4C PRESENTS

SOCIAL VIDEO

101SEPTEMBER 2017

THE DIGITAL VIDEO LANDSCAPE ...................2

WHAT MAKES SOCIAL VIDEO UNIQUE? .........3

THE RISE OF SOCIAL VIDEO ............................3

KEY TRENDS AND OPPORTUNITIES ...............4Personalization ......................................................................... 4Live Video ................................................................................ 5Vertical Video .......................................................................... 5Multiple Screens ...................................................................... 6

THE INS AND OUTS OF EACH PLATFORM ......7Facebook ................................................................................. 7Snapchat .................................................................................. 8Instagram ................................................................................. 8YouTube ................................................................................... 8Twitter ...................................................................................... 9Pinterest ................................................................................... 9

SUMMARY ........................................................9

Contents

Social Video 101 Page 2 ©2017 4C Insights, Inc.

The Digital Video LandscapeSpending on various forms of display advertising, such as banner ads and sponsorships, has been shrinking and is continuing to shrink. However, video spending is expected to grow throughout 2017, exceeding all other categories of digital advertising spending except mobile. This comes as no surprise considering that 72% of marketing professionals claim that video content has the best ROI. TV remains the primary platform for video brand campaigns, but social media platforms are capturing an increasing share of attention from ad buyers.

The number of digital video viewers will continue to grow over the next 4 years. With more than 4 in 5 internet users already watching digital video, a 3.1% increase from 2016, the market is approaching saturation. By 2021, it is expected that 83.5% of internet users will be watching digital video. With the penetration of digital video viewers growing, the number of pay TV viewers will continue to shrink. Nielsen estimates that pay TV viewers will shrink from 201.8 billion users in 2017 to 193.7 billion users in 2021.

On the other hand, Netflix streaming subscriptions and overall users accessing TV content digitally (also known as “over the top”) remain on the rise, with an audience that is spread throughout multiple age groups. Millennials are the most likely viewers of digital video on their mobile devices. In fact, recent research suggests that Millennials are twice as likely to be focused on video they watch on their mobile devices compared to video consumed on TV.

With video ad spending and mobile ad spending both on the rise, it is time to look at the future of social video. As Mark Zuckerberg has said, Facebook is “looking for ways to grow the ecosystem of video content on Facebook.” Most recently, Facebook is looking to expand video through the introduction of Watch, a dedicated tab to house original content made specifically for Facebook.

Social platforms are taking a variety of approaches to grow video content. Snapchat was built on a video-centric strategy and is continuing to expand its video footprint. Facebook, Twitter, and Snapchat are pursuing live video, premium programming, and connected TV. Facebook is also in the process of developing a video app for smart TV platforms and Instagram recently offered a live video service in which videos disappear after they have been streamed. Twitter recently announced new live streaming deals and collaborations. And, Pinterest announced promoted video with auto-play.

72% OF MARKETERS CLAIM

video has the best ROI.

4 IN 5 INTERNET USERS ARE

already watching digital video.

Social Video 101 Page 3 ©2017 4C Insights, Inc.

What Makes Social Video Unique?Social video is designed to be seen and shared through social media. Social video can be a lot of different things, since each social platform is different with a unique audience. Social videos require unique formats and content to be optimized for consumers’ feeds in each platform. The goal of social video is not necessarily to reach as many people as possible, but to reach and engage a target market in real time. With social video, marketers can capitalize on their viewer’s emotions by creating a conversation and connection through video, which can be amplified among other social media users.

Social video has grown rapidly for two main reasons: more people are now connected through smartphones and the growth of 4G internet usage. 4G users now outnumber 3G users on the Internet. Since video requires a faster connection, this change enables greater video consumption.

The Rise of Social VideoThe rise in social video is not just a fad. Social video is big and it’s only getting bigger. In 2016, 60% of marketers used video in their social media marketing and 73% of marketers plan on increasing their use of social video marketing. By 2019, video content is expected to be the driving factor behind 85% of search traffic in the United States.

Why are marketers adapting to social video? Because it has proven to be undoubtedly effective in generating revenue and engaging social media users around the world.

According to research conducted in April 2016, most U.S. brand professionals are embracing mobile video advertising because of its ability to increase brand awareness. Video ads on social media see 500% higher engagement rates and 600% higher share rates than static ads. Since video advertisements are more stimulating, they evoke a higher consumer response.

America is shifting to become what Mark Zuckerberg calls a “video first world.’’ Video is now the most popular and desired advertising format among social media users. According to a survey, 4x as many consumers would rather watch videos about products than read about them.

With the ability to command a greater attention share and drive greater interaction, social is poised to become a leader in video content on the Internet. Marketers are jumping at the opportunity to maximize their visibility and customer engagement with social video, and if they’re not, they should be.

BY 2019 VIDEO IS EXPECTED TO DRIVE

85% of search traffic in the U.S.

Social Video 101 Page 4 ©2017 4C Insights, Inc.

Key Trends and OpportunitiesIn order to maximize ROI, it is important for companies to understand the impact and trends of social media video marketing. Here’s what to look for.

PERSONALIZATIONSocial video marketing has unique capabilities that allow for niche targeting and a more curated user experience. As a result, brands are taking different approaches to social video as compared to digital video.

"With social video, we go into more granular interest targeting since we are able to pick up users likes and dislikes better vs a digital video unit where we base the audiences’ interests on what the environment is about."JASMINE WANG, SENIOR SPECIALIST, MEDIA SERVICES, MERKLE

Since social video is more dynamic and personalized, an opportunity for marketers in 2017 is making video interactive and utilizing it for lower-funnel initiatives. Interactive videos can include clickable videos as well as including embedded questionnaires, surveys, and forms to help marketers personalize content. This will aid in generating leads, quantifying customers, and driving greater engagement.

Targeting the right people is part of the battle, but to achieve success from social video, marketers must also concentrate on making their video advertisements immediately engaging and relevant to address the challenge of dealing with short consumer attention spans. With more and more content being created on social media, it is important for brands to create content that aligns with each of their consumers’ values and environments. Customers who feel a connection to a video on social media are more likely to engage with it and share it for other users.

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LIVE VIDEO“Going live” is on the rise. Social media users want to see authentic content in real time that doesn’t focus on a hard sell. With live videos, brands can market themselves with honest and engaging content. Twitter started the trend by integrating live streaming platform, Periscope, into its app. Now, YouTube, Facebook, Instagram, and Snapchat also offer a live video feature inside their platforms.

Facebook has adapted its algorithm to make live video a key feature. Facebook users spend 50x more time watching live videos than traditional videos. Live video viewers increased by 81% in 2016 and there are no signs that this growth will slow down anytime soon.

Marketers should hop on the live streaming bandwagon as an opportunity to engage their users with honest, authentic content. There are many ways a brand can incorporate live videos into their marketing campaign. Some popular examples are how-to videos and behind-the-scenes looks into businesses. How-to videos are one of

the most popular searches on YouTube as they provide brands with a great opportunity to offer value to customers. Continually, behind-the-scenes videos keep customers engaged and excited by providing them with exclusive content that they otherwise would not be able to access. Other examples of live video include event coverage, news updates, product announcements, and demonstrations. Producing live content regularly, however, can be a challenge.

4C Account Executive, Christian West, recommends starting with Snap Ads or Instagram Story Ads to see how consumers respond for brands looking to step into live video for the first time.

VERTICAL VIDEOMore and more people are using their smart phones to watch video. In fact, according to Animoto, 48% of millennials watch videos only on their mobile device. So, in order to reach the consumers of the future, brands need to ensure content is adapted to mobile. For this reason, Snapchat created a huge new trend with vertical video, which make watching videos on mobile devices easier for users. Snapchat ads have seen 9X higher completion rates when vertical videos are used. Over 10 billion vertical videos are watched every day and Facebook and YouTube have made vertical video possible on their platforms. Consumers are much more likely to be engaged with an ad when there are no disruptions, such as having to turn their screen horizontally.

The consumption of vertical video on mobile devices is at an all-time high. Recent research has found that vertical video is the winning content format for key social video metrics:• Almost 4X more engagement than square videos on Facebook

and 2.5X more on Twitter• More audience reach than square video• More unique viewers• Higher click-through and swipe-through rates • Increased ad recall • 9X higher completion rates compared to horizontal videos

40% OF MILENNIALS

watch videos only on their mobile device.

FACEBOOK USERS SPEND

50X more time watching live videos.

Social Video 101 Page 6 ©2017 4C Insights, Inc.

MULTIPLE SCREENSDelivering content to the right audience at the right time is critical for marketers. With 85% of adults using another device while watching TV, brands can use multi-screening play to build a stronger connection with the user. While watching TV at home, two-thirds of YouTube users often watch YouTube on a second screen. Brands can capitalize on distracted TV viewers by activating digital ads at the same time a TV program or commercial airs.

Historically, television has been the king of mass reach and emotional resonance. However, with consumers in control of when, where, and how they consume TV content, the balance of power is shifting. Social video has proven to be a complementary partner with TV, especially among distracted viewers using the second-screen. Coordinating TV with real-time social video ads can provide a more consistent message to consumers and drive a greater impact. By using 4C Social Sync for Snapchat, MTV improved swipe-up rate by 174% and video views to completion by 20% when promoting Just Tattoo of Us.

It’s imperative for marketers to take a multi-channel advertising approach, social video included. By integrating KPIs across TV and social, brands can understand the impact TV advertising has on social and vice versa. This will enable brands to understand what video is resonating best across various audience segments and can even inform when and where to reach specific audiences on TV, and what creative to use.

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The Ins and Outs of Each PlatformConsistent marketing builds trust with audiences and aids in brand recall. Since every social platform is different with varying capabilities, each requires different videos and techniques to effectively deliver messages and tell a cohesive story. With that being said, it is crucial for advertisers to develop a unified strategy for video content across platforms.

FACEBOOKFacebook is a good place to reach a scaled audience. 60% of consumers are watching branded videos on Facebook every single day, and 49% of consumers are actively engaging with those videos. Videos on Facebook should be uploaded natively and should be visually appealing, since videos automatically play without sound. Also important to driving video views on Facebook, is including subtitles. 4C Product Manager, Stephan Haggerty, explains that Facebook “makes it seamless to add or create subtitles.” There are tools for marketers to generate shorter form Facebook videos, as well. Some of the best content to upload to Facebook include short and informative videos or fun videos, such as GIFs and slideshows.

Facebook has always been early to the scene when it comes to video and is becoming a leader when introducing new video capabilities. Brands should learn from current Facebook initiatives and begin thinking about how to adopt those learnings as new video formats roll-out across Facebook and Instagram.

"Instagram has allowed Facebook to expand further to more curated communities and has given them a platform to experiment with new creative forms, such as vertical video and Instagram stories. Facebook continues to invest in the future of video, whether it be adding a video tab with a collection of content partners to their mobile app, the introduction of Live Video, continued development of 360 video or VR/AR innovation with Oculus."STEPHAN HAGGERTY, DIRECTOR PRODUCT MANAGEMENT, 4C

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SNAPCHATSnapchat is a video-centric camera platform. Users can use Snapchat in a variety of ways to publish and watch short videos. 60% of Snapchat users in the U.S. are under the age of 24. This makes Snapchat a fantastic platform for targeting millennials. Quality video is not as important on Snapchat, since the videos only last for 10 seconds and the platform has a playful environment. It is important, however, that videos for Snapchat are filmed vertically. Snapchat is more about engaging the audience and telling a brand story or covering a live event. This makes Snapchat best for filming behind the scenes content or unique events.

“Snap Ads allow advertisers to place short, compelling video ads within User Stories, Our Stories, and Discover. Snap Ads allow swipe-able attachments that allow brands to include longer video elements, app installs, and imbedded website views.”CARL DAVIS, SENIOR PRODUCT MANAGER, 4C

INSTAGRAMUnlike Snapchat, Instagram allows marketers to publish permanent videos in addition to stories. This enables users to more easily share content. Therefore, content on Instagram should be focused on quality. Videos should be visually appealing and contribute to building a brand profile and identity. In order for users to discover new content on Instagram, it is important for videos to have the right hashtags.

YOUTUBEYouTube is also very important for marketers. 74% of millennials follow brands on YouTube. Unlike other platforms, users do not incidentally watch videos, rather, people go to YouTube solely for watching videos. 63% of YouTubers search for specific videos. With that being said, users have a longer attention span on YouTube, which makes it ideal for posting longer content. Brands can create channels on YouTube that organize how-to, FAQ, and product demo videos.

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TWITTERTwitter is a great platform for discovery. 70% of Twitter users discover new content on a regular basis. This makes Twitter a platform ideal for teaser videos that link to full length content or a brand’s website. This also makes Twitter a fantastic platform for live streaming news. Twitter has always been a company that owned live engagement.

“Twitter acquired Periscope, the live streaming app, in 2015 and have partnerships in place with a number of publishers for live content, which provide them with pre-roll and mid-roll advertising spots for live video content. This enables them to amplify advertising products.” STEPHAN HAGGERTY, DIRECTOR PRODUCT MANAGEMENT, 4C

Twitter recently announced 14 new deals and collaborations that will add hundreds of hours of exclusive content to the platform. The new live premium content will come from partenrs including the MLB, NFL, WNBA, PGA, Viacom, BuzzFeed, Bloomberg Media, Live Nation, IMG Fashion, and Ben Silverman's Propagate. Twitter is making itself the platform users will go to figure to figure out what is happening in the moment.

PINTERESTPinterest is also a highly-engaging platform that is centering more around video. Its value as a tool for consumer discovery and inspiration can not be overstated.

“Pinterest started out as a visual platform made up of mainly brand-generated content. This is the type of content that users expect and are most engaged with on Pinterest. Auto-play video, which just rolled out in 2017, is the next step in engaging and inspiring users with visual content. There are a variety of ways to use video on Pinterest from DIY tutorials and cooking demos to mini commercials featuring a brand’s products.”JENNIFER WORMINGTON, PRODUCT MANAGER DIGITAL ACTIVATION, 4C

SummaryIt is no longer enough for marketers to just have digital video in their marketing campaigns. It is imperative to integrate video into all marketing communications plans through social media. This, in turn, will increase audience engagement through social video, a much more specialized approach to digital video. Marketers must stay up to date with the trends in social video in order to stay competitive in the multi-screen world. While not all facets of social video will be a fit for each brand, using it appropriately will distinguish elite brands from the rest.

Social video is here to stay, are you? Get in touch with 4C to learn more about how we can help you seize the future of media.

4C is a global leader in data science and media technology with solutions for multi-screen convergence. Brands, agencies, and media owners rely on the 4C Insights Affinity Graph™ to identify their most valuable audiences and improve effectiveness across channels. With $1 billion in annualized media spend running through its software-as-a-service platform, 4C offers activation on Facebook, Twitter, LinkedIn, Pinterest, Instagram and Snapchat as well as TV Synced Ads across display, search, social and video. The company also provides paid, earned, and owned media analytics leveraging its Teletrax™ television monitoring network which detects over 400 million TV asset airings on an annual basis. Founded in 2011 and based in Chicago, 4C has staff in 15 worldwide locations across the United States, United Kingdom, the Netherlands, France, Hong Kong, India, and Singapore. Visit www.4Cinsights.com for more information.