When supply met_demand
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Transcript of When supply met_demand
The Changing Shape of Online Video in Europe
When Supply Met Demand
Marc Gosschalk, November 2011Senior Analyst, Video Metrix 2.0 Product Management
2© comScore, Inc. Proprietary and Confidential.
Agenda
The Story So Far
The Demand for Online Video
When Supply Meets Demand – The Consumption of Online Video in Europe– A Quality Viewing Experience– A Wide Range of Engaging Content– Convenient and Accessible– A Price Worth Paying
Case Study: YouTube
Conclusions
3© comScore, Inc. Proprietary and Confidential.
The Story So Far
4© comScore, Inc. Proprietary and Confidential.
Online Video is a Huge Market Across Europe
*EU-7 includes UK, France, Germany, Spain, Italy, Russia and Turkey
Source: comScore Video Metrix, September 2011
226m people watched an average of
20 hours each of Online Video in
September in EU-7*
5© comScore, Inc. Proprietary and Confidential.
Rapid growth of Unique Viewers and Video Views Stopped in Q1 2010 for EU-3*
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Aug-2010
Feb-2011
Aug-2011
Videos (Billions) Unique Viewers (Millions)Source: comScore Video Metrix, Media Trend *EU-3 includes UK, France and Germany
Videos (Billions) Unique Viewers (Millions)
6© comScore, Inc. Proprietary and Confidential.
Online Video Appeared to Have Peaked in Terms of Adoption and Market Share
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Videos (Billions) Unique Viewers (Millions)
Videos (Billions) Unique Viewers (Millions)
Rogers’ Diffusion of Innovation
S-curve
Source: comScore Video Metrix, Media Trend
7© comScore, Inc. Proprietary and Confidential.
A Closer Look Tells a Story of a Shift from Quantity to Quality
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Aug-2008
Feb-2009
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Aug-2011
Videos (Billions) Unique Viewers (Millions)
Videos (Billions) Unique Viewers (Millions)
Sept 2010 March 2011
Minutes per Video 5.4 6.0
Total Minutes (bn) 111.4 117.9
Source: comScore Video Metrix, Media Trend and Key Measures
8© comScore, Inc. Proprietary and Confidential.
The Last Six Months have seen a Renaissance of Online Video
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Videos (Billions) Unique Viewers (Millions)
Videos (Billions) Unique Viewers (Millions)
March 2011 Sept 2011
Minutes per Video 6.0 6.2
Total Minutes (bn) 117.9 156.9
Source: comScore Video Metrix, Media Trend and Key Measures
9© comScore, Inc. Proprietary and Confidential.
Composition of Young Males Indicates Market Maturity
05
101520253035404550
Germany France UK Spain Italy Russia Turkey
OtherMales 15-34
17.3% 19.3% 19.6% 21.5% 22.2% 30.4% 44.9%
42.7
36.6
30.5
18.8 20.3
43.1
21.6
Total UVs 15+
Source: comScore Video Metrix, Demographic Profile, September 2011
Unique Viewers (Millions)
10© comScore, Inc. Proprietary and Confidential.
Growth in Video Views Supports Latency in Spain, Italy, Russia and Turkey
Videos (bn) –March 2011
Videos (bn) –Sept 2011
6 Month Growth
Spain 3.0 3.2 9%
Italy 2.3 2.7 22%
Russia 3.1 4.7 51%
Turkey 3.4 5.0 48%
Source: comScore Video Metrix, Key Measures
11© comScore, Inc. Proprietary and Confidential.
But Engaged Viewers Watching Lengthy Videos Suggests they may Make Ground Rapidly
Minutes perVideo
Minutes per Viewer
Spain 6.9 1,096
Italy 6.7 914
Russia 7.2 792
Turkey 7.1 1,660
Source: comScore Video Metrix, Key Measures
12© comScore, Inc. Proprietary and Confidential.
The Demand for Video – What do we Want?
13© comScore, Inc. Proprietary and Confidential.
What do we Want?
1. A Quality Viewing Experience
2. A Wide Range of Engaging Content
3. Convenient and Accessible
4. A Price Worth Paying
14© comScore, Inc. Proprietary and Confidential.
When Supply Meets Demand – The Consumption of Online Video in Europe
1. A Quality Viewing Experience 2. A Wide Range of Engaging Content3. Convenient and Accessible4. A Price Worth Paying
15© comScore, Inc. Proprietary and Confidential.
A Quality Viewing Experience: Increased Broadband Penetration and Serving Infrastructure Drives Streaming Quality
Improved infrastructure for delivery of content
Advances in video quality
Higher, flexible definition
16© comScore, Inc. Proprietary and Confidential.
816
460
324
875813
382
0100200300400500600700800900
1000
BBC France TelevisionsInteractive
ProSiebenSat1 Sites
Total Minutes (MM) for Broadcasters in Respective Countries
Sep-10 Sep-11
A Wide Range of Quality Content: TV Broadcasters Have Stronger Online Presence in More Mature Video Markets
Source: comScore Video Metrix, Key Measures
17© comScore, Inc. Proprietary and Confidential.
Russia
Italy
A Wide Range of Quality Content: Presence of Local Specialists Varies by Country
Rank Property Unique Viewers Reach
5 COMINGSOON.IT 2,693 13.37 Telecom Italia 2,681 13.2
10 METEO.IT 2,036 10.0
Rank Property Unique Viewers
(000)Reach
2 Mail.ru Group 18,247 42.33 Gazprom Media 14,161 32.94 Yandex Sites 5,648 13.1
Source: comScore Video Metrix, Key Measures, September 2011
18© comScore, Inc. Proprietary and Confidential.
17,799
19,891
30,811
56,164
Yahoo! Sites
Microsoft Sites
Viacom Digital
FACEBOOK.COM
Unique Viewers (000) in EU-7
A Wide Range of Quality Content: US Superpowers Engage Large European Audiences that have their Own Individual Characteristics
Source: comScore Video Metrix, Key Measures and Cross Viewing (taken from UK data), September 2011
Have Affinities to Video Viewing from Sites in…
Games Category
Social NetworkingCategory
Computer HardwareCategory
Technology NewsCategory
19© comScore, Inc. Proprietary and Confidential.
478
302231
16494 56
798
570 571 560
216
72
0100200300400500600700800900
UK France Spain Italy Turkey Russia
Total Minutes (MM) for
Mar-11 Sep-11
A Wide Range of Quality Content: Online Video Suits a Variety of Content Types
Source: comScore Video Metrix, Key Measures
20© comScore, Inc. Proprietary and Confidential.
A Wide Range of Quality Content: Low Barriers to Entry Permit New Market Players, Including the User
68 80 73111
8866
17
150
7255
1213
26
39
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50
100
150
200
250
Spain UK France Turkey Russia Germany Italy
Ustream
Vimeo
Source: comScore Video Metrix, Key Measures, September 2011
21© comScore, Inc. Proprietary and Confidential.
A Wide Range of Quality Content: User Generated Video Content is being Supplemented by High Quality Partner Content
• 16.5m Viewers in France
• 42.9m Viewers in EU-7
• 12.1m Viewers in Turkey on IZLESENE.COM
• 6.3m Viewers in Turkey on Izlesene Facebook
• 13.2m UVs in Russia on RUTUBE.RU
• 20.1m UVs in EU-7 on RUTUBE.RU,
up 38% since March ‘11
Source: comScore Video Metrix, Key Measures, September 2011
22© comScore, Inc. Proprietary and Confidential.
2,924
2,1552,047
1,610
989472
Unique Viewers (000) for Perform Sports
UKTurkeyFranceItalySpainGermany
Convenient and Accessible: Syndicated Nature of Online Video Further Facilitates Expansive Reach in Relevant Contexts
Source: comScore Video Metrix, Key Measures, September 2011
23© comScore, Inc. Proprietary and Confidential.
Convenient and Accessible: Broadcasters Leverage Analytics to Build Engaged and Loyal Audiences
3.7m 2.8m
6.9m
0.6m
Audience Overlaps – Unique Viewers
1.9m 1.7m
3.9m
0.4m
Source: comScore Video Metrix, Audience Duplication, September 2011, France / Spain
Searchable, huge inventories aren’t burdened by schedules
Tailored browsing and viewing driven by data
24© comScore, Inc. Proprietary and Confidential. Source: comScore Social Essentials, September 2011
% Visiting Topgear.com
Total Internet 1.6%Fans Exposed to Brand Messages on Facebook 9.5%
‘Friends of Fans’ Exposed to Brand Messages on Facebook 5.0%
Convenient and Accessible: Online Video can Leverage the Power of Social Media
25© comScore, Inc. Proprietary and Confidential.
A Price Worth Paying: Room for Growth in Online Video Ad Penetration Compared with TV
0.4% 1.4%20~ 20%*
Percentage of Total Viewing Time Spent Watching Ads
Online Video - UK Online Video - US TV - UK
*Estimate
Source: comScore Video Metrix, Key Measures, September 2011
26© comScore, Inc. Proprietary and Confidential.
A Price Worth Paying: Online Video Advertising Creatives can be Tested for more Predictable Outcomes
Avg. Views Engagement Score
Top 10 Highest Scoring Video Ads 325,000 62%
Lowest 10 Scoring Video Ads 17,000 21%
Source: comScore and ARS Viral Scoring Database, US
27© comScore, Inc. Proprietary and Confidential.
020406080
100120140160180200
TED.COM (UK) Joost Media (France)
Composition Index of Audience with Household Income over £35k*
A Price Worth Paying: Online Video Offers Attractive Audiences in a Retail Environment that can be Easily Planned Against
173131
*€36k in France
Source: comScore Video Metrix, Demographic Profile, UK/France, September 2011
28© comScore, Inc. Proprietary and Confidential.
A Price Worth Paying: Campaign Delivery and Impact can be Understood
The emergence of View-Through as a valuable metric
Digital traces and flexibility allow for tailored– Duration– Placements– Formats– Creatives and Messaging
Dynamic decision making
Source: comScore Campaign Essentials and Ad Effx – Example data
29© comScore, Inc. Proprietary and Confidential.
A Price Worth Paying: Online Only and Cross Platform Audiences are Growing Into TV Space
Base sizes:Total=2833
TV Only=1921Online Only=189
Both TV/Online=723‘How do you typically watch [original series TV]?’
Base: Persons who watched original series TV Research study conducted by comScore in US, May 2011
Cross-Platform
Viewers 26%
TV Only Viewers 67%
Online Only Viewers 7%
30© comScore, Inc. Proprietary and Confidential.
Case Study: YouTube
31© comScore, Inc. Proprietary and Confidential.
YouTube is a Huge Market Across Europe
Over 190m people watched an average of over
4½ hours each of
Online Video on YouTubein September in EU-7
Source: comScore Video Metrix, September 2011 data
32© comScore, Inc. Proprietary and Confidential.
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Videos (Billions) Unique Viewers (Millions)
Evolution of YouTube Viewing has Matched Market Trends in EU-3
Source: comScore Video Metrix, Media Trend, UK, France and Germany
Videos (Billions) Unique Viewers (Millions)
33© comScore, Inc. Proprietary and Confidential.
0.0
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Total Minutes Minutes per Video
YouTube’s Transition has been Driven by Matching Demand for Longer, more Premium Content
Total Minutes (Billions)
Minutes perVideo
Source: comScore Video Metrix, Media Trend, UK, France and Germany
34© comScore, Inc. Proprietary and Confidential.
A Quality Viewing Experience
Vast infrastructure for delivery of content
Advances in content quality
Higher, flexible definition
35© comScore, Inc. Proprietary and Confidential.
A Wide Range of Engaging Content
Source: comScore Video Metrix, September 2011 data
152,000 UVs in the UK
3,765
2,5701,682
1,457
1,346
1,030793
Unique Viewers (000) for Machinima @ YouTube
UKGermanyFranceRussiaSpainItalyTurkey
36© comScore, Inc. Proprietary and Confidential.
Convenient and Accessible
Sources: comScore Media Metrix, Video Metrix and qSearch, September 2011
8.0
46.5
Searches in Europe (billions)
Rest of the Web
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UniqueVisitorsEU-7
UniqueViewers
EU-7
Millions
37© comScore, Inc. Proprietary and Confidential.
A Price Worth Paying
Free Content
Unobtrusive Ads– Encourage the User to remain in control– Offer transparency to facilitate relevant placement
Source: comScore Video Metrix, September 2011 data
38© comScore, Inc. Proprietary and Confidential.
Conclusions
39© comScore, Inc. Proprietary and Confidential.
Conclusions
A New Age for online video is emerging around quality, not quantity
The internet provides perfect foundations for viewers to watch what they want, how they want, when they want
Online video advertising can be more powerful without being intrusive
An increasingly complex and competitive market makes informed decision making critical
“Every time we think about making a decision, we think about doing
experiments and proving that the results make sense… Companies
should be saying ‘What information can I gather, how can I understand my
users better?’… and doing the analytics over that to make decisions”
40© comScore, Inc. Proprietary and Confidential.
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