SlideShare a Scribd company logo
Video Ads
Destroy
TV Ads IN
Effectiveness
       Dr. Augustine Fou
       http://www.linkedin.com/in/augustinefou
       April 23, 2012.
Executive Summary
     • The purpose of this analysis is to compare the
       quantity of video ad impressions vs TV (network and
       cable) ad impressions and then to compare the
       usefulness and impact for advertisers.

     • Brand advertisers should ask:
                 • Whether their TV ads were even seen; don’t just ask for reach
                 • How TV ads compare on CPM basis to other tactics
                 • If there is a feedback mechanism, like click-throughs, to calculate
                   effectiveness and impact (with TV ads there isn’t)


April 23, 2012                                                                           2
Calculating TV
   Ad Impressions

April 16, 2012.     3
Ad Impressions Calculation
      # of Viewers x Length of Show = Viewer Hours

      Ad Impressions = Viewer Hours x 24 ads/hr

      Assumptions:
      - Use the maximum # of ads per hour (24)
      - Every user views every ad (which of course is false)


April 23, 2012                                                 4
Amount of Advertising
Network TV
                 • For every 30 minute
                   episode, there are about 9 mins of
                   ads (or 10 – 12 ads ) – used How
                   I Met Your Mother as proxy

                 • For every 60 minute
                   episode, there are about 19 mins
                   of ads (or 20 – 24 ads ) – used 24
                   as proxy




April 23, 2012                                          5
Ad Impressions (Top 25 Network Shows)




 Source: http://tvbythenumbers.zap2it.com/2012/04/17/tv-ratings-broadcast-top-25-american-idol-ncis-top-week-30-viewing/129412/



April 23, 2012                                                                                                                    6
Amount of Advertising
Cable TV
                 • For every 30 minute
                   episode, there are about 7 mins of
                   ads (or 8 – 9 ads ) – used
                   Spongebob Squarepants as proxy

                 • For every 60 minute
                   episode, there are about 18 mins
                   of ads (or 16 – 18 ads ) – used In
                   Plain Sight as proxy




April 23, 2012                                          7
Ad Impressions (Top 25 Cable Shows)




 Source: http://tvbythenumbers.zap2it.com/2012/04/17/tv-ratings-broadcast-top-25-american-idol-ncis-top-week-30-viewing/129412/



April 23, 2012                                                                                                                    8
Online Video
   Ad Impressions
April 16, 2012.     9
Video Ad Details
    Inputs:                                   Derived Data:
    Avg online content video: 6.4 mins        22 hrs of video per viewer/mo
    Avg online video ad: 0.4 mins             19 mins of ads per viewer/mo

    181 million U.S. Users watch videos
    37 billion videos watched (March 2012)
    8.4 billion video ads (March 2012)

    Video ads on 18.5% of videos viewed
    1.5% of viewing time spent on ads


    Source: MarketingCharts, April 24, 2012


April 23, 2012                                                                10
Comparison

April 16, 2012.   11
By The Numbers
     Network/Cable TV                                                                          Online Video
     132 hrs of TV per viewer/mo*                                                              22 hrs of video per viewer/mo
     41.8 hrs of ads per viewer/mo                                                             19 mins of ads per viewer/mo
     32% time spent on ads                                                                     1.5% time spent on ads

     24.5B ad impr by Top 25 Network Shows
     5.1B ad impr by Top 25 Cable Shows
     30B ad impressions per month                                                              8.4B video ad views (March 2012)


    DON’T‘ KNOW IF USER SAW IT                                                                 Know user saw ad and have
                                                                                                further metrics of clicks
    * Source:: http://www.emarketer.com/blog/index.php/time-spent-watching-tv-tops-internet/




April 23, 2012                                                                                                                    12
What % of ads are viewed?
     Network/Cable TV                                                        Online Video

     30B TV ads aired /mo                                                    8.4B video ads shown /mo (March 2012)
     • Nielsen estimates 56% ads skipped by DVR                              Completion Rates (% ads viewed to completion)
     • IPG/YuMe estimates 63% ads avoided                                       • 78%: 0 – 15 second ads
     • 60% ads skipped was used to calculate                                    • 74%: 16 – 30s ads viewed to completion
                                                                                • 61%: 31 – 60 second ads
     • 40% TV ads not skipped (possibly viewed)                                 • 54%: >60 seconds

     12B TV ads viewed /mo                                                   6.2B video ads viewed /mo



        •   Source:: Nielsen (2010) estimates that around 56% of ads are never seen (because they are skipped using DVR)
        •   http://blog.nielsen.com/nielsenwire/media_entertainment/do-americans-watch-more-dvrd-commercials-than-you-think/
        •   IPG/YuMe (2011) shows that 63% of TV ads are ignored (because users turn away or are doing something else when commercials come on).
        •   http://adage.com/article/adagestat/smartphones-a-bigger-distraction-dvrs/227725/

April 23, 2012                                                                                                                                     13
Online Video Spanks TV Ads
                    General Recall:
                    Video Ads 41% better than
                    TV Ads


                    Brand Recall:
                    Video Ads 79% better than
                    TV Ads

                    Message Recall:
                    Video Ads 86% better than
                    TV Ads

                    Likeability:
                    Video Ads 86% better than
                    TV Ads


April 23, 2012                                  14
Video 2x better, especially among
younger viewers
                            13-24 yr olds:
                            Video Ads 2x better than
                            TV Ads


                            25-34 yr olds:
                            Video Ads 2x better than
                            TV Ads

                            35-49 yr olds:
                            Video Ads 1.8x better than
                            TV Ads

                            50+ yr olds:
                            Video Ads 1.3x better than
                            TV Ads


April 23, 2012                                           15
MAJORITY of Users Skip TV Ads




                          65%
                          65%
                          54%



April 19, 2012.             16
Large % of ads are never seen
        Findings: comScore, March 26, 2012
        • nearly a third (31%) of online display ads
           are never seen,
        • 72% of campaigns had at least some ads       “If potentially up to 65%
           running next to objectionable content.      of TV ads are not even
        Findings: AdSafe, Q4 2011                      seen, shouldn‟t the
        • Over 38% of online display ads are           proponents be more
           never seen
        • Of the ones that are seen, 75% are
                                                       transparent and report
           viewed for less than 0.5 seconds            „viewed ads‟ instead of
                                                       continuing to obfuscate
                                                       data to hide the truth?”
            Google, comScore, AdSafe
         proposing new ways to measure
          “viewed ad” for online display
April 19, 2012.                                                                    17
The new reality isn’t
 pretty for TV advertising
     Advertisers should know that …
     • Of the 30 billion theoretical monthly ad impressions across
       the Top 25 network and cable TV shows …
     • If we take into account the 50 – 65% skipping via
       DVRs, the theoretical impressions drop to 12 billion /month
       …
     • If brand advertisers are not sure if their ads are even
       seen, then even the “branding” argument breaks down.

April 23, 2012                                                       18
Comparative Costs
Cost per Thousand (CPM) : Cost to reach 1,000 users or impressions

      $500
                    $450
      $450
      $400
      $350
      $300
                                 $250
      $250
      $200
      $150                                   $140

      $100
       $50                                                $30          $15          $7           $2
         $0
                  Direct Mail Mail Order Drive Time Prime Time Online             Online       Online
                               Catalog     Radio        TV     Video Ads          Display      Search

                  Source: Why Digital Kicks Traditional Tactics in Cost Effectiveness, March 16, 2012
March 16, 2012.                                                                                         19
Smart advertisers have
already shifted dollars




April 23, 2012            20
So What?
      If on a CPM basis TV ads cost about the same as
      online video ads ($30 vs $15 CPM), wouldn‟t it be
      better to use the one where you KNOW the user saw
      the ad (video ad plays) and there are further
      metrics (click-through) to measure impact.
                                - Dr. Augustine Fou


April 23, 2012                                            21
Dr. Augustine Fou – Chief Digital Strategist
    Dr. Augustine Fou is an industry-recognized thought
    leader in digital strategy, search and social media
    marketing and former Group Chief Digital Officer of
    Omnicom's Healthcare Consultancy Group. Dr. Fou has
    over 16 years of management consulting and digital
    strategy consulting experience, advising CMOs,
    marketing executives, and global brands. He pioneered
    the application of the Unified Marketing™ framework
    to optimize marketing and advertising across traditional
    and digital channels.

    FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
    MCKINSEY CONSULTANT
    CLIENT SIDE / AGENCY SIDE EXPERIENCE
    PROFESSOR AND COLUMNIST
    ENTREPRENEUR / SMALL BUSINESS OWNER
    PHD MATERIALS SCIENCE (MIT '95) AT AGE 23

     ClickZ Articles: http://www.slideshare.net/augustinefou
     LinkedIn: http://www.linkedin.com/in/augustinefou
April 23, 2012                                                                    22
                                                               acfou@mktsci.com
Acknowledgements
       Christian Busch
       General Manager, Alloy Digital @christianbusch

       Jonathan Mendez
       CEO, Yieldbot @JonathanMendez

       Mark Risis
       VP, Interactive Advertising, Tivo mrisis@tivo.com

       Ash Karbasfrooshan
       CEO, WatchMojo @ashkan

       Tim Fogarty
       Sr. Digital Strategist, M80 @n0her0es

April 23, 2012                                             23
APPENDIX

April 16, 2012.   24
Free Video Ad Impressions

                                                     25 million
                                                     impressions
                                                     in 10 days


        http://www.youtube.com/watch?v=316AzLYfAzw


 If the ad is content, now online video makes it possible to
 reach as large if not larger audiences than network TV shows
 AND you know users actually played the video.
Top 10 Brands on Network TV
                 • Only 5 of 10 top brands are
                   advertisers; the rest are “house
                   ads” promoting own network

                 • There are 10,080 minutes in a
                   week; this chart says every single
                   advertiser had ads played on
                   average 1 – 2 times a minute.

                 • It we take 10 – 12 ads per half
                   hour, we get 3,500 ads per
                   week, assuming every hour of a
                   24 hr day is primetime.


April 23, 2012                                          26
Top 10 Brands on Cable TV
                 • Only 5 of 10 top brands are
                   advertisers; the rest are
                   “house ads” promoting own
                   network




April 23, 2012                                   27
Video Ad CPMs
                                                Video Ad Pre-roll CPMs:
                                                $10 - $11




                 Video Ad Pre-roll CPMs:
                 $8 - $10 (Women’s Lifestyle)

                                                Source: TubeMogul, Nov 17, 2011
April 23, 2012                                                                    28
Video Ad Viewers are
Impatient
                 Completion Rates (ads viewed to completion)

                 78%: 0 – 15 second ads
                 74%: 16 – 30 second ads
                 61%: 31 – 60 second ads
                 54%: >60 seconds

                 Source: Vindico via MarketingCharts, April 13, 2012
April 23, 2012                                                         29
Time Spent
                 Online   TV




April 23, 2012                 30
Time Spent Across Media




April 23, 2012            31
Time Spent vs Ad Spend




April 23, 2012           32
YouTube hits 3B views per
day


                   Source;
                   YouTube
                   Press Release
                   May 25, 2011



April 23, 2012                     33
Network Top 25 w/e April 15, 2012
                                         R=Repeat
                                                          # Viewers
                                         S=Special                     HH Rating HH Share
 Rank     Shows                                    Net   (Live+SD)
                                         P=Premier                     (Live+SD) (Live+SD)
                                                               (000)
                                         e
 1        NCIS                                     CBS       17660           11.0      18
 2        American Idol-WEDNESDAY                  FOX       16807           10.0      16
 3        Dancing with the Stars                   ABC       16387           10.6      16
 4        American Idol-THURSDAY                   FOX       15810            9.7      16
 5        DANCING W/STARS RESULTS                  ABC       13386            8.9      13
 6        NCIS: LOS ANGELES                        CBS       12864            8.3      13
 7        Criminal Minds                           CBS       11809            7.5      11
 8        60 Minutes                               CBS       11025            7.2      13
 9        VOICE                                    NBC       10518            6.2       9
 10       Two and a Half Men                       CBS       10400            6.5      10    Source:
 11       Modern Family                            ABC       10351            6.3      10
 12       Hawaii Five-0                            CBS       10304            6.6      11    TVByTheNumbers
 13       Big Bang Theory,THE 9P-SP(S)   SR        CBS       10208            6.2      10    April 17, 2012
 14       Good Wife, THE                           CBS       10161            6.6      10
 15       Body Of Proof                            ABC       10045            6.7      11
 16       CSI                                      CBS        9944            6.3      10
 17       SURVIVOR: ONE WORLD                      CBS        9906            6.0      10
 18       Big Bang Theory, THE           R         CBS        9720            5.9      10
 19       MIKE & Molly                             CBS        9578            5.9       9
 20       Unforgettable                            CBS        9448            6.2      10
 21       Amazing Race 20                          CBS        9123            5.5       9
 22       VOICE:RESULTS SHOW                       NBC        8999            5.5       8
 23       NYC 22                         P         CBS        8859            5.7       9
 24       GREY'S ANATOMY                           ABC        8847            6.1      10
 25       Person Of Interest 10P-SP(S)   SR        CBS        8580            5.5       9



April 23, 2012                                                                                                34
Cable Top 25 w/e April 15, 2012
                                                                         Viewers Live+SD
  Rank    Shows                              Net     Day      Time                       HH Rating
                                                                         (000)
  1       Pawn Stars                         HIST    MONDAY10:30 PM      5381           3.4

  2       Pawn Stars                         HIST    MONDAY10:00 PM      5210           3.3
                                                     THURSD
  3       Swamp People                       HIST           9:00 PM      4958           2.8
                                                     AY
                                                     SATURD
  4       LEGEND OF KORRA                    NICK           11:00 AM     4548           2.7
                                                     AY
                                                     SATURD
  5       SpongeBob                          NICK           10:30 AM     4391           2.6
                                                     AY
  6       WWE Entertainment (WWE Raw)        USA     MONDAY10:00 PM      4342           2.7

  7       WWE Entertainment (WWE Raw)        USA     MONDAY9:00 PM       4230           2.7
                                                     SATURD
  8       SpongeBob                          NICK           10:00 AM     3966           2.5
                                                     AY
  9       American Pickers (BOYS TOYS)       HIST    MONDAY9:00 PM       3939           2.5

  10      SpongeBob                          NICK
                                                     SATURD
                                                     AY
                                                            9:30 AM      3824           2.3          Source;
          GAME OF THRONES (13:WHAT IS DEAD
  11

  12
          MAY NEVER DIE)
          NBA Basketball(MIAMI/CHICAGO)
                                             HBOM

                                             TNT
                                                     SUNDAY 9:03 PM
                                                     THURSD
                                                              8:16 PM
                                                                         3766

                                                                         3671
                                                                                        2.2

                                                                                        2.4
                                                                                                     TVByTheNumbers
                                                     AY
  13      Shake It Up (WHODUNIT UP)          DSNY    SUNDAY
                                                     WEDNES
                                                              8:30 PM    3669           2.2          April 17, 2012
  14      NCIS                               USA              8:00 PM    3603           2.4
                                                     DAY
  15      SpongeBob                          NICK    SUNDAY   10:30 AM   3589           2.3
  16      IN PLAIN SIGHT                     USA     FRIDAY   10:00 PM   3588           2.5
  17      SpongeBob                          NICK    SUNDAY   10:00 AM   3502           2.2
                                                     WEDNES
  18      NCIS                               USA              9:00 PM    3496           2.4
                                                     DAY
  19      A.N.T. FARM                        DSNY    FRIDAY   8:30 PM    3438           2.1
                                                     SATURD
  20      SpongeBob                          NICK             9:00 AM    3399           2.1
                                                     AY
          AUSTIN & ALLY (BURGLARIES &
  21                                         DSNY    SUNDAY 8:00 PM      3281           1.9
          BOOBYTRAPS)
                                                     SATURD
  22      VICTORIOUS                         NICK           8:00 PM      3237           1.9
                                                     AY
                                                     THURSD
  23      THE OREILLY FACTOR                 FOXNC          8:00 PM      3174           2.1
                                                     AY
                                                     WEDNES
  24      Family Guy                         ADSM           11:30 PM     3154           2.0
                                                     DAY
          REAL HOUSEWIVES ATLANTA(S) (421
  25                                         BRVO    SUNDAY 9:00 PM      3138           2.1
          REUNION PART 1)


April 23, 2012                                                                                                        35
Gross Rating Point
      Gross rating point (GRP) is a term used in advertising to
      measure the size of an audience reached by a
      specific media vehicle or schedule.

      It is the product of the percentage of the target
      audience reached by an advertisement, times the frequency they
      see it in a given campaign (frequency × % reached).[1]

      For example, a television advertisement that is aired 5 times
      reaching 50% of the target audience would have a GRP of 250
      (5 × 50%).

April 23, 2012                                                         36

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Video Ads Destroy TV Ads in Effectiveness by Augustine Fou

  • 1. Video Ads Destroy TV Ads IN Effectiveness Dr. Augustine Fou http://www.linkedin.com/in/augustinefou April 23, 2012.
  • 2. Executive Summary • The purpose of this analysis is to compare the quantity of video ad impressions vs TV (network and cable) ad impressions and then to compare the usefulness and impact for advertisers. • Brand advertisers should ask: • Whether their TV ads were even seen; don’t just ask for reach • How TV ads compare on CPM basis to other tactics • If there is a feedback mechanism, like click-throughs, to calculate effectiveness and impact (with TV ads there isn’t) April 23, 2012 2
  • 3. Calculating TV Ad Impressions April 16, 2012. 3
  • 4. Ad Impressions Calculation # of Viewers x Length of Show = Viewer Hours Ad Impressions = Viewer Hours x 24 ads/hr Assumptions: - Use the maximum # of ads per hour (24) - Every user views every ad (which of course is false) April 23, 2012 4
  • 5. Amount of Advertising Network TV • For every 30 minute episode, there are about 9 mins of ads (or 10 – 12 ads ) – used How I Met Your Mother as proxy • For every 60 minute episode, there are about 19 mins of ads (or 20 – 24 ads ) – used 24 as proxy April 23, 2012 5
  • 6. Ad Impressions (Top 25 Network Shows) Source: http://tvbythenumbers.zap2it.com/2012/04/17/tv-ratings-broadcast-top-25-american-idol-ncis-top-week-30-viewing/129412/ April 23, 2012 6
  • 7. Amount of Advertising Cable TV • For every 30 minute episode, there are about 7 mins of ads (or 8 – 9 ads ) – used Spongebob Squarepants as proxy • For every 60 minute episode, there are about 18 mins of ads (or 16 – 18 ads ) – used In Plain Sight as proxy April 23, 2012 7
  • 8. Ad Impressions (Top 25 Cable Shows) Source: http://tvbythenumbers.zap2it.com/2012/04/17/tv-ratings-broadcast-top-25-american-idol-ncis-top-week-30-viewing/129412/ April 23, 2012 8
  • 9. Online Video Ad Impressions April 16, 2012. 9
  • 10. Video Ad Details Inputs: Derived Data: Avg online content video: 6.4 mins 22 hrs of video per viewer/mo Avg online video ad: 0.4 mins 19 mins of ads per viewer/mo 181 million U.S. Users watch videos 37 billion videos watched (March 2012) 8.4 billion video ads (March 2012) Video ads on 18.5% of videos viewed 1.5% of viewing time spent on ads Source: MarketingCharts, April 24, 2012 April 23, 2012 10
  • 12. By The Numbers Network/Cable TV Online Video 132 hrs of TV per viewer/mo* 22 hrs of video per viewer/mo 41.8 hrs of ads per viewer/mo 19 mins of ads per viewer/mo 32% time spent on ads 1.5% time spent on ads 24.5B ad impr by Top 25 Network Shows 5.1B ad impr by Top 25 Cable Shows 30B ad impressions per month 8.4B video ad views (March 2012) DON’T‘ KNOW IF USER SAW IT Know user saw ad and have further metrics of clicks * Source:: http://www.emarketer.com/blog/index.php/time-spent-watching-tv-tops-internet/ April 23, 2012 12
  • 13. What % of ads are viewed? Network/Cable TV Online Video 30B TV ads aired /mo 8.4B video ads shown /mo (March 2012) • Nielsen estimates 56% ads skipped by DVR Completion Rates (% ads viewed to completion) • IPG/YuMe estimates 63% ads avoided • 78%: 0 – 15 second ads • 60% ads skipped was used to calculate • 74%: 16 – 30s ads viewed to completion • 61%: 31 – 60 second ads • 40% TV ads not skipped (possibly viewed) • 54%: >60 seconds 12B TV ads viewed /mo 6.2B video ads viewed /mo • Source:: Nielsen (2010) estimates that around 56% of ads are never seen (because they are skipped using DVR) • http://blog.nielsen.com/nielsenwire/media_entertainment/do-americans-watch-more-dvrd-commercials-than-you-think/ • IPG/YuMe (2011) shows that 63% of TV ads are ignored (because users turn away or are doing something else when commercials come on). • http://adage.com/article/adagestat/smartphones-a-bigger-distraction-dvrs/227725/ April 23, 2012 13
  • 14. Online Video Spanks TV Ads General Recall: Video Ads 41% better than TV Ads Brand Recall: Video Ads 79% better than TV Ads Message Recall: Video Ads 86% better than TV Ads Likeability: Video Ads 86% better than TV Ads April 23, 2012 14
  • 15. Video 2x better, especially among younger viewers 13-24 yr olds: Video Ads 2x better than TV Ads 25-34 yr olds: Video Ads 2x better than TV Ads 35-49 yr olds: Video Ads 1.8x better than TV Ads 50+ yr olds: Video Ads 1.3x better than TV Ads April 23, 2012 15
  • 16. MAJORITY of Users Skip TV Ads 65% 65% 54% April 19, 2012. 16
  • 17. Large % of ads are never seen Findings: comScore, March 26, 2012 • nearly a third (31%) of online display ads are never seen, • 72% of campaigns had at least some ads “If potentially up to 65% running next to objectionable content. of TV ads are not even Findings: AdSafe, Q4 2011 seen, shouldn‟t the • Over 38% of online display ads are proponents be more never seen • Of the ones that are seen, 75% are transparent and report viewed for less than 0.5 seconds „viewed ads‟ instead of continuing to obfuscate data to hide the truth?” Google, comScore, AdSafe proposing new ways to measure “viewed ad” for online display April 19, 2012. 17
  • 18. The new reality isn’t pretty for TV advertising Advertisers should know that … • Of the 30 billion theoretical monthly ad impressions across the Top 25 network and cable TV shows … • If we take into account the 50 – 65% skipping via DVRs, the theoretical impressions drop to 12 billion /month … • If brand advertisers are not sure if their ads are even seen, then even the “branding” argument breaks down. April 23, 2012 18
  • 19. Comparative Costs Cost per Thousand (CPM) : Cost to reach 1,000 users or impressions $500 $450 $450 $400 $350 $300 $250 $250 $200 $150 $140 $100 $50 $30 $15 $7 $2 $0 Direct Mail Mail Order Drive Time Prime Time Online Online Online Catalog Radio TV Video Ads Display Search Source: Why Digital Kicks Traditional Tactics in Cost Effectiveness, March 16, 2012 March 16, 2012. 19
  • 20. Smart advertisers have already shifted dollars April 23, 2012 20
  • 21. So What? If on a CPM basis TV ads cost about the same as online video ads ($30 vs $15 CPM), wouldn‟t it be better to use the one where you KNOW the user saw the ad (video ad plays) and there are further metrics (click-through) to measure impact. - Dr. Augustine Fou April 23, 2012 21
  • 22. Dr. Augustine Fou – Chief Digital Strategist Dr. Augustine Fou is an industry-recognized thought leader in digital strategy, search and social media marketing and former Group Chief Digital Officer of Omnicom's Healthcare Consultancy Group. Dr. Fou has over 16 years of management consulting and digital strategy consulting experience, advising CMOs, marketing executives, and global brands. He pioneered the application of the Unified Marketing™ framework to optimize marketing and advertising across traditional and digital channels. FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT '95) AT AGE 23 ClickZ Articles: http://www.slideshare.net/augustinefou LinkedIn: http://www.linkedin.com/in/augustinefou April 23, 2012 22 acfou@mktsci.com
  • 23. Acknowledgements Christian Busch General Manager, Alloy Digital @christianbusch Jonathan Mendez CEO, Yieldbot @JonathanMendez Mark Risis VP, Interactive Advertising, Tivo mrisis@tivo.com Ash Karbasfrooshan CEO, WatchMojo @ashkan Tim Fogarty Sr. Digital Strategist, M80 @n0her0es April 23, 2012 23
  • 25. Free Video Ad Impressions 25 million impressions in 10 days http://www.youtube.com/watch?v=316AzLYfAzw If the ad is content, now online video makes it possible to reach as large if not larger audiences than network TV shows AND you know users actually played the video.
  • 26. Top 10 Brands on Network TV • Only 5 of 10 top brands are advertisers; the rest are “house ads” promoting own network • There are 10,080 minutes in a week; this chart says every single advertiser had ads played on average 1 – 2 times a minute. • It we take 10 – 12 ads per half hour, we get 3,500 ads per week, assuming every hour of a 24 hr day is primetime. April 23, 2012 26
  • 27. Top 10 Brands on Cable TV • Only 5 of 10 top brands are advertisers; the rest are “house ads” promoting own network April 23, 2012 27
  • 28. Video Ad CPMs Video Ad Pre-roll CPMs: $10 - $11 Video Ad Pre-roll CPMs: $8 - $10 (Women’s Lifestyle) Source: TubeMogul, Nov 17, 2011 April 23, 2012 28
  • 29. Video Ad Viewers are Impatient Completion Rates (ads viewed to completion) 78%: 0 – 15 second ads 74%: 16 – 30 second ads 61%: 31 – 60 second ads 54%: >60 seconds Source: Vindico via MarketingCharts, April 13, 2012 April 23, 2012 29
  • 30. Time Spent Online TV April 23, 2012 30
  • 31. Time Spent Across Media April 23, 2012 31
  • 32. Time Spent vs Ad Spend April 23, 2012 32
  • 33. YouTube hits 3B views per day Source; YouTube Press Release May 25, 2011 April 23, 2012 33
  • 34. Network Top 25 w/e April 15, 2012 R=Repeat # Viewers S=Special HH Rating HH Share Rank Shows Net (Live+SD) P=Premier (Live+SD) (Live+SD) (000) e 1 NCIS CBS 17660 11.0 18 2 American Idol-WEDNESDAY FOX 16807 10.0 16 3 Dancing with the Stars ABC 16387 10.6 16 4 American Idol-THURSDAY FOX 15810 9.7 16 5 DANCING W/STARS RESULTS ABC 13386 8.9 13 6 NCIS: LOS ANGELES CBS 12864 8.3 13 7 Criminal Minds CBS 11809 7.5 11 8 60 Minutes CBS 11025 7.2 13 9 VOICE NBC 10518 6.2 9 10 Two and a Half Men CBS 10400 6.5 10 Source: 11 Modern Family ABC 10351 6.3 10 12 Hawaii Five-0 CBS 10304 6.6 11 TVByTheNumbers 13 Big Bang Theory,THE 9P-SP(S) SR CBS 10208 6.2 10 April 17, 2012 14 Good Wife, THE CBS 10161 6.6 10 15 Body Of Proof ABC 10045 6.7 11 16 CSI CBS 9944 6.3 10 17 SURVIVOR: ONE WORLD CBS 9906 6.0 10 18 Big Bang Theory, THE R CBS 9720 5.9 10 19 MIKE & Molly CBS 9578 5.9 9 20 Unforgettable CBS 9448 6.2 10 21 Amazing Race 20 CBS 9123 5.5 9 22 VOICE:RESULTS SHOW NBC 8999 5.5 8 23 NYC 22 P CBS 8859 5.7 9 24 GREY'S ANATOMY ABC 8847 6.1 10 25 Person Of Interest 10P-SP(S) SR CBS 8580 5.5 9 April 23, 2012 34
  • 35. Cable Top 25 w/e April 15, 2012 Viewers Live+SD Rank Shows Net Day Time HH Rating (000) 1 Pawn Stars HIST MONDAY10:30 PM 5381 3.4 2 Pawn Stars HIST MONDAY10:00 PM 5210 3.3 THURSD 3 Swamp People HIST 9:00 PM 4958 2.8 AY SATURD 4 LEGEND OF KORRA NICK 11:00 AM 4548 2.7 AY SATURD 5 SpongeBob NICK 10:30 AM 4391 2.6 AY 6 WWE Entertainment (WWE Raw) USA MONDAY10:00 PM 4342 2.7 7 WWE Entertainment (WWE Raw) USA MONDAY9:00 PM 4230 2.7 SATURD 8 SpongeBob NICK 10:00 AM 3966 2.5 AY 9 American Pickers (BOYS TOYS) HIST MONDAY9:00 PM 3939 2.5 10 SpongeBob NICK SATURD AY 9:30 AM 3824 2.3 Source; GAME OF THRONES (13:WHAT IS DEAD 11 12 MAY NEVER DIE) NBA Basketball(MIAMI/CHICAGO) HBOM TNT SUNDAY 9:03 PM THURSD 8:16 PM 3766 3671 2.2 2.4 TVByTheNumbers AY 13 Shake It Up (WHODUNIT UP) DSNY SUNDAY WEDNES 8:30 PM 3669 2.2 April 17, 2012 14 NCIS USA 8:00 PM 3603 2.4 DAY 15 SpongeBob NICK SUNDAY 10:30 AM 3589 2.3 16 IN PLAIN SIGHT USA FRIDAY 10:00 PM 3588 2.5 17 SpongeBob NICK SUNDAY 10:00 AM 3502 2.2 WEDNES 18 NCIS USA 9:00 PM 3496 2.4 DAY 19 A.N.T. FARM DSNY FRIDAY 8:30 PM 3438 2.1 SATURD 20 SpongeBob NICK 9:00 AM 3399 2.1 AY AUSTIN & ALLY (BURGLARIES & 21 DSNY SUNDAY 8:00 PM 3281 1.9 BOOBYTRAPS) SATURD 22 VICTORIOUS NICK 8:00 PM 3237 1.9 AY THURSD 23 THE OREILLY FACTOR FOXNC 8:00 PM 3174 2.1 AY WEDNES 24 Family Guy ADSM 11:30 PM 3154 2.0 DAY REAL HOUSEWIVES ATLANTA(S) (421 25 BRVO SUNDAY 9:00 PM 3138 2.1 REUNION PART 1) April 23, 2012 35
  • 36. Gross Rating Point Gross rating point (GRP) is a term used in advertising to measure the size of an audience reached by a specific media vehicle or schedule. It is the product of the percentage of the target audience reached by an advertisement, times the frequency they see it in a given campaign (frequency × % reached).[1] For example, a television advertisement that is aired 5 times reaching 50% of the target audience would have a GRP of 250 (5 × 50%). April 23, 2012 36