Piech_Dan

Dan Piech

The State of Online Video

OMMA VIDEO - January, 2010

2© comScore, Inc. Proprietary. Image Source: Craig Chelius

3© comScore, Inc. Proprietary.

89 MILLION PEOPLE

Source: comScore Video Metrix, December 2010

IN THE UNITED STATESARE GOING TO WATCH


1.2 BILLION

VIDEOS

89 MILLION PEOPLE


IN THE UNITED STATESARE GOING TO WATCH


1.2 BILLION

VIDEOS

89 MILLION PEOPLEIN THE UNITED STATESARE GOING TO WATCH

TODAYSource: comScore Video Metrix, December 2010


2006

<embed src=“video.swf”>


¢0.7 PER VIDEO

63 BILLION VIDEOS

2006$324 MILLION (ad spend)

Source: comScore Video Metrix, December 2010; eMarketer, December 2009; IAB, 2010


2010

<video>


¢0.4 PER VIDEO

441 BILLION VIDEOS

2010$1,440 MILLION (ad spend)

Source: comScore Video Metrix, December 2010; eMarketer, December 2009; IAB, 2010


2006 – 2010


$ Ad Spend: +344%

2006 – 2010


$ Ad Spend: +344%

# Videos: +600%

2006 – 2010


THE STATE OF ONLINE VIDEO

THE FUTURE OF VIDEO MONETIZATION

WHY VIDEO?

Icon Source: Dale Morrell, 19eighty7.com

AGENDA


THE STATE OF ONLINE VIDEO Ubiquity

The rise of long-form

Video advertising


15© comScore, Inc. Proprietary. Source: comScore Video Metrix

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Number of People Streaming (000) Streams (MM)

The growth of the online video universe


NUMBER OF VIEWERS 180MM

% OF INTERNET AUDIENCE 85%

VIDEOS VIEWED 36B

VIDEOS PER PERSON 200

VIEWING TIME PER PERSON 13 hr


Every month:

17© comScore, Inc. Proprietary. Source: comScore Video Metrix, December 2010

12-17 18-24 25-34 35-44 45-54 55-64 65+0

10

20

30

40

50

60

70

80

90

100

Age breakdown: Percent of Internet audience that view video


12-17 18-24 25-34 35-44 45-54 55-64 65+0

50

100

150

200

250

300

350

Age breakdown: Videos per viewer


UVs (MM) Videos per Viewer Minutes per Viewer0

100

200

300

400

500

89.4

139.0

366.0

89.8

170.0

473.0Females Males


Viewing by gender (Top 100 Video Properties)

48% 52% 43% 57% 42% 58%


Where are viewers watching content videos?


Web PropertyTotal Unique

Viewers (000)(of content videos)

Google Sites 145,829

Yahoo! Sites 61,803

VEVO 50,320

AOL, Inc. 47,687

Viacom Digital 47,282

Facebook.com 42,500

Microsoft Sites 35,348

Fox Interactive Media 31,552

NBC Universal 29,192

Turner Digital 27,714


Duration moves upwards as long-form TV content moves online

0

20,000,000,000

40,000,000,000

60,000,000,000

80,000,000,000

100,000,000,000

120,000,000,000

140,000,000,000

160,000,000,000

180,000,000,000Total US Viewing Duration +162%

Source: comScore Video Metrix


Growth in long-form TV programming online

Source: comScore Video Metrix, Dec 2009 – Dec 2010

104%

Videos per Viewer

75%increase increase

Videos Viewed

Yearly growth in videos viewed on long-form TV programming sites


Growth in long-form TV viewing repeat engagement

Source: comScore Video Metrix, Dec 2009 – Dec 2010

4%

Average percent of a site’s viewers that view videos on any given day

(long-form sites only)

8%2009 2010


148

Ad impressions per month

5.9


video ad impressions per monthBillion

2.4 video ad minutes per monthBillion

viewers exposed to video adsMillion


Ad Impressions per month – 6 month variances

36

Source: comScore Video Metrix, June 2010 – December, 2010

video ad impressions per month% Growth

30 video ad minutes per month% Growth

viewers exposed to video ads8% Growth


83% video viewers

70%total web

49% total US

Population

Linear video ads are served across the web in a month reach the

average video viewer 40 times

Video advertising reach


16.4% of videos viewed are ads

16%

84%

AdsContent

Ad Percentage


THE FUTURE OF VIDEO MONETIZATION Are we monetizing to the degree we could be?

Comparison to television

Viewer expectations are being molded as we speak



2001

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$0

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$6,000

0

50000

100000

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200000

250000

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350000

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$40 $55 $85 $135 $225 $324 $410

$734

$1,029

$1,440

$1,966

$2,858

$3,844

$5,202

63515

102141

142254

260049

440692

Ad Spending (MM) Streams (MM)

Source: comScore Video Metrix, December 2010 and eMarketer, December 2009

Online video viewing growth is outpacing ad spending growth


Not enough ads?

Ads too cheap?


1.6% of time spent viewing video online is spent viewing ads compared to 20-30% on TV

1.6%

98.4%

Ads Content 25%

75%

All Online Video Television


5.3% of time spent viewing video online on entertainment sites is spent viewing ads compared to 20-30% on TV

5.3%

94.7%

Ads Content 25%

75%

Entertainment Sites Television


8.5% of time spent viewing video online on long-form premium TV content is spent viewing ads compared to 20-30% on TV

8.5%

91.5%

Ads Content 25%

75%

Long-Form Premium TV-content Television


What do our Viewers Really Value?

Q12. What are the reasons why you like to watch Original TV shows online? Check all that apply.

Don't subscribe to cable/ don't have a TV

Prefer the online experience

Can discover new shows easily

Less ads

Convenience

Like to see past episodes

Missed episode on TV

0% 10% 20% 30% 40% 50% 60% 70% 80%

9%

13%

29%

42%

57%

56%

69%

Reasons to Watch Online

Cross Platform [B]

Base sizes:Total=617

Online Only= 115Both TV/Online= 502

Source: comScore TV Everywhere Survey, 2010


What do our Viewers Really Value?

Q12. What are the reasons why you like to watch Original TV shows online? Check all that apply.

Don't subscribe to cable/ don't have a TV

Prefer the online experience

Can discover new shows easily

Less ads

Convenience

Like to see past episodes

Missed episode on TV

0% 10% 20% 30% 40% 50% 60% 70% 80%

9%

13%

29%

42%

57%

56%

69%

Reasons to Watch Online

Cross Platform [B]


Online Only= 115Both TV/Online= 502



1 min 2 min 3 min 4 min 5 min 6 min 7 min 8 min 9 min 10 min 11 min 12 min 13 min 14 min 15 min0.0

20.0

40.0

60.0

80.0

100.0

Negligible Minimal Long Enough Too Long


Desired Length of Commercials Online



Amount of Advertising is:

1min 2 3 4 5 6 7 8 9 10 11 12 13 14 150%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Fair Minimal Long Too Long




Are we conditioning our viewers to fewer ads?


WHY VIDEO? What makes the video universe uniquely powerful?

The social nature of online video



And it works

Commercials are interesting

Commercials are annoying

I enjoy watching the commercials

The commercials interfere with my show viewing

Commercials are memorable

Commercials are relevant to me

Commercials make me think favorably about the brand being advertised

22.0%

25.6%

19.5%

32.1%

21.8%

18.6%

18.7%

35.8%

34.3%

32.0%

30.1%

29.8%

31.2%

How would you rate the commercials you see when watching original TV shows on ONLINE vs. TV? Completely Agree – Top 2

Box

Online Rating TV Rating

Source: comScore TV Everywhere Survey | n = 1825


What are the reasons you visited an advertiser’s website while watching a show online?

Other

A text or image-based commercial surrounding the video player

A video commercial played before the show

A product that you noticed in the program

A video commercial played during the show

0 10 20 30 40 50 60Percentage of respondents

Source: comScore TV Survey, 2010


Nearly 100% of online spenders are video viewers

Video Viewers96%

Non-Video Viewers4%

comScore Video Metrix and comScore E-Commerce Online Spend Data – June 2010


Not all video audiences are created equal when it comes to video advertising and retail spending at a category level

020406080

100120140160180

Total Video Sites

Video Ad Network Cat-

egoryEarned Media &

Social VideoLong Format TV

170

145136115

comScore Video Metrix and comScore E-Commerce Online Spend Data – June 2010

Buying Power Index


Note the clichéd clip-art graphics

Video is social, interactive, lean forward…


1 in 3 video viewers comment


2 in 5 upload videos


1 in 2 regularly share videos


More than 1 in 2 view online video with others


Among 18-34’s, more than 2 in 3 view with others


WHY VIDEO? What makes the video universe uniquely powerful?

The social nature of online video


THE FUTURE OF MONETIZATION Are we monetizing to the degree we could be?

Comparison to television

Viewer expectations are being molded as we speak

THE STATE OF ONLINE VIDEO Ubiquity

The rise of long-form

Video advertising

Thank you!Dan Piech | [email protected]

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