corey weiner presentation
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How social media is re-writing the advertising rules of engagement
Online Video Advertising and Social Games:
Agenda
• Social Media Makes History– The breadth and depth of this phenomenon
– Telling facts and figures
• History Repeated– How brands reacted the last time around
– Striking similarities
• Special Effects – How social media is affecting online advertising
– What’s working and what isn’t
– Analysis of strategies and tactics
• Where We’re Going– A look into crystal ball
Social Media Makes History
Social media is the most meaningful cultural change
since the advent of the Web.
Lady Gaga, Justin Bieber, and Britney Spears have more Twitter followers than Sweden, Israel, Greece, Chile,
North Korea, and Australia have citizens.
Source: Socialnomics
Source: AdAge
Social media accounts for one out of every six minutes spent online in the US.
If Facebook were a country, it would be the world’s third largest.
Source: Socialnomics
48 hours of video are uploaded to YouTube every 60 seconds.
8
Source: YouTube
Flickr hosts over 5 billion images.
9
Source: YouTube
There are 1.5 million real farmers in the world, and over 80 million FarmVille farmers.
Source: AllFacebook.com, June 2011
The social media phenomenon is changing our lives in more ways
than we might realize.
Personal communications
News and journalism
Entertainment
Sports
Dating
Politics
Job hunting & hiring
It’s even helped topple a few governments.
280 million views
History Repeated
Advertisers react to new media in predicable ways.
At first, the Web was eerily similar to 1950s television.
The Early Web
Brands as publishers“Sticky content”Few real metrics
Now, we see much of the same behavior around social media.
Today’s Version
Home pages moved to social networksA rush to go ‘viral’
A quest for ‘likes’ and sharesLittle sense of the value
But, there are benefits.
New tools and capabilities
2-way communications
Earned media
Let’s have a look at some of most common tactics advertisers are using.
Special Effects
How advertisers are using social media.
In spite of all the potential, and all the years of learning, the vast majority
online advertising is still interruptive.
Ad banners
Mastheads
Pre-roll
Road blocks
And there is potential for so much more.
Old Spice “The Man Your Man Could Smell Like”
38,099,220 views
Nike “Escribe El Futuro Version Completa”
26,335,995 views
Kia Soul“Hamsters”
16,140,386 views
The viral dream
Perception
• Discovered• Organic reaction• Friend-to-friend
Reality
• Promoted• Planned strategy• Mass medium• Significant budgets
The viral dream
The lesson: social advertising is not a hit-driven business.
Success comes from careful strategic planning, powerful
creative, and significant budget.
Here are some everyday things advertisers are doing to connect with users in social networks.
Tying tweets to status updates
Using Facebook tile ads
Special offers and coupons
Content, tools, and apps
Video distribution
There are other, more sophisticated ways to reach
these users.
Social games
Source: Facebook
Social games
53% of Facebook users play social games (19% say they’re addicted).
Source: Facebook
Social games
290 million users play social games each month - a 30% increase over 2010.
Source: Jun Group
Social games
The average social gameris a 27-year-old woman.
Source: ISG
Social games
20% of these users have paid cash for virtual goods.
Virtual currency and virtual goods are key components of successful social advertising.
Americans are expected to spend over $2.1 billion this year on
virtual goods.
Source: Inside Virtual Goods Report
Spending on virtual goods has increased 245% since 2007.
Source: In-Stat
Total global spending on virtual goods is estimated to be more than $7.3 billion.
This is expected to increase to more than $14 billion by 2014.
Source: In-Stat
• Non-interruptive• Integrated with the experience• Beneficial for user, publisher, and advertise
Social advertising takes place across multiple screens.
Currently, more than 1.2 million smartphones are sold every day.
This is a 60% increase over 2010.
Source: In-Stat
Over 70% of the world’s population now owns a mobile phone.
Source: Sybase, Inc.
Over 85% of new mobile devices are able to access the Web.
Source: Gartner 2011
By 2013, mobile video will consume 66% of total mobile data usage.
Source: eMarketer
US mobile ad spending will grow from $790 million in 2010 to over
$4 billion in 2015.
Source: BIA/Kelsey, June 2011
• Shareable• Utility• Customizable• Geographic targeting/tracking• Brand in your hand at key moments
Mobile programs have limitations, but they also offer unique advantages.
Looking Ahead
The rules are simple:
People dislike advertising, and they are increasingly empowered to avoid it.
Advertising, therefore, must meet consumers on their terms.
To be effective, social advertising must:
Entice rather than interrupt
Deliver valueEntertainEnableInformReward
Be relevant
Advertisers who understand this will reap the benefits.
Click-through rates for non-interruptive videos are 106% higher
than standard pre-roll video.
Lift in ad recall is 209% higher.
There is a 32% increase in likelihood to purchase the product.
Source: VivaKi
Completion rates for 30-second pre-roll videos average 64%, with an average click-through rate of 1%.
Source: YuMe
Completion rates for opt-in videos average 70% - 80%.
This is for videos up to 3 minutes-long.
Click-through rates average 5% - 7%.
Source: Jun Group
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Age Breakdown Gender Breakdown
1.9MM video views
5.8%+ of users went on to download recipes after the videos played
1.8%+ of users chose to view more videos
1.2%+ of users clicked through to Facebook
0.9%+ of users replayed the videos
9.7% post video interaction rate
Advertisers can, and should, demand more accountability than ever before!
• Pinpoint targeting - Age, gender, geography, habits/prefs.• Real time data & optimization• 100% transparency• Meaningful goals and metrics
And, finally, a few predictions.
Virtual currency will “game-ify” premium publishers and networks
Traditional media will become “socialized”• Hybrid online/offline campaigns• 2nd and 3rd screens
Blurred lines between mobile and desktops
Users will exert more and more control Brands will demand (and receive) greater insight and accountability than ever before