THE EVOLUTION OF PERSONALIZED VIDEO

From YouTube to Video Ads to SmartVideo

“Video is the MOST INTERESTING and

ENGAGING way to share an idea

with others.”

CHAD HURLEY Co-founder of YouTube

We’ve come a long way since the start of YouTube, which arguably was the MOST INFLUENTIAL STEP in bringing the power of video to the average Internet user.

Not only has online video quality drastically improved, but video has gotten SMARTER, too.

Companies started marketing with video in its early days to engage and captivate consumers in a way static messages couldn’t.

Now marketers can forget the one-to-many approach of online video and deliver a real-time, personalized SmartVideo that contains a message UNIQUE AND RELEVANT to each recipient.

As YouTube celebrates its

10-year anniversary

and SundaySky its EIGHTH,we look back at the last

decade to see how online video has evolved.

20052006200720082009

YouTube was founded on

By the end of that year, 8 MILLION VIDEOS were viewed on the site EACH DAY.

February 14, 2005

U

PLOADED ON

APRIL 23, 2005

FIRST

VIDEO

2005

YouTube changed the way people thought about and interacted with online video.

It also marked the START of the first generation of online video marketing strategies.

2005

“What excites me the most about the Internet is

that there are no filters between me, the creator,

and the audience that sees it. In the history

of moving images, that’s NEVER EXISTED BEFORE.”

CASEY NEISTAT Filmmaker

2005

20052006200720082009

YouTube launched its participatory video ads, where users could RATE, SHARE, COMMENT OR EMBED VIDEOS.

It also launched brand channels, the first of which was Warner Bros. Records.

“Advertisers now have a highly targeted opportunity

for aligning their brands alongside the entertainment

experience people are enjoying on YouTube.”

CHAD HURLEY Co-founder of YouTube

2006

At this point YouTube was getting

views per day.

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2006

More venture capital money started flowing to online video:

In 2006, U.S. online video start-ups raised $267 MILLION.

By 2007, that funding had skyrocketed to $461 MILLION.

2006

20052006200720082009

Netflix launched its streaming service, one of the first steps in pushing consumers to digital streaming over DVD rentals, and further pushing to Blockbuster’s ultimate demise in 2010.

2007

This was also the year

was founded to develop a platform that AUTOMATICALLY GENERATED REAL-TIME, PERSONALIZED VIDEOS.

2007

20062007200820092010

By 2008, the popularity of online video content had grown a tremendous amount.

MORE THAN HALF of the U.S. population watched some form of online video.

2008

YouTube focused on its advertising capabilities

and launched PROMOTED VIDEOS and

PRE-ROLL ADS.

2008

20072008200920102 0 1 1

Online video matures beyond amateur user-generated content:

Professionally produced, hosted or syndicated online media and entertainment video views rose by 18% TO 49.1 BILLION.

2009

E-commerce brands like Zappos and Overstock started to AUTOMATE VIDEO PRODUCTION, which allowed them to produce videos for their product catalogues as soon as new products were introduced and feature the videos in prominent locations on their websites.

2009

SundaySky generated the FIRST SMARTVIDEO, a personalized video for  Overseas Adventure Travel that helped lift the company’s bookings.

GENERATED FORO

VE

RSEAS ADVENTURE T

RA

VE

L

FIRST SMARTVIDEO

2009

Apple unveiled the iPhone 3GS, the first smartphone with native video.

Google released the Droid, also with video capabilities, later that year.

MOBILE TAKES OFF

2009

2008200920102 0 1 12012

E-commerce websites began to see the benefits of using online video on-site and in marketing campaigns.

By 2010, 73% of online retailers used video on product pages.

2010

The average American watched 186 ONLINE VIDEOS every month.

On YouTube alone, viewers watched 2 BILLION VIDEOS per day and uploaded 35 HOURS of their own videos to the platform every minute.

On Facebook, users uploaded more than 20 MILLION VIDEOS to share with friends each month and watched an average of more than 66 MILLION videos a day.

2010

Old Spice launched a social campaign featuring “Old Spice Guy” Isaiah Mustafa in which he films personalized videos for Twitter users.

Viewers LOVE the personalization and the videos go viral, but it’s obviously not a scalable approach to personalized video creation.

2010

With the level of consumer adoption of online video, more marketers began to take their video marketing strategies MULTI-CHANNEL.

Videos started popping up not only throughout corporate websites, but also in newsletters, affiliate marketing, emails and on social media sites.

@

2010

“As YouTube has evolved, so too has the role of video. This  storytelling medium has

progressed from one-to-the- world, to one-to-many, to now,

one-to-one, making video stories HIGHLY PERSONALIZED,

ENTERTAINING and EFFECTIVE.”

JIM DICSO President and Chief Revenue Officer at SundaySky

2010

200920102 0 1 120122013

Viewers watched 75% more videos online in December 2010 than they did in the same month in 2008.

By February 2011, more than 82% of the U.S. Internet audience had viewed a video online.

2011

SMARTVIDEOS and the launch of key customer

programs in the telecommunications and e-commerce industries.

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celebrated the creationof

2011

The first SmartVideo program in the telco space delivered personalized video bills to help AT&T customers better understand their bills and reduce calls to the contact center.

“The impact for our company is fewer calls into customer care, shorter calls of those that come in, and enormous

satisfaction of the customers.”

JOHN DONOVAN Senior Executive Vice President, Technology and Network Operations at AT&T

2011

In the e-commerce space, the first SmartVideo advertising program helped Office Depot use personalized pre-roll ads to effectively bring site abandoners back to OfficeDepot.com.

“The coolest thing about SmartVideos are their dynamic nature. With retargeted

SmartVideo ads, our customers are returning to the Office Depot site at a

very impressive rate. The ROI percentages are higher than any of our display or

marketing campaigns combined.”

NICOLE FRALEY Former Director, E-commerce Initiatives at Office Depot

2011

20102 0 1 1201220132014

Online video continues to entrance Internet users. 180 MILLION users viewed billions of online video and watched an average of 21.9 HOURS of online video content.

Mobile video traffic exceeded

50%for the first

time.

2012

52% of the total U.S. population were reached by video ads on an average of 64 TIMES in the month.

Internet users watched more than 10 BILLION online video ads.

64X

2012

2 0 1 12012201320142015

188.2 MILLION Americans watched more than 52 BILLION online content videos in December.

The number of video ad views reached more than 35.2 BILLION and accounted for 40.2% of all videos viewed.

100 MILLION of those total video views were SmartVideo views.

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2013

In addition to programs with top telco and retail players, SundaySky enters the insurance industry. Insurers like Liberty Mutual adopt SmartVideo to support new customer onboarding.

“By nature, insurance is a low engagement product. You have limited opportunities

throughout the customer journey to reach out and engage with your customers.

The focus has to be on providing great experiences throughout the initial

welcome and entire lifecycle.”

BRIAN PICCOLO Manager, Digital Strategic Services at Liberty Mutual

2013

2 0 1 12012201320142015

196.5 million Americans watched online content videos in August 2014.

YouTube and Facebook continued to be the TOP SITES where users watched video.

2014

For the first time, online ad revenue surpassed that of TV.

U.S. Internet users viewed 26.9 BILLION video ads in January, a massive 195.6% INCREASE over the same period in 2013.

195.6%

2014

“Look at the confluence of people naturally aggregating

so that they can be consistently relevant, as well as video

being an opportunity to make more money. That union

and monetization is driving everything we’re seeing right now in the video ad market.”

MARK FLAHARTY EVP of Advertising at SundaySky

2014

SmartVideo views surpassed 300 MILLION – adding more than 100 million views in 10 months.

Forrester reports 49% of all online adults globally are now “always addressable,” meaning marketers have a harder time reaching consumers with a differentiated, engaging message.

2014

So, SundaySky launched the SmartVideo Lifecycle Marketing Platform at the 2014 SmartVideo Summit to empower marketers to tell engaging and effective stories with personalized video throughout the customer lifecycle. 

2014

There was a SURGE IN PERSONALIZED VIDEO CREATION for consumers as more companies seek ways to leverage their user data and engage users on an individual level:

Facebook, Instagram and Google created personalized “look-back” videos and the NFL announced NFL Now, a personalized video service for football fans.

2014

2 0 1 12012201320142015

WHAT’SNEXT?

Online video growth will continue. Forrester predicts 90% of the online population will regularly watch online video by 2017. Mobile will be a driving factor here – Cisco forecasts mobile video will represent 69% of mobile traffic by 2018.

2015

More companies will learn how and when to use the massive amounts of data they’ve collected to deliver personalized experiences to their customers.

Consumers will come to expect to be addressed on a personal, individual level, and companies that don’t adapt at every customer interaction will suffer.

2015

“Moving forward data will have a larger influence on content creation. For example, Netflix’s House of Cards was the first show

created according to big data analysis. Netflix analyzed its database of viewers and tailored

the script, casting decisions and arc of the stories based on what worked previously. The

two worlds of data and creative will mesh even more as brands become more informed on

data in terms of viewer interaction.”

GUY ATZMON Vice President of Creative at SundaySky

2015

If you had a chance to speak to every prospect and customer about your brand on a personal level, why wouldn’t you take it?  

2015

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SundaySky’s personalized video marketing platform, SmartVideo Cloud, enables brands to deliver scalable one-to-one video experiences that foster long-term customer relationships. The SmartVideo Cloud empowers marketers to easily create, manage and optimize real-time personalized video programs throughout the customer lifecycle. AT&T, Comcast, Allstate and other industry-leading brands partner with SundaySky to engage prospective and current customers, resulting in higher revenue, lower costs and deeper loyalty. SundaySky is headquartered in New York with offices in Tel Aviv, London and Tokyo.

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Sources: comScore | AccuStream | Pingdom | Cisco | IAB | Mashable