ignition 2016: you missed mobile — don't miss immersive video
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P R O V I D I N G I N - D E P T H I N S I G H T ,D A T A , A N D A N A L Y S I S O F
E V E R Y T H I N G D I G I T A L .
YOU MISSED MOBILE —
DON’T MISS IMMERSIVE VIDEO
DY L A N M O R T E N S E N ,S E N I O R R E S E A R C H A N A LY S T
WE NEED TO TALK
$27.5
$14.2
$3.4$9.9
$32.8
$17.4
$5.7$9.7
USDigitalAdRevenue Google Facebook EveryoneElse
1H2015 1H2016+19%
+23%
+68%-2%
THE DIGITAL AD SPACE IS MURKY
U S D I G I TA L A D R E V E N U E , B I L L I O N S ( $ )
Source: IAB, Facebook, Google, Digital Content Next
CONSUMERS AREN’T SEEING YOUR ADS
U S D I S P L AY A D R E V E N U E L O S S F R O M A D B L O C K E R S , B I L L I O N S ( $ )
Source: Optimal.com US Ad Blocking Forecast, May 2016
$3.9$5.7
$7.6
$9.8
$12.1
2016 2017 2018 2019 2020
64%
54%
39%
36%
33%
Adsareannoying/intrusive
AdsdisruptwhatI'mdoing
Adscreatesecurityconcerns
Reducedbandwidthuse
Inappropriatecontent
AND THEY AREN’T ENJOYING THE ONES THEY DO SEE
T O P F I V E R E A S O N S C O N S U M E R S B L O C K A D S
Source: HubSpot Research, July 2016
WE’RE SEEING A PATTERN
PEOPLE SHIFTED TO MOBILE
U S M O B I L E C O N S U M E R T I M E S P E N D, % S HA R E O F T O TA L T I M E S P E N T W I T H M E D I A
Source: BI Intelligence Estimates, based on data from PwC, IAB, and eMarketer
20%25%
35%
2014 2015 2016
TimeSpend
20%25%
35%
7%11%
17%
2014 2015 2016
TimeSpend AdSpend
BUT AD SPEND LAGGED
U S M O B I L E A D S P E N D V S . T I M E S P E N D, % S HA R E O F T O TA L S P E N T O N M O B I L E
How to read: Consumers spent 20% of their media time on mobile devices, but only 7% of ad spend went to mobile in 2014.Source: BI Intelligence Estimates, based on data from PwC, IAB, and eMarketer
AND PEOPLE SHIFTED TO MOBILE VIDEO
U S M O B I L E V I D E O C O N S U M E R T I M E S P E N D,% O F T O TA L T I M E S P E N T O N O N L I N E V I D E O
34%
46%51%
2014 2015 2016
TimeSpend
Source: Ooyala Global Video Index
34%
46%51%
24% 23%
42%
2014 2015 2016
TimeSpend AdSpend
BUT AD SPEND LAGGED
U S M O B I L E V I D E O A D S P E N D V S . T I M E S P E N D,% O F T O TA L S P E N T O N O N L I N E V I D E O
How to read: Consumers spent 34% of video time on mobile, but only 24% of online video ad spend went to mobile in 2014.Source: BI Intelligence Estimates, based on data from PwC, IAB, and Ooyala
THE INDUSTRY IS REACTIVE
$27.5
$14.2
$3.4
$9.9
$32.8
$17.4
$5.7$9.7
USDigitalAdRevenue Google Facebook EveryoneElse
1H2015 1H2016
+19%
+23%
+68%
-2%
REMEMBER THESE GUYS?
U S D I G I TA L A D R E V E N U E , B I L L I O N S ( $ )
Source: IAB, Facebook, Google, Digital Content Next
360-Degree Video Augmented Reality (AR) Virtual Reality (VR)
IMMERSIVE VIDEO
Consum
erAccessib
ility
ImmersionLevel
360-DegreeVideo
AugmentedReality
VirtualReality
Consum
erAccessib
ility
ImmersionLevel
360-DegreeVideo
AugmentedReality
VirtualReality
Source: YouTube/FullMag
360-DEGREE VIDEO
Source: YouTube/Hong Kong Airlines
TRAVEL
Source: Kiosked, June 2016
9Xlonger viewing time than
traditional display ad.
HONG KONG AIRLINES SAW…
Source: Kiosked, June 2016
35Xmore effective than traditional
display, with a 4.51%click-through rate.
AND WAS…
Source: Hilton Hotels and Resorts
TOURISM
Source: The New York Times
MEDIA
Source: The New York Times
more than 600,000 initial downloads of its app,
making it the company’s most successful app launch to date.
THE NEW YORK TIMES SAW…
16.8
13.8
11.4
8.6
8.1
7.8
7.4
6.3
5.4
4.6
3.3
3.0
GMCAcadia
GameofThrones
Deadpool
Zoolander
TheConjuring
McDonald'sandAngryBirds
StarWars:TheForceAwakens
LibertyMutual
BMW
HondaCivic
MarieClaire
Oreo
BRANDS ARE EARNING MILLIONS OF VIEWS3 6 0 -D E G R E E V I D E O V I E W S O N Y O U T U B E A N D FA C E B O O K ,
I N M I L L I O N S
Source: Advrtas, November 2016
Consum
erAccessib
ility
ImmersionLevel
360-DegreeVideo
AugmentedReality
VirtualReality
AUGMENTED REALITY (AR)
Source: Sephora
RETAIL
Source: DAC Group, 2016
1.6 million downloadswithin the first eight weeks of its
launch.
SEPHORA SAW…
Source: Complex
FOOD AND BEVERAGE
Source: Blippar
SNICKERS CAPITALIZED ON THIS THROUGH AR
Source: CBS Interactive, 2016
67%of executives not currently using AR are considering adopting it.
AUGMENTED REALITY IS IN DEMAND
Consum
erAccessib
ility
ImmersionLevel
360-DegreeVideo
AugmentedReality
VirtualReality
Source: Hawaii VR
VIRTUAL REALITY (VR)
Source: Lionsgate/Otherworld Interactive
ENTERTAINMENT
Source: Vertebrae, 2016
LIONSGATE SAW…
57%a 57% voluntary replay rateof VR users who came across its
Blair Witch VR ad.
VIRTUAL REALITY DRIVES MORE…
…ENGAGEMENT
+27%...elicits 27%
higher emotional
engagement.
Source: Neilsen, YuMe, November 2016
+34%...and 34% longer
engagement periods.
…AND VIEWS
V I E W -T HR O U G H R AT E S , B Y D E V I C E T Y P E
Source: Immersv, August 2016
0.4%1.0%29.8%
YES, THERE’S DEFINITELY A LOT OF HYPE
$86 $238
$787 $703
$2,606
23 41 60 137 152
2012 2013 2014 2015 2016
AmountInvested NumberofDeals
BUT INVESTORS ARE POURING MONEY INTO IT
G L O B A L I N V E S T M E N T I N V R A N D A R C O M PA N I E S , M I L L I O N S ( $ )
Source: CB Insights, July 2016
+271%
Source: Reuters, 2016
MAJOR COMPANIES ARE BETTING ON IT
In their Q1 2016 earnings,38 companies highlighted VR as part of their business plan. That’s a 375% jump
year-over-year.
CONTENT IS SKYROCKETING
The global VR content market is expected to grow at a CAGR of
128% from 2016 to 2020.
Source: IDC, Google, Facebook
By 2020, over 20% of commercial media on Facebook will be in a 360-degree format.
$1,333
$928
$524$365
$67 $47
2016 2017 2018 2019 2020 2021
Stand-alone
PCandgame-console-powered
Smartphone-powered
PRICES ARE DROPPING
Source: BI Intelligence Estimates, based on current headset prices
A V E R A G E S E L L I N G P R I C E F O R E C A S T F O RM A J O R A R /V R HE A D S E T C AT E G O R I E S
$Change
-405
-159
-20
AND WHILE VR PENETRATION IS STILL LOW, THERE’S LONG-TERM OPPORTUNITY
U S V R D E V I C E P E N E T R AT I O N , % O F C O N S U M E R S W HO HA V E A V R HE A D S E T
Source: Strategy Analytics, July 2016
6%
16%
27%
33%
40%
2016 2017 2018 2019 2020
84%
8%
3%
3%
2%
Ihaven'thadtheopportunity to
Idon'tseeauseforit
Ithinkitwouldmakemesick
Other
Iwouldn'tlikeit
BECAUSE CONSUMERS HAVEN’T HAD THE CHANCE TO TRY IT YET
HA V E Y O U E V E R T R I E D A V RD E V I C E ?
W HY N O T ?
NO55%
YES45%
n=920Source: BI Intelligence Exclusive Data, October 2016
Source: Greenlight Insights, 2016
BUT THEY’RE INTERESTED IN IT
74% of consumers expressed interest in travel,
tourism, or adventure VR content.
Source: Nielsen Media Labs, 2016
AND ARE CONSIDERING PURCHASING IT
One in four consumers aged 18 to 54 are considering purchasing a VR device in the
next year.
0.78.2
12.017.3
24.4
33.0
42.6
55.1
2015 2016 2017 2018 2019 2020 2021 2022
WHICH WILL DRIVE SHIPMENTS
G L O B A L V R HE A D S E T S HI P M E N T S F O R E C A S T, M I L L I O N S
Source: BI Intelligence Estimates
THE INDUSTRY IS REACTIVE
WE’RE SEEING A PATTERN
WE’RE SEEING A NEW PATTERN
SO NOW IS THE TIME
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