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Shifts in Viewing: Video Consumption Up, TV Down

How appropriate that Nielsen’s new Cross-Platform Report is called “Shifts in Viewing.” You would have to be insensate not to know that people are consuming  more digital video. We know it because our video content publishers are seeing rapid upticks in traffic. In summary, the report says that although TV viewing has declined, most sharply among young people, not only has digital video viewing gone up, but the total time people spend interacting with has increased. Therefore, as Nielsen says charitably, we should not look at this shift as a game with winners and losers, but instead as an opportunity for everybody. Opportunity indeed. This must be what newspapers were told when news moved online twenty years ago. I’m not sure the opportunity here is for TV stations as much as it is for advertisers, who now have a solid new channel, mobile video, through which to reach those customers who have disconnected from TV. And according to Experian Marketing Services, that number is now 7.6 million households — up 44% in the past four years. But not having TV reception doesn’t faze them. fact, year over year among the younger 18-34 demo media consumption has grown four percent overall, two percent among Hispanics, eight percent among Blacks, and ten percent among Asians.  That’s because the young are looking at TV-like programming on their phones and tablets..  Nielsen says, “We are seeing year over year overall growth in digital use of sixteen percent among persons 18-34 with fifty-three percent growth in digital video viewing. ” But the truth is that not only the young are increasing the amount of video they consume online. Fast growth is also reflected in the 35-49 group, and the 50-64 demographic is surprisingly the fastest growing group of digital video consumers. Digital video consumption in this group  increaed 60%. TV viewing is down in every age group. And we look for that trend to continue, because this report shows that the highest increase in number of hours spent consuming video are spent on either time-shifted TV or mobile phones. Once the time-shift pattern was established, it became only a matter of time before video shifted online, and especially to the smart phone. As a culture, we’ve made a shift and we won’t be going back. Indeed, as phone screens get bigger, we expect video viewing on mobile phones to increase even faster.

Nielsen Highlights Audience Shift

Nielsen’s 2014 Advertising and Audiences Report, available as a free download, highlights the complexity of reaching an audience that is fragmenting and changing. While this report still sees TV as garnering the largest share of advertising dollars, the growth in TV advertising is slowing down, and the prices for TV spots are declining with the difficulty of reaching the audience on many different platforms, most of them mobile.

TV as spend has grown only 3% over the last year, and the cost of a single 30-second spot has dropped $1000 over the past five years. Where will the money be going? To a diverse marketing mix that will probably change every year until marketers figure out exactly where the consumer would like to see their messages.

And that’s a new kind of consumer. After years of watching the Baby Boomers age in America and Europe, a new population is emerging; it is younger, more racially and culturally diverse, and more tech savvy. It is also global by definition, since so much TV is time-shifted and streamed.  Even people sitting on the couch watching the familiar TV set are different: 86% of smart phone owners are using a second screen while watching TV, and they are increasingly seeing mobile ads rather than those on TV. Media planners are adapting with cross-platform campaigns. But how do we measure which parts of those campaigns are effective? Nielsen says,

As accountability from the largest global advertisers is becoming 
increasingly important, marketers and media planners seek ways to 
optimize advertising efforts in a way that yields return on investment 
through measurable, quantifiable results that align directly with overall 
business objectives. While massive amounts of data are available, 
sorting through it all in a straightforward, easy-to-understand way that 
provides specific, ad-performance based insights is the true challenge.

Right. There’s data enough to drown a media planner, but which numbers matter?

It’s still an open question how best to measure these kinds of campaigns, but we’re moving with our customers toward something that makes them feel they are getting the ROI they deserve. For ZEDO and ZINC customers, the metric for our video ads  is now Cost Per Complete View, something we can easily track and provide to the advertiser on our network, and something advertisers care about. Our advertisers are definitely  concerned with unduplicated Reach across platforms, but as Nielsen adds, “Resonance,”  and “Reaction,”  — sometimes translated as engagement. If someone likes a video ad enough to finish watching it, the ad is almost certainly viewable, contains the right message, and carries that message with powerful creative. When you put an ad like that into a high impact format like InArticle, where it has the potential to reach a text reader,  you have what it takes to catch the attention of a premium mobile consumer.

TV Ad Dollars Can Easily Shift Online in 2013

A snarky Ad Age columnist, Dave Morgan, has said that marketers will have a tough time shifting 10-20% of their TV ad dollars online as they’ve said they wanted to:

With the upfront looming, and increasing pressure to be innovative, many advertisers and agencies today are in a headlong race to shift and diversify their TV ad budgets, taking greater advantage of multiplatform-platform “video.” And why not? TV advertising is expensive and campaign reach is declining thanks to audience fragmentation.

However noble and well-intentioned, however, the expectations of many of these advertisers and agencies are unrealistic, particularly those calling for 10% to 20% budget shifts out of TV into digital video. That’s because, you see, 97% of all video viewing in the U.S. still occurs on TV. Yes. Whether the data is from Nielsen, Pew or eMarketer, all agree that only a small fraction of video viewing in the U.S. today occurs on devices other than the TV.

Yes. And no. Because this data is misleading.

First,  reach in the old sense of the word — mass markets — doesn’t even exist on TV these days. To reach the consumers major brands need to reach, they already need to diversify channels and platforms. When they say they are shifting TV ad dollars, they may mean they are going for integrated or converged campaigns across TV, print, and digital. That’s what they ought to be doing, because the new research says recall is much better in converged campaigns, as are conversions.

Second, the digital video audience skews younger and better educated than the TV audience, which means a more powerful consumer is watching video online. And that same consumer might be watching video on multiple screens simultaneously, which Nielsen has just begun to measure.

Third, Morgan may be thinking that creative dollars have to shift. But they don’t. We have high impact formats, especially InArticle Video, that allow advertisers to take standard IAB creative units and insert their already produced TV ads into those units. When a viewer mouses over the ad, the audio begins to play, and if she clicks on the ad, it expands to full screen. This format is the most engaging in the industry today; the statistics on completion and viewability are off the charts.

So a blanket assertion that there is nowhere to advertise with video dollars online, or that its reach is not comparable, is failing to see the forest for the trees. Digital is global, which is automatically greater reach, and it is on 24/7, rather than in a specific time slot. Digital video ads should be as good as TV, they will be as good as TV, and in terms of the old standards of reach and frequency for the dollars, they have TV beat by a mile.

 

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Nielsen’s Press Release on ZEDO Partnership

Nielsen Online Campaign Ratings Expands Footprint Across 15 Online Ad Platforms

New York, NY – September 19, 2012 – Nielsen, a global provider of information and insights into what consumers watch and buy, today announced an expansive business and thought leadership initiative with more than a dozen of the industry’s leading online ad platforms. The Nielsen Online Campaign RatingsTM initiative is the first to align a number of top online ad platforms—key drivers in the online advertising ecosystem—behind Nielsen’s online audience reach standard.

Participants of the initiative are integrating Nielsen Online Campaign Ratings into their platforms and delivering the metrics directly to their clients. Connecting to Nielsen Online Campaign Ratings data through an application programming interface (API) allows the ad platforms to facilitate seamless and accurate operations and differentiate their offerings through Nielsen Campaign Ratings-fueled measurement. Ad platforms can also enable their clients to use Nielsen Online Campaign Ratings to improve their ability to set up audience guarantees. The 15 participating ad platforms include the following:

  • Adap.tv
  • AudienceScience
  • DataXu
  • FreeWheel
  • Innovid
  • Jivox Corporation
  • LiveRail Inc.
  • SET
  • TubeMogul
  • Turn
  • VideoHub®
  • Videology
  • VINDICO
  • ZEDO

Nielsen has made significant inroads with ad platforms since launching Nielsen Online Campaign Ratings in 2011, beginning with VideoHub, which became the first online video advertising platform to integrate Nielsen Online Campaign Ratings data last December. Numerous ad platforms are now leveraging Nielsen Online Campaign Ratings in a variety of ways – from planning to in-flight campaign optimization to campaign analysis.

“Nielsen Online Campaign Ratings provides the kind of trusted, TV-comparable online data that our customers want, so we’ve embedded access to the data within our products with an ‘always-on’ policy that allows our clients to use it throughout the buying process – for planning, in-flight optimization and post-campaign evaluation,” said Vijay Rao, Vice President of Client Strategy at Adap.tv.   “Nielsen Online Campaign Ratings is a key data source for our customers in both the Adap.tv Platform and the Adap.tv Marketplace, where 48 of the 50 largest brand spenders buy video.”

“We support all innovation that facilitates cross-platform measurement, and ultimately allows advertisers to better evaluate performance across their entire media campaign,” said Scott Ferber, Chairman and CEO, Videology. “Nielsen Online Campaign Ratings is a tremendous step forward in providing buyers and planners a consistent measurement metric for both traditional and digital media, and illustrates the rapidly growing demand for cross-screen convergence. As such, we have integrated Nielsen Online Campaign Ratings into all aspects of our planning, decision-making and measurement systems, to enhance advertisers’ ability to consistently reach their optimal audience based on Nielsen reporting.”

“We believe it’s critically important that marketers tie GRP data directly to the effectiveness of their advertising,” said Anthony Risicato, General Manager of VideoHub. “Now, with VideoHub, marketers have a platform to measure their ratings and also know if/where/why those ratings are having an impact – in real-time, anywhere they are running video campaigns. This joint effort has been a catalyst for true innovation across brands, agencies and publishers. Together, we’re measuring what matters.”

“The platforms that sit between the buy and sell sides are the nerve-center of online advertising, where advertisers and publishers extract the maximum mileage out of their spend and inventory respectively,” said Amit Seth, Executive Vice President, Global Media Products for Nielsen. “We understand the powerful role these platforms play and are excited to work together to integrate Nielsen’s industry standard metrics into what they deliver to their clients. Nielsen Campaign Ratings’ highly accurate metrics will enable advertisers and publishers to better optimize throughout a campaign and reach their true audience with each and every ad.”

Nielsen expects to deliver case studies and other insights derived from this initiative to the marketplace beginning this fall.

About Nielsen Campaign Ratings

Nielsen Campaign Ratings delivers clients comprehensive, comparable metrics for TV and online advertising campaigns. Part of the Nielsen Campaign Ratings product suite, Nielsen Online Campaign Ratings combines Nielsen’s Cross-Platform Homes panel data with aggregated, anonymous, privacy-protected demographic information from participating online data providers. Campaign reporting is available the day after the launch of a campaign, providing vital delivery information in-flight to agencies, advertisers and publishers. Nielsen Cross-Platform Campaign Ratings, also part of the suite, draws upon Nielsen Online Campaign Ratings as well as Nielsen’s proprietary TV data to deliver unduplicated and incremental reach, frequency and GRP measures for TV and Internet advertising.

About Nielsen

Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, visitwww.nielsen.com.

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