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Friday, April 25, 2014

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Analysis for 'Nielsen'

  • BrightRoll Forms Partnerships to Accelerate Programmatic Video Ads

    BrightRoll announced a number of new and expanded partnerships this morning at its BrightRoll Video Summit, all intended to accelerate programmatic video advertising. They include:

    comScore and Nielsen - Integration of comScore's Validated Campaign Essentials (VCE) and Nielsen's Online Campaign Ratings (OCR) so buyers can tap into this measurement data in planning, targeting, optimizing and reporting on their campaigns. Access to the data is being provided free to buyers.

    Google - A programmatic integration with DoubleClick so that video ad buyers using BrightRoll will be able to gain real-time access to high-quality inventory in the DoubleClick Ad Exchange, which includes YouTube.

    BlueKai - Last, BrightRoll announced that mobile audience targeting is available, with BlueKai as the first 3rd-party mobile data provider that has been integrated. Others are expected this year. The mobile capability means buyers using the BrightRoll platform will be able target audiences beyond desktops, on smartphones and tablets. BlueKai includes 20,000 data categories in a marketplace of 70 million unique iOS and Android users.

    (Note: I'm attending the BrightRoll Video Summit this morning and will be continuously tweeting highlights at #BRVS.)

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  • Perspective What's this? "Effectiveness" Identified As Next Stage of Digital Video Ad Measurement

    TV is moving to digital - and fast. Today, billions of digital ads are seen everyday by millions of online viewers, yet 99% of those ads are repurposed from television and often measured by traditional TV metrics of reach or gross ratings points (GRP).  Not only is this inefficient, but it also only scratches the surface of measurement’s potential for digital video.  

    Last week, our company hosted a panel discussion in New York City with top industry leaders and agency executives to discuss the evolution of measurement beyond the current standard of impressions and GRP. We agreed that using the same success metrics as TV measurement for digital video is insufficient and the true potential of what digital video can accomplish for brands will only be reached when we look at factors such as post-impression activity, increased website visitation, lead generation, and even offline sales. These metrics looked at the broader effectiveness of digital video ads beyond simply reach.

    Some of the questions addressed by the panel included: is the industry ready to add more customized measurements what should they be? What challenges do they bring? How can we balance between the need for a standardized measurement unit and customization (the specific needs each brand advertiser)?

    It was a great night and I wanted to share some of the key perspectives from the panelists during the discussion:

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  • Putting the Silly Debate Aside: Online Video and TV Advertising Are In Fact Complementary

    Reading through a WSJ article yesterday, "Advertisers' Dilemma In Online Video - Reach or Frequency?" it struck me once again how silly it is to keep reinforcing a debate of online video advertising versus TV advertising. Five years ago this debate may have had some merit. But in 2014, savvy advertisers know it's really online video advertising and TV advertising. The two are highly complementary and are actually blurring as many of the traditional distinctions between them continue breaking down.

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  • Nielsen: Over Half Of Broadband-Only Homes Are Age 18-34

    Nielsen released its latest Digital Consumer Report yesterday, finding among things, that 52% of broadband-only homes in the U.S. are in the 18-34 age range. Nielsen notes this group accounts for fewer than 5% of total U.S. households, but believes it's important to understanding the future digital living room. Nielsen said 80% of this group owns game consoles and 41% tablets, both twice the rate of traditional TV households.

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  • Multi-Screen Ad Budgets to Increase from 20% Today to Nearly 50% in Three Years: Nielsen/ANA

    According to a recently released study by the Association of National Advertisers (ANA) and Nielsen, multi-screen advertising will grow from 20% of advertisers' budgets today to nearly 50% in the next three years. While 48% of respondents said they believe multi-screen campaigns are very important in effectively delivering marketing messages, almost twice as many (88%) believe that these types of campaigns will be very important in three years. 


    One of the biggest issues for multi-screen advertising is measurement due to a huge gap between existing measurement approaches and how respondents would prefer to measure integrated multi-screen campaigns. 71% of survey respondents said they use a variety of metrics specific to individual screens, but 73% said they would prefer to use just one set of metrics across all screens.

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  • Nielsen: 88% of Netflix and 70% of Hulu Plus Users Now Binge-Viewing

    Nielsen released additional data from its Q2 2013 Cross Platform report substantiating the trend toward "binge-viewing." Nielsen found that a whopping 88% of Netflix users and 70% of Hulu Plus users say they watch 3 or more episodes of the same show in one day.

    The Nielsen data is directionally in line with survey results that Piksel released last week showing 94% of respondents engage in some type of binge-viewing behavior, either watching episodes together as quickly as possible, watching 1 or 2 every few days, or some combination of the two behaviors.

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  • VideoNuze Podcast #195 - FremantleMedia Capitalizes on 2nd Screen Apps; Mobile Video's Surge

    I'm pleased to present the 195th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. Colin patched in from Amsterdam, where he's attending the big IBC show. Colin sat in on an interesting session with Keith Hindle, CEO of FremantleMedia's Digital & Branded Entertainment Division. For those not familiar with Fremantle, it is one of the biggest producers of TV shows in the world, with credits like American Idol and The X Factor.

    Colin shares some of Hindle's key observations about how the TV landscape is shifting, the powerful role of 2nd screen apps in attracting advertisers, the paradigm of "paid/owned/earned" media and how to balance TV distribution vs. online (Fremantle is the 12th-ranked YouTube content partner). Lots of great insights.

    We then shift our focus to the plethora of data this week quantifying the surge in mobile and tablet viewing. I have covered new reports from FreeWheel, Ooyala, VEVO and TubeMogul this week, all supporting this trend. VEVO in particular is capitalizing, with 50% of its views now on mobile, tablet and connected TVs (note, the success of VEVO TV has been a huge contributor on the latter).

    Still, as we agree, it's important to remember that TVs and desktops are where the vast majority of video viewing currently occurs, per Nielsen and FreeWheel data respectively. This is changing each quarter, but it's an evolutionary, not revolutionary shift.

    Click here to listen to the podcast (17 minutes, 43 seconds)




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    (Note there is a 3 second drop-out in the audio mid-way. Apologies, we're not sure what happened. During it, I am referencing VEVO TV.)

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  • Is the Day-Part Dead In an Always-On World? [AD SUMMIT VIDEO]

    The leadoff session at the recent Video Ad Summit focused on changing consumer viewing behaviors and how they upend the traditional concept of programming by day-parts. We had a great cross-section of perspectives from panelists including Ken Lagana (SVP, Sales, CBS Interactive), J.R. McCabe (SVP, Video, Time, Inc.), Andrea Palmer (VP, Group Media Director, Digitas) and Chris Smith (VP, Video and Mobile, Collective), with Jonathan Carson (former Global President, Digital, Nielsen) moderating.

    The video is below and runs 43 minutes, 12 seconds.

    Watch the video

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  • Nielsen: Social Dominates Video on Mobile Devices and Online Viewing is Up Strongly

    Periodically someone asks me how I think of the relative level of social networking use vs. video consumption. Of course they have both have been huge trends over the past 5 years, and they are very complimentary to each other. But, at least when it comes to mobile devices (smartphones and tablets) social dominates video in terms of time spent according to Nielsen's Q1 Cross-Platform Report, released late last week.

    Looking at app-only usage on smartphones, social networking notched 9 hours, 6 minutes per person per month, nearly 8x as much as the 1 hour, 15 minutes of video viewed per person per month. For iPads, the range is tighter, with app-only social networking racking up 3 hours, 41 minutes per person per month, just over twice as much as the 1 hour, 48 minutes of video viewed per person per month. This makes sense to me because the iPad is more of a "personal TV" and therefore prone to longer-form viewing.

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  • The Art and Science of Audience Targeting [AD SUMMIT VIDEO]

    At the June 4th Online Video Ad Summit, audience targeting was a recurring theme. We had a dedicated session on the topic, led by Richard Glosser of Hilltop Digital, with panelists from Altitude Digital, Nielsen, Xaxis and Videology. Topics ranged included the role of Nielsen's Online Campaign Ratings, targeting across platforms, how programmatic fits in, the value of different types of data sets and more. (Duration is 39 minutes.)

    Watch the video

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  • For YouTube, Size and Youth Matter Most

    YouTube has been the undisputed 800-pound gorilla of the online video market since the beginning of time. And it's key message to advertisers at last night's "Brandcast" NewFront event was to emphatically remind them of its massive size and its reach into the youth market, factors it believes should drive advertisers' attention and spending.

    Whereas last year's Brandcast was all about the 100 new channels that YouTube was funding/launching, this year's event was more of a return to its roots: it's ability to give native digital talent the platform to reach and grow huge audiences. Because a lot of this talent resonates first and foremost with younger digital natives (in Nielsen parlance "Generation C"), YouTube says it's in a unique position to deliver these audiences.  YouTube cited Nielsen data that it reaches more 18-34-year-olds than any cable network.

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  • Netflix Reports Solid Q1 Results, But Can It Actually Grow to 2-3 Times HBO's Size?

    Netflix reported solid Q1 results yesterday, gaining 2 million streaming subscribers in the U.S. and another 1 million internationally. Netflix now has 27.9 paying subscribers in the U.S. and 6.33 paying subscribers internationally. With growth re-started since the 2011 Qwikster debacle, a persistent question is how big can Netflix become in the U.S.?

    Traditionally many have thought the answer is in the 30 million subscriber range, which is where the biggest premium channel, HBO, has pretty much leveled out. This line of thinking assumes that Netflix is essentially another premium channel and consumers will treat it as such.

    But Netflix's CEO Reed Hastings always answers the size question by asserting that Netflix can grow to become 2-3 times HBO's size, implying 60-90 million subscribers ultimately. He points to differentiators like Netflix having more content, being less expensive and available on more devices, having greater personalization, etc.

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  • Does Strong SVOD Adoption in Wealthier Homes Suggest Slower Subscriber Growth Ahead?

    At starting prices of $8/month or so, affordable subscription video on demand (SVOD) services like Netflix, Hulu Plus, Amazon, Blockbuster and others would seem to appeal to middle and lower income Americans. But a new report from Nielsen finds the exact opposite is true: wealthier homes, with household income over $100K/year, adopt SVOD services at 185% of their index, while lower income homes, with household income under $50K/year, subscribe at just 47% of their index.

    Adding to the picture, "Professional" homes subscribing to an SVOD service are at 150% of their index, while "Blue Collar" homes are just 63% of their index.

    The data seems to support a contention that Netflix has repeatedly made, which is that SVOD services are typically adopted in addition to - not in substitution for - pay-TV services. To the extent that pay-TV rates have continue to increase, it makes sense that only upper income homes can afford to then layer on an SVOD service on top of pay-TV.

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  • Sharethrough Finds Higher Brand Lift for Native Video Ads vs. Pre-Roll

    Native advertising, which refers to branded content or ad messages that are cohesively integrated directly into web sites, are getting lots of attention these days as an alternative to pre-roll video advertising. A study released by Sharethrough and Nielsen today is putting some brand lift performance numbers behind the debate.

    Using Nielsen's Online Brand Effect tool to measure viewer response, the native advertising technology specialist found that five campaigns it studied produced higher brand lift from native advertising exposure than from pre-roll video impressions. In a campaign for the soft drink brand Jarritos, exposure to native ad content elevated favorable brand perceptions by 82%, compared with 2.1% lift among those who saw pre-roll ads. In another for a CPG brand, native ads drove a 42.2% brand lift vs. none for pre-roll ads. (see infographic below)

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  • VideoNuze Podcast #171 - More on Zero-TV Homes, TV Everywhere's Embarrassment and Binge-Viewing

    I'm pleased to present the 171st edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia. Leading us off today, Colin digs into Nielsen's new "zero-TV" homes data, part of its Q4 '12 Cross-Platform report. When Colin crunches the numbers, he concludes that the  U.S. pay-TV industry may have lost 1.1 million subscribers last year, who moved into the zero-TV category.  That would be above other estimates, which range from flat to down about 500K.

    Of course one of the industry's key initiatives to add value has been TV Everywhere, and on that front, there were refreshingly candid admissions this week from both David Levy, head of Turner's sales, distribution and sports, who said he was "embarrassed" at TV Everywhere's progress, and Lauren Zalaznick, NBCU's chairman, entertainment and digital networks, who said it's too confusing. Both are right, and there are other reasons as elaborated in the recent Ultimate Guide to TV Everywhere (free download).

    Contributing to the pressure on pay-TV providers is the ever-expanding range of quality content available online, and 2 more efforts surfaced this week, Conde Nast's new digital video network, and VEVO TV, a 24x7 music video network.

    Separate, Colin has released his excellent new white paper, "Second-Screen Apps for TV" (free download here)

    And a reminder to sign up for "Sizing Up Apple TV" a free video webinar on April 2nd featuring Brightcove's Jeremy Allaire and me.
        
    Listen in to learn more!

    Click here to listen to the podcast (20 minutes, 42 seconds)


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  • Growth in "Zero-TV" Homes is Zero Surprise

    Nielsen's new Q4 '12 Cross-Platform Report has identified just over 5 million "zero-TV" homes in the U.S., as Nielsen calls them, an increase from 2 million in 2007. Not to be confused, these aren't homes without TVs (75% of them still have at least one); rather they are homes that don't receive programming over traditional platforms (i.e. pay-TV and broadcast). Instead, almost half of them (48%) opt for OTT services like Netflix, Hulu Plus and others for content.

    The growth in "zero-TV" homes should come as zero surprise. In fact, if there's anything surprising, it's that the number isn't already higher. But who these zero-TV homes are is less clear: are they cord-cutters or cord-nevers? The fact that almost half of them are under 35 suggests many are cord-nevers. Yet, the 2 main reasons for not subscribing to pay-TV (36% due to cost and 31% due to lack of interest) suggests many cord-cutters. Either way, with only 18% of them considering subscribing to pay-TV, most may well be "permanently cordless" and beyond the industry's promotional efforts.

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  • Adap.tv Now Optimizing Audience Targeting Against Nielsen and comScore Data

    Online video ad buying continues to shift toward, but also improve upon, conventional TV ad buying, with the latest evidence that Adap.tv is now optimizing audience targeting against data from Nielsen and comScore.

    As Toby Gabriner, Adap.tv's president, explained to me, the process starts with an algorithm the company has developed to predict a publisher's audience composition. The algorithm is based on numerous data "signals" (e.g. content type, time of day, browsing behavior, 3rd party profiling, etc.) that are continuously updated. The audience profiles are then used to focus on impressions that should index high against Nielsen Online Campaign Ratings (OCR) and comScore Validated Campaign Essentials (VCE).

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  • VideoNuze-TDG Podcast #150 - How On-Demand Viewing is Disrupting TV Viewership and Advertising

    Colin Dixon, senior partner at The Diffusion Group and I are back for the 150th (whoohoo!) edition of the weekly VideoNuze-TDG podcast. This week Colin and I talk about how on-demand viewing - through both DVRs and online - is changing the landscape for TV networks and advertisers.

    First up, Colin shares some eye-opening numbers from the start of this year's TV season, as reported by the NY Times. Certain shows like NBC's "Revolution" and "The New Normal" plus CBS's "Hawaii Five-o" gained a whopping 40% more viewers due to DVR-based viewing in the 3 days following their premieres. This new viewing dynamic, particularly among the coveted 18-49 cohort, underscores the new reality of on-demand's importance in assessing a show's potential. Premiere night alone is no longer determinative (if it ever was!).

    On-demand viewing is also a conundrum for advertisers and agencies when creating media plans. And that's why this week's announcement by Nielsen of its Cross-Platform Campaign Ratings solution is a big step forward in monetizing audiences across screens. Online has emerged alongside DVRs as a legitimate viewing alternative, and advertisers need to harness its potential. Colin and I discuss how Cross-Platform helps create a "common currency" measurement with TV, which will appeal to TV ad buyers, while helping content providers better value their online ad inventory. It's a complicated topic, but as Colin notes, the shift from "broadcaster-centric to consumer-centric" is causing huge ripple effects in the ecosystem.

    Listen in to learn more!

    Click here to listen to the podcast (18 minutes, 9 seconds)




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    The VideoNuze-TDG podcast is available in iTunes...subscribe today!

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  • Nielsen's Cross-Platform Ratings Should Drive Higher Video Ad Spending

    Yesterday Nielsen made its Cross-Platform Campaign Ratings commercially available, following trials by GroupM, ESPN, Facebook, Hulu and Unilever. Cross-Platform provides, for the first time, "unduplicated and incremental reach, frequency and GRP measures for TV and Internet advertising." Cross-Platform brings together Nielsen's Online Campaign Ratings (OCR) with its longstanding national TV panel.

    The Cross-Platform launch follows Nielsen's announcement two weeks ago that 15 leading video and digital ad platforms have integrated OCR, plus last week's news that the CW Network will use OCR to measure its online viewership and offer demographic guarantees for online advertisers for the 2012-2013 TV season. As I explained last week, Cross-Platform is so critical to online video advertising because it helps align the ecosystem with media buying expectations of the multi-billion dollar TV advertising industry.

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  • Measurement Milestone: 15 Ad Platforms Adopt Nielsen's Online Campaign Ratings

    Talk to anyone involved in the business of online video advertising and they will quickly say that the number one challenge to increased spending is better audience measurement. If only advertisers and agencies had a TV-style Gross Rating Points (GRP) metric - not just impression and clickthrough levels - to gauge the effectiveness of their spend, then traditional TV ad dollars would flow more freely into online video campaigns. Inevitably, the online measurement discussion focuses on Nielsen, the undisputed king of TV ratings, whose measurement standard is the common currency for billions in brand advertising dollars.

    And that's why Nielsen's announcement yesterday, that 15 leading video and digital ad platforms - which together deliver thousands of online video ad campaigns and billions of impressions - are integrating Nielsen's Online Campaign Ratings (OCR) for use by their clients in campaign planning and analysis is a big milestone. As Amit Seth, Nielsen's EVP of Global Media Products explained to me late yesterday, these new partners will help cement OCR as an "online GRP" helping them to establish accountability and ROI quantification, two pre-requisites for traditional TV advertisers.

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