YouTube - Video Advertising Bureau

Get Real: Video Advertising 2016
Fact vs. Perception on the Video Frontier
February 2016
WHY?
Along with the Expanding # of Ad Video Options…
A Growing Avalanche of: Numbers, Claims & Comparisons
Outside of our Ad Video Trading Currency
There are Changes in Video Consumption that We Want to
Quantify & Analyze in 2016
We Want to Dig Deeper Into Sweeping Generalizations Such
As “It’s All Just Video”, etc. For Advertisers
And We Want to Use Our Latest Complete Month of Trading
Currency Data (Nielsen & comScore)
to Look at “What’s Really Going On”
2
The Marketer’s Mix of Video Advertising Channels Continues to Evolve
Atop the Sheer Numbers of Options,
Different Forms of Video Ad Vehicles are
Being Actively Mixed, Tested & Analyzed…
3
The Different Forms Of Video Ad Options Can Be Sorted Into Two Groups:
Ad Tech Video Works Best as a Targeted Extension of the Multi-Screen TV Plan
4
The Mistake - is a Mindset or Strategy That Looks to Use the
Ad Tech Video Brands as a Surrogate, Substitute or Replacement
for the Multi-Screen TV Brands…
5
1 Scale
2 Brands/Content
3 Viewability & Execution
6
Scale
The Average US Consumer Spends 161 Hours Per Month
with Ad-Supported TV plus the 4 Portals/Facebook:
Multi-Screen
TV Brands
4 Portals +
Facebook
AOL
MSN
AOL
4-Screens
of Activity:
TV & Internet
(w/ Mobile)
Combined
Ad-Supported
Cable &
Broadcast
National
& Local
Yahoo!
MSN
Google
Yahoo!
All Activity:
Video, Search,
E-Mail, Mobile,
Social, etc.
Combined
Facebook
Facebook
Google
Source: Nielsen Npower Live+7, Total Day, Feb 2016 P2+, VAB analysis of comScore audience duplication Feb 2016 data, P2+ (mediametrix, multiplatform).
Cable Television represents all measured Ad-Supported Cable nets; Multi-screen TV Brands Internet includes cable network, broadcast TV and MVPD websites.
7
Broadcast Television represents FOX, CBS, NBC, ABC, iON and CW
Those 161 Hours of Avg. Consumer Usage Split:
82% Ad-Supported TV & 18% 4 Portals + Facebook
Scale
Monthly Time Spent (February 2016)
(Average mins per viewer/visitor, Hrs: Mins)
TV Brands (TV + Internet) +
4 Portals + FB
(Hrs: Mins)
Total Ad-Supported TV Brands
(Cable Nets+ MVPD’s + Broadcast: TV+
Web+Mobile)
4 Portals + FB
(Hrs: Mins)
(Hrs: Mins)
175:32
161:21
139:45
131:54
35:47
29:27
Source: Nielsen Npower Live+7, Total Day, Feb 2016 P2+, VAB analysis of comScore audience duplication Feb 2016 data, P2+ (mediametrix, multiplatform).
Cable Television represents all measured Ad-Supported Cable nets; Multi-screen TV Brands Internet includes cable network, broadcast TV and MVPD websites.
8
Broadcast Television represents FOX, CBS, NBC, ABC, iON and CW
Those 161 Hours of Avg. Consumer Usage Split:
82% Ad-Supported TV & 18% 4 Portals + Facebook
Scale
Monthly “Time Spent” (Feb 2016)
(Avg mins per viewer/visitor - Hrs:Min)
4 Portals
6:07
YouTube
8:18
Facebook
15:02
Total
AdSupported
TV Brands
131:54
Total Ad-Supported TV Brands include cable + systems + broadcast: TV & web
Source: Nielsen Npower Live+7, Total Day, Feb 2016 P2+, VAB analysis of comScore audience duplication Feb 2016 data, P2+ (mediametrix,
multiplatform). Cable Television represents all measured Ad-Supported Cable nets; ; Multi-screen TV Brands Internet includes cable network, broadcast9
TV and MVPD websites. Broadcast Television represents FOX, CBS, NBC, ABC, iON and CW. 4 portals = Google, AOL, MSN, Yahoo!
Scale
Similar Usage Split: 92% TV / 8% YouTube - on Time Spent
Monthly “Time Spent” Average (Minutes Per P13+ Viewer)
Total Ad-Supported TV vs. All of YouTube
Professionally Produced Content
5,797.4
=UGC
506.2
Predominately UGC
Ad-Supported TV
YouTube
(Cable + Broadcast)
Hrs: Mins
96:37
8:26
10
Sources: Nielsen Npower Live+7, Total Day, P13+, 2/1-2/29/16; comScore MediaMetrix multi-platform, Feb 2016, P13+
Scale
18-24 Usage Split: 84% TV / 16% YouTube - on Time Spent
Monthly “Time Spent” Average (Minutes Per P18-34 Viewer)
Total Ad-Supported TV vs. All of YouTube
Professionally Produced Content
3,737.9
=UGC
717.0
Predominately UGC
Ad-Supported TV
YouTube
(Cable + Broadcast)
Hrs: Mins
62:18
11:57
11
Sources: Nielsen Npower Live+7, Total Day, P18-34, 2/1-2/29/16; comScore MediaMetrix multi-platform, Feb 2016, P18-34
Scale
Average “Time Spent” On Top TV Networks Is Also Much
Higher Than The Top YouTube MCNs
Monthly “Time Spent” Average (Minutes Per P13+ Viewer)
Top Ad-Supported TV Networks vs. YouTube MCNs Average
320.4
=UGC
218.6
Professionally
Produced Content
23.4
Predominately UGC
Top 20 TV Network Avg
(Cable + Broadcast)
Longer-Tail TV Network
(#21-#50 Rank) Avg
Top 20 YouTube Network
Avg
Sources: Nielsen Npower (R&F program report) Live+7, Total Day, P13+, 2/1-2/29/16; comScore Video Metrix Feb 2016 YouTube Partners Report, P13+ (desktop only).
“Top” networks based on reach / unique visitors
12
Scale
TV Network’s “Time Spent” Advantage Over Top YouTube MCNs
Extends To Millennials As Well
Monthly “Time Spent” Average (Minutes Per P18-34 Viewer)
Top Ad-Supported TV Networks vs. YouTube MCNs Average
229.1
206.2
Professionally
Produced Content
=UGC
26.4
Predominately UGC
Top 20 TV Network Avg
(Cable + Broadcast)
Longer-Tail TV Network
(#21-#50 Rank) Avg
Top 20 YouTube Network
Avg
Sources: Nielsen Npower (R&F program report) Live+7, Total Day, P18-34, 2/1-2/29/16; comScore Video Metrix Feb 2016 YouTube Partners Report, P18-34 (desktop only).
“Top” networks based on reach / unique visitors
13
Scale
Analyzing Reach Reveals Same Pattern of Scale Differences...
Monthly Reach Average (P13+)
TV Cume Reach vs. YouTube Unique Visitors (000)
102,357
59,130
Professionally
Produced Content
20,475
Predominately UGC
Top 20 TV Network Avg
(Cable + Broadcast)
Longer-Tail TV Network
(#21-#50 Rank) Avg
Top 20 YouTube Network
Avg
14
Sources: Nielsen Npower (R&F program report) Live+7, Total Day, P13+, 2/1-2/29/16; comScore Video Metrix Feb 2016 YouTube Partners Report, P13+ (desktop only)
Scale
Analyzing Reach Reveals Same Pattern of Scale Differences
Against Millennials As Well...
Monthly Reach Average (P18-34)
TV Cume Reach vs. YouTube Unique Visitors (000)
21,859
11,845
8,593
Professionally
Produced Content
Predominately UGC
Top 20 TV Network Avg
(Cable + Broadcast)
Longer-Tail TV Network
(#21-#50 Rank) Avg
Top 20 YouTube Network
Avg
15
Sources: Nielsen Npower (R&F program report) Live+7, Total Day, P18-34, 2/1-2/29/16; comScore Video Metrix Feb 2016 YouTube Partners Report, P18-34 (desktop only)
Scale
Drilling Down to “One Program” Size Vs. YouTube
Another Look at Scale…
In any given minute, ABC’s “The Chew” delivers a higher average P13+ audience than all of
YouTube
Average P13+ Audience (Feb ‘16)
2.69 Million
Average P13+ Audience (Feb ‘16)
2.55 Million
Source: comScore MediaMetrix Key Measures (multiplatform), February 2016; P13+. Nielsen Npower, Live + SD, Total Day. February 1-29, 2016; P13+.
“Average Audience” is based on the average minute, which is factored across the full month for YouTube and across program run time for TV.
Digital website measurement includes all visitor activity, not just video consumption. Due to a lack of syndicated cross-platform measurement, ABC’s “The Chew”16
only reflects linear TV audience and does not include the added exposure gained through multiscreen viewing on smartphones, tablets and other connected devices.
Scale
Drilling Down to “One Program” Size Vs. YouTube
Another Look at Scale…This Time Against P18-34
In any given minute, ABC’s “Grey’s Anatomy” delivers a higher average P18-34 audience
than all of YouTube
Average P18-34 Audience (Feb ‘16)
1.24 Million
Average P18-34 Audience (Feb ‘16)
1.23 Million
Source: comScore MediaMetrix Key Measures (multiplatform), February 2016; P18-34. Nielsen Npower, Live + SD, Total Day. February 1-29, 2016; P18-34.
“Average Audience” is based on the average minute, which is factored across the full month for YouTube and across program run time for TV. Digital website
measurement includes all visitor activity, not just video consumption. Due to a lack of syndicated cross-platform measurement, ABC’s “Grey’s Anatomy” only
reflects linear TV audience and does not include the added exposure gained through multiscreen viewing on smartphones, tablets and other connected devices.
17
Scale
Summary
Overwhelming Scale Advantage
is One Reason
Why Adtech Video Brands
Can’t Substitute for or Replace
Multi-Screen TV Brands…
Sources: Right-hand side charts - Nielsen Npower Live+7, Total Day, Feb 2016 P2+, VAB analysis of comScore audience duplication Feb 2016 data (mediametrix,
multiplatform). Cable Television represents all measured Ad-Supported Cable nets; Cable network websites represents 61 cable network websites .
Broadcast Television represents FOX, CBS, NBC, ABC, iON and CW
18
Sources: Left-hand side chart - Nielsen Npower Live+7, Total Day, P13+, 2/1-2/29/16; comScore MediaMetrix multi-platform Feb 2016, P13+
Brands/Content
Content Investment vs. Algorithmic Investment…
Professionally Produced Content
(PPC)
100% PPC From Television Network Brands
Predominately User-Generated Content
(UGC)
Large majority is UGC From YouTube Networks
19
Brands/Content
The Brand Illusion
Content Fronted by a YouTube “Brand” is Actually an
Aggregation of Thousands of (Mostly UGC) Channels
Abbreviated Channel List By Network
- Tobuscus (6M)
- Bart Baker (4M)
- Stampylonghead (4M)
- TheDiamondMinecart (4M)
- Bad Lip Reading (3M)
- Glozell Green (3M)
- Kassem G (2M)
- ERB (1M)
- Westfesttv (1M)
- HuskyStarcraft (889k)
- Katilette (667k)
- Gardea23 (624k)
- Polaris (619k)
- ItsMyRayeRaye (595k)
- EpicLloyd (475k)
- HeyKayli (422k)
- The Platform (379k)
- CarlieStylez (345k)
- Kandeeland (325k)
- The Mom’s View (316k)
- DaveChaos (293k)
- Animonster (306k)
- MakerMusic (235k)
- Mary Doodles (231k)
- Bobbylee (145k)
- FriendlyPaw (138K)
- Caroonium (100k)
- Maker Gen (100k)
- SanctionedTV (14k)
- David Barbara (5k)
- The Daily Connoisseur (18k)
- Emily Valentine (1K)
- Emily Hughes (436)
- TheFineBros (10M)
- fouseyTube (4M)
- Shane (4M)
- megannicolesite (2M)
- TiffanyAlvord (2M)
- our2ndlife (2M)
- Tyler Ward Music (1M)
- WHATTHEBUCKSHOW (1M)
- DavidSoComedy (947k)
- TantrumJas (877k)
- Avbyte (752k)
- Casey Holmes (747k)
- COOP3RDRUMM3R (503k)
- Jefferson Bethke (490k)
- AverageBroTV (487k)
- Chrissy Costanza (395k)
- 5secondfilms (385k)
- Rachel Ballinger (357k)
- RAJIV DHALL (356k)
- Matt Stonie (337k)
- FrankieJGrande (312k)
- Brittani (278k)
- Lycia Faith (154k)
- Molo Nation (102k)
- AndrewQuo (80k)
- Siennaspaldingtv (69k)
- Digital Tour Bus (33k)
- Glitterglam95 (25k)
- Erik Shaw (15k)
- Soulection (10k)
- Collegefession (6k)
- Derrion Tolanski (6k)
- FullscreenCommunity (1K)
- RayWilliamJohnson (10M)
- Rooster Teeth (7M)
- machinimarespawn(2M)
- MachinimaRealm (2M)
- Dane Boe (1M)
- Happyhour (1M)
- Nerdist (1M)
- Tiesto (1M)
- deadmau5 (807K)
- Inside Gaming (630k)
- xSGTxSMURFx (590)
- PressHeartToContinue (522k)
- Machinima ETC (412k)
- Samandniko (336k)
- Black Nerd Comedy (321k)
- ThatGuyWhoCamps (314k)
- MachinimaVS (227k)
- MachinimaLatino (180k)
-ItsJustSomeRandomGuy(176k)
- AndrewQuo (80k)
- RCSuperPowers (70k)
- Team Respawn (66k)
- Ken Burton (48k)
- xCaliGrrlx (11k)
- Danstreet123 (7k)
- Ash Sowesby (6k)
- LenzyDaGreat (5k)
- Radnerdtv (4k)
- JustinIsAProdigy (3k)
- ApoKHD(798)
- ting6345 (733)
- Energizer (354)
- NothingtodowithCats (111)
- Rooster Teeth (7M)
- Simons’s Cat (3M)
- Dane Boe (1M)
- DotaCinema (1M)
- Element Animation (1M)
- Improv Everywhere (1M)
- VintageBeef (1M)
- xRpMx13 (1M)
- Na’Vi.Dota 2 (914k)
- Jumpinthepack (797k)
- PauseUnpause (641k)
- GuudeBoulderfist (464k)
- TheDevildogGamer (435K)
- OK Go (414k)
- TGN (395k)
- First Person Troller (384k)
- Team Epiphany (342k)
- TheMinecraftHippie (326k)
- OMGitsfirefoxx (294k)
- Sparkles – CSGO&more (286k)
- AgentXPQ (276k)
- BajheeraWoW (235k)
- stonewall008 (187k)
- NukemDukem (169k)
- HaloFollwer(167k)
- Golden GS (134k)
- TCTNGaming (122k)
- The Solar Gamer (86k)
- OneCheesyMofo (81k)
- Cutewithchris (33k)
- EmpowerYourBody (24k)
- Blackdogfilms (1k)
- The DanseSociety (30)
- RocketJump (7M)
- Epic Meal Time (6M)
- Annoying Orange (4M)
- Cinema Sins (3M)
- CorridorDigital (3M)
- HouseholdHacker (2M)
- Wassabi Productions (2M)
- JustKiddingFilms(1M)
- Lindsey Hughes (980k)
- Node(976k)
- HollywireTV (879k)
- Rob Dyke (758k)
- iSekC (751k)
- Alexa Losey (474k)
- BaratsAndBereta (417k)
- Beatdownboogie (393k)
- Pogo (380k)
- Goldiestarling (371k)
- Andrewmfilms (328k)
- Bart Kwan (302k)
- Inside the Magic (284k)
- Yourharto (283k)
- Gina Morano (263k)
- BloodBlitz (208k)
- The Axis of Awesome (206k)
- RUNAGROUND (179k)
- Jhaller (153k)
- LazyPillow (135k)
- Belated Media (118k)
- TVNweather (112k)
- Lena Danya (101k)
- Alligator Tub (94k)
- Film4 (70)
- UltraMusic (2M)
- Colinfurze (709k)
- Unicoos (349k)
- Musical Freedom (252k)
- What’s Trending (151k)
- Ashley Mardell (106k)
- PM Recordings(40k)
- Video Creators (31k)
- Justkissmyfrog (20k)
- SshakeTV (9k)
- Flyotw Film( 8k)
- JimbleJam (7k)
- Alexxparkour (6k)
- Jaguar Skills Videos (6k)
- Matthias Mayer (6k)
- Nikki Yanofsky (6k)
- Funk Stylers TV (5k)
- Flair20TV (4k)
- Mick Woods (4k)
- NextTime onLonny (4k)
- N1Project (3k)
- ILUVLIVE (2k)
- Leoleove (2k)
- OfficiallyEricJoel (1k)
- Sarah Grimstone (1k)
- NFoxMUA (885)
- BairesFamilyMedia (880)
- Tiny Bag Productions (414)
- CHOKOHAYS (397)
- FourFourTwoUK (394)
- fdsmusiclabel(91)
- Empire Divide (77)
- Cristian Jermane (66)
Plus 1,600+
More Channels
Plus 5,000+
More Channels
Plus 30,000+
More Channels
Plus 74,000+
More Channels
Plus 1,190+
More Channels
Plus 7,500+
More Channels
20
(#) = YouTube channel subscribers
Brands/Content
Infinite Attention-Splitting
The top 20 YouTube “Networks” are Actually 247,000+
Channels/Sites, with Mostly UGC.
Top 20 comScore Measured YouTube Networks
Unique Visitors (P13+) – Feb 2016
The Top 20 Networks
average over
12,300 channels
21
Sources: comScore Video Metrix February 2016 YouTube Partners Report (desktop only); excluding channels with TV-related content like NBC Entertainment
Most of the Video Content Investments
Outside of the Ad-Supported TV Brands…
Is Spent Buying Proven TV Content.
Brands/Content
Estimated 2016 Content Investment
(Original & Acquired)
Hulu
$1.2B
YouTube
Total AdSupported
TV Brands
$1.0B
$47 Billion
Netflix
$2.6B
Amazon
$1.6B
Total Ad-Supported TV Brands include Cable & Broadcast
Sources: TV Brands: SNL Kagan 2016; all other services based on VAB analysis of existing projections and estimated for U.S content rights only. Amazon: Various analyst
reports & SNL Kagan; Netflix: SNL Kagan & Netflix financial reports; YouTube: based on Google financial statements and projected out based on VAB analysis of YouTube’s
global audience split; Hulu: estimated based on investment projections announced through Hulu.
22
Brands/Content
TV Investments - $47B Annually – Are in Brands/Content
Professionally Produced Content
(PPC)
100% PPC From Television Network Brands
- Habitual, Daily Consumption for HOURS
- Fully Assembled, Committed Audiences
- Pursuing Brands/Programs Across Screens
- Predictable, Ad-Integrated & At Scale
Example
23
TV Brands Rank in the Top 5 Multiple Times in Most Major Content Genres
Top 5 Rank by Internet Genre
P2+
Sports
Sports
Comedy
TV Ent. Black
General News
Music
Gaming
ESPN
Giphy.com
Tribune Media
ABC News
VEVO
EA Games
FOXSports.com
Resignation Media
BET
CNN
Spotify
Zynga
CBSSports.com
TheOnion.com
NBCU TV
NBC News
MySpace.com
Midas Player
NBC Sports Network
Electus Digital
Univision
Buzzfeed
GSN
Bleacher Report
Comedy Central
MTV Networks
Bandsintown
Amplified
Home
Hearst
Weather
The Weather
Channel
Accuweather.com
MTV
USA Today
TV Entertainment
Food
PCH Digital
Kids
NBCU TV
Food Network
Disney Entertainment
Tribune Media
AllRecipes.com
Totally Kidz
Weatherbug.com
ABC Digital
BlogHer Food
HGTV
Yahoo! Weather
CBS.com
MyRecipes.com
Roblox.com
About.com Home
MSN Weather
AOL On – Huff Post TV
Bon Appetit
PBSKids.org
HOUZZ.com
Internet Brands
Home & Garden
Source: VAB analysis of multi-platform comScore data, Feb 2016
COOL-MATHGAMES.com
24
Out of 1 Million + iPAD Apps, Ad-Supported TV Brands are
Among the Top 5 Downloaded
From Over 1,000,000 Apps:
Top 5 iPad Apps Downloaded
Sports
Music
Watch ESPN
Spotify
VUDU
BBC News
Comedy Central
NFL
Google Play
Watch ABC
CNN
SNL
NBC Sports Live Extra
YouTube
The CW
FOX News
TV Land
Team Stream from B/R
CMT
Disney Channel
CW Seed
NBA 2015-16
Pandora
NBC
Google News and
Weather
NPR
Weather
Finance
TV Networks
News
TV Entertainment
Children
Comedy
Vine
Business
NOAA Hi-Def Radar
WSJ Live
Entertainment Weekly
Youtube Kids
Business Insider
The Weather Channel
Bloomberg
Shazam
TBN
CNN Money
Weather Underground
CNN Money
CNBC Business News
and Finance
Yahoo Finance
Xfinity TV Go
Nickelodeon
WSJ Live
Telemundo
Watch Disney Channel
CNBC
Entertainment Tonight
ellentube
BBC News
Yahoo! Weather
Weather +
Source: Apple app store 1/12/16; Most popular iPAD apps by category search term (excluding gaming apps)
25
Brands/Content
Summary
$47 Billion Annual Investment
in Multi-Screen TV Brands & Content
Is Another Reason
Why Adtech Video Brands & Content
Can’t Substitute for or Replace
Multi-Screen TV Video Brands…
26
Viewability &
Executional Integrity
The Need for
Industry Oversight, Standards Creation & Quality Monitoring
Mark the Current Phase
of the Internet’s Evolution as an Ad Medium
27
Viewability &
Executional Integrity
The Need for Industry Oversight…
Supply Chain Integrity – criminal, commercial and critical
“If 2015 raised the demand for truth across the entire media ecosystem,
2016 will be the year of reconciliation or consequence for failure”
“The early days of the internet promised the most accountable media ever. It became
apparent quickly that there was a large difference between accountable and countable”
28
Source: GroupM’s 2016 Interaction Report, April 2016
Viewability &
Executional Integrity
The Need for Industry Oversight…
Non-Human Impressions & Views Continue To Be a Big Issue
The January 2016 Follow-up To The Original Dec 2014 Report Continues To Reveal
a Pervasive, Complex Internet Video Problem
29
Source: The Bot Baseline: Fraud in Digital Advertising - White Ops, Inc.; Association of National Advertisers – January 2016
Viewability &
Executional Integrity
A Pervasive Complex Internet Problem…
30
Viewability &
Executional Integrity
A Pervasive Complex Internet Problem…
31
Viewability &
Executional Integrity
The Need for Standards Creation…
MRC/IAB
Viewability Standards
- Display Ads: 50% of pixels in view for 1 seconds
- Video Ads: 50% of pixels in view for 2 seconds
- No Audio Requirements
2014 Adoption of Above “Standards” - Has Produced a Lot of Industry Debate
32
Viewability &
Executional Integrity
Caused a Lot of Industry Debate…
MRC/IAB
Viewability Standards
- Display Ads: 50% of pixels in view for 1 seconds
- Video Ads: 50% of pixels in view for 2 seconds
- No Audio Requirements
33
Viewability &
Executional Integrity
Current Viewability Standards – Rejected
34
Viewability &
Executional Integrity
The Need for Quality Monitoring…
Big Range of Varying Performance on Viewability, etc. - Still Issues in 2016
35
Ad Tech Video Works Best a Targeted Extension of the Multi-Screen TV Plan
But is Not a Surrogate, Substitute or Replacement for Multi-Screen TV Video
36