SlideShare a Scribd company logo
1 of 12
Download to read offline
Havas Media
Digital Upfront POV 2012
Executive Summary
   As the internet continues to evolve, advertising opportunities will quickly follow; and now we are
   reaching a new plateau in online marketing — Digital Video. This coming of age has been brought
   about by significant leaps in the proliferation of devices, the leaps in bandwidth and now the creation
   of Original Programming to air on these platforms. To support this new era, each of the major digital
   portals held what some viewed as very traditional upfronts, last month in NYC, mimicking what
   the TV networks have been doing for years. The question is: will these upfront meetings have the
   same impact on the market and advertiser dollars as the television upfronts have traditionally had?

   For some background color, the events were attended by both television and digital media budget
   owners alike. It was great to see the beginnings of channel lines blurring, but with that blur comes
   questions. What are we trying to achieve? How will success be measured? Sadly, there is no single
   answer for all advertisers, but one piece of information that will be key is “What is the consumer’s
   consumption pattern?” Is it a lean back experience where they are watching “The Awesomes” on
   Hulu that is streamed directly to their 50 inch TV or is it a Ted Ed, 6-minute clip on YouTube with
   the consumer sitting at their desk? What you buy will definitely warrant different results.

   The content ran the gauntlet from short form content like, “7 Minutes in Heaven” from Yahoo! to
   documentaries like “A Day in the Life” from Hulu. The quality and the success of the content is still
   the biggest question, much like in TV — but failure will not be attributed to lack of trying. Each of
   the portals has made major investments in content.

   The deals the portals are looking for also vary greatly. Some players are suggesting full season/year
   buyouts with very limited cancellation clauses, which also include the mandatory purchase of Grade
   B inventory at one end of the spectrum to, dare we say, “traditional” online buys with CPM and
   CPC rates. Your Havas Media partners will no doubt help you navigate these options, but there is
   definitely an air of “know what you are buying” before you sign that IO.

   As media professionals, we always need to be on the lookout for new opportunities to diversify
   our plans, connect with consumers in new ways and achieve bigger and better results with our
   clients. So we are very excited about the opportunities that lie within this new programming. With
   that said, the lack of track records in developing and identifying great content is something to be
   wary of, especially when the contracts associated with that content come with very loose delivery
   commitments and strict cancel policies.




                                                                                    Digital Upfront POV 2012   2
Contents
                            The Authors 4

                                Overview 5

           The Audience and the Ratings 6

           The Range of Content Formats 7

                            The Devices 8

                          The Deliveries 8

              Flighting and Underdelivery 9

                          Portal Support 9

               The Upfront Presentations 10

                            The Content 11

                               In Closing 12




                           Digital Upfront POV 2012   3
The Authors

                                Armin Molavi
                        SVP, Strategic Planning


                   armin.molavi@havasmedia.com




                               Adam Kasper
              EVP, Partnerships and Investments


                   adam.kasper@havasdigital.com




                                Tracey Riener
                   SVP, Group Account Director

                   tracey.riener@havasmedia.com




                                                  Digital Upfront POV 2012   4
Overview
   If January 2012 was all about Pinterest, then April 2012 was all about the Online Original. Here at
   Havas Media, we've just concluded an exciting three weeks of Digital Upfronts, hearing from the likes
   of YouTube, Yahoo!, Hulu, and others. We’ve compiled the best of the best, some of our personal
   favorites, and some important elements to keep in mind as you consider including these new media
   opportunities in your upfront planning.

   This POV not only reflects the unique viewpoints of our strategists, but also the views of our Network
   Television Broadcast team and our Digital Partnerships group to provide you truly integrated insight
   that takes into consideration all pillars of your media plans.

   For those of us who have been on the digital side of the media landscape since Al Gore first invented
   the internet, it was extremely exciting to see all of the major digital players host their first real upfronts,
   all in the same year. While there have been digital “upfronts” in past years, we all agreed this was
   the year where there was a real critical mass to the offerings being put on the table. This coming-
   out party was made possible by a fantastic alignment between the proliferation of devices to con-
   sume video content, the ever-growing bandwidth to download that content, and a significant uptick
   in the quality of the content. Although millions of people will continue using YouTube to watch a cat
   chase a laser pointer, there has been a significant elevation in quality of online content, thanks to
   the talented producers of this new content. Prior to this year, many of them were known as masters
   in other arenas of media, but will soon be recognized for creating high quality online content as well.
   From an animated drama created by Tom Hanks, to a music channel curated by Pharrell Williams,
   to an exciting partnership between MSN Xbox and ESPN, the list of talented celebrity producers
   and creators is truly impressive — particularly our team’s favorite, “The Awesomes” from Seth
   Meyers on Hulu.

   Here are some key highlights of what is exciting us:
   • Top notch content creators/producers/stars: Anthony E. Zuker (creator of CSI), Mario Batali,
     Eva Longoria, documentarian Morgan Spurlock, filmmakers Jan Avnet (Black Swan, Risky Busi-
     ness), Jennifer Garner, Michael C, Hall, Amy Poehler, and Rainn Wilson.
   • More clarity on ratings: There has been a significant uptick on accountability of who is actually
     watching the content, something advertisers have been aching for, thanks to OCR (online cam-
     paign ratings) which Hulu and AOL touted very loudly.
   • Portal integration: Yahoo!, AOL, and MSN have all made significant efforts to connect the dots
     between the new content and other areas of their platforms — ABC News Partnership, HuffPo,
     and Xbox, respectively.
   • Key executives at the helm: Leaders with broadcast advertising backgrounds, like Lucas Watson
     at Google/YouTube, will provide key advertiser buying insight that the digital portals all need.




                                                                                          Digital Upfront POV 2012   5
What we would like to see evolve:
   • Too much of a good thing: TV Networks will launch 8-10 new primetime shows a season
     and support them through advertising, press junkets, etc. Can the portals support all of these
     properties they are launching to improve the likelihood of success?
   • More clarity on ratings: There needs to be a standard for the industry, otherwise it will continue
     to be too arduous a task to compare opportunities.
   • Findability: TVGuide has always been there to help consumers find shows; there is no easy
     way to find online shows and schedules.

   One important point of clarification, for this POV, is that we did not include non-original content
   opportunities. For example, properties like MLB.com and MLB.TV offer advertisers excellent
   opportunities to reach audiences on many devices, in an environment that we as advertisers are
   familiar with.

   Before we get into a recap of all the content that’s now available for consumers and advertisers, let’s
   run through a list of what you should be considering BEFORE you start picking specific content areas.




The Audience and the Ratings
   Online video has become a part of our daily lives. This no longer applies solely to teens. Everyone
   is watching video, because it has pervaded every aspect of our online experience — embedded
   in emails, tweeted from platforms like Twitvid, posted to our Facebook streams. Here are a few key
   metrics to keep in mind regarding online video viewers (Source: Pew Internet):
   • 71% of both men and women watch online video regularly
   • 80% of internet users between 30-49 watch online video regularly
   • At least 71% of consumers in all income levels watch online video regularly
   • Minorities are outpacing Whites by 10 percentage points (79% v 69%)
   • Parents are significantly outpacing non-parents by 20% percentage points (81% v 61%)

   So clearly, everyone is watching — but as an advertiser, don’t believe all the hype.

   Everybody loves Google. Its search platform is potentially one of the greatest resources developed
   in the last 20 years, let alone the last century. That said, the data that Google releases regarding
   online video needs to be examined critically. Per youtube.com, over 60 hours of video are uploaded
   every minute, 4 billion videos are viewed a day and 3 billion hours of video are watched each month
   on YouTube. These are very exciting and eye popping statistics; however, the vast majority of that
   content is not a part of their YouTube partner program and is not eligible for paid video advertising.
   Quite frankly, given that Google is not releasing the statistics for viewership of their YouTube Partner
   Program, we can only make a conservative estimate on total viewership.




                                                                                     Digital Upfront POV 2012   6
One extremely important question that everyone must consider regarding the audience is how the
   ratings are being developed. Unfortunately for all of us, there has yet to be a standard instituted in
   the industry — but the IAB is focused on developing such standards this year. So far in our discus-
   sions with the media partners, we have heard the following ways to size the audience:
   1. Consumer self reported — At some point in their interactions with the platform, the consumer
      is telling them age, gender, zip code and so on; either through profile page or registration
      processes
   2. Inferred demographics — This is the same targeting that is often used for display retargeting
      campaigns — the platform infers your age and gender based on content you visit
   3. Third party data — Some of the partners are leveraging third party data sources, e.g., Blue Kai

   Obviously, format #1 is preferred — but 2 & 3 are far from undesirable — especially given that most
   marketers are already using those methods for other components of their digital campaigns.




The Range of Content Formats
   Much like television, there is a wide range of video content available for consumers’ viewing pleasure.
   Beyond that, there is an even wider range of quality in that content. Not so long ago, there may have
   been up to 60 channels available to all of us, with the Public Access channel representing just one of
   those 60. In today’s online market, the proportion is exactly the opposite. For every few hours of quality
   content available from any of these partners, there are tens of thousands of hours of user-generated
   content that most advertisers wouldn’t touch. For example, as we were finalizing this document,
   a video entitled “Bacon Milkshakes,” in which two teens recklessly drive to a fast-food joint, was
   listed as a “Top Video” on YouTube. Would you advertise on that video? We didn’t think so.

   Once you clear the decks of the vast majority of user generated content (UGC), we can start
   looking at three clear categories of online video content:
   • UGC cream of the crop — Arguably, the most successful of the YouTube Creators, based on
     subscriptions alone. However, we couldn’t reference any of the top five due to questionable
     content, including inappropriate language, illicit drug references, etc.
   • Streaming live content — Whether it’s because your kids are watching Spongebob on the
     50-inch or you’re on the go, you want to watch content such as the Red Sox game live on
     MLB.TV or their top notch iPad app.
   • Online originals — The newest arena for the portals and also their key area of focus for the up-
     fronts. This was the thrust of almost all the upfront presentations, with MSN as the exception.
     Each of the players has procured quite a bit of content that they will be serving across all of their
     devices. Also important to note, is that original content housed on the portal will almost always
     be available on the creators website, including the sponsorships.




                                                                                      Digital Upfront POV 2012   7
There is absolutely a place for sponsorship of UGC within many client media plans, although we
    question executions such as Bertucci’s placement of a video on “How to chop herbs” that pre-rolled
    a video entitled “How to spot a pothead”.




The Devices
    When you bought a TV spot in the 1990s, you were pretty certain what that viewing experience
    would be like. The 2000s brought us TiVo and other DVR devices with ad-skipping capabilities,
    which complicated matters but still allowed for campaign planning. In today’s environment, with the
    growth of online video, the context in which your target consumer could be viewing your ad couldn’t
    be more uncertain. Are they watching it on their personal computer, in their home office, or gasp! at
    work? Is it being streamed from their iPad to their 50-inch via their AppleTV? Or are they watching
    it on their 3.6-inch Android phone on the bus, while commuting to work? Each viewing modality
    will come with pros and cons to advertisers, so advertisers need to understand what’s right for
    their brands.




The Deliveries
    In TV, we ask, “what commercial pod? What position in the pod? And most importantly, did it get
    delivered?” These very straightforward questions can always get answered. Sadly, again there are
    no online industry standards in place. Here’s a rundown of all the different permutations:
    • Placement — Pre-, Mid-, or Post-Roll? Pre-Roll is the most widely preferred as one would argue
      you would have the highest level of consumer engagement, followed closely behind Mid-Roll.
      However, many editorial/news type programming are selling Post-Roll, as in “your ad will run at
      the completion of the desired content.”
    • Companion banner — Predominantly associated with streaming content on the network sites,
      e.g., NBC.com, a flash banner is served in conjunction with your video placement. The key
      benefit here is that many marketers leverage this real estate for a clear call to action and some
      media partners can dynamically serve different creative to different audiences.
    • Day part — For the most part, this aspect of network and cable TV buying is not even a part of
      the equation with online video partners.
    • What’s an impression? — Again, no standard here — does the advertiser pay for the impression
      once the video starts? Completes?




                                                                                   Digital Upfront POV 2012   8
Flighting and Underdelivery
    We all have targets and objectives. To achieve them, we need measurable plans that deliver certain
    reaches, weights, frequencies, etc. While all of the online properties are making guarantees, the
    question becomes at what flighting? For example, one opportunity we recently looked at for a client
    offered 70MM impressions across a 12 month commitment. There are no current estimates on
    when those impressions will hit. Clearly this will have an implication on forecasting across client
    organizations.

    Beyond the deliveries themselves, what happens with underdelivery or cancellations? We know
    what the networks offer — similar content, mostly likely an uptick in points as a make good, etc. In
    our preliminary discussions, the answers are not only muddy — in some situations the proposals
    are not good at all. One partner suggested replacing pre-roll impressions from original content with
    streaming video in-banner display units. Clearly, this is not an apples-to-apples swap. Given the
    newness of these deals, advertisers must consider all components of the buy.

    Another extremely important topic to discuss is how this inventory will fit into your Media Mix Modelling
    (MMM) efforts. MMM methodology always stirs up quite a bit of discussion and the inclusion of
    online video will be no exception. For some formats like Hulu, especially when streamed to the big
    screen TV, one would want to lean towards TV-like inclusion. But what about a pre-roll on YouTube?
    That video impression is more targeted than TV with less waste and some would argue, the user is
    much more engaged in that pre-roll than in a banner ad or a print ad. We are recommending to
    clients that you need to consider both viewing modality and desired communication objective when
    assessing this new vehicle.




Portal Support
    With every new television season, each of the TV networks will turn out 8-10 new primetime shows,
    all of which are designed and developed to succeed on their own; but no matter how good the
    content is, there is incremental support provided by the networks. This support includes traditional
    spots during top rated shows to intrigue the future fans of a show to press junkets, significant OOH
    and so on. For example, NBC’s mid-season add of “Smash” was support by almost $100 MM of
    advertising, etc. and that has star power like Angelica Houston and Debra Messing. How can these
    portals support all of this content? Obviously the content creators themselves will be promoting the
    content, but we doubt that will be nearly sufficient.




                                                                                       Digital Upfront POV 2012   9
So far, the most substantial and concrete news we have heard is Google’s $200MM commitment
    of streaming video and Google Display Network (GDN) inventory. While we know the inventory will
    be extremely targeted, $200MM split across 18 sponsorship opportunities that are for sale with
    over 100 different shows; that $200MM will get spent quickly. Hulu, Yahoo! and AOL do have an
    advantage over Google in this regards because each does have a Portal doorway that can be used
    to advertise the content. We should all just assume that Yahoo.com will quickly become a key part
    of their promotion strategy, with over 37MM users hitting that page per day.




The Upfront Presentations
    The objective of Hulu, AOL, Yahoo!, Google and MSN presenting “digital upfronts” or “brandcasts”
    to the advertising community a few weeks before the traditional network upfronts was to grab a
    MUCH bigger slice of the “television/video” budgets out there. The properties brought out all sorts
    of talent to appeal to the senior executives’ age group to promote their many, many, many, (maybe
    too many??) programming options. Yes, they are digital companies at the forefront of technology,
    offering content on every device available, but they are now looking to be seen as content players
    like the big guys, the “old school” broad and mass reach “television”. According to the digital players,
    mass reach (TV) is akin to dropping cheese out of an airplane and hoping to hit someone who loves
    cheese, while digital content can specifically target only the cities and individuals where cheese
    lovers live and offer them the perfect cheese offering. While digital technology does allow this and
    is uniquely positioned for more specific targeting, the new platforms these players are offering are
    priced to reach the masses, so the equation seems a bit off.

    In their presentations, Yahoo!, AOL, YouTube and Hulu all focused on premium original content,
    ranging from long(er) form (e.g., Hulu’s “Battleground” and Yahoo!’s Anthony Zuker’s “Cyberged-
    don” — a digital motion picture told in weekly shorter “episodes” ) to short form on Yahoo!, YouTube
    and AOL (2 minutes to 12 minutes). MSN really showcased their cutting edge advertising platform
    opportunities across Xbox (with live TV-like ad’s that include app-level interactivity and metrics) and
    potentially Skype. MSN wants the ad world to see them as the place with the #1 audience reach
    across the US with simple, scalable solutions across multiple platforms. They all spoke to and will
    continue to focus multiple screens, the importance of mobile, interactivity, and social.




                                                                                      Digital Upfront POV 2012   10
And Finally, the Content…
    From a network television buyer’s perspective, it was enjoyable to see these presentations. They
    seemed looser, more cutting edge, and dare we say even less polished than the network presen-
    tations — we found it refreshing. Some of the content looked top quality and worthy of a large-
    scale audience (like “Battleground” on Hulu, or Hulu’s “The Awesomes” animated superhero
    program by Seth Meyers, which will be timed just right to tap into the HUGE popularity of the
    “Avengers” audience) and some of the programming is very targeted and niche.

    Google came out with a bang with the YouTube announcement of $100MM in investment to create
    100 content “channels.” The majority of their programming is short form (5 minutes or less) and is
    looking to appeal to a younger (18-34) audience (under 49 for sure). They are offering the 100
    channels under 18 “content genres” that cover everything from comedy, short film, animation,
    cutting-edge music and news, pop culture, sports, and content that will appeal to thrill seekers
    and urban tastemakers. They feature talent as diverse as Dakota Fanning, Jay-Z, Tony Hawk, and
    Madonna.

    The originals launch in three waves — January, April, and July 2012 and while designed for a US
    audience, they will likely have a broader international appeal. There will be a ton of content and
    some of it may make a splash, but without something like a “TV Guide,” how do viewers find it? As
    a plus, Google does have Lucas Watson from P&G. He will be a huge asset in the years to come,
    as this (potentially 5-8 years from now) will be the destination for quality “snackable” original content.
    Lucas knows what advertisers want for content and need regarding accountability and we hope he
    will be able to infuse that knowledge into their offering.

    AOL is offering 14 channels of premium content and beneath these channels will be hot topics
    covered with curated playlists of short form content. Their content genres will target men, women,
    the affluent, millennials, and moms with content that covers topics from business, news, style and
    home to autos, health, pets, and parenting. With the addition of these premium channels, they will
    have 20,000 AOL Originals and 300,000 total videos.

    Hulu presented themselves most like a television network, perhaps because they exist as a platform
    for television programs with original episodic content (Yahoo! as well). But only Hulu offered TV-like
    episodes at 22 minutes long (much like a half-hour sitcom). A few to highlight: “Day in The Life”
    from Morgan Spurlock (original profiles of famous folks from a different angle), the shorter form “See
    Jane Date”, which is a “choose your adventure” meets “The Hills” reality show that is digitally inter-
    active. They also are offering travel guide shows, entertainment short-form programs like “Access
    Hollywood”, animated motherhood series from Eva Longoria and “My Side of the Sky”, which profiles
    a high school that caters to extreme sports lifestyle.




                                                                                       Digital Upfront POV 2012   11
Yahoo! has the strength of news (with ABC partnership) and finance covered, but their focus was on
    men, with new originals from Jeff Goldblum, a stunt show, and KaBoom; as well as women-focused
    programming, and comedy for adults. The Women channel features fashion news with talent like
    Rebecca Minkoff, Michael Yo, and Cat Deeley. The comedy channel looked most interesting with a
    spoof of The Bachelor with Michael Ian Black and Ken Marino, as well as a funny short-form interview
    show called “7 Minutes in Heaven” where the host Mike O’Brien (of SNL) interviews celebrities in a
    closet. The interviews are a funny and original take on the standard cookie-cutter interviews, and
    always include Mike requesting a kiss at the end.

    In summary, there is a vast array of original content now or soon to be offered. The quality will vary
    greatly (as it does on TV) and anyone from your six-year-old to your (hip) grandparents will find
    something to watch. But we have to ask at what point is there too much available in an already
    splintered media marketplace? Everyday people (not in our business) hardly know what is on TV
    across 95+ networks let alone 1,000 more online “channels.” Not all professionally produced original
    content will work or stay online (or on air), but in the vast and never-ending opportunity of the world
    wide web, these and other to-be-determined content providers can keep throwing ideas against
    the wall and there will be viewers for almost anything (just ask the creators of “Bacon Milkshakes”).




In Closing
    We love that 2012 was clearly the “Coming Out” party for the Digital Upfronts and there are definitely
    some great highlights in there…but given the newness of the channel, advertisers need to be ready
    for uncertainty in many different forms — those who take the chance could be handsomely rewarded.

    Please work directly with your Havas Media account team for more specific information on content
    and opportunities relevant to your brands. General questions can be directed to:
    • Armin Molavi, SVP, Strategic Planning, armin.molavi@havasmedia.com
    • Adam Kasper, EVP, Partnerships and Investments, adam.kasper@havasdigital.com
    • Tracey Riener, SVP, Group Account Director, tracey.riener@havasmedia.com

    Oh, and one more thing…

    Hopefully next year’s digital upfront presentations will be scheduled in the same week. TV may be
    “old school” in the eyes of some, but we hope they understand we all have busy schedules!




                                                                                     Digital Upfront POV 2012   12

More Related Content

What's hot

Eyei fast.MAP Marketing-GAP presentation
Eyei fast.MAP Marketing-GAP presentationEyei fast.MAP Marketing-GAP presentation
Eyei fast.MAP Marketing-GAP presentationfastMAP
 
Sponsor Generated Programming SPAA Fringe 2010
Sponsor Generated Programming SPAA Fringe 2010Sponsor Generated Programming SPAA Fringe 2010
Sponsor Generated Programming SPAA Fringe 2010Martin Walsh
 
2009 google annual_report
2009 google annual_report2009 google annual_report
2009 google annual_reportashakumari420
 
CX | UX | IoT, The Awesome Feat
CX | UX | IoT, The Awesome FeatCX | UX | IoT, The Awesome Feat
CX | UX | IoT, The Awesome FeatMichael Vaughn
 
Finding Value in Emerging Technology
Finding Value in Emerging TechnologyFinding Value in Emerging Technology
Finding Value in Emerging TechnologyBBDO
 
Online Reputation Management for Brands by Vanksen
Online Reputation Management for Brands by VanksenOnline Reputation Management for Brands by Vanksen
Online Reputation Management for Brands by VanksenVanksen
 
5 Strategies for Capitalising on the Micro-Moment Economy
5 Strategies for Capitalising on the Micro-Moment Economy5 Strategies for Capitalising on the Micro-Moment Economy
5 Strategies for Capitalising on the Micro-Moment EconomyIris
 
Digital Marketing 2009 A To Z
Digital Marketing 2009 A To ZDigital Marketing 2009 A To Z
Digital Marketing 2009 A To ZThe Brand Shop
 
Future Of Social Media Entertainment
Future Of Social Media EntertainmentFuture Of Social Media Entertainment
Future Of Social Media EntertainmentGary Hayes
 
signmesh snapshot - listen up!
signmesh snapshot - listen up! signmesh snapshot - listen up!
signmesh snapshot - listen up! signmesh
 
Microsoft Media & Entertainment Newsletter, December 2020
Microsoft Media & Entertainment Newsletter, December 2020Microsoft Media & Entertainment Newsletter, December 2020
Microsoft Media & Entertainment Newsletter, December 2020Jennifer Cooper
 
GEEK Up Portfolio 2015
GEEK Up Portfolio 2015GEEK Up Portfolio 2015
GEEK Up Portfolio 2015Vu Hoang Tam
 
Business online tools
Business online toolsBusiness online tools
Business online toolschiragaegis
 
Facebook Q3 2015 Earnings Call With Analysts Transcript of November 4, 2015
Facebook Q3 2015 Earnings Call With Analysts Transcript of November 4, 2015Facebook Q3 2015 Earnings Call With Analysts Transcript of November 4, 2015
Facebook Q3 2015 Earnings Call With Analysts Transcript of November 4, 2015Tommy Toy
 
Perpetual leadershift - Digital strategy and change management go hand in hand
Perpetual leadershift -  Digital strategy and change management go hand in handPerpetual leadershift -  Digital strategy and change management go hand in hand
Perpetual leadershift - Digital strategy and change management go hand in handJenny Williams
 
Facebook Inc (NASDAQ.FB) Q3 2012 Earnings Call October 23, 2012
Facebook Inc (NASDAQ.FB) Q3 2012 Earnings Call October 23, 2012Facebook Inc (NASDAQ.FB) Q3 2012 Earnings Call October 23, 2012
Facebook Inc (NASDAQ.FB) Q3 2012 Earnings Call October 23, 2012Tommy Toy
 
Facebook q4 2012 earnings call
Facebook q4 2012 earnings callFacebook q4 2012 earnings call
Facebook q4 2012 earnings callTommy Toy
 

What's hot (19)

Chemistry2011 trends
Chemistry2011 trendsChemistry2011 trends
Chemistry2011 trends
 
Eyei fast.MAP Marketing-GAP presentation
Eyei fast.MAP Marketing-GAP presentationEyei fast.MAP Marketing-GAP presentation
Eyei fast.MAP Marketing-GAP presentation
 
Sponsor Generated Programming SPAA Fringe 2010
Sponsor Generated Programming SPAA Fringe 2010Sponsor Generated Programming SPAA Fringe 2010
Sponsor Generated Programming SPAA Fringe 2010
 
Audience Engagement: The Fundamental Melody for Local Media
Audience Engagement: The Fundamental Melody for Local MediaAudience Engagement: The Fundamental Melody for Local Media
Audience Engagement: The Fundamental Melody for Local Media
 
2009 google annual_report
2009 google annual_report2009 google annual_report
2009 google annual_report
 
CX | UX | IoT, The Awesome Feat
CX | UX | IoT, The Awesome FeatCX | UX | IoT, The Awesome Feat
CX | UX | IoT, The Awesome Feat
 
Finding Value in Emerging Technology
Finding Value in Emerging TechnologyFinding Value in Emerging Technology
Finding Value in Emerging Technology
 
Online Reputation Management for Brands by Vanksen
Online Reputation Management for Brands by VanksenOnline Reputation Management for Brands by Vanksen
Online Reputation Management for Brands by Vanksen
 
5 Strategies for Capitalising on the Micro-Moment Economy
5 Strategies for Capitalising on the Micro-Moment Economy5 Strategies for Capitalising on the Micro-Moment Economy
5 Strategies for Capitalising on the Micro-Moment Economy
 
Digital Marketing 2009 A To Z
Digital Marketing 2009 A To ZDigital Marketing 2009 A To Z
Digital Marketing 2009 A To Z
 
Future Of Social Media Entertainment
Future Of Social Media EntertainmentFuture Of Social Media Entertainment
Future Of Social Media Entertainment
 
signmesh snapshot - listen up!
signmesh snapshot - listen up! signmesh snapshot - listen up!
signmesh snapshot - listen up!
 
Microsoft Media & Entertainment Newsletter, December 2020
Microsoft Media & Entertainment Newsletter, December 2020Microsoft Media & Entertainment Newsletter, December 2020
Microsoft Media & Entertainment Newsletter, December 2020
 
GEEK Up Portfolio 2015
GEEK Up Portfolio 2015GEEK Up Portfolio 2015
GEEK Up Portfolio 2015
 
Business online tools
Business online toolsBusiness online tools
Business online tools
 
Facebook Q3 2015 Earnings Call With Analysts Transcript of November 4, 2015
Facebook Q3 2015 Earnings Call With Analysts Transcript of November 4, 2015Facebook Q3 2015 Earnings Call With Analysts Transcript of November 4, 2015
Facebook Q3 2015 Earnings Call With Analysts Transcript of November 4, 2015
 
Perpetual leadershift - Digital strategy and change management go hand in hand
Perpetual leadershift -  Digital strategy and change management go hand in handPerpetual leadershift -  Digital strategy and change management go hand in hand
Perpetual leadershift - Digital strategy and change management go hand in hand
 
Facebook Inc (NASDAQ.FB) Q3 2012 Earnings Call October 23, 2012
Facebook Inc (NASDAQ.FB) Q3 2012 Earnings Call October 23, 2012Facebook Inc (NASDAQ.FB) Q3 2012 Earnings Call October 23, 2012
Facebook Inc (NASDAQ.FB) Q3 2012 Earnings Call October 23, 2012
 
Facebook q4 2012 earnings call
Facebook q4 2012 earnings callFacebook q4 2012 earnings call
Facebook q4 2012 earnings call
 

Similar to Havas Media Digital Upfronts POV May 2012

Digital Upfronts POV 2013
Digital Upfronts POV 2013Digital Upfronts POV 2013
Digital Upfronts POV 2013Havas Media USA
 
Millward Brown Perspectives Vol. 6
Millward Brown Perspectives Vol. 6Millward Brown Perspectives Vol. 6
Millward Brown Perspectives Vol. 6Kantar
 
27 digital marketing trends predictions 2015
27 digital marketing trends predictions 201527 digital marketing trends predictions 2015
27 digital marketing trends predictions 2015Fresh Egg UK
 
The Evolution of Distribution
The Evolution of Distribution The Evolution of Distribution
The Evolution of Distribution Phoenix Gonzalez
 
Opportunities in Digital Video and Social Media: Reach and engage your audien...
Opportunities in Digital Video and Social Media: Reach and engage your audien...Opportunities in Digital Video and Social Media: Reach and engage your audien...
Opportunities in Digital Video and Social Media: Reach and engage your audien...Adknowledge
 
Jwt second screen report_reshare
Jwt second screen report_reshareJwt second screen report_reshare
Jwt second screen report_resharePhương Bi
 
YouTube Content Strategy for Brands-2023.pdf
YouTube Content Strategy for Brands-2023.pdfYouTube Content Strategy for Brands-2023.pdf
YouTube Content Strategy for Brands-2023.pdfJoshua Wethington
 
Opening Remarks
Opening RemarksOpening Remarks
Opening RemarksMediaPost
 
Brainfood Entertainment TV, Game, Online Programmng Strategy
Brainfood Entertainment TV, Game, Online Programmng StrategyBrainfood Entertainment TV, Game, Online Programmng Strategy
Brainfood Entertainment TV, Game, Online Programmng StrategyLarry Ross
 
Marketing and You Tube
Marketing and You TubeMarketing and You Tube
Marketing and You TubeVikki Bradbury
 
Carat's 10 Trends for 2017
Carat's 10 Trends for 2017Carat's 10 Trends for 2017
Carat's 10 Trends for 2017dentsu
 
Netflix failure & marketing strategy
Netflix   failure & marketing strategyNetflix   failure & marketing strategy
Netflix failure & marketing strategyAshutosh Sahu
 
Optimising online video agenda21 event - Be On's Recommendation
Optimising online video   agenda21 event - Be On's RecommendationOptimising online video   agenda21 event - Be On's Recommendation
Optimising online video agenda21 event - Be On's Recommendationagenda21
 
D marts d2-s1- chas-sweeting-social media in context
D marts d2-s1- chas-sweeting-social media in contextD marts d2-s1- chas-sweeting-social media in context
D marts d2-s1- chas-sweeting-social media in contextDigital Marketing Arts
 
Digital in 2016: The Year of Consumer-Led Communications Marketing
Digital in 2016: The Year of Consumer-Led Communications MarketingDigital in 2016: The Year of Consumer-Led Communications Marketing
Digital in 2016: The Year of Consumer-Led Communications MarketingEdelman
 

Similar to Havas Media Digital Upfronts POV May 2012 (20)

Digital Upfronts POV 2013
Digital Upfronts POV 2013Digital Upfronts POV 2013
Digital Upfronts POV 2013
 
Millward Brown Perspectives Vol. 6
Millward Brown Perspectives Vol. 6Millward Brown Perspectives Vol. 6
Millward Brown Perspectives Vol. 6
 
Youtube marketing options
Youtube marketing optionsYoutube marketing options
Youtube marketing options
 
27 digital marketing trends predictions 2015
27 digital marketing trends predictions 201527 digital marketing trends predictions 2015
27 digital marketing trends predictions 2015
 
The Evolution of Distribution
The Evolution of Distribution The Evolution of Distribution
The Evolution of Distribution
 
Opportunities in Digital Video and Social Media: Reach and engage your audien...
Opportunities in Digital Video and Social Media: Reach and engage your audien...Opportunities in Digital Video and Social Media: Reach and engage your audien...
Opportunities in Digital Video and Social Media: Reach and engage your audien...
 
Jwt second screen report_reshare
Jwt second screen report_reshareJwt second screen report_reshare
Jwt second screen report_reshare
 
YouTube Content Strategy for Brands-2023.pdf
YouTube Content Strategy for Brands-2023.pdfYouTube Content Strategy for Brands-2023.pdf
YouTube Content Strategy for Brands-2023.pdf
 
Opening Remarks
Opening RemarksOpening Remarks
Opening Remarks
 
Dive Video
Dive Video Dive Video
Dive Video
 
Brainfood Entertainment TV, Game, Online Programmng Strategy
Brainfood Entertainment TV, Game, Online Programmng StrategyBrainfood Entertainment TV, Game, Online Programmng Strategy
Brainfood Entertainment TV, Game, Online Programmng Strategy
 
Marketing and You Tube
Marketing and You TubeMarketing and You Tube
Marketing and You Tube
 
Carat's 10 Trends for 2017
Carat's 10 Trends for 2017Carat's 10 Trends for 2017
Carat's 10 Trends for 2017
 
Brand Audit Netflix.pdf
Brand Audit Netflix.pdfBrand Audit Netflix.pdf
Brand Audit Netflix.pdf
 
Where Are You Making Your Bets?
Where Are You Making Your Bets?Where Are You Making Your Bets?
Where Are You Making Your Bets?
 
Netflix failure & marketing strategy
Netflix   failure & marketing strategyNetflix   failure & marketing strategy
Netflix failure & marketing strategy
 
Creating Social TV
Creating Social TVCreating Social TV
Creating Social TV
 
Optimising online video agenda21 event - Be On's Recommendation
Optimising online video   agenda21 event - Be On's RecommendationOptimising online video   agenda21 event - Be On's Recommendation
Optimising online video agenda21 event - Be On's Recommendation
 
D marts d2-s1- chas-sweeting-social media in context
D marts d2-s1- chas-sweeting-social media in contextD marts d2-s1- chas-sweeting-social media in context
D marts d2-s1- chas-sweeting-social media in context
 
Digital in 2016: The Year of Consumer-Led Communications Marketing
Digital in 2016: The Year of Consumer-Led Communications MarketingDigital in 2016: The Year of Consumer-Led Communications Marketing
Digital in 2016: The Year of Consumer-Led Communications Marketing
 

Recently uploaded

BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Lviv Startup Club
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examplesamberjiles31
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023Steve Rader
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toumarfarooquejamali32
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 

Recently uploaded (20)

BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examples
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb to
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 

Havas Media Digital Upfronts POV May 2012

  • 2. Executive Summary As the internet continues to evolve, advertising opportunities will quickly follow; and now we are reaching a new plateau in online marketing — Digital Video. This coming of age has been brought about by significant leaps in the proliferation of devices, the leaps in bandwidth and now the creation of Original Programming to air on these platforms. To support this new era, each of the major digital portals held what some viewed as very traditional upfronts, last month in NYC, mimicking what the TV networks have been doing for years. The question is: will these upfront meetings have the same impact on the market and advertiser dollars as the television upfronts have traditionally had? For some background color, the events were attended by both television and digital media budget owners alike. It was great to see the beginnings of channel lines blurring, but with that blur comes questions. What are we trying to achieve? How will success be measured? Sadly, there is no single answer for all advertisers, but one piece of information that will be key is “What is the consumer’s consumption pattern?” Is it a lean back experience where they are watching “The Awesomes” on Hulu that is streamed directly to their 50 inch TV or is it a Ted Ed, 6-minute clip on YouTube with the consumer sitting at their desk? What you buy will definitely warrant different results. The content ran the gauntlet from short form content like, “7 Minutes in Heaven” from Yahoo! to documentaries like “A Day in the Life” from Hulu. The quality and the success of the content is still the biggest question, much like in TV — but failure will not be attributed to lack of trying. Each of the portals has made major investments in content. The deals the portals are looking for also vary greatly. Some players are suggesting full season/year buyouts with very limited cancellation clauses, which also include the mandatory purchase of Grade B inventory at one end of the spectrum to, dare we say, “traditional” online buys with CPM and CPC rates. Your Havas Media partners will no doubt help you navigate these options, but there is definitely an air of “know what you are buying” before you sign that IO. As media professionals, we always need to be on the lookout for new opportunities to diversify our plans, connect with consumers in new ways and achieve bigger and better results with our clients. So we are very excited about the opportunities that lie within this new programming. With that said, the lack of track records in developing and identifying great content is something to be wary of, especially when the contracts associated with that content come with very loose delivery commitments and strict cancel policies. Digital Upfront POV 2012 2
  • 3. Contents The Authors 4 Overview 5 The Audience and the Ratings 6 The Range of Content Formats 7 The Devices 8 The Deliveries 8 Flighting and Underdelivery 9 Portal Support 9 The Upfront Presentations 10 The Content 11 In Closing 12 Digital Upfront POV 2012 3
  • 4. The Authors Armin Molavi SVP, Strategic Planning armin.molavi@havasmedia.com Adam Kasper EVP, Partnerships and Investments adam.kasper@havasdigital.com Tracey Riener SVP, Group Account Director tracey.riener@havasmedia.com Digital Upfront POV 2012 4
  • 5. Overview If January 2012 was all about Pinterest, then April 2012 was all about the Online Original. Here at Havas Media, we've just concluded an exciting three weeks of Digital Upfronts, hearing from the likes of YouTube, Yahoo!, Hulu, and others. We’ve compiled the best of the best, some of our personal favorites, and some important elements to keep in mind as you consider including these new media opportunities in your upfront planning. This POV not only reflects the unique viewpoints of our strategists, but also the views of our Network Television Broadcast team and our Digital Partnerships group to provide you truly integrated insight that takes into consideration all pillars of your media plans. For those of us who have been on the digital side of the media landscape since Al Gore first invented the internet, it was extremely exciting to see all of the major digital players host their first real upfronts, all in the same year. While there have been digital “upfronts” in past years, we all agreed this was the year where there was a real critical mass to the offerings being put on the table. This coming- out party was made possible by a fantastic alignment between the proliferation of devices to con- sume video content, the ever-growing bandwidth to download that content, and a significant uptick in the quality of the content. Although millions of people will continue using YouTube to watch a cat chase a laser pointer, there has been a significant elevation in quality of online content, thanks to the talented producers of this new content. Prior to this year, many of them were known as masters in other arenas of media, but will soon be recognized for creating high quality online content as well. From an animated drama created by Tom Hanks, to a music channel curated by Pharrell Williams, to an exciting partnership between MSN Xbox and ESPN, the list of talented celebrity producers and creators is truly impressive — particularly our team’s favorite, “The Awesomes” from Seth Meyers on Hulu. Here are some key highlights of what is exciting us: • Top notch content creators/producers/stars: Anthony E. Zuker (creator of CSI), Mario Batali, Eva Longoria, documentarian Morgan Spurlock, filmmakers Jan Avnet (Black Swan, Risky Busi- ness), Jennifer Garner, Michael C, Hall, Amy Poehler, and Rainn Wilson. • More clarity on ratings: There has been a significant uptick on accountability of who is actually watching the content, something advertisers have been aching for, thanks to OCR (online cam- paign ratings) which Hulu and AOL touted very loudly. • Portal integration: Yahoo!, AOL, and MSN have all made significant efforts to connect the dots between the new content and other areas of their platforms — ABC News Partnership, HuffPo, and Xbox, respectively. • Key executives at the helm: Leaders with broadcast advertising backgrounds, like Lucas Watson at Google/YouTube, will provide key advertiser buying insight that the digital portals all need. Digital Upfront POV 2012 5
  • 6. What we would like to see evolve: • Too much of a good thing: TV Networks will launch 8-10 new primetime shows a season and support them through advertising, press junkets, etc. Can the portals support all of these properties they are launching to improve the likelihood of success? • More clarity on ratings: There needs to be a standard for the industry, otherwise it will continue to be too arduous a task to compare opportunities. • Findability: TVGuide has always been there to help consumers find shows; there is no easy way to find online shows and schedules. One important point of clarification, for this POV, is that we did not include non-original content opportunities. For example, properties like MLB.com and MLB.TV offer advertisers excellent opportunities to reach audiences on many devices, in an environment that we as advertisers are familiar with. Before we get into a recap of all the content that’s now available for consumers and advertisers, let’s run through a list of what you should be considering BEFORE you start picking specific content areas. The Audience and the Ratings Online video has become a part of our daily lives. This no longer applies solely to teens. Everyone is watching video, because it has pervaded every aspect of our online experience — embedded in emails, tweeted from platforms like Twitvid, posted to our Facebook streams. Here are a few key metrics to keep in mind regarding online video viewers (Source: Pew Internet): • 71% of both men and women watch online video regularly • 80% of internet users between 30-49 watch online video regularly • At least 71% of consumers in all income levels watch online video regularly • Minorities are outpacing Whites by 10 percentage points (79% v 69%) • Parents are significantly outpacing non-parents by 20% percentage points (81% v 61%) So clearly, everyone is watching — but as an advertiser, don’t believe all the hype. Everybody loves Google. Its search platform is potentially one of the greatest resources developed in the last 20 years, let alone the last century. That said, the data that Google releases regarding online video needs to be examined critically. Per youtube.com, over 60 hours of video are uploaded every minute, 4 billion videos are viewed a day and 3 billion hours of video are watched each month on YouTube. These are very exciting and eye popping statistics; however, the vast majority of that content is not a part of their YouTube partner program and is not eligible for paid video advertising. Quite frankly, given that Google is not releasing the statistics for viewership of their YouTube Partner Program, we can only make a conservative estimate on total viewership. Digital Upfront POV 2012 6
  • 7. One extremely important question that everyone must consider regarding the audience is how the ratings are being developed. Unfortunately for all of us, there has yet to be a standard instituted in the industry — but the IAB is focused on developing such standards this year. So far in our discus- sions with the media partners, we have heard the following ways to size the audience: 1. Consumer self reported — At some point in their interactions with the platform, the consumer is telling them age, gender, zip code and so on; either through profile page or registration processes 2. Inferred demographics — This is the same targeting that is often used for display retargeting campaigns — the platform infers your age and gender based on content you visit 3. Third party data — Some of the partners are leveraging third party data sources, e.g., Blue Kai Obviously, format #1 is preferred — but 2 & 3 are far from undesirable — especially given that most marketers are already using those methods for other components of their digital campaigns. The Range of Content Formats Much like television, there is a wide range of video content available for consumers’ viewing pleasure. Beyond that, there is an even wider range of quality in that content. Not so long ago, there may have been up to 60 channels available to all of us, with the Public Access channel representing just one of those 60. In today’s online market, the proportion is exactly the opposite. For every few hours of quality content available from any of these partners, there are tens of thousands of hours of user-generated content that most advertisers wouldn’t touch. For example, as we were finalizing this document, a video entitled “Bacon Milkshakes,” in which two teens recklessly drive to a fast-food joint, was listed as a “Top Video” on YouTube. Would you advertise on that video? We didn’t think so. Once you clear the decks of the vast majority of user generated content (UGC), we can start looking at three clear categories of online video content: • UGC cream of the crop — Arguably, the most successful of the YouTube Creators, based on subscriptions alone. However, we couldn’t reference any of the top five due to questionable content, including inappropriate language, illicit drug references, etc. • Streaming live content — Whether it’s because your kids are watching Spongebob on the 50-inch or you’re on the go, you want to watch content such as the Red Sox game live on MLB.TV or their top notch iPad app. • Online originals — The newest arena for the portals and also their key area of focus for the up- fronts. This was the thrust of almost all the upfront presentations, with MSN as the exception. Each of the players has procured quite a bit of content that they will be serving across all of their devices. Also important to note, is that original content housed on the portal will almost always be available on the creators website, including the sponsorships. Digital Upfront POV 2012 7
  • 8. There is absolutely a place for sponsorship of UGC within many client media plans, although we question executions such as Bertucci’s placement of a video on “How to chop herbs” that pre-rolled a video entitled “How to spot a pothead”. The Devices When you bought a TV spot in the 1990s, you were pretty certain what that viewing experience would be like. The 2000s brought us TiVo and other DVR devices with ad-skipping capabilities, which complicated matters but still allowed for campaign planning. In today’s environment, with the growth of online video, the context in which your target consumer could be viewing your ad couldn’t be more uncertain. Are they watching it on their personal computer, in their home office, or gasp! at work? Is it being streamed from their iPad to their 50-inch via their AppleTV? Or are they watching it on their 3.6-inch Android phone on the bus, while commuting to work? Each viewing modality will come with pros and cons to advertisers, so advertisers need to understand what’s right for their brands. The Deliveries In TV, we ask, “what commercial pod? What position in the pod? And most importantly, did it get delivered?” These very straightforward questions can always get answered. Sadly, again there are no online industry standards in place. Here’s a rundown of all the different permutations: • Placement — Pre-, Mid-, or Post-Roll? Pre-Roll is the most widely preferred as one would argue you would have the highest level of consumer engagement, followed closely behind Mid-Roll. However, many editorial/news type programming are selling Post-Roll, as in “your ad will run at the completion of the desired content.” • Companion banner — Predominantly associated with streaming content on the network sites, e.g., NBC.com, a flash banner is served in conjunction with your video placement. The key benefit here is that many marketers leverage this real estate for a clear call to action and some media partners can dynamically serve different creative to different audiences. • Day part — For the most part, this aspect of network and cable TV buying is not even a part of the equation with online video partners. • What’s an impression? — Again, no standard here — does the advertiser pay for the impression once the video starts? Completes? Digital Upfront POV 2012 8
  • 9. Flighting and Underdelivery We all have targets and objectives. To achieve them, we need measurable plans that deliver certain reaches, weights, frequencies, etc. While all of the online properties are making guarantees, the question becomes at what flighting? For example, one opportunity we recently looked at for a client offered 70MM impressions across a 12 month commitment. There are no current estimates on when those impressions will hit. Clearly this will have an implication on forecasting across client organizations. Beyond the deliveries themselves, what happens with underdelivery or cancellations? We know what the networks offer — similar content, mostly likely an uptick in points as a make good, etc. In our preliminary discussions, the answers are not only muddy — in some situations the proposals are not good at all. One partner suggested replacing pre-roll impressions from original content with streaming video in-banner display units. Clearly, this is not an apples-to-apples swap. Given the newness of these deals, advertisers must consider all components of the buy. Another extremely important topic to discuss is how this inventory will fit into your Media Mix Modelling (MMM) efforts. MMM methodology always stirs up quite a bit of discussion and the inclusion of online video will be no exception. For some formats like Hulu, especially when streamed to the big screen TV, one would want to lean towards TV-like inclusion. But what about a pre-roll on YouTube? That video impression is more targeted than TV with less waste and some would argue, the user is much more engaged in that pre-roll than in a banner ad or a print ad. We are recommending to clients that you need to consider both viewing modality and desired communication objective when assessing this new vehicle. Portal Support With every new television season, each of the TV networks will turn out 8-10 new primetime shows, all of which are designed and developed to succeed on their own; but no matter how good the content is, there is incremental support provided by the networks. This support includes traditional spots during top rated shows to intrigue the future fans of a show to press junkets, significant OOH and so on. For example, NBC’s mid-season add of “Smash” was support by almost $100 MM of advertising, etc. and that has star power like Angelica Houston and Debra Messing. How can these portals support all of this content? Obviously the content creators themselves will be promoting the content, but we doubt that will be nearly sufficient. Digital Upfront POV 2012 9
  • 10. So far, the most substantial and concrete news we have heard is Google’s $200MM commitment of streaming video and Google Display Network (GDN) inventory. While we know the inventory will be extremely targeted, $200MM split across 18 sponsorship opportunities that are for sale with over 100 different shows; that $200MM will get spent quickly. Hulu, Yahoo! and AOL do have an advantage over Google in this regards because each does have a Portal doorway that can be used to advertise the content. We should all just assume that Yahoo.com will quickly become a key part of their promotion strategy, with over 37MM users hitting that page per day. The Upfront Presentations The objective of Hulu, AOL, Yahoo!, Google and MSN presenting “digital upfronts” or “brandcasts” to the advertising community a few weeks before the traditional network upfronts was to grab a MUCH bigger slice of the “television/video” budgets out there. The properties brought out all sorts of talent to appeal to the senior executives’ age group to promote their many, many, many, (maybe too many??) programming options. Yes, they are digital companies at the forefront of technology, offering content on every device available, but they are now looking to be seen as content players like the big guys, the “old school” broad and mass reach “television”. According to the digital players, mass reach (TV) is akin to dropping cheese out of an airplane and hoping to hit someone who loves cheese, while digital content can specifically target only the cities and individuals where cheese lovers live and offer them the perfect cheese offering. While digital technology does allow this and is uniquely positioned for more specific targeting, the new platforms these players are offering are priced to reach the masses, so the equation seems a bit off. In their presentations, Yahoo!, AOL, YouTube and Hulu all focused on premium original content, ranging from long(er) form (e.g., Hulu’s “Battleground” and Yahoo!’s Anthony Zuker’s “Cyberged- don” — a digital motion picture told in weekly shorter “episodes” ) to short form on Yahoo!, YouTube and AOL (2 minutes to 12 minutes). MSN really showcased their cutting edge advertising platform opportunities across Xbox (with live TV-like ad’s that include app-level interactivity and metrics) and potentially Skype. MSN wants the ad world to see them as the place with the #1 audience reach across the US with simple, scalable solutions across multiple platforms. They all spoke to and will continue to focus multiple screens, the importance of mobile, interactivity, and social. Digital Upfront POV 2012 10
  • 11. And Finally, the Content… From a network television buyer’s perspective, it was enjoyable to see these presentations. They seemed looser, more cutting edge, and dare we say even less polished than the network presen- tations — we found it refreshing. Some of the content looked top quality and worthy of a large- scale audience (like “Battleground” on Hulu, or Hulu’s “The Awesomes” animated superhero program by Seth Meyers, which will be timed just right to tap into the HUGE popularity of the “Avengers” audience) and some of the programming is very targeted and niche. Google came out with a bang with the YouTube announcement of $100MM in investment to create 100 content “channels.” The majority of their programming is short form (5 minutes or less) and is looking to appeal to a younger (18-34) audience (under 49 for sure). They are offering the 100 channels under 18 “content genres” that cover everything from comedy, short film, animation, cutting-edge music and news, pop culture, sports, and content that will appeal to thrill seekers and urban tastemakers. They feature talent as diverse as Dakota Fanning, Jay-Z, Tony Hawk, and Madonna. The originals launch in three waves — January, April, and July 2012 and while designed for a US audience, they will likely have a broader international appeal. There will be a ton of content and some of it may make a splash, but without something like a “TV Guide,” how do viewers find it? As a plus, Google does have Lucas Watson from P&G. He will be a huge asset in the years to come, as this (potentially 5-8 years from now) will be the destination for quality “snackable” original content. Lucas knows what advertisers want for content and need regarding accountability and we hope he will be able to infuse that knowledge into their offering. AOL is offering 14 channels of premium content and beneath these channels will be hot topics covered with curated playlists of short form content. Their content genres will target men, women, the affluent, millennials, and moms with content that covers topics from business, news, style and home to autos, health, pets, and parenting. With the addition of these premium channels, they will have 20,000 AOL Originals and 300,000 total videos. Hulu presented themselves most like a television network, perhaps because they exist as a platform for television programs with original episodic content (Yahoo! as well). But only Hulu offered TV-like episodes at 22 minutes long (much like a half-hour sitcom). A few to highlight: “Day in The Life” from Morgan Spurlock (original profiles of famous folks from a different angle), the shorter form “See Jane Date”, which is a “choose your adventure” meets “The Hills” reality show that is digitally inter- active. They also are offering travel guide shows, entertainment short-form programs like “Access Hollywood”, animated motherhood series from Eva Longoria and “My Side of the Sky”, which profiles a high school that caters to extreme sports lifestyle. Digital Upfront POV 2012 11
  • 12. Yahoo! has the strength of news (with ABC partnership) and finance covered, but their focus was on men, with new originals from Jeff Goldblum, a stunt show, and KaBoom; as well as women-focused programming, and comedy for adults. The Women channel features fashion news with talent like Rebecca Minkoff, Michael Yo, and Cat Deeley. The comedy channel looked most interesting with a spoof of The Bachelor with Michael Ian Black and Ken Marino, as well as a funny short-form interview show called “7 Minutes in Heaven” where the host Mike O’Brien (of SNL) interviews celebrities in a closet. The interviews are a funny and original take on the standard cookie-cutter interviews, and always include Mike requesting a kiss at the end. In summary, there is a vast array of original content now or soon to be offered. The quality will vary greatly (as it does on TV) and anyone from your six-year-old to your (hip) grandparents will find something to watch. But we have to ask at what point is there too much available in an already splintered media marketplace? Everyday people (not in our business) hardly know what is on TV across 95+ networks let alone 1,000 more online “channels.” Not all professionally produced original content will work or stay online (or on air), but in the vast and never-ending opportunity of the world wide web, these and other to-be-determined content providers can keep throwing ideas against the wall and there will be viewers for almost anything (just ask the creators of “Bacon Milkshakes”). In Closing We love that 2012 was clearly the “Coming Out” party for the Digital Upfronts and there are definitely some great highlights in there…but given the newness of the channel, advertisers need to be ready for uncertainty in many different forms — those who take the chance could be handsomely rewarded. Please work directly with your Havas Media account team for more specific information on content and opportunities relevant to your brands. General questions can be directed to: • Armin Molavi, SVP, Strategic Planning, armin.molavi@havasmedia.com • Adam Kasper, EVP, Partnerships and Investments, adam.kasper@havasdigital.com • Tracey Riener, SVP, Group Account Director, tracey.riener@havasmedia.com Oh, and one more thing… Hopefully next year’s digital upfront presentations will be scheduled in the same week. TV may be “old school” in the eyes of some, but we hope they understand we all have busy schedules! Digital Upfront POV 2012 12