How youtube will change the face of digital advertising ?

1. How youtube will change the face of digital advertising ? January 19th, 2013YouTube Desk researchThe gate to video By Jeremy dumontbrand content

2. INTRODUCTION• Video content has been spotted as one the main trends of paid media by the IAB (videos aired in advertising spaces such as banners).• Facebook has raised himself as the #2 on line destination in the USA after google, according to comscore, making earned media a priority for advertisers (content, such as text, image or video shared by people)• youtube has become the gate to owned content on line, with video brand content entering countries TOP 10 youtube most watched online videos of the year (videos posted on youtube brand channels)…Many youtube advertisers start having video BRAND CONTENT at the heartof their digital strategy to make paid, owned and earned work in synergy fortheir brand.

3. The rise of “converged media” strategies

4. Video brand content at the heart of a paid, owned, earned campaign Earned Media Earned Media paid Media paid Media Owned Media Owned Media

5. 76% watching Video on line (worldwide data), more thanchecking bank account or using social network

6. Video content is the most effective type of content foradvertisers, they are planning to use it more in the near future

7. Youtube, one of the key touch points to reach consumersprior to engage relationship and sell. Our data show that customers turn to reach, depth and relationship channels at different stages of the life cycle -- regardless of whether those channels are digital or traditional, or whether theyre earned or owned or paid. Nate Elliott, vice president and principal analyst at Forrester Research.

8. Youtube video content is worth exploring for brands wanting toengage the “always addressable customers” with useful andengaging content when they need it …on line… Forrester Research.

9. Youtube is at the forefront of the new way brands advertise usingbrand content to engage consumers : real time content marketing Forrester Research.

10. PLAN•Section 1: The online video market•Section 2: YouTube, the main on line video player•Section 3: How brands use Youtube ? 1

11. facts & Section 1: figuresThe online video market 11

12. SUMMARY OF THE ONLINE VIDEO MARKET• US is a large market with 183 Million on line video viewers in 2011 however Europe is next (140 Million viewers in 2011)• Americansare increasingly watching videos through their computers and mobiles : 8 hours per month in 2012• Most of the U.S. Internet users are watching videos online : 87.3 percent of the U.S. Internet audience in December 2012• Streaming video ads reached 53 percent of the total U.S. population in December 2012. Comscore Dec 2012• In teh years to come, people are expected to be watching more videos, longer videos with the rise of shows and movies on demand on line. 1

13. US is a large market in terms of number of on line videoviewers, however Europe is next (millions) 13

14. Americans are increasingly watching videos through their computers and mobiles• Americans spend most of their time watching TV on TV (95% of viewing time), however they are spending 4 hours through their computer and 4 hours through their mobile watching video online. Nielsen 3Q 2012 14

15. Most of the U.S. Internet users are watching videos online• 87.3 percent of the U.S. Internet audience viewed online video in December 2012. Comscore Dec 2012 *A video is defined as any streamed segment of audiovisual content, including both progressive downloads and live streams. For long-form, segmented content, (e.g. television episodes with ad pods in the middle) each segment of the content is counted as a distinct video stream.Video views are inclusive of both user-initiated and auto-played videos that are viewed for longer than 3 seconds.

16. Half of the US population is watching advertising videos on line• Streaming video ads reached 53 percent of the total U.S. population in December 2012. Comscore Dec 2012 *Video ads include streaming-video advertising only and do not include other types of video monetization, such as overlays, branded players, matching banner ads, etc. **Indicates video ad network †Indicates video ad exchange/DSP/SSP 16

17. The video online market is expected to grow for advertisers •In the years to come people are expected to be watching more videos, longer videos with the rise of shows and movies on demand on line.

18. facts & figures Section 2:YouTube, the main on line video player

19. SUMMARY OF YOUTUBE FOCUS WITHIN THE ONLINE VIDEO MARKET• YouTube is a top online destination in most countries• YouTube is one of the top 5 online destinations in the US : #4 with 130 600 000 unique visitors in september 2012• Youtube is the main access for online videos in the US (54%)• People are not searching the same video content online as on broadcast TV…• YouTubers are massively uploading content showing up in search engines• LIKES/DISLIKES on YouTube…also impact search results… 19

20. SUMMARY OF YOUTUBE FOCUS WITHIN THE ONLINE VIDEO MARKET• However, YouTube main weakness is “time spent per viewer” and it’s being challenged by other players such as netflix and Hulu.• YouTube is now showcasing professional quality content through partners channels to engage further it’s audience : VEVO, Fullscreen, Maker studio….• YouTube is on it’s way to become a premium video platform: from UGC to premium content All it’s content is going off line with GOOGLE TV … 20

21. YouTube is a top online destination in most countries Nielsen 3Q 2012

22. YouTube is one of the top 5 online destinations in the US YouTube was nb 4 with 130 600 000 unique visitors in september 2012. NIELSEN

23. YouTube is the main access for online videos in the US (54%) YouTube is the main online destination (#1 in unique viewers, #2 after netflix on time spent (NOTE: netflix a movie rental/purchase site) YouTube is also #1 destination for video on mobile

24. People are not searching the same video content online as onbroadcast TV… 2

25. YouTubers aremassively uploadingcontent showing upin search engines 25

26. LIKES/DISLIKES on YouTube…also impact search results… 26

27. However, YouTube main weakness is “time spent per viewer “ YouTube is being challenged by netflix, hulu NIELSEN sept 2012 27

28. YouTube is on it’s way to become a premium video platform•From User generated content to professional content •From music content to other topics of interests

29. YouTube is now showcasing professional quality content through partners channels to engage further it’s audience•A close look at YouTube top partner channels shows that peoplecan now watch all sorts of professional content (music, gaming andnews content)… 29

30. All it’s content is going off line with GOOGLE TV … However GOOGLE TV is still small today  A total of 64 exclusive Google TV applications available on the platform but less than a million actually been used

31. facts & figures Section 3:How brands use Youtube ?

32. SUMMARY OF HOW BRANDS ARE USING YOUTUBE• 2012 witnessed content based social networks growth for advertisers : Twitter, youtube, pinterest…• Youtube is the biggest video content social network : YouTube comes right after Facebook’s in audience• Brands have created the buzz successfully in 2012 with video content on youtube.  Brands can use youtube Trueview to tap into the youtube audience  Pre roll on youtube is the ideal format for TV advertisers  Brands can leverage youtube channels to generate views  Youtube brand channels allow brands to broadcast their own video content on youtube  Youtube brand channels are integrated into the overall digital campaign and often within on/off campaigns 32

33. SUMMARY OF HOW BRANDS ARE USING YOUTUBE• Brands usage of Youtube is boosted by branded youtube channels : 79% of companies are now using a branded YouTube channel, compared to 57% in 2011.• Youtube chanels are at the forefront of a new way to advertise on line • Successful brands on youtube are adopting the liquid and linked strategy • To get their content watched brands are proposing brand content the youtube audience will care about, love, and share. • Engaging video brand content can drive sales on youtube !• Brands are discovering a new set of analytics beyond « number of views » : time spent watching, likes, shares • How did the top 5 videos performed on youtube in 2012 against those analytics ?• New agencies are helping brands build such experiences on line• Companies are fighting to help them measure their online and often off line content experiences (TV + video content) 33

34. 2012 witnessed content based social networks growth for advertisers• Twitter, youtube are content based social networks vs. Facebook whichis profile based like myspace or linkedin). •49.9% US agencies used YouTube for clients social media campaigns vs 82,4% using Facebook. Q3 2012 STRATA •pinterest is the new trendy content based social network of 2012 34

35. Youtube is the biggest video content social network• YouTube is now serving 4 Billion Videos Daily Source : youtube• YouTube is right behind Facebook in audience ̶ 800 million people visit youtube every month in the world (vs. 1 Billion for facebook) ̶ They spend 23 minutes per day on the site, and they rate or add comments to more than half of all YouTube videos. ̶ They share and favorite millions of videos every day. And they watch it anytime and anywhere - over 400 million videos viewed with YouTube mobile.http://www.youtube.com/t/press_statistics 35

36. Brands have created the buzz successfully in 2012 with videocontent on youtube •The Republican National Committee live streamed the 2012 Convention on YouTube. Over 5 million viewers watched the Convention video that existed on the site for only one week. http://info.thismoment.com/RNC-YouTube.html •Red Bull Stratos, sponsored by Red Bull Energy Drink, was the most-watched live event on YouTube, with 8 million viewers watching Felix Baumgartners 24-mile jump from the edge of outer space. https://www.youtube.com/watch?v=FHtvDA0W34I •Among the most talked-about YouTube ads was the Honda CR-V Super Bowl spot. Based on Matthew Brodericks character in "Ferris Buellers Day Off", the ad smartly positions the CR-V as a car that helps consumers enjoy life. https://www.youtube.com/watch?v=VhkDdayA4iA 36

37. Brands can use youtube Trueview to tap into the youtubeaudience http://www.youtube.com/yt/advertise/promote.html

38. Pre roll on youtube is a great format for TV advertisers http://www.youtube.com/yt/advertise/in-stream.html

39. Brands can leverage youtube channels to generate views•Advertising brand content can be featured in other media channelfrom YouTube professional partners or any broadcaster

40. Youtube brand channels allow brands to broadcast their ownvideo content on youtube•YouTube is developing channels that are more topically specific andinteractive than what viewers are currently able to find through traditional,one-way broadcasting channels.YouTube private channels allow brands to showcase their brand contentvideos, stand alone videos with quality content to be watched, in moreexperiential ways .coca-cola.tv/mx/youtube/ytv

41. YouTube brand channels are integrated into the overall digitalcampaign and often within on/off campaigns•Procter has used youtube for it’s “thank you mum” campaign withsuccess (the videos were part of youtube most viewed videos of 2012in the US

42. Brands usage of YouTube is boosted by branded youtube channels In 2012, the vast majority of companies (87%) are using at least one of the major social platforms to communicate with online stakeholders, with by far the largest growth in corporate usage occurring on YouTube. There has been a 39% jump in the number of companies with a branded YouTube channel. 79% of companies are now using a branded YouTube channel, compared to 57% in 2011. These channels each average more than two million views and 1,669 subscribers.Burson-Marsteller 42

43. Youtube chanels are at the forefront of a new way to advertiseon line « Companies are now integrating more original multimedia content to share with followers on Twitter, Facebook and YouTube. » Says Mark Penn, Burson-Marsteller Worldwide CEO "With predictions that video content is going to comprise of about 90% of internet traffic in the next few years it makes sense that theres been a surge in companies investing in video-based platforms, such as YouTube. Its also great to see that a large proportion of companies are responding to, and engaging with, their audiences online, rather than just establishing platforms to push out content ». Says Carly Yanco, head of digital, Burson- Marsteller Australia 43

44. Successful brands on youtube are adopting the liquid and linked strategy « Brands cant buy their way to greatness any more », said Wendy Clark, Coca-Colas head of integrated marketing and communications,. But brands can follow her "liquid and linked" approach to cross-media marketing, she said: "liquid" because the market landscape is constantly changing, and "linked" because no matter which media are used (or how), all brand messages should adhere to the overall strategy. So its essential for Coca-Cola, and other marketers with big ambitions, to work all types of media -- paid, earned, owned and shared -- for their highest yields. 44

45. To get their content watched brands are proposing brandcontent the youtube audience will care about, love, and share.Philadelphia TV channel isbroadcasting quality content :surfing on TOP CHEF TV success ,delivering useful content(recipes…)Ipsos asi learning 45

46. Engaging video brand content can drive sales on youtube ! 46

47. Brands are discovering a new set of analytics beyond number ofviews : time spent watching, likes, shares

48. How did the top 5 videos performed on youtube in 2012 against those analytics ?AN OVERVIEW OF THE TOP 5 BRANDED VIDEOS OF 2012 ON YOUTUBE *1. The next big thing is already here - Galaxy S3 (Samsung)Key stats: 17 million views, 438,000 Facebook actions (likes, comments, shares),2700 tweets.2. A dramatic surprise on a quiet square (TNT Belgium)Key stats: 40 million views and 334,000 YouTube likes.3. Unlock the 007 in 70 seconds (Coke Zero)Key stats: 9,500,000 views, 923,000 Facebook actions and 3,500 tweets.4. Bake It - The story of Kiefer Sutherlands hidden passion (Acer / Intel)Key stats: 1,000,000 views, 11,000 Facebook actions and 1500 tweets.5. Do you know this guy? The browser you loved to hate ( (Internet explorer)Key stats: 2,000,000 views, 88,000 Facebook actions and 1,100 tweets.* Time viewed is the forgotten analytic 48

49. New agencies are helping brands build such experiences on lineVideoagency is a leading onlinevideo production company forbusinesses around the globe. Theydeliver great videos at affordableprices. With over 5000 filmmakersworldwide, they can producevideos anywhere.www.videoagency.comThismoments Distributed EngagementChannel (DEC) powers brandexperiences comprised of multimediacontent, creative design and socialconversations, taking individual userattributes such as identity, locationand time into account. WithThismoments DEC, brands can createthe most innovative, beautiful andengaging online brand experiences.http://info.thismoment.com 4

50. Companies are fighting to help them measure their online andoften off line content experiences (TV + video content) GfK has undertaken one of its most ambitious and ground-breaking projects in the field of advertising research. GfK’s Media Efficiency Panel (MEP) has, for the first time, allowed media planners to measure the effectiveness of specific cross-media advertising campaigns on short term sales using data which links actual exposure to online advertising, along with survey measures of offline advertising exposure, to real sales data. 5