dive video
TRANSCRIPT
OMD Copyright 2015
Welcome to Dive Video, the third and final installment of the OMD Dive Series Trilogy. We started the DIVE Series in 2014, to investigate and demystify the biggest challenges facing the China marketers. In that spirit, we chose Social, Mobile and now Video.
China’s digital video market has evolved swiftly. CNNIC report for 2014 pegs digital video viewers at 461 million and is expected to cross 500 million this year. This has been complemented by sky rocketing ad spend on digital video—eMarketer forecasts it ill hit RMB 25 billion in 2015. The exponential growth of both users and ad spending have brought new challenges to all of us.
We found that current studies mainly focused at the superficial level on digital video: ad spend and time spent. However, as video becomes the main diet of entertainment across demographics, it was important to understand not only the consumers’ motivations and attitudes, but also how effective it is a medium.
We started this project last year hoping to unravel and interpret those mysteries. Our objective was to uncover the answers for all stakeholders—Advertisers, Video sites as well as Agencies. For this we used a two pronged research approach that leveraged proven and tested research methodologies with latest technology based (cookie and SDK) methods.
For the 1st phase we partnered with Admaster using tags for our client’s campaigns. This enabled us to map device, location as well as frequency of exposure. This is the first cross device study in China that measures
advertising effectiveness with real campaigns. It has given us and our clients real data to plan & optimize video campaigns across devices as well as guidance for online video sites on how to monetize their inventory.
For the second phase, our objective was to understand the consumer journey towards watching a video. What are the motivations, what are the barriers and more importantly what can an advertiser or video owner can do to influence it? Dive Video will also tell you consumers’ preference towards content, why shows become big and how niche video sites have an edge.
We are very grateful to our sponsors—Sohu, PPTV, Youku, Tudou and LeTV for their support for this initiative. We also owe our gratitude to our media partners who provided us with inventory for the research. Most importantly, our thanks go to our clients across OMG whose campaigns were part of this path breaking research. Lastly, I would commend our research partners: Mintel & Admaster for being part of Dive Video.
Dive Video will unravel all of the mysteries in the industry, clarifying the best way to use video for advertisers, video sites and agencies. It provides the roadmap for both those who are producing and promoting content as well as those advertising across different devices.
We are now proud to present our research: Dive Video. I hope you find Dive Video inspiring and useful in the next phase of improvement of Video marketing and advertising.
BHASKER JAISWALManaging Partner—Business Intelligence, OMD CHINAF
OREW
ORD
Thank you to our participating brands, sponsors and contributors.
SPONSORS CONTRIBUTORSBRANDS
5
Netizens spend 80 minutes a day watching online video67% of all internet users watch online video
Source: iMediaMatrix, CNNIC
6
The average number of online videos we watcha week13
Source: iResearch 2015
Digital adspend is shifting to video
38.6% 36.8%
25.2% 25.7%
20.0% 24.8%
0.9%0.8%
15.3% 11.9%
Q4 2012 Q4 20147
PAIDSEARCH
BANNERS
VIDEO
OTHERS
Source: Analysys International Enfodesk, “2015 China Digital Advertising Marketing Report” March 3 2015 via eMarketer
0
2,000
4,000
6,000
8,000
10,000
12,000
2007 2008 2009 2010 2011 2012 2013 2014
AD
SP
END
CN
Y M
illio
ns
Video Ad Spend
Adspend growth has exceeded expectations
8
We talk about online video a lot
9
But maybe we’re not asking the right questions
There are many challengesto doing online video “right”
10
CONTENT ADVERTISING
No tracking of competitors and limited postbuys
Data is not robust or does not exist
Vendors struggle to price online video inventory across devices
Limited understandingof differentiation of OTV channels
Little understanding of OTV consumer journey
No clear trendson what drives OTV viewership
2 prong approach
11
Using AdMaster’s tracking tags and SDK codes we tracked 17,500 consumers and measured their exposure to our ads, mapping them to device, location and OS. We then surveyed them to measure consumer response to advertising.
1ADVERTISINGTracking and Survey 2
CONTENTQualitative and Quantitative Study
Working with Mintel we conducted qualitative and quantitative research across Tiers 1-4, querying 2,300 consumers on their OTV watching habits
12
Online video is our
leisure activity of choice
Leisure time is equally spent offline and online, with lower tiers spending more time online
ONLINE
49%OFFLINE
51%
13
46%54% 52%48%
TIER 1 TIER 2
51%49%
TIER 3 & 4
Boredom is the great OTV trigger
14
34%
19%
7% 6% 5% 5% 5% 4% 4% 3%
REASONS FOR WATCHING OTV
15
When I’m free, I usually watch OTV to kill time, so I won’t be so bored.(Female/22/Shanghai)
BOREDOM
It’s impossible to have no work pressure. When my boss curses during a meeting, or when I'm not meeting business targets,I feel pressured and will watch OTV to relax.(Male/44/Shanghai)
PRESSURE
Watching OTV can broaden my world view, for example, I can see the overseas scenery I’ve never seen before.(Male/20/Zhongshan)
INFORMATION
The majority of our leisure timeis spent on OTV
16
17
Online video watching
is habitual
Most of us already know what we want to watch before we start
18
KNOW 69%
DON’T KNOW 31%
Our habits vary by device
19
KNOW
DON’TKNOW
71%
29%
64%
36%
53%
47%
74%
26%
We basically use the same device everywhere but home
But we still watch OTV most at home
21
We have our favourite apps
22
22%22%
15%8%7%
6%
Dominant players have the trifecta of loyalty, time spent and videos watched
23
PhoenixSina
Ku6
LeTV TudouSohu
PPTV
Tencent
iQiyi
Youku
-50
0
50
100
150
200
250
300
350
400
0% 10% 20% 30% 40% 50% 60%
WEE
KLY
TIM
E SP
ENT
LOYALTY
BUBBLE SIZE=VIDEOS WATCHED A WEEK
Habit and user experiencedrive our platform choice
24
41%consistently choose their favourite video platform above others because they “just got used to it”
6%
7%
9%
12%
13%
15%
15%
17%
17%
24%
32%
41%
Ability to upload my own clips
Clear interface and layout
Has exclusive rights for an OTV show
Easy to navigate
Has all kinds of programs
Has many of my favourite programs
Ability to download programs for later
Has much less ads
Regular updates for shows
High definition picture
Smooth playing
Just used to it
USER EXPERIENCECONTENT
Different sites attract audience for different reasons
25
Just get used to it
Smooth playing
High definition picture
Regular and timely updates for its programs
Much less ads
Tier 1 have far more sophisticated needsthan the lower tiers
26
TIER 1 TIER 2 TIER 3 & 4
Just get used to it
Smooth playing
High definition picture
Regular and timely update for its programs
Much less ads
Can download the program for later watch
It contains many my favourite OTV programs
Have all kinds of OTV programs
Easy to navigate
Have exclusivity right for OTV program
Clear interface and layout
Can upload my own video clips to the APP
Can make my own comments while watching OTV
Screen lock
27
Content
differentiatesniche players
People actually want a few key things from the online video content
35%33%
29%
26%
19%18%
16% 16% 16% 15%
12% 12%11%
7% 7%
28
Content people want isrelatively the same everywhere
29
Shows that pique our interest have a few core elements
30
Funny
A good story
New ThemeClose to real life
Celebrities
RunningMan
I'm a Singer
Happy Camp
Where are you goingDaddy?
Hua Qian Gu
But content isn’t a great differentiator
31
Niche players need to rely more on self produced content
32
YoukuiQiyi
TencentTudou
Baidu
Sohu
LeTV360 Video
PPTV
Sina Video
Bilibili
Ku6China Internet TV
Phoenix
Popcorn
60
80
100
120
140
160
180
200
220
240
0% 5% 10% 15% 20% 25%
IND
EX S
ELF
PR
OD
UC
ED C
ON
TEN
T A
S A
P
LATF
OR
M C
HO
ICE
DR
IVER
SITE WATCHED MOST OFTEN
33
Winning an audience for content
requires an offline-online approach
Offline and online play an important part in how we discover shows
34
41%37%
32% 32%
24%
16%
10%7% 6% 5% 5%
SOURCES YOU LEARN ABOUT OTV PROGRAMS
Different devices have different push media
35
Search
Friends
OOH ads
Friends
TV AdsTV Entertainment
Programs
Search
OTV Platform
Social media
Search
Social media
OTV Platform
However, positioning on an OTV platform is key when users don’t know what to watch
36
HOW DO YOU FIND OTV TITLES IF YOU DON’T KNOW WHAT TO WATCH?
Tier 1 non-deciders use morediverse ways to find content
37
38
Video ads
are effectivebut only in certain forms
OTV ads are preferred over a multitude of formats
39
MOST ATTRACTIVE AD FORMAT
24%23%
21%19%
18%
15%14%
13% 13%12%
11% 11%
7%6%
OTV ads also perform better than TV in many factors
40
RELEVANCE
TRUSTWORTHINESS
55% 45%
46% 54%
VARIETY 63% 37%
INTRUSIVENESS 60% 40%
VS.
TVOTV
But OTV ads are the number 1 cause of dissatisfaction for OTV platforms
41
0%
10%
20%
30%
40%
50%
60%
70%
80%
Fees Content UserExperience
Ads
Fees Content User Experience Ads
Too Many Ads52%Ads run for
too long24%
Too much repetition
24%
NEUTRALJust wait until its over
Mute the speakersRest my eyes
Watch the ad absentmindedly
Click on ad if it features interesting products
POSITIVE
Go to the bathroomDo something else
Just walk awayGrab some snacksMake a cup of tea
Have a quick smokeSwitch platforms
Open another websiteStart another OTV program
Play with mobile phone
NEGATIVE
Reactions to OTV ads are overwhelmingly negative
42
87%6%
7%
We distract ourselvesduring adbreaks
43
10%
13%
11%
Product Recall
58%
47% 47%
Ad Recall
The time we spend watchingmobile ads is the most effective
8%
13%13%
Purchase Intent
44
22%
26%29%
Brand Recall
PC Smartphone Tablet
CONSUMER RESPONSE TO ADVERTISING BY DEVICE
15s video ads outperform 30s adsacross all brand metrics
63%
25%
14%9%
48%
18%
5% 6%
Ad Recall Brand Recall Product Recall Purchase Intention
15s 30s
45
This is even more pronouncedon mobile devices
46
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
PC Smartphone Tablet
PURCHASE INTENT
15s 30s
0%
2%
4%
6%
8%
10%
12%
14%
16%
PC Smartphone Tablet
PRODUCT RECALL
15s 30s
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1 2 3 to 5 6 to 10 11 to 15
AD RECALL
Increased frequency does notalways lead to uplift in recall
47
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1 2 3 to 5 6 to 10 11 to 15
BRAND RECALL
PC Smartphone Tablet
Nor does it drive increasein product recognition
48
0%
5%
10%
15%
20%
25%
1 2 3 to 5 6 to 10 11 to 15
PRODUCT RECALL
0%
5%
10%
15%
20%
25%
1 2 3-5 6-10 11-15
PURCHASE INTENT
PC Smartphone Tablet
49
Online video is our leisure activityof choice1Online video watching is habitual2Content differentiates niche players3Winning an audience for contentrequires an offline-online approach4Video ads are effective, but only in certain forms5
50
Implications for advertisersFrequency cappingis necessary for efficient campaigns1
Shorter ads have better ad, brand and product recall. Maximize OTV efficiency by utilizing 15 second ads
2 3Mobile (tablet and smartphone) is a key device for advertisers; promotional campaigns need heavy mobile support
4OTV ads still perform better than almost all other media. All digital campaigns should have a video element
Branded content needs support from outside theOTV ecosystem to ensure viewership; use search and social to bolster views
5
51
Implications for OTV platformsDevelop flexible monetization and pricing models for mobile ads to reflect consumer response to different devices, frequencies and length
1Promote OTV content off platforms, and ensure shows you want promoted have homepage visibility
2 3Niche players need to focus on delivering exclusive content and advertising it to break habitual viewing habits
4Improve user experience. It can still differentiate channels, especially amongst competitors within the same space
Ensure OTV-made content hitat least 3 of consumer content needs5
Much more
CONSUMER DEVICE
PREFERENCE DEEP DIVE
CONSUMER CONTENT
PREFERENCE BY DEVICE
CONTENT DISCOVERY BY TIER AND
DEVICE
ONLINE VIDEO AD RESPONSE
BY CATEGORY
ONLINE VIDEO AD RESPONSE
BY AUDIENCE
FULL USER
JOURNEY
Much more
CONTACT US
Jeanette Phang
[email protected] BUSINESS INTELLIGENCE
Bhasker Jaiswal
[email protected] PARTNER - BUSINESS
INTELLIGENCE
Alessandro Pang
[email protected] BUSINESS INTELLIGENCE