The explosion of smartphones and tablets combined with a wider selection of premium content have given a big boost to mobile video viewing in the last year, according to mobile researcher Yankee Group. Its study says the number of U.S. smartphone owners who watch video frequently (at least once a week) on their devices has doubled in the last month. At the same time, half of iPad owners watch full-length TV episodes, indicating that consumers are no longer limited to watch clips or music videos on devices. Tablets are now as popular as PCs for watching video and second only to TVs. Overall, 65% of tablet owners watch video frequently on their devices and more than half (57%) of smartphone users do so. In addition to increased adoption of these devices, the report points to the rollout of more premium video on mobile screens from cable companies, as well as Internet video services, like Hulu, Netflix and Vevo. In the first half of 2011, cable operators rolled out live TV apps and Time Warner introduced its HBO Go app. They have continued to update mobile offerings into 2012. YouTube remains the biggest video brand for mobile users, with 40% watching the Google-owned video hub in the last month. Netflix was runner-up, with 20% viewing, followed by Hulu (12%), and HBO Go (5%). Yankee Group found that ad-supported and a la carte services have proven more successful than standalone mobile video subscriptions. The cable companies, of course, are relying on the TV Everywhere model, in which mobile access is limited to authenticated cable customers. The report, however, did not directly address that approach. Overall, the firm emphasized that service providers should recognize tablets as a critical platform for extending video content. With tablets apps already out, they should focus next on improving their offerings, with assembling movie packages as one possible option. The study also suggests that companies produce original content geared to connected devices. Both the iPhone and iPad are the default platforms for mobile video. The iPhone accounts for 35% of frequent video viewers among smartphone users, and the iPad 40% among tablet users. By contrast, “Android suffers from OS fragmentation and owners who are less inclined to pay for content,” according to Yankee Group. The tablet landscape will become even more fragmented this year with the coming Windows 8 device and Google’s newly unveiled Nexus 7 tablet. A separate study released Thursday by InMobi and Mobext estimated that 29.5 million Americans have tablets, or about 11% of the total population. Yankee Group said women and people over 35 are among the fastest-growing tablet adopters. Since both demographics are heavy consumers of long-form content, that trend bodes well for the tablet becoming a key video screen.
A new study from Omnicom’s OMD concludes that the average content posting by an advertiser on a Facebook page has a surprisingly low shelf life: about 18 hours. Shelf life is defined as the length of time that users provide feedback after content is posted, and for Facebook it appears to be far less time than other media platforms, said Colin Sutton, U.S. director of OMD Word, who runs the agency’s social media practice and oversaw the study.For example, Sutton says videos on YouTube often have a shelf life that lasts weeks, even months, as word of the content spreads virally. "That was the biggest surprise," said Sutton, referring to the short feedback cycle for most marketer content posted on Facebook and analyzed by the study. It analyzed nearly 300 content posts across the pages of 10 TV networks over a four-month period, November 2011 through February of this year. The networks included Showtime and HBO, among others. While the study focused on one category, Sutton said "the general findings still hold" across various marketer verticals. Research found that the biggest impact on shelf life is the actual messaging and content that is posted. Video posts appear to prolong shelf life by 16% above the average, per the study, while photos tend to prolong it by about 9%. One post a day was optimal -- any less and there's a risk that brand awareness and engagement by consumers will wane, while multiple daily posts are more than the typical fan wants or can keep up with. "The impetus is on content managers to update their pages while not overwhelming fans," the report states. For marketers that can't or won't post new content daily, Thursdays and Fridays were best for engaging Facebook users, while Sundays and Tuesdays were the worst days. Sutton noted that those findings conflict with a study Buddy Media conducted that found the weekends to be the best time to engage Facebook users. “We’re not sure if that's a shift in consumer behavior or specific to the category we analyzed,” said Sutton. "We need to do more work on that." Another striking finding, per Sutton, was that there seemed to be no correlation between the popularity of a TV program off-line and fan engagement online. “That’s a great opportunity” for lower-rated on-air shows to boost their on-line profiles and potentially their on-air audience levels, said Sutton. And the flipside is that popular shows, like Showtime’s "Dexter," can’t "rest on their laurels," because ratings alone won't drive their popularity on Facebook pages.
According to Bonin Bough, VP of global media and consumer engagement for Kraft Foods, the digital media executives inside brands that are having the most success right now realize that they must take advantage of the huge channel that TV is by evolving and integrating it with other media, rather than treating it as its own animal. Bough, speaking at the Brand Innovators Digital Video Advertising Summit, said the best example of this is the work that the so-called “Godfather of Digital Video,” Marc Fonzetti, media director at Verizon Wireless, is doing. Shortly before the Digital Content NewFronts in mid-April, Fonzetti organized a ‘Digital Daypart’ summit for all of Verizon’s digital video agencies and partners. The idea was to bring together all providers, both traditional and digital, to break down the silos under which some of them operate in order to have an open strategy session where everyone could voice their concerns and ideas. The results were fantastic, Bough said. For its part, Kraft is also being progressive when it comes to embracing digital video, Bough said. “We’re going after digital video (and mobile) in a massive way. We are moving to screen-neutral watching -- why wouldn’t we?” However, he noted that there are some tough obstacles to fully justify digital video buying to the most senior brand managers. Even though he agreed that the GRP sells digital short, Bough said marketers need to work with what’s currently available and they need to push the measurement folks to get it right.
Having learned a thing or two about Web audiences and their leanings, video network Blip is getting into the production business. Unveiled this week, Blip Studios will work directly with brands, talent and independent producers to develop and co-produce original Web series. Blip then plans to monetize and distribute these productions across its various distribution platforms. Steve Woolf, former vice president of content for Blip, has been pegged to lead the effort in his new role: SVP of content and president of Blip Studios. To set its original work apart, it’s critical that each endeavor “push the boundaries of audience interactivity,” said Woolf. Thinking big, he added: “Our ultimate goal is to create the best innovative content that leads storytelling into the next decade.” The plan is to hit all the key genres, from comedy and sci-fi to sports and drama. Blip Studios expects to build and manage networks of shows, while giving brand partners every opportunity to join in. Founded in 2005, Blip has worked with video producers, advertisers and distribution platforms to scale its network. Coinciding with its launch, Blip Studios said it signed exclusive talent and distribution agreements with several independent production companies and shows, including Channel Awesome’s “Nostalgia Critic,” “Nostalgia Chick” and “Todd in the Shadows.” According to internal data, Blip says these shows represent “hundreds of millions of views.”
In the continued quest for a bigger share of television ad budgets, digital media companies put a lot of time and effort into this year’s Digital Content NewFronts. With all the industry momentum seen in significant year-over-year growth in digital video buying, the NewFronts stand for much more than just another industry event. Digital media platforms now look forward to making long lasting impressions in the weeks to come. So, one would hope that the events could demonstrate the market’s maturity and continue to shape how digital video will help brands meet their objectives. While a step in the right direction, this year’s NewFronts fell short of this desired outcome. Fortunately, time is on our side to work toward fixing the model. Showcase the industry's value. The NewFronts should serve as an opportunity for digital publishers to shine a spotlight on the industry’s progress in technology, consumer understanding, and programming concepts. But instead, time was spent raffling off prizes and focusing on late night “celebration” with little demonstration of video innovation. This year’s NewFronts lacked engaging information, and from my experience, served as a festival for a lot of sizzle without the appropriate amount of steak. And unfortunately, during all of the “celebration,” the opportunity to discuss the issues affecting the marketplace was lost. While one could argue that TV’s traditional Upfronts are no different, TV has the benefit of established credibility given it has repeatedly shown to be effective branding and communication channel. Stop the negative selling. It’s probably time for digital to move away from disparaging TV as a means of garnering TV dollars. Downplaying the value of TV advertising lacks sensibility, because while digital is commanding an increasing share of ad dollars, the growth is not attributable to a decrease in TV spend, which continues to rise. Even with TV spending topping $70 billion for the first time last year, many of the presentations at the NewFronts tried to position digital as a stronger alternative to TV. If the thought leaders who are supposed to be pushing this industry segment forward are actively talking about how TV is not measurable, they’ll continue to wait for “TV-like” dollars. Focus on measurement. A compelling reason that money is not moving from TV to digital is because there’s not a single common data thread merging all the screens: TV, online video, and mobile video. This common data thread should be the focus of every digital media company and corresponding NewFront presentation going forward, until it gets sorted out. Rather than promote a David and Goliath tale, it would be more beneficial to talk about how we can work together to make video advertising measurement uniform and understandable, whether it’s on one screen or across all three. While the NewFronts are designed to pique advertiser interest in new and unique content offerings, as an industry we cannot realistically ask marketers to devote millions of dollars to a platform without establishing meaningful success benchmarks. And that does not even touch on advertisers’ continued concerns about finding good content that actually delivers real scale, which is well-illustrated by the fact that two properties, Hulu and YouTube, account for about half of the $1.8 billion video ad market. If digital properties want to change how advertisers perceive digital video, we need to bring more sophisticated thinking and thoughtful selling into the space. We’re not trying to beat TV at its own game; we’re trying to prove that digital video is a viable platform to drives brand awareness and recall, not just generate clicks. We can save the NewFronts by taking more time to educate the market, highlighting technological advancements, and ultimately narrowing the measurement gap that is impeding the growth of digital video.
One of the underdiscussed aspects of the viral-superclip era is how it has given rise to what one might call brand delusion. In the hands of a less-than-self-aware marketer, the web video can morph from a simple promotional artifact into an exercise in reality-denial and/or-reconfiguration. You see it every day: "We view ourselves a certain way. If you don't, you're wrong and we're right and please like us on Facebook." This half-assed notion reentered my mind upon receiving an email that commenced with the following clumsily punctuated flourish: "Sensuous, stimulating and hedonistic are three words that normally are not top of mind when describing water unless it's Perrier Sparkling Mineral Water." Huh. Isn't Perrier kind of the Diet Dr Pepper of snootypants bubble-water? I've never associated Perrier with high-society galas or topless throwdowns on Paul Allen's yacht; indeed, I wouldn't be surprised to see it on the drink menu at Pizza Hut. That's why "The Drop," in which Perrier positions its aqua-vittles as thirst-sating supermodel nectar, is the most inadvertently silly brand video in months. In a single 119-second stretch, Perrier throws any number of wishful-thinking brand fallacies against the wall, hoping that one will stick. The clip posits that Perrier is the beverage of choice in the world's cushiest sitting rooms; that Perrier's appeal transcends race, gender, ethnicity and socioeconomic status; and that Perrier is without peer as mid-summer lubricant. That last one in particular kills me. Does Perrier do brisk business at beachside cafes around the globe? Has anyone ever seen a gym-goer reach for an icy Perrier after an intense workout? If you can present a scintilla of evidence that speaks to Perrier's utility as a cool-off beverage, please send it my way. I'm genuinely confused by this claim. Anyway, the film - any video over 30 seconds in length now qualifies for categorization as "film," at least in the world of hysterical press releases - kicks off with the world on the brink of extinction, with some kind of super-sun about to fry civilized society to a crisp. This flaming destructo-orb cannot be tamed, liquefying lipstick in the process and prompting otherwise gallant Frenchmen to lower the knots on their neckties by one-eighteenth of an inch. Happily, there's potential salvation in the form of a supermodel cosmonaut who hitches a ride to space in a translucent pod. As the camera lingers over scenes of heat-related unpleasantness – a stray beam setting a newspaper on fire, socialites and peons alike daintily mopping their dewy brows - our fearless protagonist zips her way into the stratosphere, an encased bottle of Perrier at her side. From afar, earth's inhabitants monitor every twitch of her excellently landscaped eyebrows, for it is she and she alone who can deliver them from broiler-pan misery. When she arrives at the sun, the planet holds its collective breath. After a quick sashay down the space runway and some de rigueur hands-on-hips Frenchy supermodel insolence, she prepares to pour the Perrier on the seething orb… but thirst gets the best of her, as it often does when one is positioned mere inches away from a 64 kajillion megajoule fireball. As the good, sweaty people of the world watch in disbelief, our gal gulps the Perrier greedily. Ah, but a stray drop lingers on her lip; when she flicks it onto the surface of the sun, it makes everything better and the sun de-heatifies and everybody hugs and cheers and oh what a happy day it is. So yeah, the unlikely pairing of Perrier and time-compressed space travel should prove a real balm when the mercury rises this weekend. Adjust your plans accordingly.
NBC will probably lose money on the 2012 London Summer Olympics. But don't worry. It might only be $100 million in red ink, after spending $1.18 billion on the games. That really isn't so bad, considering that the 2010 Vancouver Winter Olympics, which cost NBC around $820 million, put it about $223 million into the hole. But here's the good news: NBC says it will probably make money on the next four Olympics, which will cost around $4.4 billion total. That may seem to counter profit-challenging trends resulting from the TV rights fees for almost all major sports events -- such as the NFL, the NBA and Major League Baseball. First, there doesn't seem to be much price escalation on the TV fees for the next four Olympics, which will average around $1.1 billion apiece. We can assume some of the usual positives TV executives throw around regarding sports in today‘s changing digital world: They’re live, they’re DVR-proof, they still provide a place for big TV promotion; and the Olympics are one of the remaining "events" when it comes to broadcast television. If you don't believe any of this, perhaps we should add NBC’s hint that some 100 million cable, satellite and telco TV homes will have access to some 3,500 hours of the London Olympics, amounting to virtually every single second of every single event. This TV Everywhere-like deal means that virtually 90% of U.S. TV homes -- some 100 million out of 115 million -- can choose to see the games digitally. Hopefully, NBC will sell some digital advertising, but that won’t be enough to make the games profitable. During the 2008 Beijing Games, NBC offered a number of real-time complete events -- but not all of them. Monetization on the digital front wasn't a major objective then. I doubt that atitutude will continue in London. I watched the entire men's road cycling race live from Beijing -- almost six hours of non-stop coverage (with no live audio commentary). Shockingly, there were only three or four commercial/promo breaks in the action. All were for General Electric (which was then the majority owner of NBCUniversal) and around 15 seconds long. Four years later, I'm expecting a few more video ads during the London men's road cycling race. (In 2008, I could have used the break to get away from my laptop. Today, tablets make things more mobile). It doesn't take a rocket scientist to guess that upcoming Olympics should do better advertising-wise when it comes to digital video. This should makes a few Olympics fans thankful -- and create more stress elsewhere. Future live digital video Olympic efforts will shift more of the burden to how NBC sells digital TV/video advertising in the games.