	
  living	
  
room	
  
While	
  
commu=ng	
  
While	
  traveling	
  
(airport,	
  
hotel,etc)	
  
At	
  work/school	
  In	
  public	
  places	
  
(beach,	
  park,	
  
etc)	
  
Where	
  do	
  you	
  regularly	
  watch	
  video?	
  
TOTAL	
  %	
  
10
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Athomeinrooms
otherthanthe
livingroom
While
commuting
Whiletraveling
(airport,hotel,etc.)
Atwork/
school
Inpublic
places(beach,
park,etc.)
Athomein
livingroom
Laptop/Notebook TV Screen Smartphone	 Tablet
what are they watching?
So we know that three out of four Canadians
are watching video online. But what type of
content are they viewing? The answers range
from YouTube clips to the same professionally
produced content shown on traditional TV.
In many cases, viewers are simply
accessing traditional TV content on an
alternate screen. While a relatively low
percentage (24%) say that they access
content directly from a broadcaster’s site,
39% say that they access “TV Everywhere”
from their cable provider.
Almost an equal percentage (35%) say
that they access content from a subscription-
based service, such as Netflix. And the
highest percentage of respondents said that
they access video through content aggregators,
such as YouTube.
In terms of genre, movies are by far the
type of video content that respondents watch
most regularly.
Canadian and US/Internationally produced
programming placed a close 2nd and 3rd in
terms of video content viewed regularly.
Local news was mentioned by 31% of
respondents,while 22% cited US/International
news,followed closely by local sports at 21%.
THE CANADIAN CONSUMER
Video Consumption
11
CONSUMERS GRAPH 4.
VIEWING LOCATION
Which of the following best describes how
you access the videos you watch?
What types of video content do you watch
on-line on a regular basis?
CONSUMER GRAPH 5
CONSUMER GRAPH 6
ACCESSING CONTENT
PROGRAMMING GENRES
69%	
  
38%	
   36%	
  
31%	
  
22%	
   21%	
  
11%	
  
2%	
   1%	
   2%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
Movies	
   Canadian	
  
Produced	
  
Programming	
  
US/InternaBonal	
  
Programming	
  
News	
  from	
  Local	
  
TV	
  Networks	
  
News	
  from	
  US/
InternaBonal	
  	
  
Local	
  Sports	
   US/InternaBonal	
  
Sports	
  Not	
  Easily	
  
Accessible	
  on	
  TV	
  
Music	
  videos	
   YouTube	
  clips/
selecBons	
  
Other	
  
What	
  types	
  of	
  video	
  content	
  do	
  you	
  watch	
  on-­‐line	
  on	
  a	
  regular	
  basis?	
  
TOTAL	
  %	
  
12
40%	
  
39%	
  
35%	
  
30%	
  
24%	
  
Video	
  Content	
  Aggregator	
  (i.e.	
  Youtube)	
  
TV	
  Everywhere/Cable	
  Provider	
  
SubscripHon	
  streaming	
  service	
  (ie.	
  NeKlix)	
  
Non-­‐subscripHon	
  Streaming	
  Site/Service	
  
Site	
  or	
  Broadcaster	
  Direct	
  
Which	
  of	
  the	
  following	
  best	
  describes	
  how	
  you	
  access	
  the	
  videos	
  
you	
  watch?	
  
TOTAL	
  %	
  
Site or broadcaster direct
Non-subscription streaming site/service
Subscription streaming service (ie. Netflix)
TV everywhere/cable provider
Video content aggregator (i.e.Youtube)
Movies US/International
Programming
Local TV
Network News
US/International
News
Local Sports US/International
Sports Not Easily
Accessible on TV
Music videos YouTube clips/
selections
OtherCanadian
Produced
Programming
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
whY are they watching?
No technology or new behavior achieves
mass adoption unless there is a correspond-
ing consumer need. So why are consumers
viewing video beyond traditional TV?
By far, the top reason is one of control;
control over when they watch and what they
watch, i.e. more programming options.
Of course, reasons for viewing do vary
significantly among the various age groups:
• Millennials value control the most of all
age groups, and also are the most likely
to say that they watch video because it is
less expensive than traditional TV services.
They are least likely to cite fewer ads as a
reason to watch. And they also value the
freedom to watch outside of the home
more than any other group.
• GenX is similar to Millennials in their
reasons for watching video, though lower
percentages across all choices show that
they are more selective in their reasons
than younger consumers.
• Boomers want control over when they
watch. Interestingly, they value fewer ads
more than any other age group, and are
least concerned about the cost savings.
• Pre-Boomer Seniors also want control
over when they watch and are least
interested in the freedom to watch
outside of the home.
What about those who are not watching
video? The top reason cited was satisfaction
with current options, i.e. “TV is sufficient.”
Over 60% of Boomers and Seniors who don’t
watch video said TV is sufficient. Among
Millennials who do not watch video, answers
were more diverse, with top choices includ-
ing TV is sufficient, my internet costs would
increase, and not enough choice.
THE CANADIAN CONSUMER
Video Consumption
13
You indicated that you do not watch video online, why not?
What are the primary reasons that you use digital video
rather than traditional TV?
CONSUMER GRAPH 7 Reasons for NOT watching video
14
CONSUMER CHART 2 Reasons for watching video
No need –
TVsufficient
Services too
expensive
Don’t know
how to do it
My Internet
costs would
increase
Not enough
choice
available
Difficult to find
programming
to watch
Internet
connection
too slow
Too many
ads
Don’t have
the right
technology
to access
No interest
in watching
TV
OtherNo interest in
InternetTV
52%	
  
35%	
  
20%	
  
16%	
   14%	
  
9%	
   8%	
   8%	
   8%	
   8%	
   7%	
  
1%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
No	
  need	
  –	
  TV	
  
sufficient	
  
No	
  interest	
  in	
  
Internet	
  TV	
  
Services	
  too	
  
expensive	
  
Don’t	
  know	
  how	
  
to	
  do	
  it	
  
My	
  Internet	
  
costs	
  would	
  
increase	
  
Not	
  enough	
  
choice	
  available	
  	
  
Difficult	
  to	
  find	
  
programming	
  to	
  
watch	
  
Internet	
  
connecNon	
  too	
  
slow	
  
Too	
  many	
  ads	
   No	
  interest	
  in	
  
watching	
  TV	
  
Don’t	
  have	
  the	
  
right	
  technology	
  
to	
  access	
  
Other	
  
You	
  indicated	
  that	
  you	
  do	
  not	
  watch	
  video	
  online,	
  why	
  not?	
  
TOTAL	
  %	
  
Base: Respondents who view
video online TOTAL Millennials Gen X Boomer
Pre-Boomer
Seniors
More control over
when I watch 51%	
   59%	
   51%	
   49%	
   41%	
  
More programming options 44%	
   54%	
   43%	
   31%	
   21%	
  
Less expensive than traditional
TV services 31%	
   40%	
   33%	
   21%	
   27%	
  
Fewer ads than TV 29%	
   28%	
   30%	
   33%	
   30%	
  
More freedom where I watch (outside
the home) 27%	
   31%	
   28%	
   21%	
   10%	
  
Other 16%	
   13%	
   16%	
   16%	
   41%	
  
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Time spent Viewing
In many ways, TV is still king. Canadians are
watching more traditional television than any
other kind of programming, spending 14.3
hours on average watching live television,
and an additional 4.2 hours watching
recorded shows.
And while it’s clear that Canadians love
TV content, they are now spending more
than 6 hours in the average week consuming
that content via the Internet.
Time spent viewing original video
content, i.e. not created for television, is
still relatively low. This will likely increase
as more quality, made-for-video programs
become available.
On average, Canadians are spending 3.6
hours with streaming video services, such
as Netflix. These services generally include
both original programming, as well as TV
shows and movies.
In terms of when consumers are viewing
content, both traditional TV and video
consumption follow the same daypart
pattern. Viewing is relatively low in the
morning (the peak time for general internet
usage), gradually increases throughout the
day, and peaks in the traditional evening
“primetime” viewing period. (Graph 9.)
THE CANADIAN CONSUMER
Interestingly, despite the increase in video viewership, the time that
Canadians spend with traditional TV remains high. In fact, collective
research suggests that rather than substituting one medium for another,
consumers are simply increasing their overall time spent with media. In
some cases, this increase is the result of new access to media in locations
and at times when media consumption would have been impossible
previously. In other instances, this increase is due to simultaneous usage
on different screens.
15
cross-screen VIEWING
What time do you most frequently engage in
the following activities?
Please indicate how many hours per week do you
typically do any of the following?
CONSUMERS GRAPH 8
CONSUMER GRAPH 9
Weekly Viewing Hours
Viewing by Daypart
16
14.3	
  
6.2	
  
4.2	
  
3.6	
  
2.5	
  
2.5	
  
0	
   2	
   4	
   6	
   8	
   10	
   12	
   14	
   16	
  
Watch	
  tradi3onal/Broadcast	
  TV	
  
Watch	
  Internet	
  TV	
  (TV	
  programming/movies	
  
Watch	
  personally	
  recorded	
  TV	
  content	
  (i.e.	
  
Watching	
  streaming	
  services	
  (i.e.	
  NeElix)	
  
Watching	
  snippets	
  TV/Movies	
  streamed	
  on	
  
Watching	
  Original	
  Online	
  Video	
  (non-­‐TV	
  
Please	
  indicate	
  how	
  many	
  hours	
  per	
  week	
  
do	
  you	
  typically	
  do	
  any	
  of	
  the	
  following?	
  
Hrs	
  
Watching original online video (non-TV programming)
Watching snippets TV/movies streamed on sites like YouTube
Watching streaming services (i.e. Netflix)
Watch personally recorded TV content (i.e. DVR)
Watch internet TV (TV programming/movies watched via Internet)
Watch traditional/broadcast TV
Hours
0	
  
5	
  
10	
  
15	
  
20	
  
25	
  
30	
  
%	
  Before	
  9AM	
   %	
  12PM	
  to	
  2PM	
   %	
  4P-­‐Before	
  6PM	
   %	
  8PM-­‐	
  Before	
  
10PM	
  
What	
  &me	
  do	
  you	
  most	
  frequently	
  engage	
  in	
  the	
  following	
  ac&vi&es?	
  
Using	
  the	
  Internet	
  
Watching	
  Digital	
  Video	
  on	
  
Computer/Mobile	
  Devices	
  
Watching	
  Digital	
  Video	
  on	
  TV	
  
via	
  Internet	
  
Watching	
  TradiLonal	
  
Television	
  
30%
25%
20%
15%
10%
5%
Using the Internet
Watching Digital Video on
Computer/Mobile Devices
Watching Digital Video
on TV via Internet
Watching Traditional Television
Before 9AM 12PM to 2PM 4PM-Before 6PM 8PM Before 10PM
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Shifting consumption patterns
As we stated in the Intro section,very few
Canadians say that they are doing “less” of
anything when it comes to media consumption!
As shown, when asked how their media
usage had changed compared to a year ago,
upwards of 25% said they consumed “more”
across every media type listed (Graph 10.)
More respondents (37%) said that they were
watching more internet TV (TV programming
watched over the internet) than any other
category.
The only categories with over 10% of
respondents saying that they were watching
less than a year ago were traditional/broad-
cast TV (18%) and TV content recorded via
DVR (11%).
When looked at by age group, it becomes
clear that Milllennials are by far the most vora-
cious consumers in terms of growing media
consumption.
In fact, more than 10% of Millennials say
that they are watching “much more” content
across every media category (including tradi-
tional television).
In all categories involving video viewing,
upwards of 20% of Millennials say that they are
consuming “much more” than a year ago.
In general, Boomers and Pre-Boomer
Seniors are showing the lowest increases in
media consumption. This is not to say, how-
ever, that they are not already strong viewers
of traditional/broadcast TV, as most research
indicates.
THE CANADIAN CONSUMER
17
Those viewing “MUCH MORE” compared to a year ago?
How has your usage of the following changed compared to a year ago?
18
CONSUMER GRAPH 10 Change in Viewing Consumption
CONSUMER GRAPH 11 Change in Viewing by Age Group
17%	
  
13%	
  
11%	
   11%	
   11%	
   10%	
   9%	
   8%	
  
26%	
  
21%	
   21%	
   20%	
  
16%	
  
11%	
   11%	
   12%	
  11%	
  
14%	
  
10%	
   9%	
   10%	
  
8%	
  
6%	
   6%	
  
8%	
  
6%	
  
1%	
   2%	
  
5%	
  
10%	
  
7%	
  
3%	
  4%	
  
2%	
   2%	
  
4%	
  
6%	
  
4%	
   4%	
  
0%	
  
0	
  
5	
  
10	
  
15	
  
20	
  
25	
  
30	
  
Watch	
  Internet	
  TV	
  (TV	
  programming/
movies	
  watched	
  via	
  Internet)	
  
Watching	
  snippets	
  TV/Movies	
  streamed	
  
on	
  sites	
  like	
  YouTube	
  
Accessing	
  the	
  Internet	
  via	
  tablet	
   Watch	
  personally	
  recorded	
  TV	
  content	
  
(i.e.	
  DVR)	
  
Those	
  viewing	
  “MUCH	
  MORE”	
  compared	
  to	
  a	
  year	
  ago?	
  
Total	
  %	
   Millennials	
  %	
   Gen	
  X	
  %	
   Boomer	
  %	
   Pre-­‐Boomer	
  Seniors	
  %	
  
37%	
  
29%	
   30%	
   29%	
   27%	
   28%	
   26%	
   25%	
  
34%	
   31%	
  
39%	
  
31%	
   31%	
  
48%	
  
39%	
   41%	
  
6%	
   6%	
   8%	
   8%	
   6%	
  
18%	
  
11%	
   9%	
  
23%	
  
34%	
  
23%	
  
32%	
   35%	
  
7%	
  
24%	
   25%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
Watch	
  Internet	
  TV	
  (TV	
  
programming/movies	
  
watched	
  via	
  Internet)	
  
Watching	
  streaming	
  
services	
  (i.e.	
  NeFlix)	
  
Watching	
  snippets	
  TV/
Movies	
  streamed	
  on	
  
sites	
  like	
  YouTube	
  
Accessing	
  the	
  Internet	
  
via	
  Smartphone	
  
Accessing	
  the	
  Internet	
  
via	
  tablet	
  
Watch	
  tradiPonal/
Broadcast	
  TV	
  
Watch	
  personally	
  
recorded	
  TV	
  content	
  
(i.e.	
  DVR)	
  
Watching	
  Original	
  
Online	
  Video	
  (non-­‐TV	
  
programming)	
  
How	
  has	
  your	
  usage	
  of	
  the	
  following	
  changed	
  compared	
  to	
  a	
  year	
  ago?	
  
More	
   Same	
   Less	
   NA	
  %	
  
WatchinternetTV
(TVprogramming/
movieswatched
viaInternet)
Accessingtheinter-
netviasmartphone
Watchingstreaming
services(i.e.Netflix)
Accessingthe
internetviatablet
Watchpersonally
recordedTV
content(i.e.DVR)
Watchingsnippets
TV/moviesstreamed
onsiteslikeYouTube
Watchtraditional/
broadcastTV
Watchingoriginal
onlinevideo(non-
TVprogramming)
37%	
  
29%	
   30%	
   29%	
   27%	
   28%	
   26%	
   25%	
  
34%	
  
31%	
  
39%	
  
31%	
   31%	
  
48%	
  
39%	
  
41%	
  
6%	
   6%	
  
8%	
   8%	
   6%	
  
18%	
  
11%	
   9%	
  
23%	
  
34%	
  
23%	
  
32%	
  
35%	
  
7%	
  
24%	
   25%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
Watch	
  Internet	
  TV	
  (TV	
  
programming/movies	
  
watched	
  via	
  Internet)	
  
Watching	
  streaming	
  
services	
  (i.e.	
  NeFlix)	
  
Watching	
  snippets	
  TV/
Movies	
  streamed	
  on	
  
sites	
  like	
  YouTube	
  
Accessing	
  the	
  Internet	
  
via	
  Smartphone	
  
Accessing	
  the	
  Internet	
  
via	
  tablet	
  
Watch	
  tradiPonal/
Broadcast	
  TV	
  
Watch	
  personally	
  
recorded	
  TV	
  content	
  
(i.e.	
  DVR)	
  
Watching	
  Original	
  
Online	
  Video	
  (non-­‐TV	
  
programming)	
  
How	
  has	
  your	
  usage	
  of	
  the	
  following	
  changed	
  compared	
  to	
  a	
  year	
  ago?	
  
More	
   Same	
   Less	
   NA	
  %	
  
WatchinternetTV
(TVprogramming/
movieswatched
viainternet)
Accessingtheinternet
viasmartphone
Watchingstreaming
services(i.e.Netflix)
Accessingthe
internetviatablet
Watchpersonally
recordedTV
content(i.e.DVR)
Watchingsnippets
TV/moviesstreamed
onsiteslikeYouTube
Watchtraditional/
broadcastTV
Watchingoriginal
onlinevideo(non-
TVprogramming)
17%	
  
13%	
  
11%	
   11%	
   11%	
   10%	
   9%	
   8%	
  
26%	
  
21%	
   21%	
  
20%	
  
16%	
  
11%	
   11%	
   12%	
  11%	
  
14%	
  
10%	
  
9%	
   10%	
  
8%	
  
6%	
   6%	
  
8%	
  
6%	
  
1%	
  
2%	
  
5%	
  
10%	
  
7%	
  
3%	
  4%	
  
2%	
   2%	
  
4%	
  
6%	
  
4%	
   4%	
  
0%	
  
0	
  
5	
  
10	
  
15	
  
20	
  
25	
  
30	
  
Watch	
  Internet	
  TV	
  (TV	
  programming/
movies	
  watched	
  via	
  Internet)	
  
Watching	
  snippets	
  TV/Movies	
  streamed	
  
on	
  sites	
  like	
  YouTube	
  
Accessing	
  the	
  Internet	
  via	
  tablet	
   Watch	
  personally	
  recorded	
  TV	
  content	
  
(i.e.	
  DVR)	
  
Those	
  viewing	
  “MUCH	
  MORE”	
  compared	
  to	
  a	
  year	
  ago?	
  
Total	
  %	
   Millennials	
  %	
   Gen	
  X	
  %	
   Boomer	
  %	
   Pre-­‐Boomer	
  Seniors	
  %	
  
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Simultaneous viewing AND
THE SECOND SCREEN
Despite the large percentage of Canadians
who say that they are viewing more TV and
video in different ways, the fact remains—there
are a finite number of hours available
in a given day. So how are consumers
making time for all of this increased media
consumption? In many instances, the answer
is simultaneous viewing across multiple
devices, or what has become known as
“second-screening.”
In fact,over half of all Canadians say that they
use an internet-connected device on a daily
basis while watchingTV.(Graph 12.) And
amongMillennials,thatpercentagejumpsto65%.
The majority of consumers are using
their laptop as the second-screen, however,
smartphones, tablets and even desktop
computers all received significant mentions.
It is likely that as tablet ownership increases,
which is now at 38%, so too will its use in
second screening.
So what are consumers doing on the
second screen while watching TV? While
38% are accessing content related to the
television content, an equal percentage
(39%) are accessing unrelated entertainment
content—the age of multitasking is here!
An interesting fact for television advertisers
is that 20% of consumers say that they are
using the second screen to search, browse
or buy the products being advertised on TV.
Clearly, the second-screen now offers brands
an important opportunity for additional inter-
activity and engagement with consumers.
THE CANADIAN CONSUMER
cross-screen usage
19
CONSUMERS GRAPH 4.
VIEWING LOCATION
CONSUMERS GRAPH 4.
VIEWING LOCATION
How often would you say you use an internet-connected device at the
same time as you are watching traditional TV?
Which devices do you use when watching traditional TV?
What activities do you do on the second device?
53%	
  
65%	
  
59%	
  
44%	
  
23%	
  
18%	
   20%	
   18%	
   14%	
   10%	
  8%	
   7%	
   7%	
   9%	
  
2%	
  
0	
  
20	
  
40	
  
60	
  
80	
  
%	
   %	
   %	
   %	
   %	
  
TOTAL	
   Millennials	
   Gen	
  X	
   Boomer	
   Pre-­‐Boomer	
  Seniors	
  
How	
  o%en	
  would	
  you	
  say	
  you	
  use	
  an	
  internet-­‐connected	
  device	
  (i.e.	
  
tablet,	
  phone,	
  etc.)	
  at	
  the	
  same	
  <me	
  as	
  you	
  are	
  watching	
  tradi<onal	
  
TV?	
  
Daily	
  (NET)	
   Weekly	
  (NET)	
   Monthly	
  (NET)	
  
53	
  
65	
  
59	
  
44	
  
23	
  
18	
   20	
   18	
   14	
   10	
  8	
   7	
   7	
   9	
  
2	
  
0	
  
20	
  
40	
  
60	
  
80	
  
%	
   %	
   %	
   %	
   %	
  
TOTAL	
   Millennials	
   Gen	
  X	
   Boomer	
   Pre-­‐Boomer	
  Seniors	
  
How	
  o%en	
  would	
  you	
  say	
  you	
  use	
  an	
  internet-­‐connected	
  device	
  (i.e.	
  
tablet,	
  phone,	
  etc.)	
  at	
  the	
  same	
  <me	
  as	
  you	
  are	
  watching	
  tradi<onal	
  
TV?	
  
Daily	
  (NET)	
   Weekly	
  (NET)	
   Monthly	
  (NET)	
  
20
Access other
unrelated
entertainment
content
TOTAL 		 Millenials		 Gen X		 Boomer 	 Pre-Boomer Seniors
Laptop
Smartphone
Desktop
Tablet
Other
Search/browse/
buy products
unrelated to TV
Access other
unrelated
entertainment
content
Search/browse/
buy products
advertised
on TV
Write posts,
messages or
communicate
online related
to program
Play games Check emailsAccess content
related to
TV program
CONSUMER GRAPH 14 ACTIVITIES ON SECOND SCREEN
CONSUMER GRAPH 13 Devices Used for SECOND-Screening
CONSUMER GRAPH 12 Frequency of SECOND-Screening
50%	
  
33%	
  
30%	
  
26%	
  
11%	
  
Laptop	
  
Smartphone	
  
Desktop	
  
Tablet	
  
Other	
  
What	
  devices	
  do	
  you	
  use	
  when	
  watching	
  tradi3onal	
  TV?	
  	
  
39%	
   38%	
  
29%	
  
21%	
   20%	
  
14%	
  
3%	
   2%	
  
Access	
  other	
  unrelated	
  
entertainment	
  content	
  
Access	
  content	
  related	
  to	
  
TV	
  program	
  
Search/browse/buy	
  
products	
  unrelated	
  to	
  TV	
  
Write	
  posts,	
  messages	
  or	
  
communicate	
  online	
  
unrelated	
  to	
  program	
  	
  
Search/browse/buy	
  
products	
  adverEsed	
  on	
  TV	
  
Write	
  posts,	
  messages	
  or	
  
communicate	
  online	
  
related	
  to	
  program	
  	
  
Play	
  games	
   Check	
  emails	
  
What	
  ac'vi'es	
  do	
  you	
  do	
  on	
  the	
  second	
  device?	
  
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
53	
  
65	
  
59	
  
44	
  
23	
  
18	
   20	
   18	
   14	
   10	
  8	
   7	
   7	
   9	
  
2	
  
0	
  
20	
  
40	
  
60	
  
80	
  
%	
   %	
   %	
   %	
   %	
  
TOTAL	
   Millennials	
   Gen	
  X	
   Boomer	
   Pre-­‐Boomer	
  Seniors	
  
How	
  o%en	
  would	
  you	
  say	
  you	
  use	
  an	
  internet-­‐connected	
  device	
  (i.e.	
  
tablet,	
  phone,	
  etc.)	
  at	
  the	
  same	
  <me	
  as	
  you	
  are	
  watching	
  tradi<onal	
  
TV?	
  
Daily	
  (NET)	
   Weekly	
  (NET)	
   Monthly	
  (NET)	
  
72% of Canadians prefer to access free,
ad-supported digital content.(Graph 15.)
This is related to the point that 48% strongly
consider costs when choosing what to watch
and how to watch it.(Graph 16.)
Yet,despite their acceptance of advertising,
consumers are split on whether it is acceptable
to track online behaviour to improve the
relevancy of ads. Among respondents, 45%
agreeitisacceptable,while55%saythatitisnot.
Generationally,however,Millennials are much
morelikely to saybehaviourtrackingisaccept-
able (56%) than Seniors (24%).(Chart 3.)
In general,Canadians are also quite happy
with their viewing choices (81%),yet remain
covetous of the choices available to those in
the U.S.(78%). Younger consumers (85%) are
more likely than Seniors (65%) to say that they
would like the same level of choice as U.S.
consumers.(Chart 3.)
In addition,younger viewers (80%) are the
most likely to change the way they watch video
in order to get a better quality image.
THE CANADIAN CONSUMER
CONSUMERS GRAPH 4.
VIEWING LOCATIONHow would you prefer to access digital video content?
viewing Experience & Advertising preferences
28	
   29	
   25	
   20	
   22	
  
72	
   71	
   75	
   80	
   78	
  
0	
  
20	
  
40	
  
60	
  
80	
  
100	
  
%	
   %	
   %	
   %	
   %	
  
TOTAL	
   Millennials	
   Gen	
  X	
   Boomer	
   Pre-­‐Boomer	
  Seniors	
  
How	
  would	
  you	
  prefer	
  to	
  access	
  digital	
  video	
  content?	
  
Pay	
  to	
  access	
  with	
  no	
  adverGsements	
   Access	
  free	
  with	
  adverGsements	
  
21
Despite the negative connotations that sometimes surround advertising interruptions
or perceived clutter,the vast majority of Canadians across all age groups prefer the
advertising versus paid subscription model when it comes to accessing digital content.
Moreover,the vast majority are also satisfied with their overall programming experience
in terms of programming choice and quality.bo
TOTAL 		 Millenials	 Gen X	 Boomer 	 Pre-Boomer Seniors
CONSUMER GRAPH 15 Advertising vs. Subscription Models
28	
   29	
   25	
   20	
   22	
  
72	
   71	
   75	
   80	
   78	
  
0	
  
20	
  
40	
  
60	
  
80	
  
100	
  
%	
   %	
   %	
   %	
   %	
  
TOTAL	
   Millennials	
   Gen	
  X	
   Boomer	
   Pre-­‐Boomer	
  Seniors	
  
How	
  would	
  you	
  prefer	
  to	
  access	
  digital	
  video	
  content?	
  
Pay	
  to	
  access	
  with	
  no	
  adverGsements	
   Access	
  free	
  with	
  adverGsements	
  
Thinking about your media usage, please indicate how strongly
you agree or disagree with the following statements.
CONSUMER GRAPH 14 Attitudes Toward Advertising Experience
22
CONSUMER CHART 3 Attitudes Toward Advertising by age group
It is acceptable to track my behaviour online in
order to direct online ads best fitted to my interests
If the quality of image is better,
I will change the way I view videos
I wish I had the level of choice available to
consumers in U.S. as far as TV/ video goes
I feel I have an abundance of
choices as a media consumer
I consider the costs when choosing
what to watch and how I watch it
87%	
  
81%	
  
78%	
  
73%	
  
45%	
  
48%	
  
31%	
  
34%	
  
24%	
  
14%	
  
6%	
  
5%	
  
8%	
  
9%	
  
28%	
  
13%	
  
19%	
  
22%	
  
27%	
  
55%	
  
0	
   10	
   20	
   30	
   40	
   50	
   60	
   70	
   80	
   90	
   100	
  
I	
  consider	
  the	
  costs	
  when	
  choosing	
  what	
  to	
  watch	
  and	
  how	
  I	
  watch	
  it.	
  
I	
  feel	
  I	
  have	
  an	
  abundance	
  of	
  choices	
  as	
  a	
  media	
  consumer	
  
I	
  wish	
  I	
  had	
  the	
  level	
  of	
  choice	
  available	
  to	
  consumers	
  in	
  USA	
  as	
  far	
  as	
  TV/	
  
video	
  goes	
  
If	
  the	
  quality	
  of	
  image	
  is	
  beJer,	
  I	
  will	
  change	
  the	
  way	
  I	
  view	
  videos	
  
It	
  is	
  acceptable	
  to	
  track	
  my	
  behaviour	
  online	
  in	
  order	
  to	
  direct	
  on-­‐line	
  ads	
  best	
  
fiJed	
  to	
  my	
  interests	
  
Thinking	
  about	
  your	
  media	
  usage,	
  please	
  indicate	
  how	
  strongly	
  you	
  
agree	
  or	
  disagree	
  with	
  the	
  following	
  statements?	
  
Disagree	
  (NET)	
  %	
   Strongly	
  Disagree	
  %	
   Strongly	
  Agree	
  %	
   Agree	
  (NET)	
  %	
  
Base: All Respondents answering
AGREE (NET)
TOTAL Millennials Gen X Boomer
Pre-
Boomer
Seniors
I consider the costs when choosing
what to watch and how I watch it. 87%	
   89%	
   87%	
   87%	
   80%	
  
I feel I have an abundance of
choices as a media consumer 81%	
   81%	
   82%	
   83%	
   80%	
  
I wish I had the level of choice available to
consumers in U.S. as far as TV/ video goes 78%	
   85%	
   84%	
   72%	
   65%	
  
If the quality of image is better,
I will change the way I view videos 73%	
   80%	
   76%	
   66%	
   49%	
  
It is acceptable to track my behaviour
online in order to direct online ads best
fitted to my interests 45%	
   56%	
   48%	
   32%	
   24%	
  
87	
  
81	
  
78	
  
73	
  
45	
  
48	
  
31	
  
34	
  
24	
  
14	
  
6	
  
5	
  
8	
  
9	
  
28	
  
13	
  
19	
  
22	
  
27	
  
55	
  
0	
   10	
   20	
   30	
   40	
   50	
   60	
   70	
   80	
   90	
   100	
  
I	
  consider	
  the	
  costs	
  when	
  choosing	
  what	
  to	
  watch	
  and	
  how	
  I	
  watch	
  it.	
  
I	
  feel	
  I	
  have	
  an	
  abundance	
  of	
  choices	
  as	
  a	
  media	
  consumer	
  
I	
  wish	
  I	
  had	
  the	
  level	
  of	
  choice	
  available	
  to	
  consumers	
  in	
  USA	
  as	
  far	
  as	
  TV/	
  
video	
  goes	
  
If	
  the	
  quality	
  of	
  image	
  is	
  beIer,	
  I	
  will	
  change	
  the	
  way	
  I	
  view	
  videos	
  
It	
  is	
  acceptable	
  to	
  track	
  my	
  behaviour	
  online	
  in	
  order	
  to	
  direct	
  on-­‐line	
  ads	
  best	
  
fiIed	
  to	
  my	
  interests	
  
Thinking	
  about	
  your	
  media	
  usage,	
  please	
  indicate	
  how	
  strongly	
  you	
  
agree	
  or	
  disagree	
  with	
  the	
  following	
  statements?	
  
Disagree	
  (NET)	
  %	
   Strongly	
  Disagree	
  %	
   Strongly	
  Agree	
  %	
   Agree	
  (NET)	
  %	
  
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Expected shifts in Viewing
Across the entire respondent base, the
majority of consumers said they expected their
viewing on each device to remain about the
same over the next three years.
But it’s not a flat story by any means. A
significant number, in the range of 22-28%,
expect their viewing to increase across the
major connected devices currently available.
And another 16% expected their viewing of
traditional TV via cable or satellite to increase
as well. (Graph 17.)
This story varies dramatically by age group,
however, as seen in Chart 4. There is a clear
inverse relationship between age and expected
viewing increases.
Upwards of 30% of Millennials expect to
watch more video on most devices over the
next three years, while the percentages of
Seniors expecting to watch more seldom top
the single digits. Gen X’s responses skew
closer to Millennials’, while Boomers’ expect-
ed increases were more closely aligned with
those of the Seniors.
In some ways, we are seeing a bifurcated
population, with those under 50 years
voraciously embracing the new video
options, and those over 50 years adopting
change more slowly.
Three year outlook
23
As the previous pages show, the majority of Canadian consumers are already
embracing video viewing across a variety of devices. In terms of video usage,
however, it appears that we are still on the upside of the growth curve. When
asked about their expected viewing patterns over the next three years, approxi-
mately one-quarter to one-third of consumers expected to spend more time
watching video on the “big four” connected devices: computers, smartphones,
tablets and connected TVs.
THE CANADIAN CONSUMER
In your opinion, how will your time spent viewing videos
on the following devices change over the next 3 years?
In your opinion, how will your time spent viewing videos on
the following devices change over the next 3 years?
CONSUMER GRAPH 17 Expected Viewing Changes
CONSUMER CHART 4
24
Laptop computer Smart TVs, i.e.,
TVs with a direct
internet connection
Tablet Desktop computer Smartphone Television set
via an internet
connected device,
e.g.,Apple TV,
Other types of
devices yet to be
identified
Television set,
via an antenna
or cable/satellite
provider
28	
   26	
   25	
   23	
   23	
   22	
  
18	
   16	
  
56	
   56	
   55	
   56	
   58	
   56	
  
62	
  
57	
  
17	
   18	
   19	
   21	
   19	
   22	
   21	
  
27	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
Laptop	
  computer	
   Smart	
  TVs,	
  i.e.,	
  TVs	
  
with	
  a	
  direct	
  internet	
  
connecAon	
  
Tablet	
  	
   Desktop	
  computer	
   Smartphone	
   Television	
  set	
  via	
  an	
  
internet	
  connected	
  
device,	
  e.g.,	
  Apple	
  TV,	
  
Roku,	
  XboxOne	
  
Other	
  types	
  of	
  devices	
  
yet	
  to	
  be	
  idenAfied	
  	
  
Television	
  set,	
  via	
  an	
  
antenna	
  or	
  cable/
satellite	
  provider	
  
In	
  your	
  opinion,	
  how	
  will	
  your	
  .me	
  spent	
  viewing	
  videos	
  on	
  the	
  
following	
  devices	
  change	
  over	
  the	
  next	
  3	
  years?	
  	
  
Increase	
  (NET)	
  %	
   Stay	
  the	
  same	
  %	
   Decrease	
  (NET)	
  %	
  
28%	
   26%	
   25%	
   23%	
   23%	
   22%	
  
18%	
   16%	
  
56%	
   56%	
   55%	
   56%	
   58%	
   56%	
  
62%	
  
57%	
  
17%	
   18%	
   19%	
   21%	
   19%	
   22%	
   21%	
  
27%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
Laptop	
  computer	
   Smart	
  TVs,	
  i.e.,	
  TVs	
  
with	
  a	
  direct	
  internet	
  
connecBon	
  
Tablet	
  	
   Desktop	
  computer	
   Smartphone	
   Television	
  set	
  via	
  an	
  
internet	
  connected	
  
device,	
  e.g.,	
  Apple	
  TV,	
  
Roku,	
  XboxOne	
  
Other	
  types	
  of	
  devices	
  
yet	
  to	
  be	
  idenBfied	
  	
  
Television	
  set,	
  via	
  an	
  
antenna	
  or	
  cable/
satellite	
  provider	
  
In	
  your	
  opinion,	
  how	
  will	
  your	
  .me	
  spent	
  viewing	
  videos	
  on	
  the	
  
following	
  devices	
  change	
  over	
  the	
  next	
  3	
  years?	
  	
  
Increase	
  (NET)	
  %	
   Stay	
  the	
  same	
  %	
   Decrease	
  (NET)	
  %	
  
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
Increase (NET) Total Millennials Gen X Boomer
Pre-Boomer
Seniors
Laptop computer 28%	
   36%	
   31%	
   20%	
   3%	
  
Smart TVs, i.e.,TVs with a direct internet connection 26%	
   31%	
   26%	
   21%	
   16%	
  
Tablet 25%	
   33%	
   27%	
   16%	
   8%	
  
Desktop computer 23%	
   29%	
   24%	
   17%	
   12%	
  
Smartphone 23%	
   33%	
   23%	
   12%	
   10%	
  
Television set via an internet connected device, e.g.,
Apple TV, Roku,XboxOne
22%	
   27%	
   24%	
   15%	
   9%	
  
Other types of devices yet to be identified 18%	
   24%	
   17%	
   11%	
   6%	
  
Television set, via an antenna or cable/satellite
provider 16%	
   18%	
   17%	
   13%	
   8%	
  
THE CANADIAN MARKETER
expected Video growth
The vast majority of marketers believe
consumers’ time spent viewing video on
connected mobile devices like Smartphones
and Tablets will grow strongly over the next
three years (Marketer Graph 1.)
Meanwhile, 38% of marketers predict a
decrease in consumers’ time spent viewing
video on a desktop, and 74% predict a
decrease in time spent watching linear
television. This is in contrast to the consumers
themselves, who mostly think viewership of
these devices will remain the same (Consumer
Graph 17.)
Comparing these results to the same
question for consumers,it’s clear that marketers
are more bullish in their predictions.
(Marketer Graph 2.) For example, while
only 23% of consumers expect their video
viewing on Smartphones to increase, a very
large majority (84%) of marketers believe
viewing on Smartphones will grow; the same
holds true for Tablets, where 25% of consum-
ers expect growth, while 80% of marketers
expect growth.
Marketers’ strong belief in the future
growth of new media and connected devices
suggests that they see plentiful opportunities
ahead for marketing on new screens.
THE CANADIAN MARKETER
video advertising perspectives
27
From the perspective of marketers, consumers’ adoption of new media and
connected devices is expected to grow rapidly in the coming three years.
Ironically, though, marketers’ adoption of strategies and programs to run
advertising on these screens is not as aggressive. While they appear eager to
embrace these new channels, few of those surveyed had a deep understanding
of the tools and technology currently available to help reach consumers along
this new multi-screen, multi-device media path.
CONSUMERS GRAPH 4.
VIEWING LOCATION
In your opinion, how will time spent viewing videos on
the following devices change over the next 3 years?
MARKETER GRAPH 1
MARKETER GRAPH 2
Expected Video Growth
Expected Video Growth – Consumer Comparison
84	
   80	
   80	
  
63	
   61	
  
49	
  
23	
  
4	
  2	
   3	
   6	
   6	
  
13	
   13	
  
38	
  
74	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
n=95-­‐104	
   Smartphone	
   Tablet	
  	
   Smart	
  TVs,	
  i.e.,	
  
TVs	
  with	
  a	
  
direct	
  internet	
  
connecCon	
  
Other	
  types	
  of	
  
devices	
  yet	
  to	
  
be	
  idenCfied	
  	
  
Television	
  set	
  
via	
  an	
  internet	
  
connected	
  
device,	
  e.g.,	
  
Apple	
  TV,	
  
Roku,	
  XboxOne	
  
Laptop	
  
computer	
  
Desktop	
  
computer	
  
Television	
  set,	
  
via	
  an	
  antenna	
  
or	
  cable/
satellite	
  
provider	
  
In	
  your	
  opinion,	
  how	
  will	
  consumers’	
  3me	
  spent	
  viewing	
  
videos	
  on	
  the	
  following	
  devices	
  change	
  over	
  the	
  next	
  3	
  years?	
  
Increase	
  (NET)	
   Decrease	
  (NET)	
  
28
Smartphone Tablet Other types of
devices yet to
be identified
Television set
via an internet
connected device,
e.g.,Apple TV,
Roku,XboxOne
Laptop computer Desktop
computer
Television set,
via an antenna
or cable/satellite
provider
Smart TVs, i.e.,
TVs with a direct
internet
connection
Smartphone Tablet Other types of
devices yet to
be identified
Television set
via an internet
connected device,
e.g.,Apple TV,
Roku,XboxOne
Laptop computer Desktop
computer
Television set,
via an antenna
or cable/satellite
provider
Smart TVs, i.e.,
TVs with a direct
internet
connection
In your opinion, how will consumers’ time spent viewing
videos on the following devices change over the next 3 years?
49	
  
80	
   80	
  
23	
  
84	
  
61	
   63	
  
4	
  
28	
   26	
   25	
   23	
   23	
   22	
  
18	
   16	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
Laptop	
  computer	
   Smart	
  TVs,	
  i.e.,	
  TVs	
  
with	
  a	
  direct	
  internet	
  
connecAon	
  
Tablet	
  	
   Desktop	
  computer	
   Smartphone	
   Television	
  set	
  via	
  an	
  
internet	
  connected	
  
device,	
  e.g.,	
  Apple	
  TV,	
  
Roku,	
  XboxOne	
  
Other	
  types	
  of	
  devices	
  
yet	
  to	
  be	
  idenAfied	
  	
  
Television	
  set,	
  via	
  an	
  
antenna	
  or	
  cable/
satellite	
  provider	
  
In	
  your	
  opinion,	
  how	
  will	
  .me	
  spent	
  viewing	
  videos	
  on	
  the	
  
following	
  devices	
  change	
  over	
  the	
  next	
  3	
  years?	
  	
  
Marketers	
  ExpecAng	
  Increase	
  %	
   Consumers	
  ExpecAng	
  Increase	
  %	
  
84%	
  
80%	
   80%	
  
63%	
   61%	
  
49%	
  
23%	
  
4%	
  2%	
   3%	
   6%	
   6%	
  
13%	
   13%	
  
38%	
  
74%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
n=95-­‐104	
   Smartphone	
   Tablet	
  	
   Smart	
  TVs,	
  i.e.,	
  
TVs	
  with	
  a	
  
direct	
  internet	
  
connecDon	
  
Other	
  types	
  of	
  
devices	
  yet	
  to	
  
be	
  idenDfied	
  	
  
Television	
  set	
  
via	
  an	
  internet	
  
connected	
  
device,	
  e.g.,	
  
Apple	
  TV,	
  
Roku,	
  XboxOne	
  
Laptop	
  
computer	
  
Desktop	
  
computer	
  
Television	
  set,	
  
via	
  an	
  antenna	
  
or	
  cable/
satellite	
  
provider	
  
In	
  your	
  opinion,	
  how	
  will	
  consumers’	
  3me	
  spent	
  viewing	
  
videos	
  on	
  the	
  following	
  devices	
  change	
  over	
  the	
  next	
  3	
  years?	
  
Increase	
  (NET)	
   Decrease	
  (NET)	
  
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
0%	
  
23%	
  
84%	
  
61%	
   63%	
  
4%	
  
25%	
   23%	
   23%	
   22%	
  
18%	
   16%	
  
Tablet	
  	
   Desktop	
  computer	
   Smartphone	
   Television	
  set	
  via	
  an	
  
internet	
  connected	
  
device,	
  e.g.,	
  Apple	
  TV,	
  
Roku,	
  XboxOne	
  
Other	
  types	
  of	
  devices	
  
yet	
  to	
  be	
  idenBfied	
  	
  
Television	
  set,	
  via	
  an	
  
antenna	
  or	
  cable/
satellite	
  provider	
  
n,	
  how	
  will	
  .me	
  spent	
  viewing	
  videos	
  on	
  the	
  
	
  devices	
  change	
  over	
  the	
  next	
  3	
  years?	
  	
  
pecBng	
  Increase	
  %	
   Consumers	
  ExpecBng	
  Increase	
  %	
  
49%	
  
80%	
   80%	
  
23%	
  
84%	
  
61%	
   63%	
  
4%	
  
28%	
   26%	
   25%	
   23%	
   23%	
   22%	
  
18%	
   16%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
Laptop	
  computer	
   Smart	
  TVs,	
  i.e.,	
  TVs	
  
with	
  a	
  direct	
  internet	
  
connecBon	
  
Tablet	
  	
   Desktop	
  computer	
   Smartphone	
   Television	
  set	
  via	
  an	
  
internet	
  connected	
  
device,	
  e.g.,	
  Apple	
  TV,	
  
Roku,	
  XboxOne	
  
Other	
  types	
  of	
  devices	
  
yet	
  to	
  be	
  idenBfied	
  	
  
Television	
  set,	
  via	
  an	
  
antenna	
  or	
  cable/
satellite	
  provider	
  
In	
  your	
  opinion,	
  how	
  will	
  .me	
  spent	
  viewing	
  videos	
  on	
  the	
  
following	
  devices	
  change	
  over	
  the	
  next	
  3	
  years?	
  	
  
Marketers	
  ExpecBng	
  Increase	
  %	
   Consumers	
  ExpecBng	
  Increase	
  %	
  
49%	
  
80%	
   80%	
  
23%	
  
84%	
  
61%	
   63%	
  
4%	
  
28%	
   26%	
   25%	
   23%	
   23%	
   22%	
  
18%	
   16%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
Laptop	
  computer	
   Smart	
  TVs,	
  i.e.,	
  TVs	
  
with	
  a	
  direct	
  internet	
  
connecBon	
  
Tablet	
  	
   Desktop	
  computer	
   Smartphone	
   Television	
  set	
  via	
  an	
  
internet	
  connected	
  
device,	
  e.g.,	
  Apple	
  TV,	
  
Roku,	
  XboxOne	
  
Other	
  types	
  of	
  devices	
  
yet	
  to	
  be	
  idenBfied	
  	
  
Television	
  set,	
  via	
  an	
  
antenna	
  or	
  cable/
satellite	
  provider	
  
In	
  your	
  opinion,	
  how	
  will	
  .me	
  spent	
  viewing	
  videos	
  on	
  the	
  
following	
  devices	
  change	
  over	
  the	
  next	
  3	
  years?	
  	
  
Marketers	
  ExpecBng	
  Increase	
  %	
   Consumers	
  ExpecBng	
  Increase	
  %	
  
49%	
  
80%	
   80%	
  
23%	
  
84%	
  
28%	
   26%	
   25%	
   23%	
   23%
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
Laptop	
  computer	
   Smart	
  TVs,	
  i.e.,	
  TVs	
  
with	
  a	
  direct	
  internet	
  
connecBon	
  
Tablet	
  	
   Desktop	
  computer	
   Smartphone	
  
In	
  your	
  opinion,	
  how	
  will	
  .me	
  spent	
  vi
following	
  devices	
  change	
  over	
  th
Marketers	
  ExpecBng	
  Increase	
  %	
   Consum
49%	
  
80%	
   80%	
  
23%	
  
84%	
  
61%	
   63%	
  
4%	
  
28%	
   26%	
   25%	
   23%	
   23%	
   22%	
  
18%	
   16%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
Laptop	
  computer	
   Smart	
  TVs,	
  i.e.,	
  TVs	
  
with	
  a	
  direct	
  internet	
  
connecBon	
  
Tablet	
  	
   Desktop	
  computer	
   Smartphone	
   Television	
  set	
  via	
  an	
  
internet	
  connected	
  
device,	
  e.g.,	
  Apple	
  TV,	
  
Roku,	
  XboxOne	
  
Other	
  types	
  of	
  devices	
  
yet	
  to	
  be	
  idenBfied	
  	
  
Television	
  set,	
  via	
  an	
  
antenna	
  or	
  cable/
satellite	
  provider	
  
In	
  your	
  opinion,	
  how	
  will	
  .me	
  spent	
  viewing	
  videos	
  on	
  the	
  
following	
  devices	
  change	
  over	
  the	
  next	
  3	
  years?	
  	
  
Marketers	
  ExpecBng	
  Increase	
  %	
   Consumers	
  ExpecBng	
  Increase	
  %	
  
49%	
  
80%	
   80%	
  
23%	
  
84%	
  
61%	
   63%	
  
28%	
   26%	
   25%	
   23%	
   23%	
   22%	
  
18%
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
Laptop	
  computer	
   Smart	
  TVs,	
  i.e.,	
  TVs	
  
with	
  a	
  direct	
  internet	
  
connecBon	
  
Tablet	
  	
   Desktop	
  computer	
   Smartphone	
   Television	
  set	
  via	
  an	
  
internet	
  connected	
  
device,	
  e.g.,	
  Apple	
  TV,	
  
Roku,	
  XboxOne	
  
Other	
  types	
  of	
  dev
yet	
  to	
  be	
  idenBfi
In	
  your	
  opinion,	
  how	
  will	
  .me	
  spent	
  viewing	
  videos	
  on	
  th
following	
  devices	
  change	
  over	
  the	
  next	
  3	
  years?	
  	
  
Marketers	
  ExpecBng	
  Increase	
  %	
   Consumers	
  ExpecBng	
  Increase	
  %	
  
0%	
   80%	
  
23%	
  
84%	
  
61%	
   63%	
  
4%	
  
26%	
   25%	
   23%	
   23%	
   22%	
  
18%	
   16%	
  
rt	
  TVs,	
  i.e.,	
  TVs	
  
a	
  direct	
  internet	
  
connecBon	
  
Tablet	
  	
   Desktop	
  computer	
   Smartphone	
   Television	
  set	
  via	
  an	
  
internet	
  connected	
  
device,	
  e.g.,	
  Apple	
  TV,	
  
Roku,	
  XboxOne	
  
Other	
  types	
  of	
  devices	
  
yet	
  to	
  be	
  idenBfied	
  	
  
Television	
  set,	
  via	
  an	
  
antenna	
  or	
  cable/
satellite	
  provider	
  
ur	
  opinion,	
  how	
  will	
  .me	
  spent	
  viewing	
  videos	
  on	
  the	
  
following	
  devices	
  change	
  over	
  the	
  next	
  3	
  years?	
  	
  
Marketers	
  ExpecBng	
  Increase	
  %	
   Consumers	
  ExpecBng	
  Increase	
  %	
  
49%	
  
80%	
   80%	
  
23%	
  
84%	
  
61%	
   63%	
  
4%	
  
28%	
   26%	
   25%	
   23%	
   23%	
   22%	
  
18%	
   16%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
Laptop	
  computer	
   Smart	
  TVs,	
  i.e.,	
  TVs	
  
with	
  a	
  direct	
  internet	
  
connecBon	
  
Tablet	
  	
   Desktop	
  computer	
   Smartphone	
   Television	
  set	
  via	
  an	
  
internet	
  connected	
  
device,	
  e.g.,	
  Apple	
  TV,	
  
Roku,	
  XboxOne	
  
Other	
  types	
  of	
  devices	
  
yet	
  to	
  be	
  idenBfied	
  	
  
Television	
  set,	
  via	
  an	
  
antenna	
  or	
  cable/
satellite	
  provider	
  
In	
  your	
  opinion,	
  how	
  will	
  .me	
  spent	
  viewing	
  videos	
  on	
  the	
  
following	
  devices	
  change	
  over	
  the	
  next	
  3	
  years?	
  	
  
Marketers	
  ExpecBng	
  Increase	
  %	
   Consumers	
  ExpecBng	
  Increase	
  %	
  
video advertising Adoption
Surprisingly, despite being very bullish
about the growth of connected “new
media” devices, it does not appear that
marketers have strong strategies set for
reaching consumers on these channels.
A full 50% of marketers say that while
digital video is part of their day-to-day
work, they do not have a video advertising
strategy in place. (Marketer Graph 3.)
Meanwhile, 42% say they have an informal
strategy in place, and only 8% say they have
a formal, company-wide strategy.
Among those who have strategies set,
there is a diversified use of video advertising
across all connected devices. Close to half
of respondents report advertising in video
on tablets and smartphones, and a larger
percentage report running video advertising
on more traditional desktops. (Graph 4.)
In some cases, there is a disconnect
between the perceived usage of a device
and the advertising being done on the
device. For example, while 61% of marketers
expect consumer usage of TVs with
connected devices to grow, and 80%
expect Smart TV usage to grow,
(Marketer Graph 1) only 9% and 26%
respectively advertise on these devices.
(Marketer Graph 4.)
The research suggests that while they
predict a growth in consumers’ usage of
these devices, their advertising strategies
and approaches still have some catching
up to do.
THE CANADIAN MARKETER
video advertising perspectives
29
Typically speaking, what type of video platforms
does your company advertise on?
As far as you know, does your company have a digital
video marketing strategy to assist in reaching consumers?
MARKETER GRAPH 4
MARKETER GRAPH 3 video STRATEGy
Video Platforms for Advertising
30
No, but we work in the area and it’s part of our day-to-day actions
Yes, but it’s more informal
Yes, we have a formal, company-wide strategy 9%	
  
42%	
  
50%	
  
0	
   10	
   20	
   30	
   40	
   50	
   60	
  
	
  	
  Yes	
  we	
  have	
  a	
  formal,	
  company-­‐wide	
  
strategy	
  	
  
	
  	
  Yes	
  but	
  it’s	
  more	
  informal	
  	
  
No	
  but	
  we	
  work	
  in	
  the	
  area	
  and	
  it’s	
  part	
  
of	
  our	
  day-­‐to-­‐day	
  acFons	
  
As	
  far	
  as	
  you	
  know,	
  does	
  your	
  company	
  have	
  a	
  
digital	
  video	
  marke9ng	
  strategy	
  to	
  assist	
  in	
  
reaching	
  consumers?	
  
TOTAL	
  %	
  
Connected TV via separate device (Roku,Xbox, etc)
Pay TV
Connected TV (internet-enabled)
Wireless home internet
Tablet
Smartphone
Laptop notebook
Desktop computer 56%	
  
45%	
  
42%	
  
41%	
  
32%	
  
26%	
  
10%	
  
9%	
  
0	
   10	
   20	
   30	
   40	
   50	
   60	
  
	
  	
  Desktop	
  Computer	
  
	
  	
  Laptop	
  Notebook	
  
	
  	
  Smartphone	
  
	
  	
  Tablet	
  
	
  	
  Wireless	
  Home	
  Internet	
  
	
  	
  Connected	
  TV	
  (internet-­‐enabled)	
  
	
  	
  Pay	
  TV	
  
	
  	
  Connected	
  TV	
  via	
  separate	
  device	
  (Roku,	
  Xbox,	
  etc)	
  
Typically	
  speaking,	
  what	
  type	
  of	
  video	
  pla6orms	
  does	
  your	
  
company	
  adver:se	
  at?*	
  
TOTAL	
  
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
SECOND SCREEN
While “second-screening” has become
the norm for most consumers, especially
Millennials, it seems that few marketers
have strategies in place to take advantage
of the behaviour, and many do not know
the meaning of the term.
When asked about their familiarity with
the idea of “second-screen” viewership,
68% of marketers were unfamiliar with the
concept. (Marketer Graph 5.)
Of those marketers who have heard of
“second-screening,” over 90% say they have
not developed a strategy to reach “second
screen” customers. (Marketer Graph 6.)
These numbers show a disconnect
betweenconsumerhabitsandtheadvertising
strategies to reach them, as 71% of
consumers (and 85% of Millennials) report
“second-screening” at least once a week.
(Consumer Graph 12). It appears there is a
powerful opportunity for marketers to reach
the underserved, second-screen audience.
Cross-screen strategies are especially
important since 20% of consumers use the
second screen to interact with products
being advertised onTV.(Consumer Graph 14.)
THE CANADIAN MARKETER
31
video advertising perspectives
Have you ever developed a strategy to
reach “second-screen” consumers?
How familiar are you with the concept
of “second-screen” viewers?
32
14%	
  
68%	
  
0	
  
20	
  
40	
  
60	
  
80	
  
Familiar	
  (NET)	
   Unfamiliar	
  (NET)	
  
How	
  familiar	
  are	
  you	
  with	
  the	
  concept	
  of	
  “second	
  
screen”	
  viewers?	
  
TOTAL	
  
9%	
  
91%	
  
Have	
  you	
  ever	
  developed	
  a	
  strategy	
  to	
  reach	
  “second	
  screen”	
  consumers?	
  
Yes	
   No	
  
YES
NO
MARKETER GRAPH 5 Second-Screen Familiarity
MARKETER GRAPH 6 Second-Screen Strategies
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Biggest challenges holding marketers back
When asked about the biggest challenges
they face today, nearly half (48%) of marketers
cited the ability to measure campaign perfor-
mance. (Marketer Graph 7.)
Following the ability to measure, the most
common challenges cited were measurement
specifically across multiple screens or devices
(37%), the ability to achieve sufficient reach
(36%) and the ability to evaluate quality
placements. (34%.)
18% of marketers say measurement is the
single biggest challenge they face today
(Marketer Graph 8.), followed by the ability
to understand their target’s behaviours (11%)
and ability to target (11%).
THE CANADIAN MARKETER
So why don’t marketers have firm strategies in place to reach consumers in the
places they know they can be found? What is holding them back? Although
successful measurement seems to be a common concern, the other responses
are varied, ranging from lack of sufficient reach or frequency, to a lack of under-
standing about inventory quality. All answers suggest there is an opportunity
for more education in the area of multi-screen and multi-device advertising.
33
CHALLENGES WITH VIDEO ADVERTISING
What are the biggest challenges in video
advertising you face today?
MARKETER GRAPH 7 Current Challenges
34
18%	
  
11%	
   11%	
  
10%	
  
8%	
  
7%	
  
5%	
  
4%	
  
2%	
  
8%	
  
10%	
  
0	
  
2	
  
4	
  
6	
  
8	
  
10	
  
12	
  
14	
  
16	
  
18	
  
20	
  
Measuring	
  
campaign	
  
performances	
  
Understanding	
  
cross=pla>orm	
  
viewing	
  
behaviours	
  of	
  
my	
  target	
  
audience	
  
TargeEng	
  
specific	
  
consumers	
  
Achieving	
  
sufficient	
  reach	
  
Measuring	
  the	
  
campaign	
  
audience	
  
across	
  all	
  video	
  
screens	
  or	
  
devices	
  
IdenEfying	
  
content	
  that	
  is	
  
right	
  for	
  your	
  
brand	
  
IdenEfying	
  
content	
  that	
  
your	
  target	
  
audience	
  views	
  
EvaluaEng	
  the	
  
quality	
  of	
  
placement	
  
(e.g.,	
  
viewability)	
  
Planning	
  mulE-­‐
screen	
  or	
  
mulE-­‐device	
  
video	
  
campaigns	
  
Other	
   None	
  
Of	
  these,	
  which	
  is	
  the	
  single	
  biggest	
  challenge	
  you	
  face	
  today?	
  
48%	
  
37%	
   36%	
   34%	
   32%	
   31%	
   31%	
   29%	
  
16%	
   15%	
  
12%	
   11%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
Measuring	
  
campaign	
  
performance	
  
Measuring	
  the	
  
campaign	
  
audience	
  across	
  
all	
  video	
  screens	
  
or	
  devices	
  
Achieving	
  
sufficient	
  reach	
  
EvaluaCng	
  the	
  
quality	
  of	
  
placements	
  (e.g.,	
  
viewability)	
  
IdenCfying	
  
content	
  that	
  
your	
  target	
  
audience	
  views	
  
TargeCng	
  
specific	
  
consumers	
  
Understanding	
  
cross-­‐plaQorm	
  
viewing	
  behavior	
  
of	
  my	
  target	
  
audience	
  
IdenCfying	
  
content	
  that	
  is	
  
right	
  for	
  your	
  
brand	
  
Lack	
  of	
  
standardizaCon	
  
Achieving	
  
sufficient	
  
frequency	
  
Planning	
  mulC-­‐
screen	
  or	
  mulC-­‐
device	
  video	
  
campaigns	
  	
  
HolisCcally	
  
planning	
  linear	
  
TV	
  and	
  digital	
  
video	
  campaigns	
  
What	
  are	
  the	
  biggest	
  challenges	
  in	
  video	
  adver2sing	
  you	
  face	
  today?	
  
TOTAL	
  
Of these, which is the single biggest challenge you face today?
MARKETER GRAPH 8 Biggest Single Challenge
Measuring
campaign
performance
Understanding
cross-screen
behaviour
of target
audience
Targeting
specific
consumers
Achieving
sufficient reach
Measuring
audience
across all video
screens
Identifying
content right
for brand
Identifying
content
that target
audience
views
Evaluating
quality of
placements
(e.g., view-
ability)
Planning
multi-screen
video
campaigns
Other None
Measuring
campaign
performance
Measuring
audience
across all
video screens
Achieving
sufficient
reach
Evaluating
quality of
placements
(e.g.,view-
ability)
Identifying
content
that target
audience
views
Targeting
specific
consumers
Under-
standing
cross-screen-
behaviour
oftarget
audience
Identifying
content right
for brand
Lack of stan-
dardization
Achieving
sufficient
frequency
Planning
multi-screen
video
campaigns
Holisti-
cally planning
linearTVand
digital video
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
HOW IS TECHNOLOGY BEING USED?
Very few marketers in Canada say that
they are leveraging technology to solve their
advertising challenges—with only 10% saying
their company makes use of programmatic
buying today. (Marketer Graph 9.) However,
it is worth noting that the agencies may be
leveraging programmatic technology on the
marketers’ behalf without their knowledge.
39% of marketers can definitively say they
are not using programmatic buying, but 15%
are uncertain and 36% do not know what
programmatic buying is.
For those who are familiar with program-
matic buying, targeting is the key priority by
a huge margin. When asked about the top
features they look for in a technology, nearly
half said having multiple ways to target, with
another 9% saying real-time-bidding and
9% more citing the ability to transact both
programmatically or with reserved inventory.
(Marketer Chart 10.)
THE CANADIAN MARKETER
As the previous graphs have shown, there are many challenges facing marketers
in Canada today. Marketers are finding that as the number of video screens
grows, so does the complexity of video advertising. The solution to most of their
biggest challenges may be the use of technology to pull the pieces together,
yet many do not yet understand how they might leverage a programmatic
approach to their advertising.
35
THE ROLE OF TECHNOLOGY
Does your company make use of programmatic buying?
PROGRAMMATIC VIDEO STRATEGIES
What are the top THREE features in a technology platform
that you look for to assist video ad buying or selling?
MARKETER GRAPH 10 Key Technology Features
MARKETER GRAPH 9
36
I don’t know what
programmatic
buying is
36%
Yes
10%
Uncertain
15%
No
39%
Yes	
  
10%	
  
No	
  
39%	
  
Uncertain	
  
15%	
  
I	
  don’t	
  know	
  
what	
  
programma=c	
  
buying	
  is	
  	
  
36%	
  
Does	
  your	
  company	
  make	
  use	
  of	
  programma1c	
  buying?	
  
Multipleways
totarget
audiences(e.g.,
demo,purchase
behaviour,etc…)
Availabilityof
inventoryviareal
timebidding
Abilityto
transactboth
programmati-
callyandreserved
inventory
Abilitytoimport
CRMdatatouse
intargetingads
Abilitytotrack
consumerson
multipledevices
Abilitytoprovide
cross-device
GRPmetric
Abilitytoserve
adsintovideosof
networks’online
streamingsites
Abilitytoserve
adsintoVideo
onDemandon
cable/satellite
systems
Other
47%	
  
9%	
   9%	
   8%	
   6%	
   6%	
   5%	
   3%	
  
8%	
  
0	
  
5	
  
10	
  
15	
  
20	
  
25	
  
30	
  
35	
  
40	
  
45	
  
50	
  
Having	
  mul6ple	
  
ways	
  to	
  target	
  
audiences	
  (e.g.,	
  
demographics,	
  
product	
  purchase	
  
behavior,	
  etc…)	
  	
  
Availability	
  of	
  
inventory	
  via	
  real	
  
6me	
  bidding	
  
Ability	
  to	
  transact	
  
both	
  
programma6cally	
  
and	
  reserved	
  
inventory	
  
Ability	
  to	
  import	
  
CRM	
  data	
  to	
  use	
  
in	
  targe6ng	
  ads	
  
Ability	
  to	
  track	
  
consumers	
  on	
  
mul6ple	
  devices	
  	
  
Ability	
  to	
  provide	
  
cross-­‐device	
  GRP	
  
metric	
  
Ability	
  to	
  serve	
  
ads	
  into	
  videos	
  of	
  
networks’	
  online	
  
streaming	
  sites	
  
Ability	
  to	
  serve	
  
ads	
  into	
  Video	
  on	
  
Demand	
  on	
  cable/
satellite	
  systems	
  
Other	
  	
  
What	
  are	
  the	
  top	
  THREE	
  features	
  in	
  a	
  technology	
  pla7orm	
  that	
  you	
  look	
  for	
  to	
  assist	
  video	
  ad	
  buying	
  or	
  selling?	
  	
  
Rank	
  1	
  
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Video to grow, along with programmatic technologies
Over the next three years, marketers
predict that the industry will continue to shift
money into video. (Graph 11.) Specifically,
64% believe money will be shifted from other
media channels into video, and 67% think
money will be shifted specifically from TV.
Moreover, while currently only 10% of
marketers are knowingly making use of
programmatic buying, and 36% are unfamil-
iar with the concept, 34% of total respon-
dents said that they think video buying will
become more programmatic over the next
three years. This suggests that those with
knowledge of programmatic are enthusiastic
about its growth.
Of course, one of the benefits of pro-
grammatic video buying is the ability to
reach discrete consumer groups through
the application of data. Similarly, continu-
ing with themes that arose in the previous
section, the key potential advantage that
marketers see in video is its ability to target
specific consumers (45%). They also see
the ability to reach consumers not exposed
to TV ads (16%) and enhanced interactivity
(9%) as key video advantages. (Graph 12.)
When marketers were asked about the
most important future video buying capa-
bilities, responses were generally in line
with video’s potential advantages. Ability to
target again topped the list, including target-
ing by buying behaviour. And 40% cited the
ability to reach consumers across screens as
a key capability. (Graph 13.) Ability to buy
video programmatically was mentioned by
only 24% of respondents as “key.” Since
targeting is a key component of programmatic
strategies, however, again this may suggest
more of an education gap on programmatic
capabilities rather than a lack of support.
THE CANADIAN MARKETER
37
three year outlook
Despite their perceived challenges with video advertising and limited familiarity
with the technologies currently available to assist in video planning and buying,
marketers believe that over the next three years, video will command a stronger
presence in their advertising plans. But video will not remain a siloed channel:
the vast majority of marketers predict that the industry will move towards a
model that is more holistic, supporting the convergence of content and advertising
across screens. And marketers seem optimistic that all groups–from brands, to
agencies, to publishers–will see a better return on investment by taking this type
of holistic approach to advertising.
What do you see as the THREE greatest future
potential advantages for video advertising?*
In the future, which of the following will be the most
important capabilities for buying video advertising?
MARKETER GRAPH 13 Video BUYING Capabilities
Respondents who believe the following are
likely in the next three years
38
Abilitytotarget
adstoindividuals
basedontheir
matchwithmy
targetaudience
Abilitytoevaluate
audienceson
buyingbehavior
inmyproduct
category
Abilitytobuy
audiencesacrossall
screensincluding
TV/videoplatforms
Abilitytobuy
adsonspecific
programs
Abilitytobuy
onlinevideoads
programmatically
Abilitytowork
directlywithmedia
outletstocustomise
packagesof video
advertising
opportunities
Abilitytobuy
linearTVads
programmatically
Advertiserswillreallocatemoney
currentlyspentonlinearTVtonewvideooptions
Advertiserswillshiftmoremoneyfromother
mediaintoadvertisingonnewvideooptions
67%
64%
Videobuyingwillbecome
moreprogrammatic
34%
*Note: top five responses
MARKETER GRAPH 12 Advantages of Video
MARKETER GRAPH 11 GROWTH TRENDS
71%	
  
48%	
  
40%	
  
33%	
  
24%	
   22%	
  
10%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
Ability	
  to	
  target	
  ads	
  to	
  
individuals	
  based	
  on	
  
their	
  match	
  with	
  my	
  
target	
  audience	
  
Ability	
  to	
  evaluate	
  
audiences	
  on	
  buying	
  
behavior	
  in	
  my	
  product	
  
category	
  
Ability	
  to	
  buy	
  audiences	
  
across	
  all	
  screens	
  
including	
  TV	
  /	
  video	
  
plaDorms	
  
Ability	
  to	
  buy	
  ads	
  on	
  
specific	
  programs	
  
Ability	
  to	
  buy	
  online	
  
video	
  ads	
  
programmaFcally	
  
Ability	
  to	
  work	
  directly	
  
with	
  media	
  outlets	
  to	
  
customise	
  packages	
  of	
  
video	
  adverFsing	
  
opportuniFes	
  
Ability	
  to	
  buy	
  linear	
  TV	
  
ads	
  programmaFcally	
  
In	
  the	
  future,	
  which	
  of	
  the	
  following	
  will	
  be	
  the	
  most	
  important	
  capabili6es	
  for	
  buying	
  video	
  adver6sing?	
  	
  
TOTAL	
  
Targeting
specific
consumers
Reachingnew
consumersnot
exposedto
adsonTV
Enhancing
videowith
interactivity
Bettermessage
communication
ability
GreaterROI
accountability
45%	
  
16%	
  
9%	
   7%	
   6%	
   5%	
   4	
   3	
   3	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
Targe1ng	
  
specific	
  
consumers	
  
Reaching	
  new	
  
consumers	
  not	
  
exposed	
  to	
  ads	
  
on	
  TV	
  
Enhancing	
  video	
  
with	
  
interac1vity	
  
BeFer	
  message	
  
communica1on	
  
ability	
  
Greater	
  ROI	
  
accountability	
  
Higher	
  audience	
  
aFen1on	
  	
  
Ability	
  to	
  deliver	
  
messages	
  to	
  a	
  
consumer	
  at	
  
different	
  1mes	
  
of	
  day	
  
Viewabilty	
  
overall	
  
To	
  control	
  reach	
  
and	
  frequency	
  
across	
  devices	
  	
  
New
oth
or
What	
  do	
  you	
  see	
  as	
  the	
  THREE	
  greatest	
  future	
  poten5al	
  advantages	
  
for	
  video	
  adver5sing?	
  	
  
Ranked	
  1st	
  
45%	
  
16%	
  
9%	
   7%	
   6%	
   5%	
   4	
   3	
   3	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
Targe1ng	
  
specific	
  
consumers	
  
Reaching	
  new	
  
consumers	
  not	
  
exposed	
  to	
  ads	
  
on	
  TV	
  
Enhancing	
  video	
  
with	
  
interac1vity	
  
BeFer	
  message	
  
communica1on	
  
ability	
  
Greater	
  ROI	
  
accountability	
  
Higher	
  audience	
  
aFen1on	
  	
  
Ability	
  to	
  deliver	
  
messages	
  to	
  a	
  
consumer	
  at	
  
different	
  1mes	
  
of	
  day	
  
Viewabilty	
  
overall	
  
To	
  control	
  r
and	
  freque
across	
  dev
What	
  do	
  you	
  see	
  as	
  the	
  THREE	
  greatest	
  future	
  poten5al	
  advantag
for	
  video	
  adver5sing?	
  	
  
Ranked	
  1st	
  
45%	
  
16%	
  
9%	
   7%	
   6%	
   5%	
   4	
   3	
   3	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
Targe1ng	
  
specific	
  
consumers	
  
Reaching	
  new	
  
consumers	
  not	
  
exposed	
  to	
  ads	
  
on	
  TV	
  
Enhancing	
  video	
  
with	
  
interac1vity	
  
BeFer	
  message	
  
communica1on	
  
ability	
  
Greater	
  ROI	
  
accountability	
  
Higher	
  audience	
  
aFen1on	
  	
  
Ability	
  to	
  deliver	
  
messages	
  to	
  a	
  
consumer	
  at	
  
different	
  1mes	
  
of	
  day	
  
Viewabilty	
  
overall	
  
To	
  control	
  reac
and	
  frequency
across	
  devices
What	
  do	
  you	
  see	
  as	
  the	
  THREE	
  greatest	
  future	
  poten5al	
  advantages
for	
  video	
  adver5sing?	
  	
  
Ranked	
  1st	
  
45%	
  
16%	
  
9%	
   7%	
   6%	
   5%	
   4	
   3	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
Targe1ng	
  
specific	
  
consumers	
  
Reaching	
  new	
  
consumers	
  not	
  
exposed	
  to	
  ads	
  
on	
  TV	
  
Enhancing	
  video	
  
with	
  
interac1vity	
  
BeFer	
  message	
  
communica1on	
  
ability	
  
Greater	
  ROI	
  
accountability	
  
Higher	
  audience	
  
aFen1on	
  	
  
Ability	
  to	
  deliver	
  
messages	
  to	
  a	
  
consumer	
  at	
  
different	
  1mes	
  
of	
  day	
  
Viewabilty	
  
overall	
  
To	
  con
and	
  fr
acros
What	
  do	
  you	
  see	
  as	
  the	
  THREE	
  greatest	
  future	
  poten5al	
  advant
for	
  video	
  adver5sing?	
  	
  
Ranked	
  1st	
  
45%	
  
16%	
  
9%	
   7%	
   6%	
   5%	
   4	
   3	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
Targe1ng	
  
specific	
  
consumers	
  
Reaching	
  new	
  
consumers	
  not	
  
exposed	
  to	
  ads	
  
on	
  TV	
  
Enhancing	
  video	
  
with	
  
interac1vity	
  
BeFer	
  message	
  
communica1on	
  
ability	
  
Greater	
  ROI	
  
accountability	
  
Higher	
  audience	
  
aFen1on	
  	
  
Ability	
  to	
  deliver	
  
messages	
  to	
  a	
  
consumer	
  at	
  
different	
  1mes	
  
of	
  day	
  
Viewabilty	
  
overall	
  
To
a
a
What	
  do	
  you	
  see	
  as	
  the	
  THREE	
  greatest	
  future	
  poten5al	
  adva
for	
  video	
  adver5sing?	
  	
  
Ranked	
  1st	
  
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
THE CANADIAN MARKETER
39
CONVERGENCE is THE NEW NORMAl
On the prior page, we saw that 40% of
marketers believed that the ability to buy
audiences across screens, including TV and
video platforms, would be a key capability
in the future. (Graph 13.)
Another sign that marketers believe
television and video convergence are here
to stay…an overwhelming percentage (85%)
predict that in the coming years, planning
for online video and linear television will
merge. (Graph 14.)
Less clear is who would take the lead if
these two sides merged,with 71% predicting
specialized digital media buying compa-
nies would lead, and a split response on
whether traditional media buying firms
would lead.
As the digital and traditional disciplines
merge, 52% of marketers predict agencies
will merge their existing teams–leaving the
possibility that new teams could also be
created with a focus on cross-screen buying
and planning.
About half of marketers also predict
that agencies will plan video advertising
campaigns holistically across all video
viewing options–almost twice as many
as those who believe it will be done in
siloes. This shows there is a growing
expectation that the siloes of today will
break down as agencies and advertisers
look more holistically at all of their dollars
across screens. (Graph 15.)
three year outlook
Thinking about how video advertising will change in the next
three years, please indicate how strongly you agree or
disagree with the following statements.
Planning and Buying in the FutureMARKETER GRAPH 14
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
Thinking about the next three years, in your view
how likely are the following to happen?
Agencieswillmergetheir
TVandonlinevideo
buyinggroups
Agencieswillplanvideoadvertising
campaignsholisticallyacrossall
videoviewingoptions
Agencieswillplanvideo
advertisingoneach
platformseparately
MARKETER GRAPH 15 The Impact of Convergence ON AGENCIES
52%
48%
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
Agencies	
  will	
  merge	
  their	
  TV	
  
and	
  online	
  video	
  buying	
  
groups	
  
Agencies	
  will	
  plan	
  video	
  
adver@sing	
  campaigns	
  
holis@cally	
  across	
  all	
  video	
  
viewing	
  op@ons	
  
Agencies	
  will	
  plan	
  video	
  
adver@sing	
  on	
  each	
  plaAorm	
  
separately	
  
Thinking	
  about	
  the	
  next	
  3	
  years,	
  in	
  your	
  view	
  how	
  likely	
  are	
  the	
  
following	
  to	
  happen?	
  
85	
  
71	
  
46	
  
15	
  
29	
  
54	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
Planning	
  for	
  online	
  video	
  and	
  
linear	
  television	
  will	
  merge	
  
Specialized	
  digital	
  media	
  buying	
  
agencies	
  will	
  lead	
  all	
  video	
  buying	
  
TradiDonal	
  media	
  buying	
  firms	
  will	
  
lead	
  all	
  video	
  buying	
  
Thinking	
  about	
  how	
  video	
  adverDsing	
  will	
  change	
  in	
  the	
  next	
  3	
  years,	
  please	
  
indicate	
  how	
  strongly	
  you	
  agree	
  or	
  disagree	
  with	
  the	
  following	
  statements?	
  
Agree	
  (NET)	
   Disagree	
  (NET)	
  
Planningforonlinevideoand
lineartelevisionwillmerge
Specializeddigitalmediabuying
agencieswillleadallvideobuying
Traditionalmediabuyingfirms
willleadallvideobuying
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
85%	
  
71%	
  
46%	
  
15%	
  
29%	
  
54%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
Planning	
  for	
  online	
  video	
  and	
  
linear	
  television	
  will	
  merge	
  
Specialized	
  digital	
  media	
  buying	
  
agencies	
  will	
  lead	
  all	
  video	
  buying	
  
TradiEonal	
  media	
  buying	
  firms	
  will	
  
lead	
  all	
  video	
  buying	
  
Thinking	
  about	
  how	
  video	
  adverEsing	
  will	
  change	
  in	
  the	
  next	
  3	
  years,	
  please	
  
indicate	
  how	
  strongly	
  you	
  agree	
  or	
  disagree	
  with	
  the	
  following	
  statements?	
  
Agree	
  (NET)	
   Disagree	
  (NET)	
  
26%
40
Who WILL BENEFIT?
When all is said and done, who will
benefit from the more cross-platform,
cross-screen approach marketers are
predicting we’ll see in the coming years?
The answer is that everyone can benefit.
A large majority of marketers believe
that media outlets will increase their overall
video advertising revenue in the next three
years. (Graph 16.)
Additionally, almost three-quarters
believe that media outlets will also
benefit, by earning higher CPMs for video
advertising (74%).
Finally, 64% of marketers predict that
advertising effectiveness will improve, sug-
gesting that the brands themselves will
also benefit. Overall this suggests that the
changes ahead for video advertising will be
a win-win across the board.
THE CANADIAN MARKETER
Thinking about how video advertising will change in the next 3
years, please indicate how strongly you agree or
disagree with the following statements?
41
three year outlook
81%	
  
74%	
  
64%	
  
19%	
  
26%	
  
36%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
Media	
  outlets	
  will	
  increase	
  their	
  overall	
  
adver=sing	
  revenue	
  by	
  selling	
  video	
  
adver=sing	
  
Media	
  outlets	
  will	
  earn	
  higher	
  CPMs	
  for	
  
video	
  adver=sing	
  
Adver=sing	
  effec=veness	
  will	
  improve	
  
Thinking	
  about	
  how	
  video	
  adver=sing	
  will	
  change	
  in	
  the	
  next	
  3	
  years,	
  please	
  indicate	
  how	
  
strongly	
  you	
  agree	
  or	
  disagree	
  with	
  the	
  following	
  statements?	
  
Agree	
  (NET)	
   Disagree	
  (NET)	
  
Mediaoutletswillincreasetheir
overalladvertisingrevenueby
sellingvideoadvertising
Mediaoutletswillearnhigher
CPMsforvideoadvertising
Advertisingeffectiveness
willimprove
MARKETER GRAPH 16 ECOSYSTEM Benefits
Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
81%	
  
74%	
  
64%	
  
19%	
  
26%	
  
36%	
  
0	
  
10	
  
20	
  
30	
  
40	
  
50	
  
60	
  
70	
  
80	
  
90	
  
Media	
  outlets	
  will	
  increase	
  their	
  overall	
  
adver=sing	
  revenue	
  by	
  selling	
  video	
  
adver=sing	
  
Media	
  outlets	
  will	
  earn	
  higher	
  CPMs	
  for	
  
video	
  adver=sing	
  
Adver=sing	
  effec=veness	
  will	
  improve	
  
Thinking	
  about	
  how	
  video	
  adver=sing	
  will	
  change	
  in	
  the	
  next	
  3	
  years,	
  please	
  indicate	
  how	
  
strongly	
  you	
  agree	
  or	
  disagree	
  with	
  the	
  following	
  statements?	
  
Agree	
  (NET)	
   Disagree	
  (NET)	
  
Consumers
Male				48
Female				 52
Millennial (18-34)			 32
Gen X (35-49)			 27
Boomer (50-69)			 36
Seniors				 6
< High School		 	 5
High School			 26
Some College/Univ		 21
College				 20
University			 20
Post-Graduate			 9
Work FullTime			37
Work PartTime			14
Retired				 20
Self Employed		 	 6
Not Employed			 17
Student				 6
Single/Div/Widow			 45
Married/Common Law		 55
Children in Home			 36
Major Metro			 49
Medium Metro			33
Small/Rural			 17
Atlantic (Net)			 7
Quebec				 23
Ontario				 39
West (Net)			31
HHI <$50K			 45
HHI $50K-99.9K			 32
HHI $100K+			 14
HHI Not Avail			10
Mean HHI 		 $58k
Canadian			81
French Canadian		 	 5
Other Ethnic			 14
marketers
Segments of IndustryYour Company Works With:
Online/Internet			 67
Publishing			43
Digital				 27
Broadcast			 23
Other				4
JobTitleC-suite Executive		 44
Brand/Account Manager		 17
Other Executive			 16
CMO/Director Marketing		 9
Other				 15	
Size of Company
1-99				 78
100-499				 11
500+				 12	
Mean 				 92
Years in Industry
<1 year				 8
1-5 years				 14
6-10 years			 19
11-20 years			 32
21+ years			 26
Mean 				13
Co.’sTotal Revenue
<$1 Mil				 42
$1-$99 Mil			 35
>$100 Mil			 23
Mean 			 136K
Other
Male				 56
Female				44
Atlantic (Net)			10
Quebec				 21
Ontario				 39
West (Net)			 32
Appendix A:
METHODOLOGY
Appendix B:
DEMOGRAPHICS
In Fall 2014, Marketing
Magazine and Rogers
Connect Market Research
and Client Services
conducted an independent
online survey of 1,011
Canadians (nationally repre-
sentative) and 104 Canadian
marketers (those working
in a marketing-related, or
executive-level role).
The survey did not include
marketing professionals
working at advertising or
media agencies—only brand
direct advertisers.
All responses were collected
between September and
October 2014. Data was
compiled by Marketing
Magazine, and the
corresponding analysis and
commentary was prepared
by Videology.
42
For more information, please contact Canada@videologygroup.com
videologygroup.com

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Marketing Magazine Consumer and Marketer Video Study Commissioned by Videology for Canada

  • 1. consumers lead marketers on path to cross-screen convergence Marketers bullish on video’s growth, but advertising strategies yet to fully mature January 2015
  • 2.
  • 3. CONTENTS I. Executive Summary: Video in Canada................................................................. 1 II. Introduction Connected Device Ownership & Usage.......................................................................... 3 III. The Consumer Video Consumption........................................................................................................... 7 Who’s viewing? Where are they viewing? What are they watching? Why are they watching? Cross-screenViewing.........................................................................................................15 Time spent viewing Shifting consumption patterns Simultaneous viewing and the second screen Viewing Experience & Advertising Preferences........................................................... 21 Three Year Outlook.......................................................................................................... 23 Expected Shifts in Viewing The CANADIAN Marketer Video Advertising Perspectives...................................................................................... 27 Expected video growth Video advertising adoption Second screen Challenges with Video Advertising................................................................................ 33 Biggest challenges holding marketers back How is technology being used? The Role of Technology.................................................................................................... 35 Three Year Outlook........................................................................................................... 37 The benefits of video Is convergence the new normal? Who will benefit? Appendix A: Methodology....................................................................................................... 42 Appendix B: Demographics......................................................................................................42
  • 4. EXECUTIVE SUMMARY Videology’s advertising technology platform is used by our clients to deliver the right message to the right consumer on the right screen. We are committed to understand- ing and sharing insights on the growing trend of video and television convergence. As a global company, we see cross-device video viewership escalating around the world. But each market is different. In this paper, we set out to discover how video convergence is progressing in Canada— both from the perspective of consumer adoption and marketers’ strategic use of new video channels. To achieve this, we conducted our study in two parts. One survey focused on Canadian consumers’ use of and attitudes surround- ing video and TV. The other focused on Canadian marketers’ understanding of and response to this new viewing environment. The results were interesting, revealing areas of convergence —and truthfully some areas of divergence—that were quite startling. What we did see from both sides, however, was the acknowledgement that the way we watch TV and video is evolving—and more change is on the horizon. What consumers said… The lines between TV and video have blurred irrevocably. The growing number of connected devices owned by Canadians, and concurrently the increasing opportunity to consume content across multiple platforms, has transformed the way that consumers view TV and video. Yet, new video options have not replaced the old. While seven out of ten consumers, and nine out ten Millennials, are viewing video on computers, smartphones or tablets, traditional TV viewing remains strong. And while devices offer the benefit of added mobility—or the promise of TV anywhere—the majority of total viewing still happens in the living room. It’s not about either/or, it’s about more. Despite the growth of online video, almost 70% of Canadians still subscribe to cable TV or satellite services. Moreover, there is no significant difference between “cord cutters” and TV subscribers’ likelihood to watch video. They are all watching! Consumers want choice and control over what they watch and when. And they often want it at the same time. “Second-screen” viewing is a huge trend engaged in by over half of all Canadians. Consumers understand that advertising is the price of free content and prefer it that way. Good news for advertisers—over 70% of Canadians prefer ad-supported content over pay services with no ads. What’s more, one in five uses the second screen to get more information about products advertised on TV. 1
  • 5. What marketers said… Marketers are bullish on video’s growth. In fact, compared to consumers’ own estimates of expected increases in time spent with video over the next three years, marketers are far more optimistic. Conversely, marketers expect consumers’ traditional TV usage to decrease, while consumers are more likely to say it will stay the same or increase. Yet, despite this optimism, video ad strategies are lagging. Half of all marketers say that they do not currently have a video advertising strategy in place. Marketers could benefit from greater education on video buying opportunities. For instance,68% of marketers were unfamiliar with the term “second-screen” viewing. Also, over one third did not know what programmatic buying was, and only 10% said that their company used it. Perceived challenges in video advertis- ing may be holding it back. Among the biggest challenges cited by marketers include campaign measurement, cross- screen measurement, quality concerns and targeting questions. Again, lack of knowledge as to what data and technological solutions are available may be fueling these concerns. Looking to the future, however, marketers do expect money to shift from other media to new video options. Some of the biggest advantages that marketers see in video advertising include the ability to match ads with target audiences, the ability to evaluate audiences based on buying behavior and the ability to buy audiences across screens. Big changes are not far off, as holistic planning and buying will become the new norm. A very significant 85% of respondents said that planning for online video and linear TV will merge within the next three years. Moreover, 52% said that their agencies are likely to merge their TV and online video buying groups within that timeframe. Convergence will be good for buyers and sellers. Marketers believe that video convergence will bring benefits across the ecosystem, with media outlets earning higher CPMs and increasing their revenue with video ads, and advertising effective- ness improving. 2
  • 6. INTRODUCTION Canadians have access to more connected technology than ever before, enabling consumption of more content from a wider array of devices. The growing use and ownership of devices, along with the supporting advertising technology to target and measure holistically across platforms, represents a strong and growing opportunity for marketers to reach and engage with consumers across screens. study objectives Videology’s research was conducted by Marketing Magazine and Rogers Connect Market Research and Client Services. It was designed to give a snapshot of the way Canadians are consuming video—in all its incarnations—in today’s cross-screen, cross-device environment. In addition, the research sought to learn marketers’ views on shifting video consumption among their customers and the challenges and opportu- nities that these changes posed. The goal was to determine the areas of divergence and congruity between the way consumers are watching TV and video, and the way advertisers are using media and available technologies to reach them. Overall approach The study, in the form of an online survey, was conducted across Ontario, Quebec, the Atlantic region and Western Canada. A nationally representative sample of 1,011 consumers and 104 marketers completed the online interviews. All responses were collected between September and October 2014. Data was compiled by Marketing Magazine, and the corresponding analysis and commentary was prepared by Videology. 3
  • 7. Which of the following technology/services do you currently own/use? How do you connect to the internet? CONNECTIVITY ACROSS DEVICESINTRO GRAPH 2 50%   43%   26%   20%   13%   13%   27%   25%   29%   26%   22%   21%   6%   13%   12%   11%   15%   16%  16%   20%   33%   43%   50%   51%   0   10   20   30   40   50   60   Laptop/Notebook   Desktop   Smartphone   Tablet   Internet  enabled   console  (i.e.  Xbox,   Roku)   Connected  TV    How  do  you  connect  to  the  internet?   Most  of  the  Ome  %   Regularly  %   Very  rarely  %   Never  %   4 INTRO GRAPH 1 DEVICE OWNERSHIP 68%   58%   55%   38%   20%   23%   76%   54%   76%   50%   25%   27%   73%   61%   65%   40%   23%   24%   68%   68%   40%   30%   21%   13%   62%   62%   21%   19%   23%   4%   0   10   20   30   40   50   60   70   80   Laptop/Notebook  Desktop  Computer   Smartphone   Tablet   Connected  TV   (internet-­‐enabled)   Connected  TV  via   separate  device   (Roku,  Xbox,  etc)   Which  of  the  following  technology/services  do  you  currently  own/use?     TOTAL  %   Millennials  %   Gen  X  %   Boomer  %   Pre-­‐Boomer  Seniors  %   Laptop/Notebook Desktop Computer Smartphone Tablet Connected TV Internet-enabled (Internet-enabled) Console (Roku,Xbox, etc.) Laptop/Notebook Desktop Computer Smartphone Tablet Internet-enabled Connected TV Console (Roku,Xbox, etc.) TOTAL Millennials Gen X Boomer Pre-Boomer Seniors Most of the time Regularly Very Rarely Never Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
  • 8.
  • 10. Who’s Viewing? Overall, three-quarters of Canadians say that they now watch online video. But these percentages vary widely by age group. While slightly more than one-third (36%) of Seniors watch online video, more than 90% of Millennials tune in online. (Graph 1.) Interestingly, despite this increase in online viewing and the reports of increased cord-cutting, our survey showed that the vast majority of the population—84%—still subscribes to cable or satellite TV services. And while the number of cord-cutters is highest among Millennials, 80% of them still subscribe to TV services. As Chart 1 below shows, while a slightly higher percentage of non-subscribers view online video than those who do subscribe, the difference is small, through perhaps directional. Currently it is safe to say that online video viewing is done for the most part in conjunction with traditional viewing, not in place of it. The growing number of connected devices owned by Canadians,and concur- rently the increasing opportunity to consume content across multiple platforms, has transformed the way that consumers view television and video.In fact,the boundaries between the two have blurred irrevocably. THE CANADIAN CONSUMER 7 Video Consumption
  • 11. CONSUMER GRAPH 1 CONSUMER GRAPH 2 CONSUMER CHART 1 Who’s watching Subscribers to Cable and Satellite Services CORD CUTTERS 8 Do you watch video online? 75%   93%   84%   62%   36%   25%   8%   16%   38%   64%   0   10   20   30   40   50   60   70   80   90   100   %   %   %   %   %   TOTAL   Millennials   Gen  X   Boomer   Pre-­‐Boomer  Seniors   Do  you  watch  video  online?   Yes   No   TOTAL Millenials Gen X Boomer Pre-Boomer Seniors Do you subscribe to any of the following TV services? TOTAL Millenials Gen X Boomer Pre-Boomer Seniors Watch Video Online SATELLITE / CABLE SUBSCRIBERS Satellite Subscribers Cable Subscribers Do Not Subscribe YES 74%   76%   78%   NO 25%   24%   22%   Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. 75%   93%   84%   62%   36%   25%   8%   16%   38%   64%   0   10   20   30   40   50   60   70   80   90   100   %   %   %   %   %   TOTAL   Millennials   Gen  X   Boomer   Pre-­‐Boomer  Seniors   Do  you  watch  video  online?   Yes   No   68%   65%   66%   74%   59%   20%   23%   19%   16%   29%   16%   20%   18%   11%   11%   0   20   40   60   80   %  TOTAL   %  Millennials   %  Gen  X   %  Boomer   %  Pre-­‐Boomer   Seniors   Do  you  subscribe  to  any  of  the  following  TV  services?   Cable  Services   Satellite  Dish   Do  not  subscribe     68%   65%     66%     74%     59%     20%     23%     19%     16%     29%     16%     20%     18%     11%     11%     0   20   40   60   80   %  TOTAL   %  Millennials   %  Gen  X   %  Boomer   %  Pre-­‐Boomer   Seniors   Do  you  subscribe  to  any  of  the  following  TV  services?   Cable  Services   Satellite  Dish   Do  not  subscribe    
  • 12. Where are they watching? The question of where consumers are watching goes hand in hand with the question of which device they are watching on. The influx of smartphones, tablets, and even laptops, has given consumers the ability to watch where and when they want, with the screen choice often coming down to a “best screen available” scenario. When asked specifically about video viewing, most consumers said that they watch on a desktop or laptop computer. This makes sense considering that computers are still the primary way that consumers connect to the Internet, as discussed in the Introduc- tion of this report. As we also noted in the Intro, accessing the internet via the televi- sion, whether through a connected console or a connected TV, is only done by half of Canadian consumers. Despite this relatively low percentage, the television is still the 2nd most popular device on which to view videos. Smartphones and tablets are used to view video by roughly the same percentage of consumers at 29% and 23% respectively. In terms of the physical location of viewing, despite the promise of mobility, most viewing still occurs in the home.The vast majority— 74%—view video primarily in the living room. Almost half also regularly watch in other rooms within the home. Watching while commuting, at work, or other places outside the home is much more limited. THE CANADIAN CONSUMER 9 Video Consumption
  • 13. CONSUMERS GRAPH 4. VIEWING LOCATION Which device do you watch video on? Where do you regularly watch video? CONSUMER GRAPH 3 CONSUMER GRAPH 4 VIEWING DEVICE VIEWING LOCATION 77%   45%   29%   23%   0   50   100   Laptop/Desktop   TV  Screen   Smartphone   Tablet   What  device  do  you  watch  video  on?   TOTAL  %   74%   46%   11%   10%   10%   12%   0   10   20   30   40   50   60   70   80   At  home  in   living  room   At  home  in   rooms  other   than  the  living   room   While   commu=ng   While  traveling   (airport,   hotel,etc)   At  work/school  In  public  places   (beach,  park,   etc)   Where  do  you  regularly  watch  video?   TOTAL  %   10 Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. Athomeinrooms otherthanthe livingroom While commuting Whiletraveling (airport,hotel,etc.) Atwork/ school Inpublic places(beach, park,etc.) Athomein livingroom Laptop/Notebook TV Screen Smartphone Tablet
  • 14. what are they watching? So we know that three out of four Canadians are watching video online. But what type of content are they viewing? The answers range from YouTube clips to the same professionally produced content shown on traditional TV. In many cases, viewers are simply accessing traditional TV content on an alternate screen. While a relatively low percentage (24%) say that they access content directly from a broadcaster’s site, 39% say that they access “TV Everywhere” from their cable provider. Almost an equal percentage (35%) say that they access content from a subscription- based service, such as Netflix. And the highest percentage of respondents said that they access video through content aggregators, such as YouTube. In terms of genre, movies are by far the type of video content that respondents watch most regularly. Canadian and US/Internationally produced programming placed a close 2nd and 3rd in terms of video content viewed regularly. Local news was mentioned by 31% of respondents,while 22% cited US/International news,followed closely by local sports at 21%. THE CANADIAN CONSUMER Video Consumption 11
  • 15. CONSUMERS GRAPH 4. VIEWING LOCATION Which of the following best describes how you access the videos you watch? What types of video content do you watch on-line on a regular basis? CONSUMER GRAPH 5 CONSUMER GRAPH 6 ACCESSING CONTENT PROGRAMMING GENRES 69%   38%   36%   31%   22%   21%   11%   2%   1%   2%   0   10   20   30   40   50   60   70   80   Movies   Canadian   Produced   Programming   US/InternaBonal   Programming   News  from  Local   TV  Networks   News  from  US/ InternaBonal     Local  Sports   US/InternaBonal   Sports  Not  Easily   Accessible  on  TV   Music  videos   YouTube  clips/ selecBons   Other   What  types  of  video  content  do  you  watch  on-­‐line  on  a  regular  basis?   TOTAL  %   12 40%   39%   35%   30%   24%   Video  Content  Aggregator  (i.e.  Youtube)   TV  Everywhere/Cable  Provider   SubscripHon  streaming  service  (ie.  NeKlix)   Non-­‐subscripHon  Streaming  Site/Service   Site  or  Broadcaster  Direct   Which  of  the  following  best  describes  how  you  access  the  videos   you  watch?   TOTAL  %   Site or broadcaster direct Non-subscription streaming site/service Subscription streaming service (ie. Netflix) TV everywhere/cable provider Video content aggregator (i.e.Youtube) Movies US/International Programming Local TV Network News US/International News Local Sports US/International Sports Not Easily Accessible on TV Music videos YouTube clips/ selections OtherCanadian Produced Programming Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
  • 16. whY are they watching? No technology or new behavior achieves mass adoption unless there is a correspond- ing consumer need. So why are consumers viewing video beyond traditional TV? By far, the top reason is one of control; control over when they watch and what they watch, i.e. more programming options. Of course, reasons for viewing do vary significantly among the various age groups: • Millennials value control the most of all age groups, and also are the most likely to say that they watch video because it is less expensive than traditional TV services. They are least likely to cite fewer ads as a reason to watch. And they also value the freedom to watch outside of the home more than any other group. • GenX is similar to Millennials in their reasons for watching video, though lower percentages across all choices show that they are more selective in their reasons than younger consumers. • Boomers want control over when they watch. Interestingly, they value fewer ads more than any other age group, and are least concerned about the cost savings. • Pre-Boomer Seniors also want control over when they watch and are least interested in the freedom to watch outside of the home. What about those who are not watching video? The top reason cited was satisfaction with current options, i.e. “TV is sufficient.” Over 60% of Boomers and Seniors who don’t watch video said TV is sufficient. Among Millennials who do not watch video, answers were more diverse, with top choices includ- ing TV is sufficient, my internet costs would increase, and not enough choice. THE CANADIAN CONSUMER Video Consumption 13
  • 17. You indicated that you do not watch video online, why not? What are the primary reasons that you use digital video rather than traditional TV? CONSUMER GRAPH 7 Reasons for NOT watching video 14 CONSUMER CHART 2 Reasons for watching video No need – TVsufficient Services too expensive Don’t know how to do it My Internet costs would increase Not enough choice available Difficult to find programming to watch Internet connection too slow Too many ads Don’t have the right technology to access No interest in watching TV OtherNo interest in InternetTV 52%   35%   20%   16%   14%   9%   8%   8%   8%   8%   7%   1%   0   10   20   30   40   50   60   No  need  –  TV   sufficient   No  interest  in   Internet  TV   Services  too   expensive   Don’t  know  how   to  do  it   My  Internet   costs  would   increase   Not  enough   choice  available     Difficult  to  find   programming  to   watch   Internet   connecNon  too   slow   Too  many  ads   No  interest  in   watching  TV   Don’t  have  the   right  technology   to  access   Other   You  indicated  that  you  do  not  watch  video  online,  why  not?   TOTAL  %   Base: Respondents who view video online TOTAL Millennials Gen X Boomer Pre-Boomer Seniors More control over when I watch 51%   59%   51%   49%   41%   More programming options 44%   54%   43%   31%   21%   Less expensive than traditional TV services 31%   40%   33%   21%   27%   Fewer ads than TV 29%   28%   30%   33%   30%   More freedom where I watch (outside the home) 27%   31%   28%   21%   10%   Other 16%   13%   16%   16%   41%   Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
  • 18. Time spent Viewing In many ways, TV is still king. Canadians are watching more traditional television than any other kind of programming, spending 14.3 hours on average watching live television, and an additional 4.2 hours watching recorded shows. And while it’s clear that Canadians love TV content, they are now spending more than 6 hours in the average week consuming that content via the Internet. Time spent viewing original video content, i.e. not created for television, is still relatively low. This will likely increase as more quality, made-for-video programs become available. On average, Canadians are spending 3.6 hours with streaming video services, such as Netflix. These services generally include both original programming, as well as TV shows and movies. In terms of when consumers are viewing content, both traditional TV and video consumption follow the same daypart pattern. Viewing is relatively low in the morning (the peak time for general internet usage), gradually increases throughout the day, and peaks in the traditional evening “primetime” viewing period. (Graph 9.) THE CANADIAN CONSUMER Interestingly, despite the increase in video viewership, the time that Canadians spend with traditional TV remains high. In fact, collective research suggests that rather than substituting one medium for another, consumers are simply increasing their overall time spent with media. In some cases, this increase is the result of new access to media in locations and at times when media consumption would have been impossible previously. In other instances, this increase is due to simultaneous usage on different screens. 15 cross-screen VIEWING
  • 19. What time do you most frequently engage in the following activities? Please indicate how many hours per week do you typically do any of the following? CONSUMERS GRAPH 8 CONSUMER GRAPH 9 Weekly Viewing Hours Viewing by Daypart 16 14.3   6.2   4.2   3.6   2.5   2.5   0   2   4   6   8   10   12   14   16   Watch  tradi3onal/Broadcast  TV   Watch  Internet  TV  (TV  programming/movies   Watch  personally  recorded  TV  content  (i.e.   Watching  streaming  services  (i.e.  NeElix)   Watching  snippets  TV/Movies  streamed  on   Watching  Original  Online  Video  (non-­‐TV   Please  indicate  how  many  hours  per  week   do  you  typically  do  any  of  the  following?   Hrs   Watching original online video (non-TV programming) Watching snippets TV/movies streamed on sites like YouTube Watching streaming services (i.e. Netflix) Watch personally recorded TV content (i.e. DVR) Watch internet TV (TV programming/movies watched via Internet) Watch traditional/broadcast TV Hours 0   5   10   15   20   25   30   %  Before  9AM   %  12PM  to  2PM   %  4P-­‐Before  6PM   %  8PM-­‐  Before   10PM   What  &me  do  you  most  frequently  engage  in  the  following  ac&vi&es?   Using  the  Internet   Watching  Digital  Video  on   Computer/Mobile  Devices   Watching  Digital  Video  on  TV   via  Internet   Watching  TradiLonal   Television   30% 25% 20% 15% 10% 5% Using the Internet Watching Digital Video on Computer/Mobile Devices Watching Digital Video on TV via Internet Watching Traditional Television Before 9AM 12PM to 2PM 4PM-Before 6PM 8PM Before 10PM Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
  • 20. Shifting consumption patterns As we stated in the Intro section,very few Canadians say that they are doing “less” of anything when it comes to media consumption! As shown, when asked how their media usage had changed compared to a year ago, upwards of 25% said they consumed “more” across every media type listed (Graph 10.) More respondents (37%) said that they were watching more internet TV (TV programming watched over the internet) than any other category. The only categories with over 10% of respondents saying that they were watching less than a year ago were traditional/broad- cast TV (18%) and TV content recorded via DVR (11%). When looked at by age group, it becomes clear that Milllennials are by far the most vora- cious consumers in terms of growing media consumption. In fact, more than 10% of Millennials say that they are watching “much more” content across every media category (including tradi- tional television). In all categories involving video viewing, upwards of 20% of Millennials say that they are consuming “much more” than a year ago. In general, Boomers and Pre-Boomer Seniors are showing the lowest increases in media consumption. This is not to say, how- ever, that they are not already strong viewers of traditional/broadcast TV, as most research indicates. THE CANADIAN CONSUMER 17
  • 21. Those viewing “MUCH MORE” compared to a year ago? How has your usage of the following changed compared to a year ago? 18 CONSUMER GRAPH 10 Change in Viewing Consumption CONSUMER GRAPH 11 Change in Viewing by Age Group 17%   13%   11%   11%   11%   10%   9%   8%   26%   21%   21%   20%   16%   11%   11%   12%  11%   14%   10%   9%   10%   8%   6%   6%   8%   6%   1%   2%   5%   10%   7%   3%  4%   2%   2%   4%   6%   4%   4%   0%   0   5   10   15   20   25   30   Watch  Internet  TV  (TV  programming/ movies  watched  via  Internet)   Watching  snippets  TV/Movies  streamed   on  sites  like  YouTube   Accessing  the  Internet  via  tablet   Watch  personally  recorded  TV  content   (i.e.  DVR)   Those  viewing  “MUCH  MORE”  compared  to  a  year  ago?   Total  %   Millennials  %   Gen  X  %   Boomer  %   Pre-­‐Boomer  Seniors  %   37%   29%   30%   29%   27%   28%   26%   25%   34%   31%   39%   31%   31%   48%   39%   41%   6%   6%   8%   8%   6%   18%   11%   9%   23%   34%   23%   32%   35%   7%   24%   25%   0   10   20   30   40   50   60   Watch  Internet  TV  (TV   programming/movies   watched  via  Internet)   Watching  streaming   services  (i.e.  NeFlix)   Watching  snippets  TV/ Movies  streamed  on   sites  like  YouTube   Accessing  the  Internet   via  Smartphone   Accessing  the  Internet   via  tablet   Watch  tradiPonal/ Broadcast  TV   Watch  personally   recorded  TV  content   (i.e.  DVR)   Watching  Original   Online  Video  (non-­‐TV   programming)   How  has  your  usage  of  the  following  changed  compared  to  a  year  ago?   More   Same   Less   NA  %   WatchinternetTV (TVprogramming/ movieswatched viaInternet) Accessingtheinter- netviasmartphone Watchingstreaming services(i.e.Netflix) Accessingthe internetviatablet Watchpersonally recordedTV content(i.e.DVR) Watchingsnippets TV/moviesstreamed onsiteslikeYouTube Watchtraditional/ broadcastTV Watchingoriginal onlinevideo(non- TVprogramming) 37%   29%   30%   29%   27%   28%   26%   25%   34%   31%   39%   31%   31%   48%   39%   41%   6%   6%   8%   8%   6%   18%   11%   9%   23%   34%   23%   32%   35%   7%   24%   25%   0   10   20   30   40   50   60   Watch  Internet  TV  (TV   programming/movies   watched  via  Internet)   Watching  streaming   services  (i.e.  NeFlix)   Watching  snippets  TV/ Movies  streamed  on   sites  like  YouTube   Accessing  the  Internet   via  Smartphone   Accessing  the  Internet   via  tablet   Watch  tradiPonal/ Broadcast  TV   Watch  personally   recorded  TV  content   (i.e.  DVR)   Watching  Original   Online  Video  (non-­‐TV   programming)   How  has  your  usage  of  the  following  changed  compared  to  a  year  ago?   More   Same   Less   NA  %   WatchinternetTV (TVprogramming/ movieswatched viainternet) Accessingtheinternet viasmartphone Watchingstreaming services(i.e.Netflix) Accessingthe internetviatablet Watchpersonally recordedTV content(i.e.DVR) Watchingsnippets TV/moviesstreamed onsiteslikeYouTube Watchtraditional/ broadcastTV Watchingoriginal onlinevideo(non- TVprogramming) 17%   13%   11%   11%   11%   10%   9%   8%   26%   21%   21%   20%   16%   11%   11%   12%  11%   14%   10%   9%   10%   8%   6%   6%   8%   6%   1%   2%   5%   10%   7%   3%  4%   2%   2%   4%   6%   4%   4%   0%   0   5   10   15   20   25   30   Watch  Internet  TV  (TV  programming/ movies  watched  via  Internet)   Watching  snippets  TV/Movies  streamed   on  sites  like  YouTube   Accessing  the  Internet  via  tablet   Watch  personally  recorded  TV  content   (i.e.  DVR)   Those  viewing  “MUCH  MORE”  compared  to  a  year  ago?   Total  %   Millennials  %   Gen  X  %   Boomer  %   Pre-­‐Boomer  Seniors  %   Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
  • 22. Simultaneous viewing AND THE SECOND SCREEN Despite the large percentage of Canadians who say that they are viewing more TV and video in different ways, the fact remains—there are a finite number of hours available in a given day. So how are consumers making time for all of this increased media consumption? In many instances, the answer is simultaneous viewing across multiple devices, or what has become known as “second-screening.” In fact,over half of all Canadians say that they use an internet-connected device on a daily basis while watchingTV.(Graph 12.) And amongMillennials,thatpercentagejumpsto65%. The majority of consumers are using their laptop as the second-screen, however, smartphones, tablets and even desktop computers all received significant mentions. It is likely that as tablet ownership increases, which is now at 38%, so too will its use in second screening. So what are consumers doing on the second screen while watching TV? While 38% are accessing content related to the television content, an equal percentage (39%) are accessing unrelated entertainment content—the age of multitasking is here! An interesting fact for television advertisers is that 20% of consumers say that they are using the second screen to search, browse or buy the products being advertised on TV. Clearly, the second-screen now offers brands an important opportunity for additional inter- activity and engagement with consumers. THE CANADIAN CONSUMER cross-screen usage 19
  • 23. CONSUMERS GRAPH 4. VIEWING LOCATION CONSUMERS GRAPH 4. VIEWING LOCATION How often would you say you use an internet-connected device at the same time as you are watching traditional TV? Which devices do you use when watching traditional TV? What activities do you do on the second device? 53%   65%   59%   44%   23%   18%   20%   18%   14%   10%  8%   7%   7%   9%   2%   0   20   40   60   80   %   %   %   %   %   TOTAL   Millennials   Gen  X   Boomer   Pre-­‐Boomer  Seniors   How  o%en  would  you  say  you  use  an  internet-­‐connected  device  (i.e.   tablet,  phone,  etc.)  at  the  same  <me  as  you  are  watching  tradi<onal   TV?   Daily  (NET)   Weekly  (NET)   Monthly  (NET)   53   65   59   44   23   18   20   18   14   10  8   7   7   9   2   0   20   40   60   80   %   %   %   %   %   TOTAL   Millennials   Gen  X   Boomer   Pre-­‐Boomer  Seniors   How  o%en  would  you  say  you  use  an  internet-­‐connected  device  (i.e.   tablet,  phone,  etc.)  at  the  same  <me  as  you  are  watching  tradi<onal   TV?   Daily  (NET)   Weekly  (NET)   Monthly  (NET)   20 Access other unrelated entertainment content TOTAL Millenials Gen X Boomer Pre-Boomer Seniors Laptop Smartphone Desktop Tablet Other Search/browse/ buy products unrelated to TV Access other unrelated entertainment content Search/browse/ buy products advertised on TV Write posts, messages or communicate online related to program Play games Check emailsAccess content related to TV program CONSUMER GRAPH 14 ACTIVITIES ON SECOND SCREEN CONSUMER GRAPH 13 Devices Used for SECOND-Screening CONSUMER GRAPH 12 Frequency of SECOND-Screening 50%   33%   30%   26%   11%   Laptop   Smartphone   Desktop   Tablet   Other   What  devices  do  you  use  when  watching  tradi3onal  TV?     39%   38%   29%   21%   20%   14%   3%   2%   Access  other  unrelated   entertainment  content   Access  content  related  to   TV  program   Search/browse/buy   products  unrelated  to  TV   Write  posts,  messages  or   communicate  online   unrelated  to  program     Search/browse/buy   products  adverEsed  on  TV   Write  posts,  messages  or   communicate  online   related  to  program     Play  games   Check  emails   What  ac'vi'es  do  you  do  on  the  second  device?   Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. 53   65   59   44   23   18   20   18   14   10  8   7   7   9   2   0   20   40   60   80   %   %   %   %   %   TOTAL   Millennials   Gen  X   Boomer   Pre-­‐Boomer  Seniors   How  o%en  would  you  say  you  use  an  internet-­‐connected  device  (i.e.   tablet,  phone,  etc.)  at  the  same  <me  as  you  are  watching  tradi<onal   TV?   Daily  (NET)   Weekly  (NET)   Monthly  (NET)  
  • 24. 72% of Canadians prefer to access free, ad-supported digital content.(Graph 15.) This is related to the point that 48% strongly consider costs when choosing what to watch and how to watch it.(Graph 16.) Yet,despite their acceptance of advertising, consumers are split on whether it is acceptable to track online behaviour to improve the relevancy of ads. Among respondents, 45% agreeitisacceptable,while55%saythatitisnot. Generationally,however,Millennials are much morelikely to saybehaviourtrackingisaccept- able (56%) than Seniors (24%).(Chart 3.) In general,Canadians are also quite happy with their viewing choices (81%),yet remain covetous of the choices available to those in the U.S.(78%). Younger consumers (85%) are more likely than Seniors (65%) to say that they would like the same level of choice as U.S. consumers.(Chart 3.) In addition,younger viewers (80%) are the most likely to change the way they watch video in order to get a better quality image. THE CANADIAN CONSUMER CONSUMERS GRAPH 4. VIEWING LOCATIONHow would you prefer to access digital video content? viewing Experience & Advertising preferences 28   29   25   20   22   72   71   75   80   78   0   20   40   60   80   100   %   %   %   %   %   TOTAL   Millennials   Gen  X   Boomer   Pre-­‐Boomer  Seniors   How  would  you  prefer  to  access  digital  video  content?   Pay  to  access  with  no  adverGsements   Access  free  with  adverGsements   21 Despite the negative connotations that sometimes surround advertising interruptions or perceived clutter,the vast majority of Canadians across all age groups prefer the advertising versus paid subscription model when it comes to accessing digital content. Moreover,the vast majority are also satisfied with their overall programming experience in terms of programming choice and quality.bo TOTAL Millenials Gen X Boomer Pre-Boomer Seniors CONSUMER GRAPH 15 Advertising vs. Subscription Models 28   29   25   20   22   72   71   75   80   78   0   20   40   60   80   100   %   %   %   %   %   TOTAL   Millennials   Gen  X   Boomer   Pre-­‐Boomer  Seniors   How  would  you  prefer  to  access  digital  video  content?   Pay  to  access  with  no  adverGsements   Access  free  with  adverGsements  
  • 25. Thinking about your media usage, please indicate how strongly you agree or disagree with the following statements. CONSUMER GRAPH 14 Attitudes Toward Advertising Experience 22 CONSUMER CHART 3 Attitudes Toward Advertising by age group It is acceptable to track my behaviour online in order to direct online ads best fitted to my interests If the quality of image is better, I will change the way I view videos I wish I had the level of choice available to consumers in U.S. as far as TV/ video goes I feel I have an abundance of choices as a media consumer I consider the costs when choosing what to watch and how I watch it 87%   81%   78%   73%   45%   48%   31%   34%   24%   14%   6%   5%   8%   9%   28%   13%   19%   22%   27%   55%   0   10   20   30   40   50   60   70   80   90   100   I  consider  the  costs  when  choosing  what  to  watch  and  how  I  watch  it.   I  feel  I  have  an  abundance  of  choices  as  a  media  consumer   I  wish  I  had  the  level  of  choice  available  to  consumers  in  USA  as  far  as  TV/   video  goes   If  the  quality  of  image  is  beJer,  I  will  change  the  way  I  view  videos   It  is  acceptable  to  track  my  behaviour  online  in  order  to  direct  on-­‐line  ads  best   fiJed  to  my  interests   Thinking  about  your  media  usage,  please  indicate  how  strongly  you   agree  or  disagree  with  the  following  statements?   Disagree  (NET)  %   Strongly  Disagree  %   Strongly  Agree  %   Agree  (NET)  %   Base: All Respondents answering AGREE (NET) TOTAL Millennials Gen X Boomer Pre- Boomer Seniors I consider the costs when choosing what to watch and how I watch it. 87%   89%   87%   87%   80%   I feel I have an abundance of choices as a media consumer 81%   81%   82%   83%   80%   I wish I had the level of choice available to consumers in U.S. as far as TV/ video goes 78%   85%   84%   72%   65%   If the quality of image is better, I will change the way I view videos 73%   80%   76%   66%   49%   It is acceptable to track my behaviour online in order to direct online ads best fitted to my interests 45%   56%   48%   32%   24%   87   81   78   73   45   48   31   34   24   14   6   5   8   9   28   13   19   22   27   55   0   10   20   30   40   50   60   70   80   90   100   I  consider  the  costs  when  choosing  what  to  watch  and  how  I  watch  it.   I  feel  I  have  an  abundance  of  choices  as  a  media  consumer   I  wish  I  had  the  level  of  choice  available  to  consumers  in  USA  as  far  as  TV/   video  goes   If  the  quality  of  image  is  beIer,  I  will  change  the  way  I  view  videos   It  is  acceptable  to  track  my  behaviour  online  in  order  to  direct  on-­‐line  ads  best   fiIed  to  my  interests   Thinking  about  your  media  usage,  please  indicate  how  strongly  you   agree  or  disagree  with  the  following  statements?   Disagree  (NET)  %   Strongly  Disagree  %   Strongly  Agree  %   Agree  (NET)  %   Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents.
  • 26. Expected shifts in Viewing Across the entire respondent base, the majority of consumers said they expected their viewing on each device to remain about the same over the next three years. But it’s not a flat story by any means. A significant number, in the range of 22-28%, expect their viewing to increase across the major connected devices currently available. And another 16% expected their viewing of traditional TV via cable or satellite to increase as well. (Graph 17.) This story varies dramatically by age group, however, as seen in Chart 4. There is a clear inverse relationship between age and expected viewing increases. Upwards of 30% of Millennials expect to watch more video on most devices over the next three years, while the percentages of Seniors expecting to watch more seldom top the single digits. Gen X’s responses skew closer to Millennials’, while Boomers’ expect- ed increases were more closely aligned with those of the Seniors. In some ways, we are seeing a bifurcated population, with those under 50 years voraciously embracing the new video options, and those over 50 years adopting change more slowly. Three year outlook 23 As the previous pages show, the majority of Canadian consumers are already embracing video viewing across a variety of devices. In terms of video usage, however, it appears that we are still on the upside of the growth curve. When asked about their expected viewing patterns over the next three years, approxi- mately one-quarter to one-third of consumers expected to spend more time watching video on the “big four” connected devices: computers, smartphones, tablets and connected TVs. THE CANADIAN CONSUMER
  • 27. In your opinion, how will your time spent viewing videos on the following devices change over the next 3 years? In your opinion, how will your time spent viewing videos on the following devices change over the next 3 years? CONSUMER GRAPH 17 Expected Viewing Changes CONSUMER CHART 4 24 Laptop computer Smart TVs, i.e., TVs with a direct internet connection Tablet Desktop computer Smartphone Television set via an internet connected device, e.g.,Apple TV, Other types of devices yet to be identified Television set, via an antenna or cable/satellite provider 28   26   25   23   23   22   18   16   56   56   55   56   58   56   62   57   17   18   19   21   19   22   21   27   0   10   20   30   40   50   60   70   Laptop  computer   Smart  TVs,  i.e.,  TVs   with  a  direct  internet   connecAon   Tablet     Desktop  computer   Smartphone   Television  set  via  an   internet  connected   device,  e.g.,  Apple  TV,   Roku,  XboxOne   Other  types  of  devices   yet  to  be  idenAfied     Television  set,  via  an   antenna  or  cable/ satellite  provider   In  your  opinion,  how  will  your  .me  spent  viewing  videos  on  the   following  devices  change  over  the  next  3  years?     Increase  (NET)  %   Stay  the  same  %   Decrease  (NET)  %   28%   26%   25%   23%   23%   22%   18%   16%   56%   56%   55%   56%   58%   56%   62%   57%   17%   18%   19%   21%   19%   22%   21%   27%   0   10   20   30   40   50   60   70   Laptop  computer   Smart  TVs,  i.e.,  TVs   with  a  direct  internet   connecBon   Tablet     Desktop  computer   Smartphone   Television  set  via  an   internet  connected   device,  e.g.,  Apple  TV,   Roku,  XboxOne   Other  types  of  devices   yet  to  be  idenBfied     Television  set,  via  an   antenna  or  cable/ satellite  provider   In  your  opinion,  how  will  your  .me  spent  viewing  videos  on  the   following  devices  change  over  the  next  3  years?     Increase  (NET)  %   Stay  the  same  %   Decrease  (NET)  %   Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 1,011 Canadian respondents. Increase (NET) Total Millennials Gen X Boomer Pre-Boomer Seniors Laptop computer 28%   36%   31%   20%   3%   Smart TVs, i.e.,TVs with a direct internet connection 26%   31%   26%   21%   16%   Tablet 25%   33%   27%   16%   8%   Desktop computer 23%   29%   24%   17%   12%   Smartphone 23%   33%   23%   12%   10%   Television set via an internet connected device, e.g., Apple TV, Roku,XboxOne 22%   27%   24%   15%   9%   Other types of devices yet to be identified 18%   24%   17%   11%   6%   Television set, via an antenna or cable/satellite provider 16%   18%   17%   13%   8%  
  • 28.
  • 30. expected Video growth The vast majority of marketers believe consumers’ time spent viewing video on connected mobile devices like Smartphones and Tablets will grow strongly over the next three years (Marketer Graph 1.) Meanwhile, 38% of marketers predict a decrease in consumers’ time spent viewing video on a desktop, and 74% predict a decrease in time spent watching linear television. This is in contrast to the consumers themselves, who mostly think viewership of these devices will remain the same (Consumer Graph 17.) Comparing these results to the same question for consumers,it’s clear that marketers are more bullish in their predictions. (Marketer Graph 2.) For example, while only 23% of consumers expect their video viewing on Smartphones to increase, a very large majority (84%) of marketers believe viewing on Smartphones will grow; the same holds true for Tablets, where 25% of consum- ers expect growth, while 80% of marketers expect growth. Marketers’ strong belief in the future growth of new media and connected devices suggests that they see plentiful opportunities ahead for marketing on new screens. THE CANADIAN MARKETER video advertising perspectives 27 From the perspective of marketers, consumers’ adoption of new media and connected devices is expected to grow rapidly in the coming three years. Ironically, though, marketers’ adoption of strategies and programs to run advertising on these screens is not as aggressive. While they appear eager to embrace these new channels, few of those surveyed had a deep understanding of the tools and technology currently available to help reach consumers along this new multi-screen, multi-device media path.
  • 31. CONSUMERS GRAPH 4. VIEWING LOCATION In your opinion, how will time spent viewing videos on the following devices change over the next 3 years? MARKETER GRAPH 1 MARKETER GRAPH 2 Expected Video Growth Expected Video Growth – Consumer Comparison 84   80   80   63   61   49   23   4  2   3   6   6   13   13   38   74   0   10   20   30   40   50   60   70   80   90   n=95-­‐104   Smartphone   Tablet     Smart  TVs,  i.e.,   TVs  with  a   direct  internet   connecCon   Other  types  of   devices  yet  to   be  idenCfied     Television  set   via  an  internet   connected   device,  e.g.,   Apple  TV,   Roku,  XboxOne   Laptop   computer   Desktop   computer   Television  set,   via  an  antenna   or  cable/ satellite   provider   In  your  opinion,  how  will  consumers’  3me  spent  viewing   videos  on  the  following  devices  change  over  the  next  3  years?   Increase  (NET)   Decrease  (NET)   28 Smartphone Tablet Other types of devices yet to be identified Television set via an internet connected device, e.g.,Apple TV, Roku,XboxOne Laptop computer Desktop computer Television set, via an antenna or cable/satellite provider Smart TVs, i.e., TVs with a direct internet connection Smartphone Tablet Other types of devices yet to be identified Television set via an internet connected device, e.g.,Apple TV, Roku,XboxOne Laptop computer Desktop computer Television set, via an antenna or cable/satellite provider Smart TVs, i.e., TVs with a direct internet connection In your opinion, how will consumers’ time spent viewing videos on the following devices change over the next 3 years? 49   80   80   23   84   61   63   4   28   26   25   23   23   22   18   16   0   10   20   30   40   50   60   70   80   90   Laptop  computer   Smart  TVs,  i.e.,  TVs   with  a  direct  internet   connecAon   Tablet     Desktop  computer   Smartphone   Television  set  via  an   internet  connected   device,  e.g.,  Apple  TV,   Roku,  XboxOne   Other  types  of  devices   yet  to  be  idenAfied     Television  set,  via  an   antenna  or  cable/ satellite  provider   In  your  opinion,  how  will  .me  spent  viewing  videos  on  the   following  devices  change  over  the  next  3  years?     Marketers  ExpecAng  Increase  %   Consumers  ExpecAng  Increase  %   84%   80%   80%   63%   61%   49%   23%   4%  2%   3%   6%   6%   13%   13%   38%   74%   0   10   20   30   40   50   60   70   80   90   n=95-­‐104   Smartphone   Tablet     Smart  TVs,  i.e.,   TVs  with  a   direct  internet   connecDon   Other  types  of   devices  yet  to   be  idenDfied     Television  set   via  an  internet   connected   device,  e.g.,   Apple  TV,   Roku,  XboxOne   Laptop   computer   Desktop   computer   Television  set,   via  an  antenna   or  cable/ satellite   provider   In  your  opinion,  how  will  consumers’  3me  spent  viewing   videos  on  the  following  devices  change  over  the  next  3  years?   Increase  (NET)   Decrease  (NET)   Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers. 0%   23%   84%   61%   63%   4%   25%   23%   23%   22%   18%   16%   Tablet     Desktop  computer   Smartphone   Television  set  via  an   internet  connected   device,  e.g.,  Apple  TV,   Roku,  XboxOne   Other  types  of  devices   yet  to  be  idenBfied     Television  set,  via  an   antenna  or  cable/ satellite  provider   n,  how  will  .me  spent  viewing  videos  on  the    devices  change  over  the  next  3  years?     pecBng  Increase  %   Consumers  ExpecBng  Increase  %   49%   80%   80%   23%   84%   61%   63%   4%   28%   26%   25%   23%   23%   22%   18%   16%   0   10   20   30   40   50   60   70   80   90   Laptop  computer   Smart  TVs,  i.e.,  TVs   with  a  direct  internet   connecBon   Tablet     Desktop  computer   Smartphone   Television  set  via  an   internet  connected   device,  e.g.,  Apple  TV,   Roku,  XboxOne   Other  types  of  devices   yet  to  be  idenBfied     Television  set,  via  an   antenna  or  cable/ satellite  provider   In  your  opinion,  how  will  .me  spent  viewing  videos  on  the   following  devices  change  over  the  next  3  years?     Marketers  ExpecBng  Increase  %   Consumers  ExpecBng  Increase  %   49%   80%   80%   23%   84%   61%   63%   4%   28%   26%   25%   23%   23%   22%   18%   16%   0   10   20   30   40   50   60   70   80   90   Laptop  computer   Smart  TVs,  i.e.,  TVs   with  a  direct  internet   connecBon   Tablet     Desktop  computer   Smartphone   Television  set  via  an   internet  connected   device,  e.g.,  Apple  TV,   Roku,  XboxOne   Other  types  of  devices   yet  to  be  idenBfied     Television  set,  via  an   antenna  or  cable/ satellite  provider   In  your  opinion,  how  will  .me  spent  viewing  videos  on  the   following  devices  change  over  the  next  3  years?     Marketers  ExpecBng  Increase  %   Consumers  ExpecBng  Increase  %   49%   80%   80%   23%   84%   28%   26%   25%   23%   23% 0   10   20   30   40   50   60   70   80   90   Laptop  computer   Smart  TVs,  i.e.,  TVs   with  a  direct  internet   connecBon   Tablet     Desktop  computer   Smartphone   In  your  opinion,  how  will  .me  spent  vi following  devices  change  over  th Marketers  ExpecBng  Increase  %   Consum 49%   80%   80%   23%   84%   61%   63%   4%   28%   26%   25%   23%   23%   22%   18%   16%   0   10   20   30   40   50   60   70   80   90   Laptop  computer   Smart  TVs,  i.e.,  TVs   with  a  direct  internet   connecBon   Tablet     Desktop  computer   Smartphone   Television  set  via  an   internet  connected   device,  e.g.,  Apple  TV,   Roku,  XboxOne   Other  types  of  devices   yet  to  be  idenBfied     Television  set,  via  an   antenna  or  cable/ satellite  provider   In  your  opinion,  how  will  .me  spent  viewing  videos  on  the   following  devices  change  over  the  next  3  years?     Marketers  ExpecBng  Increase  %   Consumers  ExpecBng  Increase  %   49%   80%   80%   23%   84%   61%   63%   28%   26%   25%   23%   23%   22%   18% 0   10   20   30   40   50   60   70   80   90   Laptop  computer   Smart  TVs,  i.e.,  TVs   with  a  direct  internet   connecBon   Tablet     Desktop  computer   Smartphone   Television  set  via  an   internet  connected   device,  e.g.,  Apple  TV,   Roku,  XboxOne   Other  types  of  dev yet  to  be  idenBfi In  your  opinion,  how  will  .me  spent  viewing  videos  on  th following  devices  change  over  the  next  3  years?     Marketers  ExpecBng  Increase  %   Consumers  ExpecBng  Increase  %   0%   80%   23%   84%   61%   63%   4%   26%   25%   23%   23%   22%   18%   16%   rt  TVs,  i.e.,  TVs   a  direct  internet   connecBon   Tablet     Desktop  computer   Smartphone   Television  set  via  an   internet  connected   device,  e.g.,  Apple  TV,   Roku,  XboxOne   Other  types  of  devices   yet  to  be  idenBfied     Television  set,  via  an   antenna  or  cable/ satellite  provider   ur  opinion,  how  will  .me  spent  viewing  videos  on  the   following  devices  change  over  the  next  3  years?     Marketers  ExpecBng  Increase  %   Consumers  ExpecBng  Increase  %   49%   80%   80%   23%   84%   61%   63%   4%   28%   26%   25%   23%   23%   22%   18%   16%   0   10   20   30   40   50   60   70   80   90   Laptop  computer   Smart  TVs,  i.e.,  TVs   with  a  direct  internet   connecBon   Tablet     Desktop  computer   Smartphone   Television  set  via  an   internet  connected   device,  e.g.,  Apple  TV,   Roku,  XboxOne   Other  types  of  devices   yet  to  be  idenBfied     Television  set,  via  an   antenna  or  cable/ satellite  provider   In  your  opinion,  how  will  .me  spent  viewing  videos  on  the   following  devices  change  over  the  next  3  years?     Marketers  ExpecBng  Increase  %   Consumers  ExpecBng  Increase  %  
  • 32. video advertising Adoption Surprisingly, despite being very bullish about the growth of connected “new media” devices, it does not appear that marketers have strong strategies set for reaching consumers on these channels. A full 50% of marketers say that while digital video is part of their day-to-day work, they do not have a video advertising strategy in place. (Marketer Graph 3.) Meanwhile, 42% say they have an informal strategy in place, and only 8% say they have a formal, company-wide strategy. Among those who have strategies set, there is a diversified use of video advertising across all connected devices. Close to half of respondents report advertising in video on tablets and smartphones, and a larger percentage report running video advertising on more traditional desktops. (Graph 4.) In some cases, there is a disconnect between the perceived usage of a device and the advertising being done on the device. For example, while 61% of marketers expect consumer usage of TVs with connected devices to grow, and 80% expect Smart TV usage to grow, (Marketer Graph 1) only 9% and 26% respectively advertise on these devices. (Marketer Graph 4.) The research suggests that while they predict a growth in consumers’ usage of these devices, their advertising strategies and approaches still have some catching up to do. THE CANADIAN MARKETER video advertising perspectives 29
  • 33. Typically speaking, what type of video platforms does your company advertise on? As far as you know, does your company have a digital video marketing strategy to assist in reaching consumers? MARKETER GRAPH 4 MARKETER GRAPH 3 video STRATEGy Video Platforms for Advertising 30 No, but we work in the area and it’s part of our day-to-day actions Yes, but it’s more informal Yes, we have a formal, company-wide strategy 9%   42%   50%   0   10   20   30   40   50   60      Yes  we  have  a  formal,  company-­‐wide   strategy        Yes  but  it’s  more  informal     No  but  we  work  in  the  area  and  it’s  part   of  our  day-­‐to-­‐day  acFons   As  far  as  you  know,  does  your  company  have  a   digital  video  marke9ng  strategy  to  assist  in   reaching  consumers?   TOTAL  %   Connected TV via separate device (Roku,Xbox, etc) Pay TV Connected TV (internet-enabled) Wireless home internet Tablet Smartphone Laptop notebook Desktop computer 56%   45%   42%   41%   32%   26%   10%   9%   0   10   20   30   40   50   60      Desktop  Computer      Laptop  Notebook      Smartphone      Tablet      Wireless  Home  Internet      Connected  TV  (internet-­‐enabled)      Pay  TV      Connected  TV  via  separate  device  (Roku,  Xbox,  etc)   Typically  speaking,  what  type  of  video  pla6orms  does  your   company  adver:se  at?*   TOTAL   Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
  • 34. SECOND SCREEN While “second-screening” has become the norm for most consumers, especially Millennials, it seems that few marketers have strategies in place to take advantage of the behaviour, and many do not know the meaning of the term. When asked about their familiarity with the idea of “second-screen” viewership, 68% of marketers were unfamiliar with the concept. (Marketer Graph 5.) Of those marketers who have heard of “second-screening,” over 90% say they have not developed a strategy to reach “second screen” customers. (Marketer Graph 6.) These numbers show a disconnect betweenconsumerhabitsandtheadvertising strategies to reach them, as 71% of consumers (and 85% of Millennials) report “second-screening” at least once a week. (Consumer Graph 12). It appears there is a powerful opportunity for marketers to reach the underserved, second-screen audience. Cross-screen strategies are especially important since 20% of consumers use the second screen to interact with products being advertised onTV.(Consumer Graph 14.) THE CANADIAN MARKETER 31 video advertising perspectives
  • 35. Have you ever developed a strategy to reach “second-screen” consumers? How familiar are you with the concept of “second-screen” viewers? 32 14%   68%   0   20   40   60   80   Familiar  (NET)   Unfamiliar  (NET)   How  familiar  are  you  with  the  concept  of  “second   screen”  viewers?   TOTAL   9%   91%   Have  you  ever  developed  a  strategy  to  reach  “second  screen”  consumers?   Yes   No   YES NO MARKETER GRAPH 5 Second-Screen Familiarity MARKETER GRAPH 6 Second-Screen Strategies Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
  • 36. Biggest challenges holding marketers back When asked about the biggest challenges they face today, nearly half (48%) of marketers cited the ability to measure campaign perfor- mance. (Marketer Graph 7.) Following the ability to measure, the most common challenges cited were measurement specifically across multiple screens or devices (37%), the ability to achieve sufficient reach (36%) and the ability to evaluate quality placements. (34%.) 18% of marketers say measurement is the single biggest challenge they face today (Marketer Graph 8.), followed by the ability to understand their target’s behaviours (11%) and ability to target (11%). THE CANADIAN MARKETER So why don’t marketers have firm strategies in place to reach consumers in the places they know they can be found? What is holding them back? Although successful measurement seems to be a common concern, the other responses are varied, ranging from lack of sufficient reach or frequency, to a lack of under- standing about inventory quality. All answers suggest there is an opportunity for more education in the area of multi-screen and multi-device advertising. 33 CHALLENGES WITH VIDEO ADVERTISING
  • 37. What are the biggest challenges in video advertising you face today? MARKETER GRAPH 7 Current Challenges 34 18%   11%   11%   10%   8%   7%   5%   4%   2%   8%   10%   0   2   4   6   8   10   12   14   16   18   20   Measuring   campaign   performances   Understanding   cross=pla>orm   viewing   behaviours  of   my  target   audience   TargeEng   specific   consumers   Achieving   sufficient  reach   Measuring  the   campaign   audience   across  all  video   screens  or   devices   IdenEfying   content  that  is   right  for  your   brand   IdenEfying   content  that   your  target   audience  views   EvaluaEng  the   quality  of   placement   (e.g.,   viewability)   Planning  mulE-­‐ screen  or   mulE-­‐device   video   campaigns   Other   None   Of  these,  which  is  the  single  biggest  challenge  you  face  today?   48%   37%   36%   34%   32%   31%   31%   29%   16%   15%   12%   11%   0   10   20   30   40   50   60   Measuring   campaign   performance   Measuring  the   campaign   audience  across   all  video  screens   or  devices   Achieving   sufficient  reach   EvaluaCng  the   quality  of   placements  (e.g.,   viewability)   IdenCfying   content  that   your  target   audience  views   TargeCng   specific   consumers   Understanding   cross-­‐plaQorm   viewing  behavior   of  my  target   audience   IdenCfying   content  that  is   right  for  your   brand   Lack  of   standardizaCon   Achieving   sufficient   frequency   Planning  mulC-­‐ screen  or  mulC-­‐ device  video   campaigns     HolisCcally   planning  linear   TV  and  digital   video  campaigns   What  are  the  biggest  challenges  in  video  adver2sing  you  face  today?   TOTAL   Of these, which is the single biggest challenge you face today? MARKETER GRAPH 8 Biggest Single Challenge Measuring campaign performance Understanding cross-screen behaviour of target audience Targeting specific consumers Achieving sufficient reach Measuring audience across all video screens Identifying content right for brand Identifying content that target audience views Evaluating quality of placements (e.g., view- ability) Planning multi-screen video campaigns Other None Measuring campaign performance Measuring audience across all video screens Achieving sufficient reach Evaluating quality of placements (e.g.,view- ability) Identifying content that target audience views Targeting specific consumers Under- standing cross-screen- behaviour oftarget audience Identifying content right for brand Lack of stan- dardization Achieving sufficient frequency Planning multi-screen video campaigns Holisti- cally planning linearTVand digital video Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
  • 38. HOW IS TECHNOLOGY BEING USED? Very few marketers in Canada say that they are leveraging technology to solve their advertising challenges—with only 10% saying their company makes use of programmatic buying today. (Marketer Graph 9.) However, it is worth noting that the agencies may be leveraging programmatic technology on the marketers’ behalf without their knowledge. 39% of marketers can definitively say they are not using programmatic buying, but 15% are uncertain and 36% do not know what programmatic buying is. For those who are familiar with program- matic buying, targeting is the key priority by a huge margin. When asked about the top features they look for in a technology, nearly half said having multiple ways to target, with another 9% saying real-time-bidding and 9% more citing the ability to transact both programmatically or with reserved inventory. (Marketer Chart 10.) THE CANADIAN MARKETER As the previous graphs have shown, there are many challenges facing marketers in Canada today. Marketers are finding that as the number of video screens grows, so does the complexity of video advertising. The solution to most of their biggest challenges may be the use of technology to pull the pieces together, yet many do not yet understand how they might leverage a programmatic approach to their advertising. 35 THE ROLE OF TECHNOLOGY
  • 39. Does your company make use of programmatic buying? PROGRAMMATIC VIDEO STRATEGIES What are the top THREE features in a technology platform that you look for to assist video ad buying or selling? MARKETER GRAPH 10 Key Technology Features MARKETER GRAPH 9 36 I don’t know what programmatic buying is 36% Yes 10% Uncertain 15% No 39% Yes   10%   No   39%   Uncertain   15%   I  don’t  know   what   programma=c   buying  is     36%   Does  your  company  make  use  of  programma1c  buying?   Multipleways totarget audiences(e.g., demo,purchase behaviour,etc…) Availabilityof inventoryviareal timebidding Abilityto transactboth programmati- callyandreserved inventory Abilitytoimport CRMdatatouse intargetingads Abilitytotrack consumerson multipledevices Abilitytoprovide cross-device GRPmetric Abilitytoserve adsintovideosof networks’online streamingsites Abilitytoserve adsintoVideo onDemandon cable/satellite systems Other 47%   9%   9%   8%   6%   6%   5%   3%   8%   0   5   10   15   20   25   30   35   40   45   50   Having  mul6ple   ways  to  target   audiences  (e.g.,   demographics,   product  purchase   behavior,  etc…)     Availability  of   inventory  via  real   6me  bidding   Ability  to  transact   both   programma6cally   and  reserved   inventory   Ability  to  import   CRM  data  to  use   in  targe6ng  ads   Ability  to  track   consumers  on   mul6ple  devices     Ability  to  provide   cross-­‐device  GRP   metric   Ability  to  serve   ads  into  videos  of   networks’  online   streaming  sites   Ability  to  serve   ads  into  Video  on   Demand  on  cable/ satellite  systems   Other     What  are  the  top  THREE  features  in  a  technology  pla7orm  that  you  look  for  to  assist  video  ad  buying  or  selling?     Rank  1   Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
  • 40. Video to grow, along with programmatic technologies Over the next three years, marketers predict that the industry will continue to shift money into video. (Graph 11.) Specifically, 64% believe money will be shifted from other media channels into video, and 67% think money will be shifted specifically from TV. Moreover, while currently only 10% of marketers are knowingly making use of programmatic buying, and 36% are unfamil- iar with the concept, 34% of total respon- dents said that they think video buying will become more programmatic over the next three years. This suggests that those with knowledge of programmatic are enthusiastic about its growth. Of course, one of the benefits of pro- grammatic video buying is the ability to reach discrete consumer groups through the application of data. Similarly, continu- ing with themes that arose in the previous section, the key potential advantage that marketers see in video is its ability to target specific consumers (45%). They also see the ability to reach consumers not exposed to TV ads (16%) and enhanced interactivity (9%) as key video advantages. (Graph 12.) When marketers were asked about the most important future video buying capa- bilities, responses were generally in line with video’s potential advantages. Ability to target again topped the list, including target- ing by buying behaviour. And 40% cited the ability to reach consumers across screens as a key capability. (Graph 13.) Ability to buy video programmatically was mentioned by only 24% of respondents as “key.” Since targeting is a key component of programmatic strategies, however, again this may suggest more of an education gap on programmatic capabilities rather than a lack of support. THE CANADIAN MARKETER 37 three year outlook Despite their perceived challenges with video advertising and limited familiarity with the technologies currently available to assist in video planning and buying, marketers believe that over the next three years, video will command a stronger presence in their advertising plans. But video will not remain a siloed channel: the vast majority of marketers predict that the industry will move towards a model that is more holistic, supporting the convergence of content and advertising across screens. And marketers seem optimistic that all groups–from brands, to agencies, to publishers–will see a better return on investment by taking this type of holistic approach to advertising.
  • 41. What do you see as the THREE greatest future potential advantages for video advertising?* In the future, which of the following will be the most important capabilities for buying video advertising? MARKETER GRAPH 13 Video BUYING Capabilities Respondents who believe the following are likely in the next three years 38 Abilitytotarget adstoindividuals basedontheir matchwithmy targetaudience Abilitytoevaluate audienceson buyingbehavior inmyproduct category Abilitytobuy audiencesacrossall screensincluding TV/videoplatforms Abilitytobuy adsonspecific programs Abilitytobuy onlinevideoads programmatically Abilitytowork directlywithmedia outletstocustomise packagesof video advertising opportunities Abilitytobuy linearTVads programmatically Advertiserswillreallocatemoney currentlyspentonlinearTVtonewvideooptions Advertiserswillshiftmoremoneyfromother mediaintoadvertisingonnewvideooptions 67% 64% Videobuyingwillbecome moreprogrammatic 34% *Note: top five responses MARKETER GRAPH 12 Advantages of Video MARKETER GRAPH 11 GROWTH TRENDS 71%   48%   40%   33%   24%   22%   10%   0   10   20   30   40   50   60   70   80   Ability  to  target  ads  to   individuals  based  on   their  match  with  my   target  audience   Ability  to  evaluate   audiences  on  buying   behavior  in  my  product   category   Ability  to  buy  audiences   across  all  screens   including  TV  /  video   plaDorms   Ability  to  buy  ads  on   specific  programs   Ability  to  buy  online   video  ads   programmaFcally   Ability  to  work  directly   with  media  outlets  to   customise  packages  of   video  adverFsing   opportuniFes   Ability  to  buy  linear  TV   ads  programmaFcally   In  the  future,  which  of  the  following  will  be  the  most  important  capabili6es  for  buying  video  adver6sing?     TOTAL   Targeting specific consumers Reachingnew consumersnot exposedto adsonTV Enhancing videowith interactivity Bettermessage communication ability GreaterROI accountability 45%   16%   9%   7%   6%   5%   4   3   3   0   10   20   30   40   50   Targe1ng   specific   consumers   Reaching  new   consumers  not   exposed  to  ads   on  TV   Enhancing  video   with   interac1vity   BeFer  message   communica1on   ability   Greater  ROI   accountability   Higher  audience   aFen1on     Ability  to  deliver   messages  to  a   consumer  at   different  1mes   of  day   Viewabilty   overall   To  control  reach   and  frequency   across  devices     New oth or What  do  you  see  as  the  THREE  greatest  future  poten5al  advantages   for  video  adver5sing?     Ranked  1st   45%   16%   9%   7%   6%   5%   4   3   3   0   10   20   30   40   50   Targe1ng   specific   consumers   Reaching  new   consumers  not   exposed  to  ads   on  TV   Enhancing  video   with   interac1vity   BeFer  message   communica1on   ability   Greater  ROI   accountability   Higher  audience   aFen1on     Ability  to  deliver   messages  to  a   consumer  at   different  1mes   of  day   Viewabilty   overall   To  control  r and  freque across  dev What  do  you  see  as  the  THREE  greatest  future  poten5al  advantag for  video  adver5sing?     Ranked  1st   45%   16%   9%   7%   6%   5%   4   3   3   0   10   20   30   40   50   Targe1ng   specific   consumers   Reaching  new   consumers  not   exposed  to  ads   on  TV   Enhancing  video   with   interac1vity   BeFer  message   communica1on   ability   Greater  ROI   accountability   Higher  audience   aFen1on     Ability  to  deliver   messages  to  a   consumer  at   different  1mes   of  day   Viewabilty   overall   To  control  reac and  frequency across  devices What  do  you  see  as  the  THREE  greatest  future  poten5al  advantages for  video  adver5sing?     Ranked  1st   45%   16%   9%   7%   6%   5%   4   3   0   10   20   30   40   50   Targe1ng   specific   consumers   Reaching  new   consumers  not   exposed  to  ads   on  TV   Enhancing  video   with   interac1vity   BeFer  message   communica1on   ability   Greater  ROI   accountability   Higher  audience   aFen1on     Ability  to  deliver   messages  to  a   consumer  at   different  1mes   of  day   Viewabilty   overall   To  con and  fr acros What  do  you  see  as  the  THREE  greatest  future  poten5al  advant for  video  adver5sing?     Ranked  1st   45%   16%   9%   7%   6%   5%   4   3   0   10   20   30   40   50   Targe1ng   specific   consumers   Reaching  new   consumers  not   exposed  to  ads   on  TV   Enhancing  video   with   interac1vity   BeFer  message   communica1on   ability   Greater  ROI   accountability   Higher  audience   aFen1on     Ability  to  deliver   messages  to  a   consumer  at   different  1mes   of  day   Viewabilty   overall   To a a What  do  you  see  as  the  THREE  greatest  future  poten5al  adva for  video  adver5sing?     Ranked  1st   Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers. Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers.
  • 42. THE CANADIAN MARKETER 39 CONVERGENCE is THE NEW NORMAl On the prior page, we saw that 40% of marketers believed that the ability to buy audiences across screens, including TV and video platforms, would be a key capability in the future. (Graph 13.) Another sign that marketers believe television and video convergence are here to stay…an overwhelming percentage (85%) predict that in the coming years, planning for online video and linear television will merge. (Graph 14.) Less clear is who would take the lead if these two sides merged,with 71% predicting specialized digital media buying compa- nies would lead, and a split response on whether traditional media buying firms would lead. As the digital and traditional disciplines merge, 52% of marketers predict agencies will merge their existing teams–leaving the possibility that new teams could also be created with a focus on cross-screen buying and planning. About half of marketers also predict that agencies will plan video advertising campaigns holistically across all video viewing options–almost twice as many as those who believe it will be done in siloes. This shows there is a growing expectation that the siloes of today will break down as agencies and advertisers look more holistically at all of their dollars across screens. (Graph 15.) three year outlook
  • 43. Thinking about how video advertising will change in the next three years, please indicate how strongly you agree or disagree with the following statements. Planning and Buying in the FutureMARKETER GRAPH 14 Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers. Thinking about the next three years, in your view how likely are the following to happen? Agencieswillmergetheir TVandonlinevideo buyinggroups Agencieswillplanvideoadvertising campaignsholisticallyacrossall videoviewingoptions Agencieswillplanvideo advertisingoneach platformseparately MARKETER GRAPH 15 The Impact of Convergence ON AGENCIES 52% 48% 0   10   20   30   40   50   60   Agencies  will  merge  their  TV   and  online  video  buying   groups   Agencies  will  plan  video   adver@sing  campaigns   holis@cally  across  all  video   viewing  op@ons   Agencies  will  plan  video   adver@sing  on  each  plaAorm   separately   Thinking  about  the  next  3  years,  in  your  view  how  likely  are  the   following  to  happen?   85   71   46   15   29   54   0   10   20   30   40   50   60   70   80   90   Planning  for  online  video  and   linear  television  will  merge   Specialized  digital  media  buying   agencies  will  lead  all  video  buying   TradiDonal  media  buying  firms  will   lead  all  video  buying   Thinking  about  how  video  adverDsing  will  change  in  the  next  3  years,  please   indicate  how  strongly  you  agree  or  disagree  with  the  following  statements?   Agree  (NET)   Disagree  (NET)   Planningforonlinevideoand lineartelevisionwillmerge Specializeddigitalmediabuying agencieswillleadallvideobuying Traditionalmediabuyingfirms willleadallvideobuying Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers. 85%   71%   46%   15%   29%   54%   0   10   20   30   40   50   60   70   80   90   Planning  for  online  video  and   linear  television  will  merge   Specialized  digital  media  buying   agencies  will  lead  all  video  buying   TradiEonal  media  buying  firms  will   lead  all  video  buying   Thinking  about  how  video  adverEsing  will  change  in  the  next  3  years,  please   indicate  how  strongly  you  agree  or  disagree  with  the  following  statements?   Agree  (NET)   Disagree  (NET)   26% 40
  • 44. Who WILL BENEFIT? When all is said and done, who will benefit from the more cross-platform, cross-screen approach marketers are predicting we’ll see in the coming years? The answer is that everyone can benefit. A large majority of marketers believe that media outlets will increase their overall video advertising revenue in the next three years. (Graph 16.) Additionally, almost three-quarters believe that media outlets will also benefit, by earning higher CPMs for video advertising (74%). Finally, 64% of marketers predict that advertising effectiveness will improve, sug- gesting that the brands themselves will also benefit. Overall this suggests that the changes ahead for video advertising will be a win-win across the board. THE CANADIAN MARKETER Thinking about how video advertising will change in the next 3 years, please indicate how strongly you agree or disagree with the following statements? 41 three year outlook 81%   74%   64%   19%   26%   36%   0   10   20   30   40   50   60   70   80   90   Media  outlets  will  increase  their  overall   adver=sing  revenue  by  selling  video   adver=sing   Media  outlets  will  earn  higher  CPMs  for   video  adver=sing   Adver=sing  effec=veness  will  improve   Thinking  about  how  video  adver=sing  will  change  in  the  next  3  years,  please  indicate  how   strongly  you  agree  or  disagree  with  the  following  statements?   Agree  (NET)   Disagree  (NET)   Mediaoutletswillincreasetheir overalladvertisingrevenueby sellingvideoadvertising Mediaoutletswillearnhigher CPMsforvideoadvertising Advertisingeffectiveness willimprove MARKETER GRAPH 16 ECOSYSTEM Benefits Source: Marketing Magazine survey, commissioned by Videology, Fall 2014, comprised of 104 Canadian senior-level marketers. 81%   74%   64%   19%   26%   36%   0   10   20   30   40   50   60   70   80   90   Media  outlets  will  increase  their  overall   adver=sing  revenue  by  selling  video   adver=sing   Media  outlets  will  earn  higher  CPMs  for   video  adver=sing   Adver=sing  effec=veness  will  improve   Thinking  about  how  video  adver=sing  will  change  in  the  next  3  years,  please  indicate  how   strongly  you  agree  or  disagree  with  the  following  statements?   Agree  (NET)   Disagree  (NET)  
  • 45. Consumers Male 48 Female 52 Millennial (18-34) 32 Gen X (35-49) 27 Boomer (50-69) 36 Seniors 6 < High School 5 High School 26 Some College/Univ 21 College 20 University 20 Post-Graduate 9 Work FullTime 37 Work PartTime 14 Retired 20 Self Employed 6 Not Employed 17 Student 6 Single/Div/Widow 45 Married/Common Law 55 Children in Home 36 Major Metro 49 Medium Metro 33 Small/Rural 17 Atlantic (Net) 7 Quebec 23 Ontario 39 West (Net) 31 HHI <$50K 45 HHI $50K-99.9K 32 HHI $100K+ 14 HHI Not Avail 10 Mean HHI $58k Canadian 81 French Canadian 5 Other Ethnic 14 marketers Segments of IndustryYour Company Works With: Online/Internet 67 Publishing 43 Digital 27 Broadcast 23 Other 4 JobTitleC-suite Executive 44 Brand/Account Manager 17 Other Executive 16 CMO/Director Marketing 9 Other 15 Size of Company 1-99 78 100-499 11 500+ 12 Mean 92 Years in Industry <1 year 8 1-5 years 14 6-10 years 19 11-20 years 32 21+ years 26 Mean 13 Co.’sTotal Revenue <$1 Mil 42 $1-$99 Mil 35 >$100 Mil 23 Mean 136K Other Male 56 Female 44 Atlantic (Net) 10 Quebec 21 Ontario 39 West (Net) 32 Appendix A: METHODOLOGY Appendix B: DEMOGRAPHICS In Fall 2014, Marketing Magazine and Rogers Connect Market Research and Client Services conducted an independent online survey of 1,011 Canadians (nationally repre- sentative) and 104 Canadian marketers (those working in a marketing-related, or executive-level role). The survey did not include marketing professionals working at advertising or media agencies—only brand direct advertisers. All responses were collected between September and October 2014. Data was compiled by Marketing Magazine, and the corresponding analysis and commentary was prepared by Videology. 42
  • 46.
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  • 48. For more information, please contact Canada@videologygroup.com videologygroup.com