Online Video Best Practice

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August 5, 2010 | Updated: August 23, 2010

Onne Vdeo Best Pactceb Nck Thoaso Consue Poduct Stateg Poessonas

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© 2010, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Inormation is based on best availableresources. Opinions refect judgment at the t ime and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar,and Total Economic Impact are trademarks o Forrester Research, Inc. All other trademarks are the property o their respective companies. To purchase reprints o this document, please email [email protected]. For additional inormation, go to www.orrester.com.

Fo Consue Poduct Stateg Poessonas

ExECUTiVE SUmmAry

Over the past year, our video strategy series has presented the business case goals and best practices or

adding video to your Web site. In this report, we demonstrate how our online video product scorecard

enables companies to benchmark their eorts, comparing their Web sites’ use o video with competitors

rom the same vertical as well as with market leaders across all categories. Based on our study o more

than 100 leading consumer Web sites, we can identiy strengths and weaknesses or both individual

sites and industry verticals; we also provide ocused, actionable advice to ensure their sites best meetconsumer needs.

TABlE O F CONTEN TSConsumers Expect Video Content Online

We Focus On Fou Ke Categoes O TheConsue’s Onne Vdeo Epeence

Score And Benchmark Your Video Product To

Satisfy Video Users

Benchakng reveas Tends Acoss Vetcas

And The Wde industThe Consumption Cateory Scores The

Hihest; Discovery The Lowest

Dscove Stcks Out lke A Ve Soe Thub

Consupton Scoes The Hghest

most Stes Povde Unque O CopengContent, Though Not Awas Both

lack O Soca Functonat Weakens TheContet Fo man Stes

rECOmmENDATiONS

Use Our New Methodoloy To Evaluate YourVideo Product Stratey

NOTES & rESOUrCES To ceate Foeste’s onne vdeo poduct

scoecad, we dented ndust best pactces

o an etensve stud o oe than 100

consue-acng Web stes that use vdeo.

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Scoecad”Ap 30, 2010

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Novebe 6, 2009

August 5, 2010 | Updated: August 23, 2010

Onne Vdeo Best PactceBenchakng Web Stes Usng Foeste’s Onne Vdeo Poduct Scoecad

by Nick Thomaswth Jaes l. mcQuve, Ph.D., mak mugan, and Anne E. Cobett

2

4

6

14

mailto:[email protected]


http://www.forrester.com/go?docid=53776&src=57174pdf



















© 2010, Foeste reseach, inc. repoducton PohbtedAugust 5, 2010 | Updated: August 23, 2010

Onne Vdeo Best Pactce Fo Consue Poduct Stateg Poessonas

2

CONSUMERS EXPECT VIDEO CONTENT ONLINE

Online video is no longer just about specialist video aggregators. Sure, Youube continues to drive

consumer adoption o video viewing online, and long-orm sites backed by traditional broadcasters,

such as ABC/NBC/FOX’s Hulu and the BBC’s iPlayer, have now built on that momentum to oster

urther demand or video online. Tat demand is signicant: 61% o European Internet users have

watched some orm o online video in the past month, while that gure rises to 67% in the US.1

Video is now integral to many consumer-acing Web sites, not just rom traditional media providers

but rom brands, companies, and organizations without a history o content creation, conrming

what we noted in a previous report: We are all media companies now.2 But while video can be an

eective tool or educating and entertaining consumers, how can consumer product strategists

ensure their video content is meeting consumer needs and matching industry best practice?

Perorming Forrester’s online video review using our online video product scorecard provides a

denitive and quantitative answer to that question.

We Focus On Four Key Cateories Of The Consumer’s Online Video Experience

Adding video to a Web site has moved well beyond just embedding a Youube player in a Web page.

As the Web video marketing stack becomes more complex, we have identied, through extensive

study o the online video space, our key areas on which a product manager must ocus initially.3

Reecting the key touchpoints o a typical user’s journey through the video content on a Web site,

these our categories orm the core o our online video product scorecard (see Figure 1):4

· Discovery. Visitors to a Web site need clear mechanisms to nd and discover video content. Is

it clearly agged? Is related relevant video content easily accessible? Is video content easy to nd

rom both the site’s internal search and rom external search engines?

· Consumption. Focusing on a user’s consumption o video content, sites must ensure that the

playback experience is optimized, the video player controls are clear and easy to use, and the

inormation about the content itsel is helpul and relevant. In addition, the branding o the

video content should be consistent with the overall site branding.

· Content. Te core o a great video site is compelling content. Is the content on your site

compelling and dierentiated? Does it enhance your overall brand? Is there an appropriately

deep catalog? And, is the content portable (e.g., downloads, embeds), should users wish to

consume it across dierent sites, devices, or platorms?

· Context. How is your site perorming against your competitors, including the market leaders?

Is the video content integral to your overall site, and is it aligned with your broader strategic

imperatives? Have you included social media tools that allow your consumers to interact with

your video content? And, ultimately, does your video content add value or the user?



© 2010, Foeste reseach, inc. repoducton Pohbted August 5, 2010 | Updated: August 23, 2010


3

Fiure 1 Foeste’s New methodoog Focuses On Fou Ke Categoes

Source: Forrester Research, Inc.57174

Non-intuitive, incomplete

Doesn’t enhance brand

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

Online video review total (out of 100)

Discovery

Presence Ubiquitous 5 4 3 2 1 Minimal

Signage Clear 5 4 3 2 1 Obscure

Related video Easy to access 5 4 3 2 1 Hard to access

Search facility Useful and relevant 5 4 3 2 1 Ineffective

Search engine optimization Optimized 5 4 3 2 1 Not optimized

Discovery subtotal

5 4 3 2 1

5 4 3 2 1

5 4 3 2 1

5 4 3 2 15 4 3 2 1

Consumption

Playback Optimal experience Poor experience

Controls Intuitive, complete

Branding Consistent Inconsistent

Status Clear UnclearMetadata Helpful Unhelpful

Content

Appeal of content Compelling Limited appeal

Differentiation Differentiated Generic

Depth of catalog Deep Shallow

Brand integrity Enhances brand

Portability Portable On-site only

Context

Competitive environment Market leader Laggard

Integration into overall site Integral Marginal

Alignment Well-targeted Unfocused

Social functionality Extensive Minimal

Bottom line Adds value Doesn’t add value

Consumption subtotal

Content subtotal

Context subtotal





4

SCORE AND BENCHMARK YOUR VIDEO PRODUCT TO SATISFY VIDEO USERS

o create Forrester’s online video product scorecard, we identied industry best practice rom an

extensive study o more than 100 consumer-acing Web sites that use video, across many dierent

genres and categories. While the scorecard methodology delivers a score out o 100, product strategists

should not ocus solely on the overall score but should use the scorecard as a tool or the ollowing:

· Identiying specic weaknesses. A video product may score high or consumption but may

lack compelling content. Or, it may provide great content that is nevertheless hard to discover.

In those scenarios, a product strategist should ocus more on those weaker areas because a

balance o all our criteria is essential or a truly compelling video experience.

· Developing new investment cases. Many video sites have not yet implemented a ull suite o

social media tools or video, or example. A product manager can develop new requirements by

mapping them against the criteria listed in Forrester’s online video product scorecard.

· Benchmarking against competitors. Product strategists should also score and benchmark

their video products against the scores o their competitors. While benchmarking to a specic

industry provides a good start, product strategists should not limit themselves just to similar

companies but rather should strive to provide the best oering possible by learning rom all

industries. Oine, your consumer’s expectations may be set by you and your direct competitors;

online, you will be judged against the best sites across all categories, including Facebook,

Google, and Youube.

Benchmarkin Reveals Trends Across Verticals And The Wider Industry

Forrester has scored the video content o more than 100 leading Web sites across 15 industry

verticals to assess the eectiveness o their video strategy.5 Te resultant scores demonstrate clear

cross-industry trends but also signicant dierences in perormance between verticals (see Figure

2). While entertainment sites and specialist video aggregators oer a mature product that comes

close to meeting industry best practice, or example, other sectors lag considerably. Subsequent

reports in this series will ocus on the specic challenges and opportunities in these verticals, but

some initial ndings are instructive:

· Clear leaders have emerged. Laggards must learn best practice rom the verticals with more

established and successul video strategies. Entertainment sites, video specialists, and sports

sites score highly across nearly all our metrics, and these set the benchmark or consumerexpectations around online video experiences.

· Many verticals signicantly underperorm. Retailers, consumer packaged goods (CPG)

companies, telcos, and nancial services providers, or example, are so ar ailing to realize the

potential o video as a means o engaging their consumers online.





5

· CPG and news sites show a wide spread between their highest and lowest scores. Sites

that all into the CPG vertical are widespread; they cover everything rom ragrances to drug

manuacturers, hence there is diversity in their adoption and usage o video. Similarly, news

sites dier widely in their ocus and how they use video on their site.

· Meanwhile, some verticals vary little. Food/drink and oil/gasoline provider sites had the

lowest spread among dierent sites within the same vertical. Because these sites are marketing

and advertising similar things, they tend to use video in similar ways. However, they must

widen their scope in assessing competitors, as their users will also be visiting better-perorming

sites in other verticals.

· Most verticals ail to integrate social unctionality.Although our consumer survey data

consistently indicates that users like to interact with content, only ve verticals out o the 15

scored a 4 or above or portability (sharing); only two verticals (video and entertainment)scored a 4 or above or social unctionality (commenting and rating); while social unctionality

was the only subcategory to average less than 2.5.





6

Fiure 2 Scoes Va Sgncant B indust Vetca


Source: Forrester Online Video Product Scorecard Benchmarking 07/10

Retail

Telcos

Financial services

CPG

Oil and gas

Luxury goods

Application software

Cars

Average

Food and drink

Portal

Artists

News

Sports

Video

Entertainment 86.6

83.5

79.4

74.0

69.8

69.3

68.5

67.0

62.4

61.4

61.2

59.9

58.9

58.2

56.2

55.8

Average online video scores by vertical

THE CONSUMPTION CATEgORY SCORES THE HIgHEST; DISCOVERY THE LOWEST

Forrester has scored more than 100 Web sites using the online video product scorecard. We selected

consumer-acing sites rom a wide range o industry verticals and used the methodology to evaluate

strengths and weaknesses within those verticals, as well as across the our categories outlined above.

Our benchmarking exercise reveals that while most sites provide a decent consumption experience,

this is mitigated by the challenge that most sites’ users have in discovering that video content in therst place (see Figure 3).





7

Fiure 3 Dscove reans The Bggest Chaenge Fo Onne Vdeo Povdes


CategoryCategory subtotal

(score out of 25)

Consumption

Content

Context

Discovery

19.0

18.0

16.1

13.9

Source: Forrester Online Video Product Scorecard Benchmarking 07/10

Average online video scores by category

Discovery Sticks Out Like A Very Sore Thumb

Te average score or the discovery category — the ability o users to access a site’s video content —

is 13.9 out o 25, or 56%. Tat makes it the lowest scoring o our our categories, yet i video can’t be

ound in the rst place, the other categories become largely redundant.

· Brands and services score poorly or discovery. Industry verticals that wouldn’t normally use

video — cars, luxury goods, telcos, nancial services, retail, oil/gas, and application soware —

all perorm below average in the discovery category overall. All o these can and should do better

by learning rom best practice among the higher-perorming sites and verticals (see Figure 4).

· Poor signage ollows rom poor presence. Among the discovery subcategories, sites that did

poorly in presence usually did worse in signage. I video content is not immediately visible on

the home page, there is usually poor usage o symbols and images to signal a video experience.

· Most verticals ail to use search to drive discovery. Nine o the verticals scored less than 3

(out o 5) or search acility. Tis is a surprisingly poor showing: I consumers are looking or a

specic video topic, they should be able to nd it easily. It is also relatively easy to x.

· Search engine optimization (SEO) remains an issue or many verticals. Seven o the verticals scored less than 3 or SEO. But, best practice here is not necessarily complex to

execute, and it can help your company’s videos appear in Google search results, bringing

consumers to the Web site that way.





8

Fiure 4 Onne Vdeo Dscove Best Pactces


Source: Hulu Web site

Content is easily

discovered

— via search,

thumbnail

images, “watch

now,” and at

least two links.

Searchability

is optimized

with episode

title in URL.

Consumption Scores The Hihest

Te average overall consumption score or the sites we looked at was 19 out o 25, or 76% — the

highest o our our categories. Growing competition rom online video providers has helped most

companies develop a decent consumption experience on most sites, though best practice is not yet

universal (see Figure 5).

· Controls had the highest average score o all the subcategories. Five o the industry verticals

met all o our criteria in terms o users’ ability to control the video experience, scoring the

maximum o 5. Even verticals that struggled elsewhere, such as cars and luxury goods, scored

highly here. Being able to easily control the video you are watching, especially with play and

pause buttons, is a key aspect o a high-quality experience.





9

· Most sites ail to inorm users about their status. Knowing where you are in the video playback

and how long you have le should always be clear, but only two o the verticals we looked at

(entertainment sites and specialist video aggregators) scored more than 4 or this subcategory.

· Metadata is not visible enough. Te best sites provide relevant inormation about the video

content — date o upload, text description, and duration — that is clear and easy to see. Tis is

where some o the brand verticals — such as cars, luxury goods, and CPG sites — can improve

to meet the standard set by the higher-perorming verticals.

· Brand sites score highly in, um, branding. Unsurprisingly, brand verticals are good at ensuring

that their video content reects the core brand’s look and eel. But, i they could also integrate

best practice rom other subcategories, the user experience would be even stronger, without

diluting the brand messaging.

Fiure 5 Onne Vdeo Consupton Best Pactces


Source: YouTube Web site

Video has helpful metadata:title, description, date

uploaded, length, and views.

Bar clearly shows how

much has played and

how much has loaded.

Full, clear controls

make the user

playback intuitive.

Clear branding

ensures that

the feel of the

Web site stays

the same.





10

Most Sites Provide Unique Or Compellin Content, Thouh Not Always Both

With an average score o 18 out o 25, most sites and most verticals scored reasonably well in the

content category. However, sites that oered exclusive content, such as cars and telcos, tended to

have shallower catalogs and less appealing content overall. Most sites scored low on portability:

Despite users’ growing desire to access video content across dierent sites, platorms, and devices,

nine o the 15 sites scored less than 3 or this subcategory.6

· Diferentiation is a rare strength or many brand sites. Tis was the second-highest-scoring

subcategory, but not all sites scored highly. Video aggregators, artists, and portals source much

o their video content rom other sites; this gives them depth o catalog, but they risk being

undierentiated in a crowded marketplace.

· Sports and entertainment sites score highest or content. Both verticals are successul at

combining unique video with aggregated content that is available elsewhere (see Figure 6).

· Retail, CPG, telco, and nancial services sites have the lowest-scoring content experience.

Tey may have unique content on their sites, but it is neither compelling nor portable. Tey need

to deepen their catalogs and consider the platorms on which they serve content to improve.

· Video content on entertainment and artist sites enhances the overall brand. Strong video

content reinorces and enhances a brand’s integrity within these verticals, but elsewhere —

telcos and retail, or example — the video content generally adds little to the brand experience.

Tat represents a missed opportunity, given video’s potential value as a wider marketing tool.





11

Fiure 6 Onne Vdeo Content Best Pactces


High-quality video

content appeals to

NBC viewers.

NBC has a strong, deep

catalog, with a mix of

current and archive shows,

plus online exclusives.

Shows exclusive to

NBC create strong

differentiation.

Source: NBC Web site

Sharing on multiple

portals encourages

interaction across

the Web.





12

Lack Of Social Functionality Weakens The Context For Many Sites

In the context category, the average score o 16.1 out o 25 (or 64%) hides some poorly perorming

verticals, such as telcos and retail, both o which scored 12.2 in this category. Tey should learn

rom entertainment sites, which are the most eective at integrating video content into their overall

proposition (see Figure 7). Lack o social unctionality remains an issue or the lower-scoring

verticals in this category.

· Social unctionality is the lowest scoring among all the subcategories. It was the only

subcategory to average less than 2.5. Sites that score low here — cars, luxury goods, telcos,

nancial services, and ood/drink, or example — might argue that they ocus on promoting

specic products. But, they are missing the opportunity to have their content, and thereore

their message, spread across the Internet by their socially active users, who like to comment on,

rate, and share content. Entertainment and video sites still do this best.

· Most sites in most verticals ofer video content that aligns to their strategic objectives.

Sports, entertainment, and artist sites score highest on this metric, but only retail scores less

than 3. Working out the strategic t or video is less o a challenge, it seems, than integrating it

into the overall proposition.

· Poor discovery leads to poor integration o video. When video content is hard to nd, it

becomes marginalized within the overall site. Te best sites have video at their core: Not only is

it o a high quality, but it is also easy to nd and to share.

· Video content always adds value to the user, but some verticals get less benet than others.

For telco and retail sites, or example, their current video content adds marginal value to theoverall site; or entertainment, artist, and sports sites, video is central to their appeal. While this

partially reects the nature o those verticals, there are still lessons or others in how video can

add value to the user’s experience.





13

Fiure 7 Onne Vdeo Contet Best Pactces


Videos are well targeted

across a wide variety of

sports, events, and

TV shows.

Video is well integrated:

Videos play within

articles and on a

separate video page.

ESPN offers a large

catalog of high-

quality videos.

Prominent commenting

tools encourageengagement from users.

Source: ESPN Web site





14

r E C O m m E N D A T i O N S

USE OUR NEW METHODOLOgY TO EVALUATE YOUR VIDEO PRODUCT STRATEgY

Whethe the ae new to onne vdeo o have a ot o epeence wth t, a Foeste cents who

ae ncopoatng vdeo content nto the Web stes shoud scoe and benchak the vdeo

poduct usng ou onne vdeo poduct scoecad. As we as evauatng stes aganst both vetca

and ndustwde best pactce, we povde actonabe advce on how to peent best pactces

acoss a the subcategoes we easue. Fo ou benchakng stud, howeve, t s cea that

ost Web stes need to addess cetan ke aeas as a pot:

1. Improve the way users discover your videos. man stes have nvested n the content and

ts ntegaton nto the ste wthout akng the uses sucent awae o ts estence.

lack o pesence on the hoe page and the aue to povde adequate sgnage wee

supsng coon eos. The need to be ed.2. Increase the social functionality around video content. Uses nceasng epect to be

abe to nteact wth vdeo content — to vew t on deent devces, to shae t, ebed t,

coent on t, and ate t. Such actvt geat nceases the vaue o the content, et an

stes a to deve a soca epeence. Poo scong vetcas, such as cas, tecos, and

ood/dnk, ust adopt best pactces o entetanent and dedcated vdeo stes.

3. Look beyond your own vertical in evaluatin the competition. it s potant to

undestand what ou ofne copettos ae dong onne and ensue ou ae povdng as

good a sevce as the ae to ou uses. But those uses’ epectatons aound onne vdeo

ae aso shaped b coss-ndust best pactces — whethe o Huu, Pae, o youTube.

lean o the best, wheeve the a be.

4. Work closely with your online video platform. most copanes ack the esouces to

copete wth the eegng sotwae-as-a-sevce (SaaS) onne vdeo patos.7 i ou

ae usng one o these povdes, check that ou ae benettng o the apd poduct

nnovaton n ths space to ensue that ou ste s a aket eade, not a aggad.

5. Score and iterate. To boow a phase, we ecoend that cents scoe ea and oten.

Because thee s so uch poveent to be ade, we don’t epect the scong pocess to

be a one-shot dea. Aso, as copettos ase the ba wth the own poveents, t w

be potant to use ths scoecad to pnpont — and eed — decences.

ENDNOTES

1 Source: North American echnographics® Digital Home Online Survey, Q4 2009 (US) and European

echnographics Media, Marketing, And Social Computing Survey, Q3 2009.

2 Te media meltdown — where traditional media business models based on scarcity and control are

undamentally challenged by the new realities o digital media consumption — is creating huge problems

or media companies that create and distribute content to users. Users want more and more content or





15

ree, and advertisers are struggling to engage ragmented audiences. But as we move rom a distribution

paradigm to a consumption paradigm, the meltdown is also creating opportunities or non-media

companies — including telcos, hardware manuacturers, and FMCG brands — to increasingly use content

directly to engage users. In other words, they can become media companies — and, as such, they have toembrace new ways o thinking. See the July 7, 2009, “We Are All Media Companies Now” report.

3 Consumer product strategists looking to use video to engage an audience must understand and respond to

the key dynamics and trends shaping the market, including the conuence o video with social media and

the mainstream integration o video into consumer-acing Web sites. See the January 20, 2010, “Te Future

O Online Video” report.

4 Unlike discovery and consumption, not all Web sites will need to utilize video advertising around the

video. However, those Web sites that employ video advertising will have to careully think through the

requirements, such as ad ormats (e.g., preroll or overlay), ad requency (e.g., every clip or every other clip),

and ad duration (e.g., 15 seconds or 30 seconds).

5 Forrester grouped the 100-plus Web sites rom Europe and the US that we tested into groups based on their

industry vertical, using the ollowing denitions: “application soware” describes businesses involved in the

development, maintenance, and publication o soware; “artists” describes musicians’ personal Web sites;

“cars” describes car manuacturers; “CPG” describes consumer packaged goods rom ragrances, apparel,

personal products, and other areas; “entertainment” describes V and entertainment media companies;

“nancial services” describes nance, banking, marketing, investment, and insurance services; “ood and

drink” describes restaurants, drinks manuacturers, and specialty ood services; “luxury goods” describes

high-end consumer brands; “news” describes worldwide newspaper and online news sites; “oil and gasoline”

describes oil and gasoline providers worldwide; “portals” describes sites rom Internet service providers

that include news, entertainment, and sports inormation; “retail” describes sites rom retail brands and

department stores; “sports” describes sports-dedicated Web sites, including those or specic teams, leagues,

V stations, and newspaper afliates; “telcos” describes xed-line and mobile phone providers; “video”

describes sites that oer dierent types o video (and only video).

6 European consumers’ awareness and adoption o new digital V and video viewing options has

evolved considerably in the past three years. Our data reveals the extent o the growth in non-V-based

consumption and highlights the way in which young users in particular are becoming used to consuming

video content across a number o dierent screens. See the April 22, 2010, “Te European Tree-Screen

Audience Is Growing, But V Still Reigns” report.

7 In Forrester’s 37-criteria evaluation o online video platorm vendors, Brightcove and Ooyala lead the pack

with their end-to-end product oerings that target organizations o all sizes. VMIX and Kaltura ollow

closely behind with comprehensive oerings and are Strong Perormers, while wistage and Fliqz ser ve

more narrow segments o the market and are Contenders. See the November 6, 2009, “Te Forrester Wave™:

US Online Video Platorms, Q4 2009” report.

















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