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New comScore Research Available: More Ads Tolerable in Online TV Programs
An article I read last week in Mediaweek about new comScore research which concluded more ads are tolerable in online-delivered TV programs really intrigued me. The research was presented by Tania Yuki, comScore's director of cross media and video products at an Advertising Research Foundation meeting. I called Tania to follow up and learn more about the data. Today I'm pleased to share her presentation with the research findings as a complimentary PDF download. Outside of the ARF meeting, this is the first time this data has been made available.
Click here to download the research presentation
As VideoNuze readers know, I've been a proponent of increasing the number of ads in online TV shows, in order to improve their economics. Note, I'm not advocating a jump to 18-20 minutes of ads typically found in on-air distribution that would likely turn users off. But I do believe that the current
model of 3-4 minutes of ads in premium network programs is way too light, and that viewers will tolerate more without any drop-off in usage, particularly if the ads are well-targeted and engaging. ABC has told me in the past that research it conducted when it experimented with doubling its ad load corroborated this point, just as the comScore research now does as well. Just last week the CW announced it would double the number of ads in its online-delivered programs.
Increasing the number of ads - and thereby strengthening the economic model for online-delivered TV - is critical for the industry to succeed long-term. The current lack of economic parity between online and on-air is gaining urgency; just last week when Hulu blocked access to its content via the new Kylo browser (meant for on-TV browsing), we were reminded of the absurd lengths to which the popular site will go to prevent its viewership from migrating to TVs. This is because Hulu was conceived as an online-only augment. Given its lack of economic parity with on-air (or with DVR viewing, as ABC.com is now achieving), Hulu on TV would undermine its owners' P&Ls.
The new comScore research concludes that viewers will tolerate 6-7 minutes of "total advertising time" during online-delivered TV programs. And note that this response reflects expectations of conventional advertising. I think it's quite possible that if respondents had been shown the kinds of targeted, entertaining and interactive video ads that blip.TV and others are now offering, they would have said their tolerance would be even higher. Providing further comfort that more ads are reasonable, when asked about the most important reasons for watching TV online, the answers were first, "Missed an episode on TV" (71%) and second, "Convenience" (57%). A distant third was "Less ads" (38%). Ad avoidance is important to online viewers, but it isn't their sole motivator.
The comScore research further underscores the growing importance of online, particularly in terms of raising programs' visibility and sampling. For example, for people who watch both on TV and online, an "online video site" (28%) is already the third most-cited way of discovering new TV shows, following "TV advertising" (59%) and "Friend/family member recommendation" (44%). Related, 28% said that they believed that if they hadn't been made aware of their favorite program online first, they probably wouldn't have discovered it on TV, and therefore would have missed the show entirely. Across all respondents, 20% of shows watched regularly had been watched first online.
As Tania reminded me, TV is still by far the dominant platform for viewing TV programs and that it's important to remember that online-only viewing is nascent. ComScore's research found that only 6% of respondents tune-in online only, though another 29% view both online and on-air. The key for me is looking toward the future. When the 6% of online-only viewers is broken down by age groups, about 75% are between 18-34. And if my 8 and 10-year old kids are any example, no doubt that those under 18 are only going to be even more avid online video viewers. In order for the TV industry to succeed in the future, it is essential that the business models to sustain online viewing be figured out pronto.
For this research, comScore which surveyed 1,825 people from its U.S.-only panel, weighted to match the total online population in age, income and gender. The research was conducted between Dec. 30, 2009 and Jan. 22, 2010. It was not sponsored by any third-party.
A reminder that if you're keen on this topic, join us for the complimentary April 8th webinar, "Demystifying Free vs. Paid Online Video" and then at the April 26th VideoSchmooze in NYC, where our panel topic is "Money Talks: Is Online Video Shifting toe the Paid Model?" (early bird tickets now available).
What do you think? Post a comment now (no sign-in required).
Categories: Advertising, Broadcasters
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AT&T's 3G Network is Falling Short for Premium MMOD iPhone App
Two weeks ago I noted that the premium "March Madness on Demand" iPhone app, which allows live streaming of all MMOD games would be a big test for AT&T's 3G network, which has been repeatedly criticized for lack of capacity. Based on reports I've received from several friends who have been using the app both on AT&T's 3G network and on WiFi, it appears that AT&T is indeed falling short, with video quality highly inconsistent or video just plain unavailable (see iPhone screen grab below). Granted it's a small sample size, but they've tried it repeatedly and the pattern is pretty clear.
AT&T's network should come under further pressure as the field narrows and audience sizes surge. On a positive note, one friend took note of how incredibly cool it was to be eating lunch at Panera Bread watching live hoops on his iPhone (note, he was on their WiFi at the time). Mobile video is definitely here. On the flip side, I've watched a fair amount of various games online and I have to say I've been somewhat unimpressed by the quality of the streams. Last night's Cornell game (my alma mater) was a perfect example - full screen was highly pixilated and plain unwatchable. Even in standard size there were many stalls and the stream couldn't keep up with camera switches during fast-break coverage.
What have your experiences been like? Post a comment now (no sign-in required).Categories: Mobile Video, Sports
Topics: AT&T, CBS, iPhone, MMOD
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Review of FCC's National Broadband Plan Begins; Questions on Set-Top Box Language Should be Asked
The FCC's new "National Broadband Plan" is now beginning the process of congressional review, which may result in a number of changes. According to this B&C article, Republicans have concerns with proposed revisions to the
Universal Service Fund and the FCC's proposed mechanism for reclaiming up to 500 megahertz of broadcasters' spectrum over the next 10 years. Separately, Republicans also object to the FCC's net neutrality proposals.
In my "first look" analysis of the Broadband Plan a couple of weeks ago, one thing I didn't take note of was a small provision in the plan to "change rules to ensure a competitive and innovative video set-top box market" Several VideoNuze readers brought that provision to my attention, wondering what it really means. I'm not 100% sure myself, but it would seem to benefit Google's new "Google TV" Android-based set-top box, which I wrote about earlier this week. Congress should be sure to question the FCC closely about its set-top goals.
What do you think? Post a comment now (no sign-in required).Categories: Broadband ISPs, Broadcasters, Regulation
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Avaak Lands $10 Million Series B Round, Provides Another Example of Video's Value
While my focus at VideoNuze is strongly on media/entertainment and consumer apps, I'm always on the lookout for other interesting broadband video applications. A perfect example is Avaak, which makes the Vue Personal Video Network, a system for remote video monitoring of your home or business. This week Avaak announced a new $10 million series B round, led by Qualcomm.
Vue is a dead simple system which includes a gateway and 2 tiny wireless
video cameras. The gateway connects to your router and you mount the camera wherever you want, adjusting them with an ingenious peel-and-stick magnetic mounts. You then monitor the video feeds through a personal dashboard. You can record the video, share it with others, add more cameras and even see the video through a new iPhone app. The system costs $299, with additional cameras running $99 each. Vue is a very clever and simple system that addresses a widespread security issue.
What do you think? Post a comment now (no sign-in required).Categories: Miscellaneous
Topics: Avaak, InterWest Partners, Leapfrog Ventures, Qualcomm, Trinity Ventures
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NY Times' New "TimesCast" is a Home Run for Its Audience
I continue to believe that among newspapers pursuing online video initiatives, the New York Times and the Wall Street Journal are the clear leaders. Both totally get how strategic video is to evolving their brands, engaging their audiences and generating new ad revenue.
Just last month I wrote about the Journal's newly unveiled companion video series to its "Digits" blog; now this week the Times announced its daily "TimesCast" program which is a 1-hour daily insiders' view of what and how the Times chooses to cover what it covers that runs from 1-2pm each day. In the episodes I watched - exclusively sponsored by FedEx - the cameras visited the daily "Page One" editorial meeting and featured Times journalists interviewing each other to gain more color on selected stories of the day. The pace of the videos was fast and engaging, with snappy sequencing music in the background.
I'll readily admit this type of content isn't for everyone. However if you're a news junkie and regular Times reader like me, it's a home run - and that's what really matters. TimesCast makes viewers feel like they're "in the know," strengthening their bond with the Times brand and deepening their understanding of the news. Plus, it lets the Times showcase their journalists in a way that goes far beyond their bylined articles. A larger point: in print space is finite, on the web its infinite. Brands that learn to "super-serve" their audiences with these kinds of behind-the-scenes initiatives will win.
What do you think? Post a comment now (no sign-in required).Categories: Newspapers
Topics: NY Times, Wall Street Journal
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VideoNuze Report Podcast #54 - March 26, 2010
Daisy Whitney and I are pleased to present the 54th edition of the VideoNuze Report podcast, for March 26, 2010.
This week Daisy starts us off by reviewing new research on the iPad's appeal as an ebook reader. Daisy also reviews sobering forecasts suggesting that the iPad is unlikely to change people's willingness to pay for content (regarding video specifically, Daisy and I agreed a while back that for now its impact for video specifically is likely to negligible). I'm not convinced the iPad will trigger a wave of people willing to pay for content, but I do believe any iPad research is still very preliminary. It's only when users get their hands on the device that we'll really start to learn how impactful it is. The iPad is of already available for pre-order and is set to debut in stores late next week.
We then shift topics and discuss my post from earlier this week, "Here's How Google TV Will Work - And What It Might Mean," in which I described Google's new set-top box and the company's strategy for entering the market. Google's move is likely to set off a fascinating negotiating dynamic with incumbent video service providers, and Daisy and I get into some more of the details.
(Note, Daisy's mic isn't working that well on this podcast, so please be patient)
Click here to listen to the podcast (14 minutes, 13 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!
Categories: Cable TV Operators, Devices, Podcasts
Topics: Amazon, Apple, Google, iPad, Podcast
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blip.tv Doubles Video Views, Scores with New Ad Formats
blip.tv, the online video network for independent producers, has shared with me that in Feb '10 it generated 85 million video views, double the amount from Feb '09, and that by its estimates, approximately 85% of those views
are sufficiently high-quality to accept ads from major brands. In addition, blip is getting strong results from several new ad formats it launched recently, another sign that online video advertising is delivering for both content providers and advertisers. In separate conversations over the last week, Mike Hudack, CEO and Evan Gotlib, VP of Ad Sales, brought me up to speed.
The new ad unit that's performing best is called an "interactive pre-roll," which allows viewers to select which product in an assortment they want to see video about. For example, in this ad for Chevy, which started running in December, viewers click on the Malibu, Equinox or Traverse. And in this new ad for Starbucks introducing its "Bold" line of coffees, users choose one of eight new blends to learn more about. The goal of these ads is to allow users to self-customize their experience (something Hulu has been doing as well), to drive higher engagement. Evan reported that the ads are driving a 6-14% click-through rate, and in the case of Chevy, a 22% subsequent click-through rate to the Chevy site.
Another new ad that's performing well is the "share unit." In this example for Samsung's Omni phone, about 2 minutes into the video's play, a bug appears in the upper right corner of the video window for 15-30 seconds, which when clicked, opens up an image of the Samsung Omni phone. There the user sees prompts to share the underlying video on Facebook or Twitter, or via email, text or embed. Evan said that this unit is driving a 4% click-through rate, and that 10% of people who click on the ad go on to share the video in one way or another.
Lastly, the "overlay with custom video creation" unit is a new way blip is differentiating itself through branded entertainment. In this example for the Samsung Behold II smartphone, the user is first exposed to an overlay ad, with a call to action to "watch how the Behold II can make you a super hero" (this is Samsung's hook for the phone). The user is then exposed to 3 videos of about 1 minute each, featuring "Behold II Man" and his 2 female sidekicks. The videos are campy but clever, weaving in promotion for the Behold II's specific features.
Evan said the videos were created by blip for about $15K, which is a fraction of what an agency would have charged. For blip, creating videos is a means to an end: throwing a few short videos into the mix is a way of gaining a higher fraction of the brand's media spend and standing apart from typical pre-rolls. This new campaign for Chili's is another great example - clearly low-cost production, but, especially for its target audience, catchy and impactful.
blip's success with these ads and brands are part of a far larger story that is playing out in the entertainment and advertising industries. As I wrote in January and numerous times before, there is a ton of innovation happening in online video advertising, which is driving up campaign ROIs and in turn enticing more brands to increase their spending on online video. A key part of the story here is that video advertising is getting both more targeted and more customizable by viewers, leading to better results and improved satisfaction. I've always been a believer that viewers don't hate ads so much as they hate irrelevant ads. That's what's so exciting about online video - it combines the relevance and targeting of Internet advertising with the emotional impact of TV advertising.
This is a really rich area which we'll be exploring both in the complimentary April 8th webinar, "Demystifying Free vs. Paid Online Video," and then at the April 26th VideoSchmooze in NYC, "Money Talks: Is Online Video Shifting to the Paid Model?" (early bird tickets now available). Please join us for both of these exciting events if you want to learn more about monetizing online video!
What do you think? Post a comment now (no sign-in required). -
Here's How Google TV Will Work - And What It Might Mean
Last week, the NY Times shared some details of "Google TV," the new set-top box Google is developing in partnership with Intel and Sony. The article provided a good outline, and now, based on additional information I've gathered, I'm able to provide new details on the box and also explain what it might mean.
The first and most important thing to know about Google TV is that it is not being positioned to induce users to "cut the cord" on their subscriptions to
existing multichannel video programming distributors' ("MVPDs" like cable, satellite or telco) services. Or at least that's Google's initial positioning; whether it's genuine or really just a Trojan Horse game plan is another whole matter. For now anyway, Google is taking a "friend of the industry" approach, telling MVPDs that it's briefing that it is looking to complement their businesses by bringing the full Internet to the TV (this follows the same convergence theme as the new Kylo browser).
Google is contemplating an entirely novel strategy for its set-top box, seeking to insert it alongside the existing MVPD's set-top box by daisy chaining them together via HDMI connections. In other words, the MVPD's set-top's HDMI output would be connected to the Google TV set-top's HDMI input, and then its HDMI output would be connected to the TV. The authorized TV channels would still be delivered, but Google TV would collect data from the MVPD's set-top and introduce an entirely new UI for users to control their TV experience, to include searching and browsing channels. It would also add a host of new interactive web-type capabilities around the content.
Since the Google TV box would have a full browser and connect to the Internet via the user's WiFi or wired access, it would also bring all of the rest of the Internet to the TV as well, including the full breadth of online video (yes, that would mean one more thing for Hulu to block). My understanding is that on the whole, the Google TV experience is extremely impressive and well conceived. In short, it will get the attention of any MVPD executive who has a look at it and will certainly get them to thinking about how able - or unable - they are to deliver a similar experience themselves to their subscribers.
A key reason that Google is planning to insert its box this way is because it believes that in order to deliver a compelling Internet experience on TV requires a new web-based, and open platform. For Google that of course means Android, which it is vigorously proliferating on smartphones as well. Throw in Google's Chrome browser that it is promoting for online usage and you get a glimpse of how Google's multi-platform strategy comes together. While Sony would be making the box, you have to believe it will have Google branding on it, a first for the company in the living room too.
Categories: Cable TV Operators, Devices, Satellite, Telcos
Topics: Comcast, DISH Network, Google, Google TV, Intel, Sony
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