How do brands navigate the complex video landscape

According to the latest IAB PWC Expenditure report video expenditure has grown by 45% year on year. This is a sizable pie, which as per the PWC Entertainment and Media Outlook is estimated to grow at a 23.8% CAGR between 2018 and 2022. This increase has partly been due to the shift in brand dollars out of Television to online video. Internet Advertising (1)Unsurprisingly in the last three years every network has invested more dollars into creating more inventory by commissioning original content or attracting external creators. Last week Facebook Watch entered this increasingly crowded video marketplace with more entrants such as CBS and Disney expected to launch their offerings soon. But these platforms have some serious catching up to do with Netflix already approaching 10mn subscribers this month, and continuing to invest heavily in new shows.

Australian video landscape

There has been a lot of new research and rhetoric from all players this year using planks like ‘premium’ and ‘brand-safe’ to try to position themselves over other competitors. I think we need to look at it from the consumer’s point of view rather than the aperture of individual platforms. In the matrix below I have attempted to create a rudimentary overview of the screen content landscape.

The two upper quadrants have platforms with longer studio scripted content while the lower quadrants have shorter, influencer or user-generated content. The quadrants on the right allow users more choice and convenience and they are more active when seeking or consuming specific content. On the left users are passive or just grazing through feeds.Video Landscape (1)

In the top left is TV which is the still the leading screen with a higher time spent per month compared to video on other devices. TV, Cinema and Digital OOH in combination are great for reach building in the awareness stage of customer journeys. Linear TV’s sibling BVOD just released a fact pack of stats about its outstanding growth on the back of of a rise in connected TV viewing in H2 2018. Those who watch are highly invested in this content (and the experience is passive) so with most content being watched to completion it provides advertisers the ideal environment for 30 second brand TVC’s in pre or mid-content breaks. However I see BVOD as just complimentary to Linear TV as the content is similar and the choice is limited to a few genres. If you don’t enjoy dating, food shows and renovating or not all of them then you will seek content from other sources.

This is where SVOD (Netflix, Stan) and TVOD (NBA Pass, Optus Sports, YouTube Premium etc.) services in the top right quadrant offer more choice and control for those who aren’t satisfied by content from our major broadcasters. The most talked about shows like Stranger Things or Making a Murderer are now the ones created by Netflix and Amazon. Also mainstream FTA doesn’t cater enough to our multi-cultural audiences who often subscribe to IPTV services or use media set-up boxes to access content more suited to their cultural tastes. In other countries with large overseas born or multi-lingual populations cable television caters to this need by combining large bouquets of channels at a low enough entry price. This quadrant may not offer advertising opportunities but will continue to pull viewing minutes away from other video platforms.

Netflix Amazon Content Investment

In the bottom left quadrant the first cluster is a group of platforms trying to create video hubs with the hope that they can create sticky experiences and keep users coming back. The goal is to attract TV dollars, but as always the success of the content will prove the difference. YouTube has a head start and considerable success as it has courted ‘creators’ for many years. Advertisers have been able to use creators to endorse their products, and also buy into the Google Preferred advertising line-ups using TV metrics although brand-safety concerns remain. It remains to be seen if Snap, Instagram and Facebook can attract publishers and creators, and create enough original content to monetize against. Also can they differentiate based on the social viewing experience as Facebook has announced.

Separate to these hubs is the video content we are already used to seeing in social feeds of Facebook, Instagram and Snapchat. The challenge here is that users generally scroll quickly through feeds so the creative needs to be tailored to each platform to get users to pause and view their ads. What works on Facebook news feed may not work on Instagram or Instagram Stories, and brands are at the mercy of ever changing algorithms.

In the last quadrant is YouTube the big daddy of online video. This is where most of us spend our time ‘discovering’ and are in active viewing mode. There are over 400 hours of video uploaded daily, and ‘how-to’ searches are growing 70% on YouTube making it the second largest search engine. These platforms are democratized allowing any user to upload content, which creates scale but also brand safety issues. Amazons Twitch is fairly new to Australian advertisers but offers access to a massive young male audience and also e-sports fanatics.

What does this mean for brands and consumers

Consumers have never had it so good, as they have multiple ways to access and enjoy their favourite content. I don’t think consumers will choose one over the other but we will use platforms as per our needs or simply multi-screen.

For brands the complex landscape will need them to use more sophisticated screen planning tools to ensure optimal reach. Not all platforms will be needed by all brands as each brand will have a different communication objective and customer journey.

However one cannot ignore new platforms if they prove popular so expect more brands to have an always-on video approach and more test and learn activity in the coming year. Creative partners will be expected to have the expertise to plan and deliver video assets across all these multiple platforms and devices.

Finally while everyone is shouting reach numbers the real battle should be for attention and impact on sales as the strength of video is as an impactful story-telling format. Unfortunately these are tougher metrics to measure than click-through rates and completion rates.

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Can Facebook Watch make TV social again

This week Facebook Watch the on-demand video service was launched into the increasingly crowded Australian video marketplace. The service was first launched a year ago exclusively in the U.S. Facebook has added discovery and participatory viewing (like Watch Party) features to the service over the course of the last year. Along with the international roll-out more publishers can now use ‘Ad-breaks’, which allows content creators to run pre, mid-roll or image overlay advertising on their content.

My first thought was to figure out where Facebook Watch fits into the video landscape. I recently wrote a piece about this, and used the matrix below to plot the current players.

Video Landscape (1)I’ve put Facebook Watch in the bottom left quadrant in a cluster of a group of platforms trying to create video hubs with the hope that they can create sticky experiences and keep users coming back. Until there is a vast content library, and the social features take off with audiences its a middling offering. If the goal is to attract TV dollars, Facebook watch will need to add more titles and also shows relevant to Australian audiences. The fascinating graphic from Statista below shows how the likes of Netflix and Amazon are way ahead of Facebook in terms of spend on content.

Video_content_spending_in_2017

The initial videos added to my Watch playlist were mostly those that my friends had liked or from pages I was following. I have found it useful to watch short clips of stand-up comedians, US talk shows, sports highlights rather than go to YouTube and search for these. But I had the same affection for Instagram TV for a week before I abandoned it and surrendered to Netflix 100%.

Facebook and social viewing

Facebook has gone on a buying spree picking up lucrative sports rights and commissioning shows, and if its intended watch and connect behavior works it would set it apart from other streaming services. This would take it to the right of the matrix, and make for a more active user experience. A couple of years ago Periscope was used in this manner by fans watching live steams of sporting events like boxing and UFC.

This social viewing has been attempted before by Netflix and YouTube but didn’t really catch on. At the last election Facebook live-streamed the third election debate on the News Limited page to luke warm results. Perhaps a more popular and engaging topic like a reality show launch episode or a one-off game show might elicit more social and live engagement. However Facebook is already a social network with proven engagement and community building capability. With the right content it has a good shot at making it work.

The other feature Watch Party (enabled within Groups) could be another secret weapon as the people we want to discuss our favorite show moments with are often are close friends who are already connected on Facebook. The caveat is that only videos that are already on Facebook can be shared, which means first getting creators to put their content on the platform.

Facebook Watch Party

I’m surprised that there have been no partnerships have been done with reality shows like The Block and The Bachelor to encourage Watch Parties by Facebook Groups comprising fans following these shows using highlight clips hosted on their Facebook Pages.

The skinny is that until social viewing can be proven or there is original programming relevant to Australian viewers we’ll have to mostly settle for watch lists from brand pages we already follow. Until then this is not a game-changer by any means except a new placement for brands to trial their existing TVC’s on.

 

Five marketing implications for a multiscreen world

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The recent Q2 2015 Australian Multi-Screen Report – from Regional TAM, OzTAM and Nielsen, underlines the trend in declining broadcast TV viewership and a consequent rise in viewing on other screens. In this review I enumerate five key stats and their implications for marketers.

Finding: TV still accounts for 88% of video viewing, with 90% of this live broadcast

Implication: TV still rules all video screens

Linear TV alone has the ability to aggregate large audiences upwards of 900mn within a short window. This proposition has and will always be attractive to brand and retail advertisers who need to quickly build reach for a new product launch or tactical message. This is why sports properties are grabbed for huge sums and reality TV shows are often flagship properties for television channels. Unlike online video which is silent and skippable, TV offers an interruptive audio-visual combination to a captive audience which is better for message delivery. Apart from building awareness through TV spots, savvy advertisers can also use TV properties as a platform for deeper audience engagement through program integration and off-air activations.

Finding: Multiple screen ownership and usage is on the rise

Implication: Tell campaign stories across screens

The learning for marketers is to create video content that is consistent across screens and seamlessly continues the narrative. Storytelling tactics include targeting people who saw your Facebook ads with a follow-up ad on Instagram or, retargeting people who saw one of your videos on YouTube with videos that continue the story. Through the power of programmatic technology at my company ZenithOptimedia we are syncing our mobile video ads to appear at the same time our own brand spots or those of our direct competitors air on TV.

Finding: 12% of viewing is on non-TV connected devices

Implication: Adopt dynamic advertising formats native to each screen

As linear TV viewing dwindles and viewer’s time-shift, the ‘hero’ 30 sec brand commercial in ad breaks is no longer the only format to focus on. TV ads need to be more than they’ve always been and offer elements like mobile interactivity (Shazam) as well as supplementary online content (extras, behind-the-scenes). As vertical screen usage rises, video assets now have to be created separately for this different orientation. In online environments, ads autoplay often on silent mode – the creative needs to have prominent branding in the first 0-5 seconds before users have the option to skip or a view is charged. In our experiments we are seeing strong interaction rates with formats like Innovid and YouTube shoppable ads.

Finding: Younger audiences migrating away from broadcast TV to other screens

Implication: Follow young age groups to the platforms they spend most time with

Increasingly younger audiences are tuning out of mainstream media and into video content delivered by new media outlets like VICE and Buzzfeed. Similarly, YouTube content creators have huge social and cultural clout among their many followers and generate millions of views via their channels. Marketers need to carve out of their television commercial production budgets to tap into these influential channels in order to resonate with future generations.

The concept of waiting months for a new series in the US to air locally is alien to the next generation of adults as is waiting a week for subsequent episodes. In this era, Netflix and pirate sites aren’t the enemy – they have merely served changing consumer demand for immediate choice and binge watching.

Finding: Television is increasing being used for other purposes (up 2:24 yoy)

Implication: Don’t over-focus on content at the expense of placement

While a lot of the focus has been on content, how Australians set up their entertainment has also changed. OTT and streaming devices like Chromecast, Roku and Apple TV are increasingly becoming common in our homes and content creators will have to ensure their integration into the major distribution platforms. Currently these platforms lack content that TV viewers desire but once they do we may well be accessing content via apps on our television sets instead of switching channels on a remote. Marketers need to follow the path of savvy marketers who have trialed new opportunities like Honda’s Honda in-program integration with US program Community or Redbull who developed their own bespoke channel.

Summary:

For true cross-screen campaign management, there needs to be consensus on a common currency at both the buying and evaluation stages. The ideal scenario for any marketer is to have campaign reporting on audience reach (and duplication) across all the screens that a piece of content was run. This would include linear TV, subscription TV, connected TVs, game consoles and all online devices irrespective of the type of buy being direct, self-managed or programmatic. The challenge is three-pronged; finding a robust way to measure usage across devices, reworking historical trading practices and most importantly bringing competing parties to agree on the common currency.

In the future a video strategy will no longer be about creating one video and then distributing it across every screen in the same form. Programmers and content creators will aim to deliver content that is available on-demand on every screen. The media companies who come out in front will be the ones who transform their business models to rely on multiple content monetisation and distribution streams. And those organisations that solve the total video measurement conundrum and prove cross-platform evidence of success will win the lions share of brand dollars from advertisers.