online video metrics matter
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Video Monetization: Metrics Matter
Video Monetization: Metrics Matter
Paul ZagaeskiPrincipal Analyst, Online
TV Adviser &GigaOm Pro Analyst Network
June 2010
Paul ZagaeskiPrincipal Analyst, Online
TV Adviser &GigaOm Pro Analyst Network
June 2010
copyright 2010 Paul Zagaeski
Today’s Key IdeasToday’s Key Ideas
Video viewing trends (the New TV) New TV is making money (are you?) Online viewers > engagement Engaging viewers is cheap! (or is it?)
What does engagement mean exactly? Engagement Metrics: this ain’t your grandfather’s Arbitron Ratings Book
Video viewing trends (the New TV) New TV is making money (are you?) Online viewers > engagement Engaging viewers is cheap! (or is it?)
What does engagement mean exactly? Engagement Metrics: this ain’t your grandfather’s Arbitron Ratings Book
copyright 2010 Paul Zagaeski
Video Viewing TrendsVideo Viewing Trends
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TV: just a box and lots of local broadcasters
Cable/satellite: more channels, narrowcasting
Web video: LOLCats give way to “TV experience online”
TV: just a box and lots of local broadcasters
Cable/satellite: more channels, narrowcasting
Web video: LOLCats give way to “TV experience online”
copyright 2010 Paul Zagaeski
New TV Is Making MoneyNew TV Is Making Money
Broadcast 1940s-1970s (ads) Cable/satellite 70s-90s (ads + subs) Web video 90s-00s (no one paying or buying ads) Online TV 00s (no one pays for LOLCats on YT) Paid Content 10s-future (ads + subs + PPV(?)) Pain: what does an ad buyer buy in New TV?
Broadcast 1940s-1970s (ads) Cable/satellite 70s-90s (ads + subs) Web video 90s-00s (no one paying or buying ads) Online TV 00s (no one pays for LOLCats on YT) Paid Content 10s-future (ads + subs + PPV(?)) Pain: what does an ad buyer buy in New TV?
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copyright 2010 Paul Zagaeski
Online Viewing>Engagement
Online Viewing>Engagement
Web & mobile platforms give the viewer power—they can act!
HSN=$billions Interaction rate 5-
7x higher than for ads
Lots of innovation, measurable resultsUbiSoft (Your Shape for Wii) competes with Wii Fit using online video
Source: http://www.clickz.com
Web & mobile platforms give the viewer power—they can act!
HSN=$billions Interaction rate 5-
7x higher than for ads
Lots of innovation, measurable resultsUbiSoft (Your Shape for Wii) competes with Wii Fit using online video
Source: http://www.clickz.com
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copyright 2010 Paul Zagaeski
Engaging Viewers Is Cheap…
Engaging Viewers Is Cheap…
…when it works (Nike Hyperdunk) Can also be impossible/too expensive
What’s the cost? Rough scale CPM Display Ads $2.30-$2.45 CPM Online Video Ads
$7-$8 ROS or in-banner video$15-$20 for pre-roll/premium pre-roll*
*eMarketer/Credit Suisse/LiveRail/AdAge
…when it works (Nike Hyperdunk) Can also be impossible/too expensive
What’s the cost? Rough scale CPM Display Ads $2.30-$2.45 CPM Online Video Ads
$7-$8 ROS or in-banner video$15-$20 for pre-roll/premium pre-roll*
*eMarketer/Credit Suisse/LiveRail/AdAge
copyright 2010 Paul Zagaeski
What’s Engagement Mean?
What’s Engagement Mean?
Ads online are in a completely new context versus ads on TV
For the user: Where did I find this? Who helped me find it? What did I think while watching? What did I do during and after watching?
For the brand: What format did we choose? Where are we putting this? What else appears with it? How did the viewer respond?
Goal: Going viral! Means brand is probably maximizing all relevant metrics for the video—and you need metrics even when it’s an obvious success.
Ads online are in a completely new context versus ads on TV
For the user: Where did I find this? Who helped me find it? What did I think while watching? What did I do during and after watching?
For the brand: What format did we choose? Where are we putting this? What else appears with it? How did the viewer respond?
Goal: Going viral! Means brand is probably maximizing all relevant metrics for the video—and you need metrics even when it’s an obvious success.
copyright 2010 Paul Zagaeski
Engagement MetricsEngagement Metrics
Placement Sentiment Engagement Reach
Placement Sentiment Engagement Reach
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copyright 2010 Paul Zagaeski
Nike Ad Metrics CaseNike Ad Metrics Case
My recent favorite “viral video” (Kobe & Hyperdunk)
Measuring ad results of: Placement (6 > 250+) Sentiment (40% re-enacted)
Engagement (35k comments) Reach/Exposure (375,000 hours)
See case athttp://corp.visiblemeasures.com/case-studies/engaged-reach/
My recent favorite “viral video” (Kobe & Hyperdunk)
Measuring ad results of: Placement (6 > 250+) Sentiment (40% re-enacted)
Engagement (35k comments) Reach/Exposure (375,000 hours)
See case athttp://corp.visiblemeasures.com/case-studies/engaged-reach/
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copyright 2010 Paul Zagaeski
And Now You KnowAnd Now You Know
There’s New TV New TV is gaining ad revenue traction
One reason: online viewer engagement, with great follow-on value brought to the brand
Measuring that engagement is absolute requirement for your brand’s next success.
There’s New TV New TV is gaining ad revenue traction
One reason: online viewer engagement, with great follow-on value brought to the brand
Measuring that engagement is absolute requirement for your brand’s next success.
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copyright 2010 Paul Zagaeski
Time For Q&A Later…Time For Q&A Later…
By the way, check this article about barriers to online video ads
http://techcrunch.com/2010/01/16/12-things-holding-back-online-video-advertising/
By the way, check this article about barriers to online video ads
http://techcrunch.com/2010/01/16/12-things-holding-back-online-video-advertising/
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That’s all, folks!That’s all, folks!
Paul Zagaeski (Twitter: paulzagaeski)Principal AnalystOnline TV Adviser
http://onlinetvadviser.wordpress.comMember of
GigaOm Pro Analyst Network
Paul Zagaeski (Twitter: paulzagaeski)Principal AnalystOnline TV Adviser
http://onlinetvadviser.wordpress.comMember of
GigaOm Pro Analyst Network
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