A spate of events this month argues that the industry that revolves around video entertainment and advertising (I no longer call it the "television" industry!) has entered a period where long-delayed change will burst out:
Video ad networks/technologies YuMe and TremorVideo both went public. While neither was blockbuster, these IPOs signal that investors have enough confidence in the future of digital video that they'll put some chips on the table. They see advertisers using online video to extend their TV campaigns and this sector growing at rates far higher than the advertising market as a whole.
Two $400 million + deals for cross-device video ad technologies. The much-hyped AOL/Adap.tv deal and the quieter Extreme Reach/DG deal reflect different corporate strategies, but both are rooted in the idea that the distinctions between TV and digital video will continue to diminish. Marketers increasingly realize they must put their sight/sound/motion messages on every device if they hope to achieve the reach that TV alone used to deliver.
CBS/Time-Warner dispute. The mutual benefit of carriage fees has made the programmer/distributor relationship cozy for years. Now this relationship is fraying, and outright wars that include blackout of stations like the current CBS/Time-Warner fight have become increasingly common in the past couple of years. The lure to programmers of streaming their programs online increases in direct proportion to how contentious this relationship becomes.
My new report, Convergence Disrupts Europe's TV Ad Market, looks at the fascinating landscape of TV advertising in Europe. The bottom line: disruption is coming that will make established TV buying strategies and practices ineffective. Marketers need to understand this change, and over the next three to five years, adopt new tools and strategies in order to achieve the reach and results they want from their video advertising.
While each country has unique attributes that both drive and hold back this evolution, five trends are unmistakable across the region:
On-demand viewing -- While on-demand is a small percentage of viewing time now, consumers are embracing the ability to catch up on missed favorite programs or discover other content on streaming services like LoveFilms. Younger viewers especially flock to these new viewing options and make up an increasing percentage of the classic 18 to 44 age demographic.
TV anywhere -- As relates to on-demand viewing, consumers find they're not always in their living room when they want to catch up on their favorite show. Programmers, networks, and distributors are all offering apps and services to make viewing on tablets, smartphones, and computers easy.
Original online professional content -- YouTube isn't just cat videos anymore. There is an explosion of high-quality professional content that won't ever be broadcast. I'll be watching these experiments closely to see how well they engage viewers.
Addressable advertising -- The dream of delivering different video ads to different viewers to match their interests is a marketer's dream. Long talked about -- and long delayed -- we will see the first broad market implementations this fall.
I talked with several reporters yesterday about AOL's $400 million purchase of online video technology company Adap.TV. A popular question was "Why is a media company buying a technology company?" as if they had no business being combined. The published coverage focused on the value of their technology for programmatic buying and its future application to TV as the digital evolution disrupts today's television advertising industry. Important, but I think misses a more fundamental issue: Content may be king for consumers, but the consumer is king for advertisers. And to deliver consumers to advertisers in the way they want, content companies will need to have strong technology backbones.
AOL has always trumpeted that content is king -- I remember the Bubble 1.0 days (pre AOL Time-Warner, even!) when Ted Leonsis virtually coined this phrase. Even since the Time-Warner split, AOL has continued to pursue the content-centric strategy with the acquisition of The Huffington Post, Tech Crunch, and video syndication firm 5min Media. Until now.
Are marketers in China measuring social media properly? Our data says NO. Marketers, if you are wondering at which stage you are for social media measurement and how you should improve it, the report “Social Media Measurement In China” is right for you.
In the report, we surveyed interactive marketers in China and found that most marketers are still at the early stage of social media measurement.
Social measurement is not new but very challenging. Nearly every social marketer we surveyed is measuring their social efforts. However, most consider effective measurement to be their top challenge in social marketing.
Marketers are measuring the wrong things. Most marketers we surveyed in China say increasing brand favorability is their primary social marketing objective, but most don’t conduct brand-impact surveys to measure it. Instead, the top three metrics that marketers use are number of fans/followers, number of comments, and number of shares.
We state in the report that marketers in China mature through three stages of social measurement:
Stage 1: Measure volume metrics, such as number of fans and number of shares.
Stage 2: Measure engagement, such as participation rate and fan activity.
Stage 3: Measure business success, such as brand awareness and sales contribution.
Mobile phones have changed not only the way we live and communicate. They have also changed the way we think. Customers have experienced a mind shift: They expect any desired information or service to be available, on any appropriate device, in context, at their moment of need. Technologies packed in mobile devices enable people not only to instantly consume but also to create content and maintain greater control in their everyday lives.
Customers' behaviors are becoming as sophisticated as their devices. Mobile has become the new digital hub. According to our Technographics data, 47% of European online adults who own a mobile phone use mobile apps at least weekly. Forty-five percent browse the Internet at least weekly, and 38% search for information on mobile search engines, too. In the US, 50% of online adults who use a mobile phone use their devices to check sports, weather, or news at least weekly. Forty-five percent access social networks on their phones at least weekly, and 22% research physical products for purchase! This implies that you must have a mobile component for your digital strategy. But it goes beyond this, as mobile is bridging the offline and online worlds.
Yes, mobile is a hot topic. Reading the press or listening to conferences, you may be under the impression that marketers have embraced the mobile mind shift and are really integrating mobile into the marketing mix. A significant majority of marketers told us that their senior leadership team understands the importance of mobile.
Facebook now has 819 million mobile monthly active users. That’s a huge audience. That’s actually 71% of total active users.
Yesterday, Facebook reported they generated 41% of total ad revenues via mobile. That’s pretty impressive considering they generated nearly 0% end 2011 when they had already 432 million mobile monthly users. Since the launch of mobile ads in 2012, Facebook steadily increased the share of mobile in total ad revenues: it was 23% end 2012 and 30% in Q1 2013.
There is still a monetization gap in comparison to the share of their mobile audience, but that’s definitely impressive for a new product.
There are a couple of reasons for this sharp increase. Time spent on Facebook is meaningful. Facebook’s mobile ads integrate well in the natural flow of Facebook’s news feeds. They are quite visible and are increasingly successful at driving mobile app installs. According to our European Technographics Consumer Technology Online Survey, Q4 2012, 16% of online adult smartphone owners (ages 16-plus) who use apps report that they first learned about an app via social networking websites such as Facebook. No wonder why the likes of Fiksu and other app boosters spent a lot of money on Facebook mobile ads. Cost per click increased despite a lot more clicks and ads shown.
For this approach to be successful in the longer term, there are a couple of key questions to be answered:
For B2B marketers, June 30th can have a ‘last day of school’ feel about it. It’s a chance to catch our breath after a full slate of Q1’s kick-offs and launches and Q2’s promotions, tradeshows and roadshows. But, like today’s kids, who no longer while away the summer playing in the woods or frolicking in the pool, today’s B2B marketers need to use the summer to improve: to build new skills, expand our horizons, and prepare for the new adventures that await us in the fall. Think of it as Marketing Summer Camp.
If I were the Activities Director at Camp B2B, I’d build a program of reflection, assessment, and improvement with a focus on::
People: Make learning a priority.
Pipeline: Take a hard look at marketing’s contribution to the revenue pipeline.
Process: Identify your conversion weak spots and remediate.
Given the mighty spend, the silence around the economics of content is deafening. There’s the high-level question of content marketing ROI–a topic larger than any blog post. But, at a more basic level, how many marketers plan how and where their content drives business value?
Call this the content impact model:
If marketers create and distribute content to generate value, there are two simultaneous and non-exclusive paths by which value is created:
1. Intrinsic: Consumption of the content itself brings value to the brand, by making the reader/viewer aware of the brand, its expertise or products. 2. Extrinsic: All of the value that can be extracted by a reader/viewer arriving at or opening the content (but not the content itself).
This post looks specifically at extrinsic value. This value is created or released by mechanisms that I’ll call catalysts of content marketing value.
In this report, based on the analysis of Chinese online consumers’ video consumption behavior and marketers’ spending intention, we conclude that online video is becoming mainstream to both Chinese consumers and marketers.
Consumers embrace online video and ad-supported entertainment. Forrester’s Technographics® data shows that 95% of metro Chinese online adults watch videos on a computer at least monthly, compared with 49% in the US. Also, 72% of metro Chinese online adults prefer advertising-supported free content over pay-per-view content.
Marketers are shifting ad budget from TV to online video in China. Unlike in the US and Europe where online video is taking budget from print or direct mail, marketers in China begin to shift ad budget from TV to online video.
Since the day the very first banner ad appeared nineteen years ago, advertisers and publishers have defined a served impression in a multiplicity of ways. Today, advertisers have little confidence that what they are buying is what they are getting, a factor that is contributing to the downward pressure on CPMs for display ads.
The Viewability initiative, slated to take effect formally in 2014, is the industry’s first step toward remedying the uncertainty about actual served impressions. It establishes a base line definition of what a viewable impression is and basic rules of engagement for the display ad industry, both of which I think are critical to its long-term viability.
It seems to me that agreement and implementation of a viewability standard starts the industry down the path of greater appreciation for content, context and the important work that publishers do. This is why I chose it as the topic for my first report: “Viewability Brings Transparency To The Display Ads Market.” In it, I examine the current state of affairs in the digital display market, review what publishers and marketers have to gain, and examine the costs involved in preparing for and executing on viewability.
A few findings from the report are particularly relevant for publishers:
Viewability will be table stakes by 2014. The host of technical obstacles will be overcome and a sufficient selection of measurement vendors will be accredited to allow for choice of partners
Accommodating the new standard offers publishers the opportunity to re-think site structures in order to optimize performance for both their constituencies – advertisers and consumers