Yesterday, I attended the Google/Youtube hosted event “Think Video”. It was an event primarily aimed at marketers (research seminars tend not to have goodie bags), but I found it an interesting – if not groundbreaking – session.
Below are some of the notes I scribbled down during the talks. I’ve linked or embedded the presentations, where they are available.
Quantitative overview of the market
After an introduction from Dara Nasr, Dan Cryan of Screen Digest gave the first talk with a speedy overview of the current state of the online video market, and where it is heading.
Some statistics and projections I noted include (note that I was having to write quickly to keep up with Dan, and so there may be some errors in the below)
- 90% of online views will be user-generated content in 2014 – about 2.5bn viewing hours
- In 2014, ad-supported revenues will be around £180m, transactional VOD £40m and download to own £10m.
- At this time, online TV will still only be 2% of the total TV market
- Currently, 67% of online video viewing is short form, since “work time is prime time”
- At the moment, 80% of the UK online video revenues are with the broadcasters. In the US, it is only 57% but Hulu represents the majority of the difference (Hulu looks like it is losing a lot of money at the moment, since 70% of its revenues goes to the broadcasters.
I found the most interesting part of the talk to be about distribution strategies, and whether to affiliate and syndicate or not. It would appear to be a good move, given the increases in reach that such a tactic produces. Quoting Comscore figures, Dan showed that in the US
- ABC has 4.7m monthly site users but 9.9m monthly video viewers
- Youtube has 98.2m visitors but 120m viewers
- Hulu has 8.4m visitors but 38.1m viewers
Within this distributed model, there are two main options. Hulu operates the “player as the platform” strategy, where it allows its player to be embedded on sites such as MSN and Yahoo!, enabling it to retain control over advertising sales revenue. The alternative – which Channel 4 and Five appear to be pursuing, is “content as the platform”, where they licence their content to other video sites to include in their players.
The power of social
Neil Perkin of Only Dead Fish followed this talk with his keynote on the importance of social and data in online video. The presentation can be seen below (RSS viewers may need to click through)
Some of the key points I took from the presentation were:
- Businesses should get their hands dirty – Neil has learned about the space by participating in it
- Cisco say that in 2013 90% of data will be video, while 70% of data will be created by individuals. For businesses to succeed, they need to derive value from data – of which metadata is the fastest growing category. I’m a big believer in this.
- However, businesses also need to understand social. Media brands are now less defined by the platform and more by their community (I think this is true, and we are increasingly seeing companies seeking to “own” a particular audience – whether the Guardian, Channel 4 or NME)
- Attention is no longer the only key metric – we also need to consider participation, content and interaction
- Distribution should be wide, with content scalable and portable. Slippy, not sticky
- Companies need to loosen their grip on the creation process and let the community interact in pre-production, actual production or post-production.
- Ultimately, convergence is about content flowing across channels.
The final presentation came from Bruce Daisley of Youtube, who coped admirably with technical issues that prevented his presentation being visible for the first five minutes of his talk. His presentation can be viewed via Google Documents here.
He mentioned how Youtube are looking to reinvent the experience for premium long-form content on their site. They want Youtube to be seen as a revenue opportunity by content owners, not a threat. He believes Youtube’s strengths come from 4 R’s.
- Reach – it’s not necessarily as big as TV, but it can help build audiences. He cited Britain’s Got Talent audience figures rising from 8m in episode 1 to 12m in episode 2, fuelled by SuBo fever (of course, this can’t be blamed solely on Youtube)
- Rights – he used Monty Python as an example of how content owners were licencing their material, and creating a viable business model
- Research – Youtube can be seen as a virtual research community (Bruce called it an online focus group), with different creatives compared in terms of views or ratings
- Revenue – whether through pre-rolls, in-video adverts or the front-page masthead video ad. He showed that searches for Avatar on Youtube actually peaked during the masthead campaign, and not when the film opened a few months later.These can also be integrated with Facebook, so that you can “like” an ad within Youtube.
He then quoted a range of research and statistics to highlight some of Youtube’s strengths
- Social – Two thirds of users say they’ve sent a clip onto someone else. 10% of video views are from embedded clips on social media websites
- Reach – a medium weight TV campaign of 160 GRPs aiming for 1+ cover among adults would reach 54% of the audience on TV. On Youtube it would reach 9% – 2% being incremental reach. This figure is higher among younger and more affluent audiences.
- Mobile – Although mobile and TV only represent 2% of total views, iPhone users will look at an average of 3-4 clips per day, and Android users will look at 10.
- Engagement – Ipsos have created an engagement metric across different media channels, accumulated from “around 50 metrics” (I’d be interested in hearing more about this). Of the channels shown, Youtube had the highest proportion within the high engagement band, and the least in the low (followed by BBC brands, then Channel 4, Five and ITV).
Youtube are now working with more content owners and broadcasters, with material ranging from films to the Indian Premier League. Bruce mentioned that the first company they negotiated with – the BBC – were very cautious and were arguing for removing comments, ratings and ability to embed, but gradually companies are warming to them.
He closed by talking about Youtube Bubble – a Youtube channel accumulating the best of advertising on the site. I would imagine the Evian babies dancing to Rapper’s Delight (with over 58m video views worldwide) heavily features.
A Q&A session was chaired by Matt Brittin – the Managing Director of Google in the UK – who was very engaging (and puntastic). The speakers were joined by someone from Channel 4’s sales side (Ed someone, I believe) and Ben Chesters from Mediavest.
Some disjointed points I noted down during the session were:
- Channel 4 were wary about giving specific figures in viewing across different channels, but did say that the total reach was more important than what individual channels made, since they controlled the advertising across each.
- Ben Chesters mentioned that advertisers default to BARB for cover and frequency metrics, and that an incremental reach figure would be the killer feature needed for advertisers to trust online video
- The first TV ads were like display advertising but with a voiceover. Currently, online video adverts are mainly repurposed 30 second spots. Gradually, this should change.
- Neil Perkin talked about how transmedia storytelling across platforms should be emphasised. Content shouldn’t be copied onto different platforms, but should be unique to take advantage of different strengths.
- Neil Perkin also mentioned that a big challenge for online is that it lasts forever – it is not campaign based and you can’t control who sees your spot when and how.
- Channel 4 are trialing teaser 2-3 minute clips of forthcoming comedies to gauge reaction.
- Answering a question from the audience, Dan Cryan mentioned online video was seeing a renaissance of the soap opera – particularly in the United Stated where sponsored and branded content is increasingly prevalent
- And answering a question from Nick Burcher regarding the culling of Downfall mash-ups on Youtube by the studio despite the approval of both the director and the audience, Dan Cryan said “you would have to be a brave man to bet against the anarchy of distribution”. It may not always be timely or the best quality, but people will always find a way to watch what they want.
- A final question concerned the film market online. Dan Cryan mentioned the primary barrier was the windowing of films – films make most of their money on DVD within the first 12 months. During this time, they won’t be available to view on ad-funded sites, but will gradually transfer to parallel availability on pay per view or download to own sites – though this would be more likely to be situated on a TV than a computer.
From a personal standpoint, more focus on the metrics of success would have been welcomed, but as addressed in the Q&A, this is a very thorny issue. I would also have liked to have seen more from Youtube on how they are breaking down the distinction between TV and online and innovating in advertising formats – this Wario advert is one of my favourites – but nonetheless it was an interesting afternoon, with some useful tidbits from each of the speakers.
Filed under: advertising, events | Tagged: Add new tag, ben chesters, bruce daisley, comscore, dan cryan, hulu, matt brittin, neil perkin, Prime time, think video, user generated content, Video clip, youtube |