YuMe and Nielsen Study Shows Impact of TV Plus Online Video Ads

Research study shows that reach, frequency, and recall are improved with mixed approach.
Posted on January 25, 2012

Online video advertising company YuMe has joined with media research and ratings company Nielsen to quantify the lift that consumer packaged goods (CPG) advertisers get when running campaigns that combine traditional television advertising with online video ads. The study found gains in reach, frequency, and recall.

YuMe used Nielsen’s TV/Internet Fusion service to track the impact of a $500,000 online video ad campaign that ran concurrently with a $2.6 million TV campaign. It found that the online ads increased reach for the targeted demographic (35- to 54-year-olds) by 7 percent. It also found that the online campaign extended the TV campaign’s reach by 6 million people in the key demographic.

The number of people seeing the campaign three or more times increased by 31 percent, the study found, when online video ads were combined with TV ads. The number of people seeing the campaign six or more times increased by 52 percent.

The study found that online video ads are more effective than TV for improving brand and message recall. Nielsen testing showed a brand recall increase of 22 percent and a message recall increase of 31 percent a day after seeing the ads.

“TV and digital ad planners can no longer operate in a vacuum in which online video advertising remains a silo apart from TV spend, because it fails to account for the fact that audiences are no longer stationary,” says Ed Haslam, vice president of marketing for YuMe. “Dual-platform campaigns offer demonstrable value and greatly outperform a TV-only campaign while improving overall cost efficiency.”

For more, download the free YuMe white paper entitled “Dual-Platform Campaigns: Using Online Video to Enhance the Reach and Performance of TV.”

How the U.S. Watches Cable

 In this week’s Ad Age we looked at which network TV shows have the most skewed audiences in the segments we’ve been tracking through the American Consumer Project. For those who haven’t been following (which you can do here), we’ve partnered with the Patchwork Nation to layer a ton of data through what is a demographic-segmentation tool with geo-targeting built in. These segments are the result of a cluster of analysis and tend to have similar socio-economic and demographic characteristics, despite not being in the contiguous “regions” we’re used to dealing with.

The following is the cable counterpart to that map. It’s based on a sizable household survey from Experian Simmons, which did a custom cut of the data for us. As we said in the network map, these are the shows that each segment is most biased toward watching. For example, the college student- and professor-heavy areas called “Campus and Careers” are far more likely to watch “The Daily Show With Jon Stewart.” These shows, therefore, can represent a cost-conscious way to target certain demographics. The more advertisers know about the particular qualities of an audience, the better choices they can make about which programs to support and the creative to target them with.

Top Cable TV Shows by County
To check out the actual interactive map in Ad Age, please click here:

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As Viewing Habits Change, Political Ads Switch Screens

New York Times, April 1, 2012

MILWAUKEE — Just because you own a D.V.R. or watch television online does not mean political commercials are not coming soon to a screen near you.

Mitt Romney’s campaign thinks it has found a way to get its ads in front of the increasing number of voters who are not watching traditional television: Find these people online, and show them the ads there.

Here in Wisconsin, where the Republican primary is Tuesday, carefully targeted potential voters will see two Romney commercials on their Web browsers. One is a positive message hailing the candidate’s economic and business credentials. The other is an attack criticizing Rick Santorum as a Washington insider who compromises his core beliefs.

Both commercials, which have been running on local television stations across the state, have gone unseen by many voters — up to one-third of them, by some estimates.

The Romney campaign and a team of online behavior analysts have spent 18 months trying to fight television advertising’s law of diminishing returns, sifting through data on the browsing habits of tens of millions of computer users as the campaign builds a richly detailed cache of potential supporters.

In doing so, Mr. Romney’s strategists are hoping to turn the Web into a political persuasion tool, signaling a shift in the way modern campaigns view digital advertising. It is no longer merely a supplement for traditional media like television. In some cases, it is a substitute entirely.

A survey conducted last May on voters’ television viewing habits, which is often cited by Romney advisers, found that 31 percent of likely voters had not watched television “live” — that is, at the time it was being broadcast, as opposed to online or on a recording device — in the previous week. And of the 17 percent who said they mostly watched programs recorded on devices like a D.V.R., a large majority skipped through ads most of the time.  The nationwide telephone survey was conducted by Public Opinion Strategies, a Republican polling firm, and SEA Polling and Strategic Design, a Democratic polling firm.

“This will likely become the first truly digital election because so many people are not paying attention to live TV,” said Darrell M. West, director of the Center for Technology Innovation at the Brookings Institution. Saying that many campaigns were beginning to integrate the study of online behavior into their digital strategies, Mr. West said, “In many respects, it’s analogous to the emergence of TV advertising in the 1960s.”

Television will still account for a vast majority of the money spent on political advertising — billions this year, and 9 out of every 10 advertising dollars, strategists estimate. But with the return on that investment becoming less of a sure bet, campaigns are taking advantage of technologies to track and model browsing behavior as never before.

The Obama digital team, for example, knows when supporters have opened an e-mail from the campaign and whether they have clicked on tabs in the e-mail that direct people to BarackObama.com. It uses that data to determine whether to send more or fewer solicitations.

The campaign has also hired a “chief scientist” who worked in the private sector finding ways to discern consumers’ interests from data online, and used that data to target messages to entice people to buy certain products.

Republican efforts in this type of digital strategy get less attention but are just as sophisticated.

Rather than buying ads on specific Web sites, the Romney campaign sees greater value in buying audiences — which remain anonymous, identifiable only by a numeric code — that are built through careful analysis and predictive behavior modeling.

“We are site agnostic and audience specific,” said Zac Moffatt, the Romney campaign’s digital director. “It doesn’t bother me what site they’re on. I’m just looking for an audience.”

Using outside digital strategists, the campaign analyzed surveys from Democratic and Republican pollsters that determined, among other things, how often people were watching live television. Then strategists took that data, paired it with browsing histories and built a model to identify voters who are not likely to be watching live television.

Reaching those people is only one element of the campaign’s effort to reach individual voters online. Though the Internet has always been useful in preaching to the converted — soliciting donations, rounding up volunteers, rallying voters on Election Day — it has been far less effective at coaxing undecided voters.

So the campaign set out to identify potential voters who are most likely politically conservative and might vote for Mr. Romney but need more persuasion. Here in Wisconsin, these people will see Web ads with the positive message about Mr. Romney’s economic leadership, but not the one that mocks Mr. Santorum.

The group the campaign has designated as potentially persuadable was culled from surveying thousands of online users about party affiliation, positions on key political issues and opinions about the president. From those responses, the campaign’s outside digital strategy firm, Targeted Victory, was able to narrow down the type of people it wanted: 18 and older, Republican-leaning and strongly dissatisfied with the current administration.

Using the Web histories of the people who fit that profile, Lotame, an audience analytics company the campaign has hired, uses algorithms to find other computer users who might have similar political sentiments based on their browsing. Looking at what these people do online — what they read, where they leave comments and what content they share with friends — all helps refine the sample.

When the Romney campaign puts its ads in front of these people, it can tell whether they watched the videos, which requires someone to scroll over the ad and hold the mouse there for three seconds, how long they spent watching and whether they took any actions because of the ad, like sharing their e-mail address, giving money or posting content to Twitter or Facebook. Knowing who is responding to the ads helps the campaign refine its ideal audiences even further.

“When I look at the people who click on that banner ad or looked at that video or went to the donation page, we can unpack a whole new set of behavioral variables,” said Adam Lehman, Lotame’s chief operating officer.

Along the way, the Romney campaign has learned a few common characteristics of its online supporters. They tend to like to take online quizzes on news and entertainment Web sites. They like to share photographs. And they are interested in topics like technology, literature, home repair and child care.

But just as important is knowing where a message is likely to fall on deaf ears. In that case, the campaign has discovered certain traits that tend to be associated with people who do not respond to Mr. Romney’s ads. For example, their online behavior shows they are interested in video and casino games, bowling, martial arts and jazz.

These patterns can vary by state. For example, in Michigan, people who visited Christian music Web sites were not fans, something strategists attributed to the likelihood of such people being Rick Santorum supporters.

The results of putting this data to use have been encouraging. Targeted Victory says that people who see audience-specific Romney ads engage with them at a rate three to five times higher than they do with a standard ad.

“As much of the fat that you can clean out, that’s an advantage to the campaign,” said Ryan Meerstein, the senior political analyst at Targeted Victory. “Our system is getting smarter every day as we learn more about these users.”

A Fistful of Smart Media Dollars – TV + Video on Multiple Screens, by Jay Fulcher

Techcrunch – March 31, 2012

Editor’s note: Jay Fulcher is CEO of video technology company Ooyala. This is a follow-up to his columns “Fear And Loathing In Online Video” and “One Screen To Rule Them All“. Follow him on Twitter @jbfulcher.

The rise of smart, multi-screen streaming media is fundamentally changing the TV experience. This year, for the first time ever, Americans will watch more movies over the Internet than on physical media like DVD and Blu-ray. Ooyala’s Video Index Report found that non-desktop video plays doubled in the fourth quarter of 2011. Tablet sales continue to explode. People now spend more time on Xbox Live streaming movies and TV shows than playing video games. And consumer electronics manufacturers are gearing up to ship 125 million Smart TVs in 2014. Simply put, TV is no longer constrained to a single box, a single screen, or a single UI.

Smart networks, broadcasters, studios and service providers recognize that there’s real money to be made as TV moves into the information age. People are not only watching more movies and TV shows online, they are paying for access to premium video content. Recent studies reveal that over half of American tablet owners paid to watch a movie in Q4 2011 and more than 40% paid for TV content. These are strong signs that we’ve come a long way from Jeff Zucker’s “digital pennies” remark back in 2008.

To make the most digital dollars, new TV technologies should securely deliver media to viewers on their terms. Audiences today have personal, portable ways to consume content. There are more screens, platforms and devices to display their favorite shows, and more ways than ever to rent, purchase, gift and download video content. It is an exciting time for both TV viewers and TV content providers.

Innovation is a tricky business, however, and change can be hard. There are bound to be a few missteps and failures as we invent the next generation of TV. This isn’t a new phenomenon. For every VHS recorder there is a Betamax; for every DVD, a Laserdisc. But there will also be key victories and new revenue streams as media and technology combine to create the TV experience of tomorrow.

Here’s how forward-thinking media companies will profit from the new TV.

Big Data & Analytics

More than a buzzword, Big Data is changing the way we look at information — and the world around us. The ability to quickly extract actionable insights from vast sets of data has already become a business imperative in some sectors. This trend can only grow. Corporations, governments, and non-governmental organizations will all leverage distributed computing to gain insights into their operations and their constituencies and maximize efficiencies.

Big Data and analytics will become mission critical for major media companies as TV moves to IP delivery. Firms that fail to invest in data-driven solutions will be at a severe disadvantage in the marketplace. Putting analytics tools in place to collect and analyze key metrics enables video publishers to see how people interact with their content — and understand where and why it’s underperforming (something that was impossible before). These insights will inform critical business decisions that impact audiences and drive revenue.

Intelligent Monetization

As we all know, the easiest way to make more money in media is to sell more advertising. But simply inserting more pre-roll ads into a video stream, for example, quickly falls prey to the law of diminishing marginal returns. An initial uptick in revenue is followed by a substantial dropoff in ad completion rates, as viewers quickly grow weary of the oversupply of irrelevant ad messages.

Smart monetization strategies go hand-in-hand with analytics. With the right tools in place, video publishers can analyze how variables like ad load (the number of ads served per video) and ad placement (where ads are inserted within the video) impact viewer engagement. It’s even possible to find the optimal rental price for, say, a feature-length movie. And soon it will be commonplace to match ads to viewers based on social graph interests, location, device type, and viewing history.

Smart video publishers will use analytics to simultaneously accomplish two somewhat conflicting goals: (1) maximize digital revenue, and (2) create and/or maintain an optimal viewing experience for their viewers.

Personalized Content

A streaming media strategy based on Big Data computing, powerful analytics and smart monetization results in a personalized viewing experience across all connected screens. Content producers and providers will attract and retain more viewers when they deliver highly relevant content to their viewers, and presented in a way the viewer prefers.

Insights derived from vast data collection ensures that the right content is delivered to the right viewer at the right time. The future of personalized television is geo-targeted, interactive content. Viewers who opt to share data will receive a better experience: location-specific ads, augmented reality media experiences, interactive games and content targeted for their viewing history, network and device. Content publishers will also tap into social networks to deliver meaningful content that is informed by viewer interests. As social media continues to evolve, expect video to play a bigger role in how we relate to one another online.

In Sum…

The TV of tomorrow will be smart. It will understand who is watching, where they are, and what shows they enjoy. The end result will be a more personal TV experience that spans multiple screens and locations.

TV is changing quickly. There is a real need for companies to recognize and get out ahead of this change. With the right tools (like those offered by my company Ooyala), fistfuls of digital dollars are there for the taking.