yume + lg at dbs: debunking the myths of video advertising and connected tv

De-Bunking the Myths Around Connected TV

2 ©2012 YuMe. All rights reserved. CONFIDENTIAL

Speakers

LG

Wendell Wenjen, Director, Advertising &

Interactive TV Platforms

Razorfish

Megan Tweed, VP Media

Accedo

David Adams, VP Corporate Development

YuMe - moderator

Christie Hartbarger VP Strategic Alliances &

Field Marketing

©2012 YuMe. All rights reserved. CONFIDENTIAL

What is a connected TV?

A “connected TV” is a TV connected to the Internet

3

Smart TV Blu-ray Player

Game Console

Set-Top Box

4

Myth #1 Connected TV has no scale

©2012 YuMe. All rights reserved. CONFIDENTIAL

Source: eMarketer Jan 2013, includes households with at least one connected TV set, where at least one person of any age uses the internet through a connected TV at least once per month.

Almost 1/3rd of US HHs Are Actively Using Connected TV

5

29% connected TV US household penetration in 2013

6 ©2012 YuMe. All rights reserved. CONFIDENTIAL

Growth & Activation of Connected Devices

Source: Monetizing Apps on Connected Devices , 2012 Parks Associates

7Source: Interpret & Discovery Communications “The Evolution of TV Everywhere” Oct 2012

Myth #2 Only young

men are using CTV

8 ©2012 YuMe. All rights reserved. CONFIDENTIAL

Source: YuMe, “The Who, What, Where, When , Why and How of Connected TV & Advertising,” in conjunction with Frank N, Magid Associates Aug 2012

Usage is Slightly Male Skewed but Within Multi-member HHs

93%90% of other members are using the devices

58% male

42% female

of connected TV users live in multi-member Households

34 mean age

9 ©2012 YuMe. All rights reserved. CONFIDENTIAL

Families Also Love CTV!

10Source: Interpret & Discovery Communications “The Evolution of TV Everywhere” Oct 2012

Myth #3 On CTV: everyone is just watching

Netflix

11

48% of CTV Users Are Frequently Using Non-Netflix Apps

12 ©2012 YuMe. All rights reserved. CONFIDENTIAL

Connected TV. Moving Beyond Broadcast.

Source: YuMe, “The Who, What, Where, When , Why and How of Connected TV & Advertising,” in conjunction with Frank N, Magid Associates Aug 2012

stream movies from the Internet several times a week or more often

watch movies that cannot be found on TV or cable

watch high quality, professionally produced full length video programs or short videos you cannot find on TV or cable

54%

46%

67%

13

Myth #4 CTV ads are

mostly pre-roll

Source: Interpret & Discovery Communications “The Evolution of TV Everywhere” Oct 2012

©2012 YuMe. All rights reserved. CONFIDENTIAL

14

Smart TVs Provide First Impression Placements Throughout Their Content Discovery Pages

15 ©2012 YuMe. All rights reserved. CONFIDENTIAL

Source: Oooyala Global Video Index Report Q3 2012; YuMe & IPG Media Lab, “Are All Screens Created Equal?” Sept 2012; Altman Vilandrie & Co., “2012 Consumer Video Research” in partnership with Research Now, Sept 2012

Connected TV Represents a Low Clutter, Branding Environment

»highest video completion rate of all devices

»38% unaided ad recall compared with 27% (lowest) on Linear TV

16

Myth #5 Campaign

learning's are too limited

Source: Interpret & Discovery Communications “The Evolution of TV Everywhere” Oct 2012

17 ©2012 YuMe. All rights reserved. CONFIDENTIAL

Learning’s Are Improving Quickly

Impressions (with 3rd party tracking)

Video completion rates

Interaction rates

Brand lift

Delivery by day or day-part

Delivery by hour (for larger campaigns)

Performance by creative (to better understand

creative best practices, by product, call to action, etc)

©2013 YuMe. All rights reserved. CONFIDENTIAL

18

Slowly but Surely, Brands Are Embracing CTV

Source: Forrester/ANA 2012 US TV And Everything Video Online Survey; DIGIDAY, “Video State of the Industry Report Q1 2012”

US marketers not currently experimenting with Internet-connected TV online video streaming ads, planning to in 2013 (higher than PC, tablet, and smartphone)

28%

Advertisers/agencies spent on connected TV ads in 2012 vs. 26% of publishers who support connected TV

39%Advertising demand on connected TV is outpacing publisher support!

Thank you!